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jiang yejiang ye 

What is the difference building an integration on Connected App and App Exchange?

I am trying to build an integration solution for my clients to pull their Contacts and Leads into our system. 

When I tried to look up the Salesforce API, all the documentation seem to require our clients to set up a connected app, and give us the oauth token to pull data. However, my clients also told me that all their existing integrations (e.g. marketo) are done through installing from the SF App Exchange, and they needed to provide a user token, username and password to marketo. 

This seems quite different from the connected app approach. I am confused about which option I should pick. Could someone clarify this for me?

Rahul KumarRahul Kumar (Salesforce Developers) 
Hi Jiang,

May I suggest you please check the below link for reference. hope it helps.

Please mark it as best answer if the information is informative.

Rahul Kumar
NagendraNagendra (Salesforce Developers) 
Hi Jiang,

Appexchange - natively built app on Salesforce platform which can be installed in your Salesforce org with just one click. It doesn't require any kind of authentication.

Integration - this means you are trying to interact with another system(or vice versa) which is not on Salesforce platform. Therefore, you need to have an identifier to authenticate this external org to perform any sort of operation. A connected app would last this external application and provides you client secret and consumer key which helps salesforce determine a valid user connection over API's call.