For a successful information systems architecture management, reference models and decision rules must be provided. In this paper, an architecture model and design rules are proposed that are intended to support information systems architects in integration decisions. The goal is to improve application architecture by balancing intra-application integration costs and inter-application integration costs. Based on a general discussion of architecture models and integration costs, related work is reviewed, and a model is proposed that combines two existing models. Using that model, existing application design is analyzed, and an ideal generic application design is presented. In order to minimize inter-application integration costs, three approaches to optimal application interfacing are discussed. The work is based on experience from several integration projects at large Swiss and German companies, mainly from the service sector. Keywords Information systems architecture, Application arc...