For those already working in the field of API development, the impact of APIs is obvious. These software intermediaries hold up a crucial network of separate applications talking to each other. Everyday examples include tweeting with a link to a news site or cross-posting content from Instagram to Facebook. But what would these APIs mean to entrepreneurs who are just about to modernize their businesses with tech? How would you laymanize APIs, and how would you get client businesses to pay attention to this field of software engineering?
To achieve this goal, you can do two things. One is to inform them of how API technology is shaping today’s business sector. Another is to propose the business value of a great API product—the kind that you can make for them. Here’s what a developer should know about recent growth in the API industry, and what they should be communicating to their client businesses.
API Growth is On the Upswing
According to a survey done by API experts SmartBear, up to 59% of new organizations have started developing their own APIs. This a big jump from the numbers circa five years before. That means that businesses have picked up on the value of APIs, and they have spent more than $590 billion on their integrations to separate systems.
API tooling has also prospered over the decade. All-inclusive API platforms like Stoplight have made development, workflow, and integration smoother for everyone involved—outside developers, tech managers, and clients alike. And in terms of strategies that are making waves, there’s OpenAPI Specification (OAS), whose adoption rates have risen. OAS has enabled developers to take a strong design-first approach that has, in turn, bolstered API quality for businesses.
But the real changes are actually still to come. There’s even more in store for businesses that have chosen to invest in top API technology.
Trends in Business Consumption of APIs
Thus far, APIs are transforming the ways businesses operate for the following reasons.
Selling Not Only Products, but Functionality
No longer is it the trend to think of products as a business’s only competitive edge. An ecommerce business would fall behind its competitors if customers couldn’t use their preferred method of digital payment—something that’s only possible with an API. Businesses are now willing to pool more resources into APIs that sell functionality. Luckily, API developers are just as willing to break ground with them.
Using APIs to Enable Banking-as-a-Service
Today’s customers rely on cashless payments more than ever before. That’s why it makes sense for the banking and fintech industries to tap into APIs. Dynamic APIs will allow them to provide a whole new range of banking and payment services to customers. This, in turn, will win API clients their customers’ trust and support.
Joining a Network of Services in the “Coherence Economy”
In the early 2000s, it was unthinkable to use one platform to store a lot of data and use several applications at the same time. How could we have pictured our cellular phones back then being able to store music, browse the Internet, and enable instant messaging all in one go?
But the ethos that brought us today’s smartphones has lived on in the business API industry. Now, customers gravitate toward systems and devices that have streamlined, all-in-one functionality. And so, businesses are vying for their own spots in what’s called a “coherence economy,” an ecosystem where apps are interoperable. Of course, it’s API technology that can get them a place in that coveted network.
Conclusion: It’s an API-Driven World
Some challenges will remain as the API sphere moves forward. Those are issues of quality, security, stability, and scalability just to name a few. But overall, APIs spell a lot of promise to modern, 21st-century, web service-driven businesses. Hopefully, this article has given you a look into the exciting new business possibilities of APIs. Make sure to pass on that same optimism when you work with your API clients.