I recently sat down with my friend Aaron Smith to get his thoughts on the business benefits of APIs. You can read more of Aaron’s thoughts on APIs here.
What do you see as the business benefits of APIs?
Just like every business has its own processes and revenue models, not all will benefit from APIs in the same way. One company is a content provider, basically a database to be searched. They may have a goal of selling raw access to that data to other companies or partnering to create new applications. Another company may want to use its API to facilitate application integration for its clients. The opportunities are as varied as the companies that deploy them.
Remember when XML was introduced into Web development? HTML was used in formatting the presentation layer and XML was used to serialize the data. By using Web services APIs you have the ability to abstract away the UI from the application. Now the UI can evolve or change to meet the client needs. Think about how you interact with Twitter – do you ever go to the Web site? Many do not because they have a much better experience using other client apps. If Twitter didn’t have an API, I don’t think they’d have the explosive growth that you see today. The API has become the tool that enables business agility.
Do you think APIs are for everyone, or do you think there are certain verticals and types of businesses better suited to extending services with APIs?
Like I mentioned before, business models will differ, but I can’t think of a vertical or business that would not want to have an API. I’m actually interested in the API first design principle. Perhaps by developing the API first, it would ensure consistency in the way the API and the Web application function. I’ve seen companies try to develop the API retroactively and have some trouble getting the same data as using the Web application. I read what Huddle.net is doing and I agree; you must be able to trust the API. It can’t be a second class citizen in the development priorities and backlog.
What do you see as the major concerns for companies opening up their services or content to the cloud with APIs?
There are a few concerns that I have talked about since my earlier days of exposing APIs. You must be able to control access. If you are a content provider, this is a major concern. You must protect yourself from misuse of the API; this means some sort of throttling. And remember, you can’t manage what you don’t measure. If you are going to open an API, make someone responsible for it and give them the tools to manage it.
How do you predict APIs will change the way we do business?
APIs create new business opportunities. VARs that used to deploy software on premise can now use APIs to do integrations of applications, along with developing tools for data migration. This is especially critical for SaaS and cloud computing. There really isn’t an opportunity for much customization of applications and VARs are now looking to provide more configuration and integrations in their offering. APIs will result in more strategic partnerships in business. A prevailing thought on my product team is to build less. If you focus on the problem that your product solves, and do that correctly, there will be other areas that you will partner. APIs can help make Best of Breed products into custom solutions to compete with software suites and really provide increased value for the consumer. But, APIs are not a panacea; there are things that are difficult to do even with an API.
