Laptop Displaying the GigaOm Research Portal

Get your Free GigaOm account today.

Access complimentary GigaOm content by signing up for a FREE GigaOm account today — or upgrade to premium for full access to the GigaOm research catalog. Join now and uncover what you’ve been missing!

What is in an API?v1.0

Monetizing Data for Partners and Customers

Table of Contents

  1. Summary
  2. Market Framework
  3. Maturity of Categories
  4. Considerations for Implementing API Monetization
  5. Vendor Review
  6. Near Term Outlook
  7. Key Takeaways

1. Summary

Adoption and use of an API are heavily dependent upon the consistency, reliability, and intuitiveness of a given API. It is a delicate balance. If the API is too difficult to use or the results are inconsistent across uses, its value will be limited and, hence, adoption will be low. Our research has found that many enterprises have focused on the technical requirements to deliver and scale and API, but have not focused on the corresponding non-functional requirements of a comprehensive API strategy that includes support, service level management, ecosystem development and usability in the face of legacy integration or stream large amounts of data in response to a request.

Key Findings:

  • Enterprises are creating APIs at an incredibly fast pace often without paying attention to the implications for operational overhead or a comprehensive strategy that goes beyond the technology for building and deployment.
  • A successful API strategy must include provisions for developer onboarding and support, clear policies related to service levels and use, the ability to operate in a hybrid cloud model, and a proactive monetization scheme. With regard to the latter primarily focused on support for various sizing approaches and scalability.
  • There is still a strong requirement to “roll your own” API infrastructure to support a comprehensive API strategy. While many of today’s API gateway and management products to address the basics, businesses will still need to invest in building a developer portal, providing support, growing a community and addressing many of the operational issues. Microservices architecture is helping to alleviate some of the overhead associated with deployment and scalability by packaging APIs into manageable entities.