What Is the API Economy?

The API economy is booming. But does your business have what it takes to succeed?

In this blog, we share everything you need to know about the API economy.

What Is the API Economy?

The API economy is a business model built around the use of APIs in the digital economy. Simply put, the API economy exposes services and data through APIs to generate value for your business. Controlling APIs is critical in the API economy.

The API economy has been on the rise for several years. As companies embark on a digital transformation strategy, APIs help them to achieve integration and deliver new services faster.

By using APIs to connect services, you can go from idea to product faster. Instead of having your developers build everything, you can use APIs to leverage existing technology. So, your developers can focus on building what matters most to customers — and do it faster than they would otherwise.

It’s an indisputable fact — APIs enable innovation.

Today, over 40% of large organizations have 250+ APIs. And 71% plan to use even more APIs this year.

But as your business adds more APIs, managing them gets complicated.

What Are API Economy Examples?

API economy examples are everywhere. A Google Maps API allows companies to use their maps — without building their own system. A Slack API allows applications to integrate within the messaging platform. An UberEats API allows businesses to deliver food to customers — without launching a service.

There are many different approaches to the API economy. Some business use API monetization models to drive value from their APIs. This might include tiered pricing to charge for API consumption. Other businesses approach the API economy as an opportunity to drive value through innovation.

But no matter the approach, one thing is clear. The API economy is here to stay.

Benefits of the API Economy

The API economy comes with many benefits for your business.

Accelerate Time-to-Market

Using APIs to leverage existing services helps you accelerate product delivery. Instead of building everything for your application, you can focus on building the truly innovative features.

The result? Faster time-to-market.

Drive Value

Using APIs helps you drive value for your business. You can maximize API value by delivering better customer experiences, empowering your partners, and integrating your internal applications.

The result? More revenue.

Gain a Competitive Advantage

Using APIs to connect services and applications gives you a competitive advantage. You’ll be able to beat your competitors to market and deliver the experiences your customers want.

The result? A competitive advantage.

Challenges in the API Economy

Of course, there are also challenges in the API economy.

Controlling Access to APIs

Controlling access to APIs is a huge challenge. You want APIs to be available to customers and partners. But you also need to make sure that access is secure — and backend data is protected.

An API gateway is critical to controlling access. But not all gateways are built the same. In the enterprise especially, you need to choose the right one to fulfill your security requirements.

Managing Everything

Managing everything — APIs, backend systems, infrastructure, deployment — is challenging. You need to have visibility into what’s being used and where. If you miss something, it could cost you. The API risks are high.

API management is key to overcoming this challenge. But not all solutions are the same. In the enterprise, you must have insightful analytics into your APIs, so you can ensure compliance and drive value.

How Your Business Can Succeed in the API Economy

Here’s how your business can succeed in the API economy.

1. Choose the Right Platform

Choosing the right API platform is the only way to succeed in the API economy.

That’s why enterprises around the world choose the Akana API platform.

For example, a Fortune 500 company chose Akana to drive their success in the API economy.

They gained:

• Protection from external threats.
• Positive customer experiences.
• More developer engagement.

Find out why Akana was the right platform for their success. Read the case study >>

2. Build Your Strategy

Once you have a platform like Akana, you need to build your API strategy.

Your strategy for the API economy might be an API monetization strategy.

There are four key steps in building your monetization strategy:

• Assess the API revenue opportunity.
• Select an appropriate API monetization model.
• Scale full lifecycle API management.
• Optimize API monetization around a developer community.

Go in-depth on how to build your API monetization strategy. Read the blog >>

Or your strategy for the API economy might be a digital transformation strategy.

There are three key steps in building your transformation strategy:

• Define the value up front.
• Build a culture around digital transformation.
• Scale as you go.

Go in-depth on how to build you digital transformation strategy. Read the blog >>

3. Manage the Full Lifecycle of Your APIs

After you develop your strategy, it important to manage the full API lifecycle.

This includes how you’ll:

• Design APIs
• Create APIs
• Publish APIs
• Secure APIs
• Consume APIs
• Monitor APIs

Get control over your lifecycle. Explore the hub >>

Get Started With Akana

The Akana API platform provides the easiest way to accelerate digital transformation in the enterprise.

That’s because Akana:

• Makes it easy to create, publish, secure, and deploy APIs.
• Enhances security with automated policies, including authorization and authentication.
• Partners with you to develop your strategy for success in the API economy.

With Akana, you can accelerate time-to-market, drive value, and gain a competitive advantage. You’ll have complete control over API access with the Akana API gateway. And you’ll be able to manage everything in one spot, with complete visibility into performance.

By choosing Akana, you’ll be able to succeed in an API economy with:

1. The right platform, complete with an API marketplace.
2. A solid strategy that drives value.
3. The ability to manage the full lifecycle.

See for yourself why Akana is the best API platform to ensure success in the API economy. Watch the on-demand demo to see how it works.

 ▶️ Watch the Demo