8 reasons why API defines the present and future of Enterprise Data Exchange

In an Enterprise setup, it is extremely common to observe various kinds of data exchange patterns ranging from basic FTP, old style RPC, EDI (primarily used for B2B), ETL, API, Messaging, and even Data Streaming.

Each of these has their own applicability, and use cases where they fit best and it will not be an wise stand, to go for an “One-size-fits-all” solution. However, API still stands apart from others, for numerous reasons and by far the best choice for most of the use cases.

If you still wonder why, then below are the 8 such reasons which makes API a superior choice. Note: Data Streaming is required for specific use cases, for example, processing of large amount of data in real time, and API cannot replace the need, rather it works in conjunction with Streaming.

1. Supports Real time Data Scenarios: APIs can be built to provide real time data which is essential for certain kind of systems. Monitoring systems, driverless cars sensor data, chat based communication, real time experience building are few of them. There is even a whole branch on it called Real time API. In general, these APIs need to share real time data and also, all of these APIs need to process a call end-to-end in less than 30ms to be termed as real time API. That is because any more delay to process means its not anymore real time data. Unfortunately, with traditional HTTP request response model only this much real time is possible to achieve (well, statistically at least).
2. The Rise of Streaming APIs :To bring a better real-time-ness, Streaming APIs are introduced. A streaming API works by the client opening a socket, providing subscription criteria for the data it wants to receive. Client will not try to poll the data anytime. The server will deliver or publish new data as it is received, over the open socket. This way, it resembles the broadcasting or pub-sub model of data exchange. This kind of persistent connection helps to reduce the network latency significantly, when a server produces continuous stream of data. The best example is facebook updates or twitter feeds.
3. API building is fast and easy: Unlike other kind of data exchange patterns, since APIs works over mostly HTTP protocol, building them is easy and fast process. Yes, it would need to expose functionalities through certain set of APIs but that is anyway a process for a successful service based architecture. Think of any other kind of data exchange process, and none of them is possible without additional software and hardware. An FTP needs a FTP server, ETL needs a middleware, messaging need message queue etc.
4. API dictates the overall architecture: Because APIs are so important to have around any core system, nowadays, architects started thinking in “API First” way. It means, APIs will be the elite groups in the development methodology and everything will be built keeping in mind that they will be later consumed by various channels or tools or software. This encourages parallel development in various groups because ultimately they just need to honor the contract between their systems. API first approach increases reusability & extensibility — the two most essential ingredients to achieve a future proof sustainable model. This ultimately helps in better developer friendly collaborative development model too.
5. API Can be managed centrally: APIs can be easily managed, regulated, secured and monitored through a central gateway management process. There can be three kinds of APIs — public, private or partner APIs and all of those can be configured in the same management UI where proxies can be easily built, edited or deleted.
6. APIs are performant, scalable and secured: API performance KPIs like call volume, success rate, error rate, response time etc can be monitored real time and optimized easily because of its “easy to detect bottleneck” capability. In-built response caching and intermediate data caching can be of great help too to make those performant. Any kind of downtime can be detected easily through built in alert mechanism. APIs can be made secured by adding Authentication and Authorization APIs in front of data APIs to ensure they are consumed by required recipients only. Major API products comes with inbuild throttling, spark arrestor and other out-of-the-box DDOS preventing policies.
7. APIs are independently testable: APIs can be tested without much dependency and with simple tools like POSTMAN. And these can be good candidates for white box testing. If API functionality testing is executed properly before engaging them through callers application — it is possible to reduce the effort and time to test channels in a great extent. Also from a security testing standpoint and performance testing standpoint, it is entirely possible to engage various tools to execute performance and security testing for APIs alone. This is a no-brainer, to understand how important such testing to avoid API vulnerabilities.
8. API monetization and economy establishment: APIs are easy to track for volume, usage etc and this helps building licensing model based on usage pattern and volume. Third party APIs can very well monetize their product and make available to consumer with huge transparency simply by showing call volume and associated expense. Mostly because of its transparent nature, it is easy to predict the usage and cost for future use and that gives confidence to the customers.

Bonus: Since I came from Digital Marketing background, would like to highlight how APIs are driving this space. In a digital world, various channels create opportunities for users to engage with brands through various touch-points. And each of those channels needs amount of data as well as crafted experience (rendering details) to build a long term impact on the end consumer.

So, how this all happens ? mostly through APIs.

Front end technology like REACT makes ajax calls to server for getting the data real time and even the presentation details in case of performant sever side rendering.

Now, think of another scenario — a third party data source who only provide a piece of information for your channel, lets say a mobile app, which shows temperature along with other information, you definitely do not want to get a whole lot of access to their other detailed weather data and pay more. So, you can just subscribe to their relevant APIs to get only the relevant information and present it to customer. Which is possible through API in much more practical way.

How about knowing a person’s exact location to build a proximity marketing experience? Again, it is a real time need and no other solution than API can help here.

When Alexa is informed to make a certain action (like ordering a book) which is outside Amazon ecosystem — it is third party API again which helps executing the desired action.

An experience is built of many such small components as more and more digital features get added to the channels and each of those can be supported by APIs to build a “never-to-forget” impact.

Hope this articles clarifies, why API is dominating the integration layer so heavily.

References:

https://seeburger.com/info/apis-from-api-management-to-api-solution/

https://swagger.io/resources/articles/adopting-an-api-first-approach

https://blogs.mulesoft.com/dev/news-dev/real-time-web-and-streaming-apis/

https://www.nginx.com/blog/how-real-time-apis-power-our-lives

https://enterprisearchitecture.harvard.edu/data-exchange-mechanisms