Back to the Future with the “API Economy”: Management Strategies for a New Wave of Integrated Applications

EMA Market Research Study

Back to the Future with

the “API Economy”:

Management Strategies for a New

Wave of Integrated Applications

July 28, 2015

Julie Craig

Research Director, Application Management

Enterprise Management Associates, Inc.

www.enterprisemanagement.com

Today’s Presenters

Slide 2 © 2015 Enterprise Management Associates, Inc.

Julie Craig - Research Director, EMA Julie has over 20 years of experience in software

engineering, IT infrastructure engineering, and enterprise

management. At EMA, Julie’s focus areas application

management, public and hybrid cloud, integration

technologies, DevOps/Continuous Delivery, and Application

Performance Management (APM).

An archived version of the event recording

will be available at


Slide 3

Logistics for Today’s Webinar

• Log questions in the Q&A panel located

on the lower right corner of your screen

• Questions will be addressed during the

Q&A session of the event

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Event recording

http://www.enterprisemanagement.com/

EMA Market Research Study

Back to the Future with

the “API Economy”:

Management Strategies for a New

Wave of Integrated Applications

July 28, 2015

Julie Craig

Research Director, Application Management

Enterprise Management Associates, Inc.


Research Sponsors


Agenda


• Overview

• Methodology

• General findings

• API Utilization patterns

• How/where API gateways/platforms add value

• Summary and wrap-up

Software is the Center of the Digital Universe:

APIs are the “Glue”


IoT Cloud

SocialMobile

Software

APIs: Wave of the Future, Relics of the Past


Agenda


• Overview

• Methodology



• How/where API Gateways/Platforms Add Value


Who Did EMA Survey and How

Did EMA Select Respondents?

• Conducted in April 2015 by EMA’s research team

• Between 60 and 70 questions, 200+ data points

• 150 IT professionals.

• Selection criteria

• All respondents:

Are responsible for developing, implementing, or managing API delivery

Work for companies either providing or consuming APIs

Are knowledgeable at a high level about their company’s API usage, revenue

growth, and IT budgets.

• 45% IT executives (directors, C-level), 25% middle managers, 30% IT

hands-on practitioners

• 21% “small” companies (< 1,000 employees), 62% “medium” sized

companies (1,000 to 9,999 employees), 18% “large” companies

(>10,000 employees)

• 100% North America


Agenda


• Overview

• Methodology





Top API Use Cases


52%

42%

40%

38%

33%

32%

28%

7%

Providing access to internal programs or data for mobileusers who are employees of your company

Simplifying access to internal programs or data for yoursoftware developers

Utilizing APIs delivered by external entities to interact withpublic cloud

Providing access to internal programs or data for mobileusers external to your company such as customers, partners,

etc.

Providing access to internal programs or data to partners,suppliers, etc. for integration purposes

Utilizing APIs delivered by external entities to interact withpartners, suppliers, etc.

Utilizing APIs delivered by external entities to deliver aproduct or service

Utilizing APIs delivered by external entities to consume aproduct or service

Which are the top three use cases for APIs in your company?

Primary Use Cases Vary by Company Size


Company

Size

Top Use Cases

<1000

(small)

1. Utilize APIs delivered by external entities to interact w/ partners,

suppliers, etc.

2. Provide access to internal programs or data to employee users

3. Provide access to internal programs or data to external companies

1K-9999

(medium)

1. Provide access to internal programs or data to employee users

2. Simplify access to internal programs or data for internal software

developers

3. Provide access to internal programs or data to external users

10K+ (large) 1. Provide access to internal programs or data to employee users

2. Utilize APIs delivered by external entities to interact with public cloud

3. Provide access to internal programs or data to external users

Which are the top three use cases for APIs in your company?

Statistically significant differences based on company size

API Manager Role Responsible for “Provider” APIs…


48%

14%

13%

7%

5%

3%

3%

3%

2%

1%

API Manager, part of IT

CIO

API Manager, part of Line of Business

Security group

Integration team

Finance office

Development

Center of excellence

Product Management

We don't set policies or manage access for our…

Which role or group within your organization is responsible for setting policies and managing

access to your INTERNAL (provider) APIs?


41%

16%

14%

8%

6%

5%

3%

3%

2%

1%

API Manager, part of IT

CIO

API Manager, part of Line of Business

Security group

Integration team

Finance office

Development

Product Management

We don't set policies or manage access for…

Center of excellence

Which role or group within your organization is responsible for setting policies and managing

access to EXTERNAL (consumer) APIs?

AND for “Consumer” APIs…


49%

42%

9%

1%

Critical to revenue generation

Important sources of revenue

Somewhat important to revenue

Not at all important

In your opinion, how important are INTERNAL (provider) APIs to your company's revenue?

Provider APIs “Critical” or “Very Important”

to Revenue for More than 90%


48%

40%

12%

0%

Critical to revenue generation

Important sources of revenue

Somewhat important to revenue

Not at all important

In your opinion, how important are EXTERNAL (consumer) APIs to your company's revenue?

Consumer APIs “Critical” or “Very Important”

to Almost as Many

Agenda


• Overview

• Methodology






69%

48%

43%

43%

17%

Databases

Mainframe

Packaged applications

Custom applications

All of the above

Which types of endpoints are these Provider APIs exposing?

Database Most Common Exposed Endpoint,

Mainframe also a Target; 17% Say “All of the above”

Companies Maintaining Numerous APIs:

10% Supporting 100+


2%

7%

17%

19%

21%

19%

10%

4%

1

2 - 5

6 - 10

11- 20

21 - 50

51 - 100

100+

Don't know

Approximately how many INTERNAL (provider) APIs do you maintain?

Top Challenges of API Delivery:

High Traffic Volumes, Security


53%

50%

46%

34%

32%

23%

12%

3%

1%

High volume of traffic to our systems

Security of "back end" systems

Identity and authentication mgmt

Version control

Lack of visibility to who is using the APIs

Billing

Lack of commercial products necessary to manageAPI development and lifecycle

Lack of commercial products necessary to manageAPI delivery

Other

Which are your top three challenges in terms of managing your INTERNAL (provider) APIs?

Between 100,000 and 1 million API Transactions

Calls Monthly, on Average…. BUT


5%

21%

23%

17%

9%

6%

8%

3%

8%

0 - 100,000

100,001 - 500,000

500,001 - 1 million

1 million plus to 25 million

26 - 50 million

50 - 100 million

100 - 500 million

1 Billion or more

Don't know

Approximately how many transactions per month currently access your INTERNAL (provider) APIs?

Response Company size

<1000 1K-9999 10K+

100,001 - 500,000 40% 19% 4%

500,001 - 1 million 37% 23% 12%

100 - 500 million 0% 4% 31%

1 Billion or more 0% 1% 15%

Don't know 0% 10% 11%


15% of Large Companies Report 1 billion or More

Transactions (per month) Accessing Their APIs

Statistically significant differences based on company size

Almost 85% Say Transaction Volume Increasing


84%

8%

8%

Increasing

Decreasing

Don't know

Regarding the transactions currently accessing your systems via INTERNAL (provider) APIs, is the transaction volume generally

increasing or decreasing over time?

Monthly Increases Most Often in

Neighborhood of 10% to 20%


16%

26%

14%

12%

5%

7%

3%

4%

3%

7%

3%

1-9%

10-19%

20-29%

30-39%

40-49%

50-59%

60-69%

70-79%

80-89%

90-100%

Don't know


2%

8%

18%

21%

22%

13%

10%

7%

1

2 - 5

6 - 10

11 - 20

21 - 50

51 - 100

100+

Don't know

How many different “Consumer” APIs are currently used by your production systems or users?

Consumer APIs in Use Most Often Number Between

11 and 50; 10% of Companies Report 100+


7%

19%

24%

18%

9%

5%

9%

1%

7%

0 - 100,000

100,001 - 500,000

500,001 - 1 million

1 million plus to 25 million

26 - 50 million

50 - 100 million

100 - 500 million

1 Billion or more

Don't know

Approximately how many transactions per month currently access EXTERNAL (“Consumer” ) APIs?

Most Often, Consumer APIs Called Between 500K

and 1 million Times Monthly

Agenda


• Overview

• Methodology





API Gateways/Platforms Utilized by 99%

for Providing, Consuming, or Both


40%

34%

25%

1%

We use an API Gateway or Platform for bothINTERNAL and EXTERNAL supplied APIs.

We use an API Gateway or Platform to deliver,manage, and/or govern the APIs we provide for

INTERNAL systems

We use an API Gateway or Platform to manage orgovern the use of APIs provided by EXTERNAL

parties such as partners, suppliers, etc.

We do not use and API Gateway or Platform.

Which statement best describes how your company manages APIs?

Security is Top Gateway Feature Supporting Provider APIs


64%

38%

26%

25%

24%

23%

23%

18%

18%

13%

11%

Security and/or access control

Monitoring and/or alerting

Capacity mgmt

Traffic mgmt and/or throttling

Reporting and/or analytics

API Lifecycle Mgmt

API search/discovery

Self-service

Usage tracking, chargeback, and/or billing

Public cloud hosting

Integration with Application Lifecycle Mgmt solutions

In your opinion, what are the top three most important features of your current API Gateway or platform supporting your

INTERNAL (provider) APIs?


47%

31%

29%

28%

27%

25%

23%

22%

22%

15%

9%

Security and/or access control

Monitoring or alerting

Usage tracking, chargeback, and/or billing

Capacity mgmt

Traffic mgmt and/or throttling

Reporting and/or analytics

API Lifecycle Mgmt

Self-service

API search/discovery

Public cloud hosting

Integration with Application Lifecycle Mgmt solutions

In your opinion, what are the top three most important features of your current API Gateway or Platform supporting consumption of

EXTERNAL (consumer) APIs?

Security also Top Feature Supporting Consumer APIs–

Though Not by as Wide a Margin

Gateways also Most Common Way “End to End”

Transactions are Monitored/Managed


45%

32%

31%

29%

27%

18%

17%

16%

9%

5%

3%

API Gateway performs this function

We rely on an Application Mgmt platform product

We monitor performance/availability of our own APIs but notthose of external entities

We rely on a SaaS-delivered Application Mgmt solution

We monitor performance/availability of external APIs, but notthose we deliver

We rely on silo tools

We rely on "homegrown" scripts or programs

We rely on a "lightweight" Application Mgmt solution or suite

We don't monitor performance or availability for API-connected transactions

We wait for the phone to ring to notify us of a problem

We monitor Twitter for customer complaints

How does your organization do "end to end" transaction tracking (monitoring performance and availability) for production applications accessing APIs? Please select up to 3 ways.

Changes in Consumer APIs

Most Often Detected by Gateways


62%

23%

7%

6%

1%

Our API Gateway or Platform notifies us

The supplier notifies us

Other commercial API monitoring or governancetools in use notify us

Homegrown purpose-built tool notifies us

We have no way of knowing about such changesuntil they adversely impact our systems

How is your organization notified of version changes in EXTERNAL (consumer) APIs which could impact your

own internal users or systems?

Agenda


• Overview

• Methodology





Summary

• APIs are business critical

• Most companies using APIs both provide and consume

• API Manager role emerging, typically part of IT (but not in Security group)

• APIs provide access to sensitive internal systems, underlining the need for

security

• API access creating growing volumes of data center traffic

• Security, high traffic volumes top concerns

• API Gateways/platforms also most common way IT organizations track “end

to end“ transactions utilizing APIs

• API Gateways/platforms are the management/governance products of

choice for most companies utilizing APIs for production


Q&A –

Please Log Questions

in the Q&A Panel


Technology

Back to the Future with the “API Economy”: Management Strategies for a New Wave of Integrated Applications