API management

Platforms have become a driver of new technologies, businesses and economies. Many in our industry focus on companies looking to enable others to create and deploy on existing foundations. And so a lot of media attention goes to APIs that generate innovation, energy and attention from third party developers in what we call the “App Economy”. Yet, many platforms have been generating revenue with the simple strategy of selling access to their valuable data.

I’m always amazed to hear how fast things happen in the technology industry. It’s true—entire platforms can go from revolution to obsolete seemingly overnight, and we all know of companies that burned bright as startups and then went bankrupt in the blink of an eye. This is what keeps our world so exciting. It’s the new thing, the next thing, the bigger-faster-cheaper model taken to extremes.

There aren’t many issues left that we can see in terms of black and white. Everything has nuance—there are shades and complexities, levels of acceptance, and so on.

Here’s an exception. If you handle credit card data, your product or service is either PCI-compliant, or it’s not. Period.

I know this isn’t a fun topic. You want to focus on launching a commerce API but instead you spend time on figuring out how to comply with a long list of confusing rules. It’s a hassle and an obstacle. But it’s also vital.

There’s no arguing that the 2012 London Olympics are the most connected games ever. Via television, Web, radio or Twitter, the up-to-the-minute updates are pervasive. A sheer platitude of Olympic apps and gizmos offer up various bite-sized updates tailored to many tastes. All this, of course, comes courtesy of various APIs from news and other data sources. But are apps alone enough to deliver this data?

What makes a firm stronger than its competitors? Many things, of course: better products, better distribution, a better brand, more efficient manufacturing, and so on. But in the post-website, apps-everywhere economy, one technology powers all of these.

That it goes by the cocktail-party-conversation-killing name of “application programming interface”—or its equally unsexy acronym—is unfortunate (not least of all for those of us in the API management industry). But that doesn’t change the important new reality:

APIs are now the primary source of competitive advantage in business.

I’ve been blogging recently about how APIs are the New Currency. There are many factors in this equation, but one industry literally illustrates the changes I’m describing: financial services.

Companies in this arena have been all over the map in adapting to change. From putting ATMs in non-banking locations to deploying mobile applications, it’s often been a story of resistance followed by embrace. That’s because every change has required relinquishing control, broadening boundaries and taking risks, and for many that’s a tall order.