API Economy describes the growing economic power of APIs. In this context, in recent years providers have emerged over who specializes in the management and the integration of various services at the API level. These so called Integration Platform as a service (iPaaS) are cloud-based integration solutions – referred to as middleware in front of the cloud marketplace. These assist in the interaction between different cloud services. Importance is that, the developers and companies get the ability to develop own flow of integration connected via the multiple cloud services with one another or with on-premise applications.
iPaaS and API Economy Among the Cloud Natives
The iPaaS market can be divided into the younger wild startups and the renowned IT brands which further expanded their portfolios. 3scale, elastic.io, SnapLogic can be such examples. Application integration or enterprise application integration (EAI) was the main anchor in the era of client-server communication to ensure the business process integration throughout the value chain as a whole. The focus is particularly on the close interaction of a variety of applications that are distributed across multiple independently-powered platforms. The goal is to achieve the unified and integrated picture of all business processes in the IT applications.
With the transition to the cloud era, however, the use ratio of on-premise interfaces is also changing towards the predominant use of APIs. Finally, almost every cloud and web services provider based on REST or SOAP API interfaces that allow the services in their own logical or application to be integrated in order to get the benefit directly from the external providers or functions. With the increasing use of degrees of cloud services and the growing momentum towards Internet of Things, the importance of APIs will increase rapidly.
Relationship between iPaaS and API Economy
Cloud Natives are Twitter, Google, Facebook and many Web Services, their own APIs are a key competitive factor and the heartbeat of their business. All of these providers have created an API ecosystem around them which use that customers and partners to develop on stuffs. Exactly the phrase context API Economy is used. This frankly describes the growing economic power of APIs due to growing usage of mobile and social media. Provider of services typically benefit from APIs by marketing the functions a paid service within a free service or via an application of partners – where they can take a percentage.
The IT decision-makers in turn benefit from the API Economy, to them it is a quasi-endless space. Furthermore the APIs allow the partners, customers and communities to easily access the applications, data and systems in order to be as part of the company itself API Economy. All the works on supposedly simple API calls. Things are not exactly rightly have an Open model, but money is there.