Top trends for API-powered digital transformation in 2021
Our “State of the API Economic 2021” study confirms that companies remain entirely committed to digital transformation amid the COVID-19 pandemic and changing market conditions. Organizations around the world were able to respond to the pandemic at such a rapid rate.
Despite the devastating impact of the virus in 2020, nearly three-quarters of companies retained their digital transformation investments. In a group of firms, two-thirds are investing or have entirely changed strategies to become digital companies.
Digital transformation companies can redefine an organization’s ability to repackage its programs, competencies, and properties in modular software pieces. Every business in the world is already equipped with useful data. Digital transformation services can boost a broad range of commercial programs—including by entering it with valuable assets from partner organizations and other outside firms.
APIs promote digital assets’ interoperability by letting developers easily access and merge different systems, even though those systems were never meant to interoperate. APIs are basically how software applications interact with each other, but they are designed with developer experience. Rather than just as bespoke integration ventures, enterprise digital transformation drives incredibly efficient operations and enabling developers to exploit functionality for new apps and automation repeatedly.
Google interviewed more than 800 respondents worldwide to build the State of API Economic 2021 survey. The findings showed that five significant patterns would emerge in 2021 for API-first digital transformation services.
1. Increasing SaaS and Hybrid Cloud-based API Deployments
When asked about potential areas of technology emphasis and investment, one in two respondents indicated that they saw increased SaaS usage as a critical component of cloud computing and a rise in hybrid cloud adoption.
APIs offer a wide range of value propositions, so it’s no wonder that many companies are opting to use a combination of on-premises and public cloud to host such APIs.
2. Analytics Expand Competitive Advantage
Although creating APIs is advantageous, evaluating API’s output is essential for optimizing their usage and discovering new digital routes.
When our survey people were asked how APIs at the organization are currently calculated, they replied by naming performance-oriented metrics, IT-centric metrics, and API consumptive metrics. When asked about their API review priorities, the market effect is what most are most concerned with.
Leading companies use analytics to advise their new approach and align their leadership priorities and results. Suppose your executive sponsors require concrete outcomes (such as an API gaining significant developer momentum or accelerating the development of new products). In that case, you can use metrics for the API program to unite executives around digital initiatives and justify continued platform-level support for the API program.
3. AI and ML – Powered API Management is Gaining Traction
While some aspects of API protection and management are as straightforward as implementing an authentication tool to control access or applying price limits when API calls reach a certain level, AI and ML are trending as important ways for organizations to bolster their API management security capabilities.
It is no surprise that businesses are rapidly embracing new digital transformation trend that blends AI-driven and ML-powered protection and monitoring technologies to help them detect and block malicious attacks. Indeed, use for anomaly detection, bot protection, and security analytics increased 230 percent year-over-year between October 2019 and October 2020 among Apigee customers.
4. API Ecosystems Are Innovation Drivers
APIs are the primary way to get interested in the digital economy. These ecosystems may include internal entities or third parties such as vendors, contractors, clients, and competitors.
The research found that all companies will have digital transformation leaders who will focus on developing new applications and connecting internal applications regardless of maturity and industry. However, high-maturity organizations are significantly more likely to focus on enabling a digital transformation solution for the B2B partner ecosystem around their APIs.
5. API Security and Governance More Important Than Ever
In 2020, nearly all sectors, from manufacturing and services to finance and hospitality, are introducing new business models because of COVID-19. All core operations of the company shifted from physical to digital mediums. Thus, this leads to the emergence of new dangers because it produces new cybercrime and hacking.
Suppose a system’s API is built and managed correctly. In that case, it offers business optionality, the ability to monitor access to digital assets, the capacity to merge old systems with new technology, and the capability to enable developers to explore and innovate. But APIs exposed to developers without the necessary specifications, security measures, safety considerations, and visibility mechanisms become liabilities that place company and consumer data at risk.
The research shows that executives are very concerned about using CIOs because security and government access are significant. Although the year 2021 will continue to face many of 2020’s obstacles, companies should start looking ahead and aspire to achieve digital excellence. Businesses would need to migrate to the cloud to harness cloud-based security, global scope, access management, and artificial intelligence. With well-designed APIs, companies can respond to technological changes and help ensure they are prepared for them. And, at Google, we are here to help you in being an excellent digital educator.