There are great advantages of APIs for both groups, consumers and providers
Posted: Tue Feb 11, 2025 9:38 am
Companies become users when they want to connect to networks to market or sell products. In any case, sensible customer relationship management consumes APIs from other companies and service providers in order to collect data, generate leads or provide services.
Companies are considered providers if they provide or manage their own services (such as apps) and therefore generate and offer their own APIs as access to systems. Many APIs are offered free of charge.
However, popular services also charge for the use of their APIs. Google, for example, charges fees when a company integrates services and benefits from them.
Such paid APIs (as a product of a company) are profitable. According fantuan database to a recent report by MuleSoft Inc., 35 percent of today's technology leaders (like Google) generate more than a quarter of their revenue as a direct result of APIs. ( Source ).
Many companies are therefore becoming providers of their own APIs.
Often for a simple reason: the internal use of APIs enables employees to streamline processes, collaborate better and increase transparency throughout the company.
The founder and CEO of Amazon, Jeff Bezos, recognized the enormous potential of internal APIs back in 2002 when he ordered that in future communication should only be via them. The so-called "Bezos Mandate" created uniform and well-regulated ways for the exchange of data and skills throughout the company.
Companies are considered providers if they provide or manage their own services (such as apps) and therefore generate and offer their own APIs as access to systems. Many APIs are offered free of charge.
However, popular services also charge for the use of their APIs. Google, for example, charges fees when a company integrates services and benefits from them.
Such paid APIs (as a product of a company) are profitable. According fantuan database to a recent report by MuleSoft Inc., 35 percent of today's technology leaders (like Google) generate more than a quarter of their revenue as a direct result of APIs. ( Source ).
Many companies are therefore becoming providers of their own APIs.
Often for a simple reason: the internal use of APIs enables employees to streamline processes, collaborate better and increase transparency throughout the company.
The founder and CEO of Amazon, Jeff Bezos, recognized the enormous potential of internal APIs back in 2002 when he ordered that in future communication should only be via them. The so-called "Bezos Mandate" created uniform and well-regulated ways for the exchange of data and skills throughout the company.