System security. APIs separate the requesting application from the infrastructure of the responding service, and offer layers of security between the two as they communicate. When AccuWeather (link resides outside ibm.com) launched its self-service developer portal to sell a wide range of API packages, it took just 10 months to attract 24,000 developers, selling 11,000 API keys and building a thriving community in the process. If the API grants access to valuable digital assets, the business monetize it by selling access. The company has since partnered with many of the biggest enterprises in the world, diversified to offer loans and corporate cards, and was recently valued at USD 36 billion (link resides outside ibm.com).ĭata monetization. Many companies choose to offer APIs for free, at least initially, so that they can build an audience of developers around their brand and forge relationships with potential business partners. For example, the company Stripe began as an API with just seven lines of code. Without APIs, many enterprises would lack connectivity, causing information silos that compromise productivity and performance.Īccelerated innovation. APIs offer flexibility, allowing companies to make connections with new business partners, offer new services to their existing market, and, ultimately, access new markets that can generate massive returns and drive digital transformation. Through this integration, companies can automate workflows and improve workplace collaboration. APIs enable integration so that these platforms and apps can seamlessly communicate with one another. Improved collaboration. The average enterprise uses almost 1,200 cloud applications (link resides outside ibm.com), many of which are disconnected. But they offer other significant benefits to developers and organizations at large. There is no visibility on the user interface, meaning APIs exchange data within the computer or application, and appear to the user as a seamless connection.ĪPIs simplify design and development of new applications and services, and integration and management of existing ones.
While the data transfer will differ depending on the web service being used, the requests and responses all happen through an API. The API transfers the data to the initial requesting application, here the product website. The server sends a response to the API with the requested information. This request is processed from an application to the web server via the API’s Uniform Resource Identifier (URI) and includes a request verb, headers, and sometimes, a request body.Īfter receiving a valid request from the product webpage, the API makes a call to the external program or web server, in this case, the third-party payment system. When the buyer clicks the payment button, an API calls to retrieve information-also known as a request. This function relies on APIs to make the connection. When a user purchases a product on an ecommerce site, they may be prompted to “Pay with Paypal” or another type of third-party system. A simple way to understand how APIs work is to look at a common example-third-party payment processing.
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