apidays Singapore 2023 - Resilience to adaptability through digitisation April 12 & 13, 2023 Keynote 2: State of the API Industry Manjunath Bhat, VP Analyst at Gartner ------ Check out our conferences at https://www.apidays.global/ Do you want to sponsor or talk at one of our conferences? https://apidays.typeform.com/to/ILJeAaV8 Learn more on APIscene, the global media made by the community for the community: https://www.apiscene.io Explore the API ecosystem with the API Landscape: https://apilandscape.apiscene.io/

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The State of the
API Industry
Manjunath Bhat
VP Analyst
DevOps, Cloud and Software Engineering

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“The pursuit of efficiency was once a laudable goal, but being
effective in today’s world is less a question of optimizing for a
known (and relatively stable) set of variables than
responsiveness to a constantly shifting environment.
- General McChrystal, Team of Teams: New Rules of Engagement for a Complex World
“Adaptability,
not efficiency,
must become
our central
competence.”

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From Delivering Packaged Business Applications…

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…To Delivering Packaged Business Capabilities

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Packaged Business Capabilities are API Products

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The Rapid Rise of API Products
A set of APIs used together for a recognizable business
purpose.
When users sign up for the API product, they get access to all
its constituent APIs

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API Product Managers are Pivotal to API Success
Developers API Product Manager Developers
API Consumers
(Consume APIs to
solve a problem)
API Producers
(Create APIs as
products)
• Define and enable Business Goals
• Manage the API Roadmap
• Coordinate Developer Relations
• Incorporate Feedback

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Development Teams People/Effort Improving DX
Scaling API Product Development Requires
Platform Teams
Source: Gartner
Single-Team
Enablement
Cross-Team
Enablement
Developer-Experience-Enabling
Work (Smaller Organizations) Platform Engineering
Multiteam
Enablement
Organizationwide
Enablement

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Development Teams People/Effort Improving DX
Scaling API Product Development Requires
Platform Teams
Source: Gartner
Single-Team
Enablement
Cross-Team
Enablement
Developer-Experience-Enabling
Work (Smaller Organizations) Platform Engineering
Multiteam
Enablement
Organizationwide
Enablement

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API Platform Teams Help Implement an Effective API
Strategy
API Lifecycle
Management
Security and
Reliability
Developer
Enablement
Measuring
Business Value
Establish Business
Alignment

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API Portals Enhance the API Developer Journey
Discover Evaluate Subscribe
Consume /
Publish
Support
Search Code Samples
Onboarding
Chargebacks
Registration
API Tokens
Approval Flows
Sandbox
Usage Metrics
Notifications
Service Levels
Developer Outreach
Community Forums
Gather Feedback

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APIs are the Connective Tissue that Enable
Composability

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API Related Surveys

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Pre-Pandemic and Post-Pandemic: 2019 vs. 2022
94% 80%
90%
98%
Internal APIs
Private APIs to connect
with other businesses in
your network or supply
chain
APIs provided by third
parties
Public/externally exposed
APIs
88% 68% 52% 46%
2022:
2019:

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Third Party APIs that Surveyed Orgs use or plan to use
No plans
6%
Plan to
use
12%
Currently
use
82%
Use of APIs provided by third parties Specific API Third Party Providers

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Market Gap:
Managing how an
Organization
Consumes
Third-Party APIs

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59%
54%
54%
52%
46%
45%
43%
40%
38%
37%
27%
25%
36%
38%
37%
34%
36%
42%
43%
44%
42%
47%
46%
40%
6%
8%
10%
14%
18%
12%
14%
17%
19%
16%
27%
35%
0% 50% 100%
Application Security (n=298)
API Design and API Management (n=298)
DevOps (n=299)
Cloud-Native Application Architecture (n=299)
Modern Web and Mobile Development (n=297)
User Experience Design (n=297)
QA/Testing (n=300)
Process Automation (n=300)
Service/Microservice Architecture (n=295)
Platform Engineering (n=295)
Event-Driven Architecture (n=293)
Applying AI/ML to Applications (n=295)
High importance Moderate importance Low importance
n varies, Engineering Leaders with teams focused on application development/software engineering, excluding unsure
Q07. In your opinion, what is the level of importance of these skills to deliver software that meets the business needs of your organization?
Source: 2022 Gartner Software Engineering Leaders Role Survey
ID:
Importance of skills to deliver software that meets business needs
More than half of the respondents consider Application security, API design and Management,
DevOps and Cloud-Native Apps Architecture as highly important to meet business needs
Considered low in importance by more
than 1/3rd respondents

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Rebalance Your Technology Portfolio
Changes in Technology Investments
Percentage of Southeast Asia Respondents
n varies by question, Southeast Asia CIOs and technology executives answering, excluding not sure
Q. What are the technology areas where your enterprise will be spending the largest amount of new or additional funding in 2023 compared with 2022?
Q. What are the technology areas where your enterprise will be reducing funding by the highest amount in 2023 compared with 2022?
Source: 2023 Gartner CIO and Technology Executive Survey
5%
0%
2%
2%
2%
7%
5%
14%
0%
51%
9%
5%
12%
9%
5%
5%
2%
0%
5%
2%
21%
70%
66%
58%
47%
47%
42%
40%
36%
32%
30%
28%
26%
26%
26%
15%
13%
13%
13%
4%
4%
2%
Business intelligence/data analytics
Cyber/information security
Application modernization
Cloud platforms
Integration technologies/APIs/API architecture
Total experience solutions
Artificial intelligence/machine learning
Enterprise resource planning
Hyperautomation
Legacy infrastructure and data center technologies
Connectivity
Business continuity management
Containerization and orchestration of application workloads
Digital workplace
Product portfolio management tools
Digital media
Digital twins
Internet of Things
Human augmentation
Next-generation compute technology
None
Percentage of Respondents
Increasing Investment (n = 53)
Percentage of Respondents
Decreasing Investment (n = 43)

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Top Ranked Challenges of API Strategy
Top Challenges to API Strategy
16%
4%
6%
20%
24%
39%
43%
49%
59%
2%
10%
18%
12%
18%
29%
0% 100%
Other
No challenges
No digital program
Immature tooling
Obtaining executive buy-in
Security concerns
Lack of skills
Lack of API standards
Missing key roles, such as API product manager Sum of Top 3
1st choice

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What’s Next

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Top Technology Trends That Will Impact API
Development and Consumption
APIs
Software
Supply
Chain
Security
API
Observability
Green
Software
Engineering
Generative AI
Platform
Engineering
Developer
Experience

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API Infrastructure

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Magic Quadrant
API design
API testing
API monitoring
API security
API portals and ecosystem management
API marketplaces

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API Protection Platforms
42Crunch; Akamai; Cequence Security; Imperva
(CloudVector); Neosec; Noname; Salt; Traceable; Wib

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New Gartner Market Guide for API Gateways
• Security
• Routing
• Policy enforcement
• Throttling
• Metering, Logging

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Recommendations and Key Takeaways