API Management Software

API Management is the process of managing API’s throughout their lifecycle where these API’s are released in a scalable and secured environment. API lifecycle involves four stages: designing, publishing, documenting and analyzing.

According to 360 Quadrant analysis, the following have been identified as the top 10 vendors in the Best API Management Software:

Top 10 API Management Software-

1. IBM CORPORATION
2. GOOGLE
3. SOFTWARE AG
4. BROADCOM LIMITED
5. MULESOFT
6. RED HAT
7. TIBCO SOFTWARE
8. PERFORCE SOFTWARE
9. WSO2
10. SENSEDIA

Market Overview

With an exponential increase in the number of apps and smart devices required in the digital world, businesses need to expose more data through APIs so that they can provide rich, personalized app experiences both for internal users, customers, and partners. APIs foster innovation and enable businesses to bring new products and services to the market. It is important to have an established process for publishing, promoting, and governing APIs in a secure and scalable environment. Hence, organizations across all industries need robust lifecycle API management software that helps them to measure the performance of their API-driven businesses.

API management market has been broken down into API platform, API analytics, and API security. Increased reliance on applications and mobility has revealed the importance of APIs. To move data and associated application on the cloud, organizations need a platform which helps them integrate the different legacy system and its components as well as with mobile devices and browsers. API platform includes a collection of tools geared to cater to specific requirements of businesses. It acts as a centralized place that helps its enterprise users create, distribute, manage, monitor, control, and monetize APIs. API analytics provides critical insights into API usage.

The analytics track key metrics such as the demand by region, performance against Service Level Agreement (SLA), and API usage. API analytics also allows the user to specify customized metrics and methods to track the endpoints. Furthermore, analytics generates custom charts and displays that aid in identifying trends. These insights can be used by the API publishers to identify the traffic patterns and optimize their API infrastructure accordingly.

The competitive leadership mapping section provides information regarding key vendors offering API Management Software and outlines the findings and analysis as well as rates them accordingly based on vendor performance within each evaluation criteria. The evaluation criteria are based on 2 broad categories, namely, Product Maturity and Company Maturity. Each category encompasses various parameters on the basis of which vendors are evaluated.

Parameters considered under  Product Maturity include breadth and depth of product offering, product features & functionality, focus on product innovation, product differentiation and impact on customer value, and product quality & reliability.

Parameters considered under Company Maturity include geographic footprint/presence in emerging markets, breadth of applications served, channel strategy and fit, the effectiveness of organic growth strategy, and mergers & acquisitions strategy.

Visionary leaders are the leading market players in terms of new developments such as product launches, innovative technologies, and the adoption of growth strategies. These players have a broad product offering that caters to most of the regions globally under the API Management Software category. Visionary leaders primarily focus on acquiring the leading market position through their strong financial capabilities and their well-established brand equity.

Dynamic Differentiators are established players with very strong business strategies. However, they have a weaker product portfolio compared to the visionary leaders. They generally focus only on a specific type of technology related to the product under API Management Software category.

Innovators in the competitive leadership mapping are vendors that have demonstrated substantial product innovations as compared to their competitors. The companies have focused on product portfolios. However, they do not have very strong growth strategies for their overall business, when compared with the visionary leaders.

Emerging companies have niche product and service offerings. Their business strategies are not as strong as that of the established vendors. The emerging vendors include the new entrants in the market, emerging in terms of product portfolio and geographic reach, and require time to gain significant traction in the market.

What’s driving the API Management Software market?

• Growing demand for API-led connectivity- API-led connectivity empowers enterprises to quickly modernize legacy architectures, add value to existing IT assets, and create new product opportunities or revenue streams. It also allows organizations to connect their crucial data with applications via reusable and purposeful APIs. Integrating advanced technologies, such as IoT, big data, mobile, and cloud with best API management software, a new powerful tool to organizations with which they can engage with their customers and partners in a better way and improve their experience.
• Need for public and private APIs to accelerate digital transformation- API is a key driver that helps organizations in successful digital transformation. Best API Management Software defines a way to connect one application with another. Depending on the availability for usage, an API is categorized into private or public. As the name suggests, public API is an interface designed and made publicly available for web and mobile developers so that they can use it to improve the functionality of their applications. For instance, many online services can integrate third-party maps or allow users to log in using their Google or Facebook credentials via the APIs. On the other hand, private APIs can be defined as an interface that opens parts of an organization’s backend data and application functionality for use by the employees and strategic partners of the organization. APIs usually begin as private and later turn into a partner or open APIs.

Different types of API Management Software Solutions-

1. API Platform- API platform includes a collection of tools geared to cater to specific requirements of businesses. It acts as a centralized place that helps its enterprise users create, distribute, manage, monitor, control, and monetize APIs. Moreover, the best API Management Software platform has unlocked a new distribution channel for partners, suppliers, distributors, and customers. Now, they can readily tap into a business capability offered as an API and increase business interaction over the API channel. API platform comprises API Portal, API Gateway, API administration, and API Monetization.
2. API Portal- API portals act as a bridge between API providers and API consumers that delivers information about the API at every stage of an API’s lifecycle. It is an essential solution for organizations seeking to exploit the utility of APIs. API portals allow providers to expose and publicize their APIs, educate developer communities about them, and provision user access. Moreover, it helps API providers seal the re-usability and adoption gap and provide a platform to successfully promote their APIs. API portal enables organizations to easily share information and data in real-time across various mobile applications and devices.
3. API Gateway- API gateway acts as a gatekeeper between clients and services. It acts as the single entryway into a system allowing multiple APIs or microservices to act cohesively and provide a uniform experience to the user. API gateway takes all the requests from the clients, then routes them to the appropriate microservice with request routing, composition, and protocol translation. It may also perform various cross-cutting tasks such as authentication, SSL termination, and rate-limiting. With an API gateway, for each application, clients get a customized API. It handles some requests by simply routing them to the appropriate backend service and handles others by invoking multiple backend services and aggregating the results. If in case, there are failures in the backend services, the API gateway can mask them by returning cached or default data.
4. API Administration- API administration refers to the practice of monitoring API, by gaining visibility into performance, availability, and functional correctness. API fuels modern applications and most of these applications heavily rely on APIs for business-critical transactions. API failures are often considered as the most critical failures than an application-level failure because it can bring down so many other dependent applications. Factors such as server load, handling a large amount of data, and level of encryption affect the quality of the API and its performance. API administration solution is designed to help an organization analyze the performance of their applications and improve poorly performing APIs. Moreover, it will help organizations craft an API monitoring strategy, which can ensure developers that nothing affects API’s performance.
5. API Monetization- API monetization enables API providers to reach beyond current business models, scale API programs, and open new opportunities with customers, developers, and partners. It offers end-to-end monetization capabilities with the flexibility to create various revenue models, reports, payment gateways, and developer portal integrations to meet their unique developer needs. API monetization offers a range of rate plans, including pre- and post-paid, fixed, variable, customizable, and freemium. API monetization also provides detailed reporting on API traffic based on developer consumption.
6. API Analytics- API analytics in the best API Management Software provides critical insights into API usage. The analytics track key metrics such as the demand by region, performance against Service Level Agreement (SLA), and API usage. API analytics also allows the user to specify customized metrics and methods to track the endpoints. Furthermore, analytics generates custom charts and displays that aid in identifying trends. These insights can be used by the API publishers to identify the traffic patterns and optimize their API infrastructure accordingly.
7. API Security- API security solutions in the best API Management Software facilitate regulatory compliance and enhanced API security required in the development, deployment, management, and operation of APIs. API security solutions provide perimeter security, handle authentication and authorization, data encryption, and threat prevention. Additionally, API security also includes mediation, protocol transformation, and scripting. API security is gaining traction due to the increasing use of APIs in data and application delivery in mobile, cloud, and IoT. Additionally, APIs are vulnerable to security threats as they are directly connected with external parties through programs that offer relatively lesser controls. These concerns have driven the need for API security, placing it in a central position in the organizations’ API strategy.

Different standards and guidelines for API Management-

1. OAuth 2.0- OAuth 2.0 is a standard for authorization and is extensively used in API security-related applications. The original OAuth protocol was created in 2006 and the current version replaces the original version. The protocol focuses on client developer simplicity and provides authorization guidelines for desktop applications, web applications, mobile phones, and other devices. The best API Management Software must be OAuth 2.0 compliant.
2. OData (Open Data Protocol)- OData is an OASIS standard that provides guidelines for building and deployment of RESTful APIs. OData provides guidance for defining functions, tracking changes, and request management. OData facilitates developers to focus on business logic rather than on the approach for request management. Best API Management Software must fulfill the above standards.
3. Distributed Management Task Force (DMTF)- Distributed Management Task Force (DMTF) supports implementations enabling the management of diverse emerging technologies including virtualization, cloud, infrastructure, and network. This simplifies the manageability of network access technologies through collaborative efforts by leading technology companies.
4. Telecommunication Industry Association (TIA)- TIA is a prominent trade association accredited by the ANSI and indulges in policy initiatives, standards development, network events, and market intelligence for global Information Communications Technology (ICT). It develops guidelines for cellular towers, data centers, data terminals, telephone terminal equipment, satellites, and accessibility. TIA improves the business atmosphere for enterprises involved in telecom, broadband, mobile wireless, IT, networks, cable, satellite, unified communications, emergency communications, and green environment.

How is API Management Software deployed?

1. On-Premises- The on-premises deployment comprises the deployment of software solutions at clients’ premises. It is an expensive model as compared to the cloud model. This is a traditional approach of implementing any software inside the premises of an enterprise. The software solutions that are installed and run over the computer systems on-premises in organizations instead of the hosted facility such as cloud are referred to as on-premises solutions. The on-premises solutions can be accessed directly by the end-user due to its physical presence in the organization. With the advancement of technology, cloud vendors operating in the market are developing new advanced solutions that are affecting the conventional on-premises deployment market. Further, the rising cost associated with the maintenance of on-premises infrastructure is likely to restrain the market over the years. Organizations wherein user credentials are critical for business operations prefer on-premises deployment, as they control their systems.
2. Cloud- Implementing the cloud-based best API management software helps SMEs and large enterprises focus on their core competencies, rather than IT processes. With the help of the cloud-based API management solution, organizations can avoid the costs related to the software, storage, and technical staff. The cloud-based best API management software offers a centralized way to integrate the system and its components with web and mobile applications and accelerate applications’ development life cycle. For organizations that have limited budgets, a cloud-based API management solution is a good option, because of its speed and scalability.

What are the different industry verticals catered by API Management Software?

1. Banking, Financial Services, and Insurance- In today’s competitive and highly regulated market, acquiring and retaining customers is one of the biggest challenges faced by BFSI companies. For the BFSI companies to be successful, it is no longer enough to offer simple and automated banking services; customer preferences and behaviors are changing. To build trust and loyalty, and drive profitability, banks need to offer seamless and non-stop interactive banking environment. Another important aspect of the BFSI vertical is securing information and maintaining data integrity. BFSI enterprises have established APIs owing to the early adoption of web and mobile-based banking services. Enterprises in the BFSI vertical are adopting API management solutions to build a lean, flexible, and efficient approach and streamline their digital business for banking, insurance, trading, capital markets, and payments.
2. IT and Telecom- IT and telecom vertical is expected to be one of the fastest-growing industry vertical, due to the increasing use of the internet and mobile devices. IT and telecom operators are facing cut-throat competition and constantly struggling to retain their existing customers, while also attempting at acquiring newer ones. Customers are moving from a billion browsers to trillions of apps on mobile devices, social networks, and cloud services. It could be said that this is the new app-driven economy and to provide a seamless experience for consumers today, companies must work with multiple operators’ APIs. APIs will provide the quickest, most cost-effective way for a telecommunications carrier to repurpose its existing information assets.
3. Government- The government and defense vertical include all the government organizations, agencies, and institutions. Government organizations face challenges in creating a multi-channel business application, ensuring on-time license renewal, streamlining the procurement process while onboarding with new trading partners, and maintaining accurate real-time location and inventory usage. API management solution helps to overcome these challenges by offering a secure and encrypted platform for maintaining and transmitting sensitive data, real-time analytics for tracking and understanding location, and usage patterns of the products for the government sector.
4. Healthcare and Lifesciences- The healthcare and life sciences vertical is undergoing extensive development with advancements in the technologies enhancing the overall healthcare industry. With its increasing shift towards cloud-based applications to meet emerging requirements, it has also brought to the market new applications that include insurance fraud detection, mobile health information, Electronic Health Records (EHRs), and compliance management applications. Furthermore, the rise in the adoption of smart devices (wearable) and the rise in the real-time analysis have influenced the demand for API management solutions, which supports the flexible and rapid analysis of this enormous amount of unstructured data generated through patient diagnoses, various therapies, and from continuous research in the genomic, clinical, and pharmaceutical industry.
5. Retail and Consumer Goods- Retail and consumer goods industry are expected to witness massive growth owing to rapid adoption of ecommerce and mobile apps. With the proliferation of the online market, retailers are adopting innovative technologies such as cloud computing, big data analytics, digital stores, and social media networks to remain competitive in this industry vertical. Customer experience proves to be a very vital differentiating factor among a wide array of online shopping options. Online retailers risk losing out on their users, because of negative customer experience. With the ever-changing needs and preferences of customers, retailers need to introduce new products into the market at a rapid pace. With the advent of APIs, retailers can easily expose their product catalogs, payment wallets, and other eCommerce services as standard services. These services can be consumed and integrated by a wide variety of developers and partners who embed them in the digital channels of their choice.
6. Media and Entertainment- Media and entertainment vertical is reimagining its business processes amidst the emergence of disruptive technologies and changing consumer behaviors. It is very crucial for the media and entertainment service providers to deliver high-quality media content and entertainment services to their end-customers. It is challenging to cope up with the changing customer demands and delivering relevant content to customers. Best API management software can help facilitate the seamless exposure of content, deliverable to any device, from a range of different back-end systems. These solutions also provide API developers an opportunity to consume the content available and create apps for any device without having to deal with different languages and protocols.
7. Travel and Transportation- With the advancement in technology such as connected cars and rapid adoption of mobile and web applications for travel and transportation such as UBER and Expedia has fueled the demand for API management solutions across the globe. This vertical is developing the architecture of its networks and systems. With the adoption of cloud technologies, enterprises can gain various benefits such as the quick deployment of applications, reduced costs, and better availability. Machine-to-Machine (M2M) communication and IoT have further made it possible to perform real-time monitoring and fleet maintenance tasks. To perform these functions, organizations are implementing the best API management software to strengthen their IT infrastructure and build robust software support systems. The data gathered from these systems will allow enterprises to make rapid and sound business by helping them in determining the correct transport policy, plan, and practices.
8. Manufacturing- The manufacturing industry vertical relies heavily on a network of collaborators, as manufacturers need to regularly share, and update information related to raw materials, processing, engineering, designing, and production with their stakeholders. There is a need for a strong and robust software system to support all these manufacturing functions. The industry can substantially benefit from API management solutions and can improve the performance of their mission-critical applications with faster response times. Furthermore, best API management software solutions help manufacturers by dramatically reduced reporting time, real-time planning, and forecasting by faster analysis and reporting. It gives them the opportunity to optimize critical processes, such as quality checks, business continuity, and disaster recovery.