The Transformative Power of APIs

In an insightful conversation, Marco Tedone , CTO of DigitalAPICraft , explores the vital role of APIs today. The Q&A covers their evolution, future trends, and how they drive digital transformation. Marco also shares insights on balancing open and proprietary APIs and aligning API strategies with business goals.

01. In your view, how has the perception and importance of APIs evolved over the years and what role do they play in driving digital innovation today?

Ten years ago, APIs were a buzzword—a cool trend to follow. People recognized the opportunities APIs presented because they were simpler and relied on the standard HTTP protocol for communication. However, early APIs were immature in terms of governance, quality, and security. With the evolution of cloud technologies and the ability to spin up modern architectures with minimal infrastructure, companies worldwide began to see the business potential of APIs. This realization led to a significant increase in API adoption, with more businesses investing heavily in them. Today, APIs are the backbone of digital transformation, facilitating seamless communication between services through HTTP protocols and a straightforward learning curve. I believe that APIs will continue to be the pillars of digital transformation in the coming years.

02. How do you envision the evolution of the API landscape over the next few years, and what emerging trends or technologies do you foresee making a significant impact on the industry?

There are predictions from major companies in the world that the API numbers are only going to go up. And there are various styles of APIs. So, we got REST, GraphQL, GRPC, and some of these styles are getting more popular than others. For example, REST and GraphQL probably, at the moment, are the most popular styles. We got the Sync APIs for events.

The adoption of APIs is expected to keep growing steadily, but we may see shifts in the API Gateway landscape. There's a possibility that API gateways could gradually be replaced by ingress gateways, especially in container platforms provided by major providers. This shift could lead to a more service-driven technology environment, and it's something to watch closely over the next 3-5 years.

03. How do you see the balance between open APIs, more controlled enterprise-centric APIs evolving and what implications does this have for businesses?

Open APIs are primarily adopted by organizations that interact with the public and are often overseen by government regulations. Open Banking started this trend, and open insurance APIs are following suit.?

This allows enterprises to collaborate using well-defined standards, making it easier for organizations, including startups and SMEs, to consume known enterprise services globally. Commercial APIs, on the other hand, allow businesses to unlock their services—usually at a premium—without revealing the underlying technology. Open APIs create ecosystems that protect consumers and generate new revenue models, while proprietary APIs open new channels and revenue streams for businesses. We see this trend in our customers, who are developing new API strategies driven by the business's desire to reach a broader audience.

04. As APIs become a critical component of digital transformation, how can leaders guide organizations in creating API strategies that align with their broader business objectives?

As APIs become the backbone of digital transformation and the future digital economy, their numbers will continue to increase. With this growth, governance and security become crucial. Most of the group CIOs that I talk to have a problem of API sprawl and API duplication, which good governance can help mitigate.

At DAC, we use our maturity model to help customers understand their position on the maturity journey and offer the tools and expertise to guide them from zero to hero. As experts and leaders in the API world, it's our duty to share best practices, what works, and what doesn't, to help our customers leverage their current infrastructure while modernizing it through an API-first strategy. This approach enables them to meet their customers' needs and achieve their digital goals.

05. How does DAC envision contributing to the continued evolution of APIs, and what is the company's role in shaping the future of API technology?

DAC collaborates with major tier-1 financial institutions in banking, fintech, and insurance. Through these partnerships, we help our customers with open API specifications, whether in open banking or open insurance. We also work with regulators and standard bodies to shape the future of open APIs, contributing our expertise to this effort. In shaping the future of API technology, DAC is developing cutting-edge solutions in partnership with Google, focusing on creating modern, cost-effective, and scalable API solutions. We're constantly pushing ourselves to do better, and this drive is reflected in the new stack of products we are about to release, showcasing our evolution in the API space.