Digital Transformation Gaining Momentum – Apigee’s 2016 “The State of APIs” Report
Enterprises embracing APIs for their digital transformations; Retail, media and entertainment, and information services industries driving largest API volume
SAN JOSE, Calif., – Apigee® (NASDAQ: APIC), developer of an intelligent API platform for digital business, today announced the publication of the 2016 “The State of APIs,” a report on digital business momentum and trends based on an analysis of hundreds of billions of API calls in 2015 through the Apigee Edge cloud product. The findings show that the industries undergoing the most rapid digital transformation as measured by API traffic volume are media and entertainment, retail, and information services, which together account for over 70 percent of all enterprise API traffic on Apigee’s cloud product. In addition, the report’s findings suggest that public or “open” API programs – those that make APIs available to software developers outside their organization through a developer portal – are on the rise, accounting for 67 percent of the API programs overall in 2015, compared to only 57 percent in the previous year.
“Demand for better digital experiences has grown from a murmur to a roar. Across the enterprise today, consumers, employees and partners all want to seamlessly connect with services and experiences at any time – wherever they are, and across multiple devices and platforms,” said Apigee CEO Chet Kapoor. “We believe that digital transformation has reached an inflection point – that every industry now understands that APIs are the key to corporate survival in our increasingly digital world. The robust growth of API traffic in the enterprise suggests that this change is beginning.”
Apigee provides an industry-leading API management platform used by hundreds of enterprises worldwide, including 30 percent of the companies in the Fortune 100. Apigee’s Software-as-a-Service (SaaS) platform currently processes close to 400 billion calls per year.
The findings in Apigee’s 2016 “The State of APIs” report are based on original data and analysis of hundreds of billions of API calls in the Apigee Edge cloud product across its global network of 24 data centers in the year 2015. It examines the impact of APIs on businesses across industries, common use cases driving digital transformation in different industries, and the best practices of API-driven enterprises. The findings present a snapshot of current API trends, along with analysis of technology use and digital transformation in the enterprise.
Additional highlights from The State of APIs report include:
- Enterprise digital transformation gaining momentum: API traffic volume increased 2.8X over the previous year in the Apigee cloud.
- Partner initiatives driving most API growth in enterprises: In 2015, partner/ecosystem initiatives accounted for 56 percent of all APIs, with consumer APIs accounting for 39 percent. Information services and high tech industries are the most focused on building API-powered partner ecosystems.
- But customer experiences initiatives drove 4X more API traffic: While partner programs led in number of APIs, customer experience initiatives accounted for approximately 80 percent of all API traffic, given the millions of consumers using apps.
- Businesses are using APIs for enhanced security: Companies are widely adopting security capabilities in their APIs; 78 percent are using Apigee Edge spike arrest functionality and 74 percent are using the OAuth authorization standard; 72 percent are using threat protection capabilities in the API layer.
- Businesses are moving more business logic into the API tier: 85 percent of enterprises are adding business logic in the API tier to accelerate their digital initiatives without disrupting their back-ends. Fifty-seven percent of enterprises are using the API tier for transformations to tie their disparate backend systems and formats seamlessly.
- Businesses are enhancing app performance and availability with APIs: Enterprises are using a variety of techniques at the API tier to drive superior end user experience of apps; 74 percent are using caching for app responsiveness and 68 percent use quota management to increase high availability.
Apigee’s 2016 “The State of APIs” report can be downloaded here (requires email).
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The State of APIs report compiles information about digital transformation trends, the impact of APIs on businesses across industries, and best practices across API-driven businesses. Unless otherwise noted, findings in this report are based on hundreds of billions of API calls made through the Apigee cloud during 2015 and distributed across Apigee’s global network of 24 data centers from customers spanning 20 vertical industry sectors. Year-over-year comparisons use 2014 traffic data.
Apigee® (NASDAQ: APIC) provides an intelligent API platform for digital business. Many of the world’s largest organizations select Apigee to enable their digital business, including 30 percent of the Fortune 100, five of the top six Global 2000 retail companies, and five of the top 10 global telecommunications companies. Apigee customers include global enterprises such as Walgreens, Burberry, Morningstar, and First Data. Apigee is headquartered in San Jose, California and has over 400 employees worldwide.
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