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API led Connectivity- The Next Step in the Evolution of SOA

The API, once seen as a tool for programmers, is providing both a new route to market as well as enabling disintermediation of the value chain that supports that route to market.


API led Connectivity- The Next Step in the Evolution of SOA
Published By - hitechnectar

The Digital Transformation Imperative

We are in the midst of an unprecedented phase of digital transformation. Hospitals are extending care beyond the hospital ward; non-bank players are driving innovation in the payments space; media companies are distributing the content across multiple channels and partners. These changes are irreversibly reshaping industry boundaries and business models, and in the process, changing the winners and losers across verticals.

Technology is the critical enabler of digital transformation.

Mobile and cloud, for years viewed as trends on the horizon, are now proven drivers for IT-enabled business disruption, both inside and outside the enterprise. The API, once seen as a tool for programmers, is providing both a new route to market as well as enabling disintermediation of the value chain that supports that route to market.

For example, via its Product Advertising API, Amazon sells its goods through third-parties, thus extending its distribution reach. At the same time, the IT infrastructure on which these APIs run are available for other uses through the Amazon Web Services API.

Business and IT leaders must act now in order to ensure their businesses stay relevant and competitive. Customers have the means to quickly identify and switch to companies that can better meet their needs, and businesses who do not act now will be left behind.

Microservices are a hot topic amongst enterprise architecture leaders. We believe that microservices not only validate a Service-Oriented approach but are in fact one interpretation of how that approach should be implemented. That is by taking the need for well-defined services and re-usability to an extreme. In doing so, it highlights the need for governance. And that successful implementation must also consider non-technology factors such as development processes and methodologies. This way, the principles and approach behind API-led connectivity are entirely consistent with a Microservices approach and vice versa.

Executive Summary

Key Challenges:

  • Companies must embrace digital transformation in order to stay relevant to their customers. Else risk ceding market share to competitors who are able to adapt more quickly.
  • At its core, digital transformation is driving companies to reframe their relationships with their customers, suppliers and employees. Through leveraging new technologies to engage in ways that were not possible before.
  • New technologies like SaaS, mobile, IoT demand a new level connectivity that is unachievable with yesterday’s integration approaches.

Recommendations:

  • Adopt an API-led connectivity approach that packages underlying connectivity and orchestration services as easily discoverable and reusable building blocks, exposed by APIs.
  • Structure these building blocks across distinct systems, process and experience layers, to achieve both greater organizational agility and greater control.
  • Drive technology change holistically across people, processes and systems in an incremental fashion.

You May Also Like to Read-

Accelerating Government IT Innovation with APIs & Micro Service
Open Banking and the Future of Financial Services

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