What is API-led connectivity?
Point-to-point integration is considered the simplest form of integration. It is a popular choice for those working with APIs.
Such APIs can then unlock data from systems, compose data into processes or create an experience of one type or another.
In the past, integrations have been completed by using point-to-point connections. But point-to-point tends to lead to complicated and inflexible systems that often fail as a business grows and its needs change. Even when they succeed, point-to-point systems require a lot of IT resources to keep them going.
With API-led connectivity, there is much greater flexibility. Layers of APIs are responsible for specific systems, processes and end consumer experiences. The approach decentralizes access to enterprise data. That means more people can access the data. Businesses use APIs to expose its digital capabilities so they can be reused and repurposed. In this way, APIs foster innovation.
APIs help businesses innovate, better serve their customers and create new sources of revenue. They can be used for things such as:
- Grabbing data from an application
- Data processing
- Sending data to other applications or APIs
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API-Led Connectivity Vs. Traditional Connectivity
Traditional connectivity approaches like E2E and P2P are coming up short when it comes to meeting modern technology needs. With API-led connectivity, you can bridge these gaps with exceptional efficiency, implementing an approach far better aligned with your organization's evolving priorities.
Some key differences between API-led and traditional connectivity are based on their core characteristics.
A traditional connectivity approach:
- Quickly becomes complex when a number of systems need to be integrated
- Difficult to change/scale
- Has no reusability
- Requires more time to market
In contrast, an API-connectivity approach:
- Remains uncomplicated even when multiple systems are integrated
- Is specifically designed to change in response to shifting demands
- Can be built once, then reused many times
- Is very quick to market
How API-Led Connectivity Can Reduce Your IT's Workload
In a new environment, an IT team is responsible for maintaining the old legacy environment and implementing updated technologies. As such, a growing number of IT teams are experiencing a demand for new technologies that exceeds their thresholds for time, resources, and even budget. And even if new resources are added to the team, filling that gap remains challenging.
Regardless of this widening discrepancy between organizational technology needs and IT delivery abilities, few companies are prepared to increase their IT budget proportionally. A significant majority of organizations opt to keep their IT budgets the same, with others making only minimal additions.
An API-led integration strategy is a highly effective solution to both of these issues, simultaneously addressing an IT resource shortage and a limited budget.
What APIs are Used for an API-Led Connectivity Approach?
An API-led connectivity approach implements APIs based on three primary "layers": System, Process, and Experience.
- System APIs: System-layer APIs are typically engineered to access core systems, such as billing, proprietary software, ERP, etc. These APIs aim to connect users with the systems' records while also providing insulation from various changes or increased complexities. This way, users can successfully access data without needing to understand the core systems' inner workings.
- Process APIs: Process-layer APIs are those responsible for the orchestration and logic of data. They connect with system-layer APIs (rather than core systems) as a means of accessing data. The process APIs may interact with one or multiple systems, serving a critical purpose by breaking down data silos.
- Experience APIs: Experience-level APIs function to reconfigure data according to audience needs. For example, many audiences must access enterprise data, each requiring a specific format (XML, JSON, etc.). This category of APIs pulls the data from a common source, translating it as needed.
The various levels of APIs work in tandem to provide outstanding flexibility to an organization, allowing for easier management, connection, and adaptivity.
How Can API-Led Connectivity Improve My Business?
The benefits of API-led connectivity directly support businesses with advantages that include:
- Reduced time and expense: API assets are reusable, significantly reducing time and cost.
- Widespread connectivity: In our modern business world, the ability to efficiently connect data, systems, and people - eliminating data silos - is essential to smooth data flow and overall productivity.
- Designed to support change: API connectivity allows you to scale and reconfigure the assets as your organization adopts new technology, recognizes shifting priorities, and many other assets.
And above all, an API-led connectivity approach helps fuel the long-term efficiency of your business by accelerating development processes, promoting data-driven decision-making, and boosting overall productivity.
Let Us Evaluate Your Organization's Needs with a Free Discovery Call
As a trusted leader in API technology and a pioneer in our industry, NXTsoft takes pride in serving the diverse needs of financial institutions and fintechs. We provide comprehensive services tailored to your organizational goals and needs, streamlining your business's journey to API connectivity.
Request more details about your options for an API-led connectivity approach by submitting your information below. We will arrange a no-cost discovery call to provide you with everything you need to make an informed and confident decision for your organization's future.