apidays Singapore 2023 - State of the API Industry, Manjunath Bhat, Gartner

apidays Singapore 2023 - Resilience to adaptability through digitisation
April 12 & 13, 2023

Keynote 2: State of the API Industry
Manjunath Bhat, VP Analyst at Gartner

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Transcript

1. © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials, is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential, proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. The State of the API Industry Manjunath Bhat VP Analyst DevOps, Cloud and Software Engineering
2. 2 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. “The pursuit of efficiency was once a laudable goal, but being effective in today’s world is less a question of optimizing for a known (and relatively stable) set of variables than responsiveness to a constantly shifting environment. - General McChrystal, Team of Teams: New Rules of Engagement for a Complex World “Adaptability, not efficiency, must become our central competence.”
3. 3 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. From Delivering Packaged Business Applications…
4. 4 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. …To Delivering Packaged Business Capabilities
5. 5 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Packaged Business Capabilities are API Products
6. 6 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. The Rapid Rise of API Products A set of APIs used together for a recognizable business purpose. When users sign up for the API product, they get access to all its constituent APIs
7. 7 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. API Product Managers are Pivotal to API Success Developers API Product Manager Developers API Consumers (Consume APIs to solve a problem) API Producers (Create APIs as products) • Define and enable Business Goals • Manage the API Roadmap • Coordinate Developer Relations • Incorporate Feedback
8. 8 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Development Teams People/Effort Improving DX Scaling API Product Development Requires Platform Teams Source: Gartner Single-Team Enablement Cross-Team Enablement Developer-Experience-Enabling Work (Smaller Organizations) Platform Engineering Multiteam Enablement Organizationwide Enablement
9. 9 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Development Teams People/Effort Improving DX Scaling API Product Development Requires Platform Teams Source: Gartner Single-Team Enablement Cross-Team Enablement Developer-Experience-Enabling Work (Smaller Organizations) Platform Engineering Multiteam Enablement Organizationwide Enablement
10. 10 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. API Platform Teams Help Implement an Effective API Strategy API Lifecycle Management Security and Reliability Developer Enablement Measuring Business Value Establish Business Alignment
11. 11 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. API Portals Enhance the API Developer Journey Discover Evaluate Subscribe Consume / Publish Support Search Code Samples Onboarding Chargebacks Registration API Tokens Approval Flows Sandbox Usage Metrics Notifications Service Levels Developer Outreach Community Forums Gather Feedback
12. 12 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved.
13. 13 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved.
14. 14 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved.
15. 15 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved.
16. 16 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. APIs are the Connective Tissue that Enable Composability
17. 17 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. API Related Surveys
18. 18 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Pre-Pandemic and Post-Pandemic: 2019 vs. 2022 94% 80% 90% 98% Internal APIs Private APIs to connect with other businesses in your network or supply chain APIs provided by third parties Public/externally exposed APIs 88% 68% 52% 46% 2022: 2019:
19. 19 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Third Party APIs that Surveyed Orgs use or plan to use No plans 6% Plan to use 12% Currently use 82% Use of APIs provided by third parties Specific API Third Party Providers
20. 20 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Market Gap: Managing how an Organization Consumes Third-Party APIs
21. 21 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. 59% 54% 54% 52% 46% 45% 43% 40% 38% 37% 27% 25% 36% 38% 37% 34% 36% 42% 43% 44% 42% 47% 46% 40% 6% 8% 10% 14% 18% 12% 14% 17% 19% 16% 27% 35% 0% 50% 100% Application Security (n=298) API Design and API Management (n=298) DevOps (n=299) Cloud-Native Application Architecture (n=299) Modern Web and Mobile Development (n=297) User Experience Design (n=297) QA/Testing (n=300) Process Automation (n=300) Service/Microservice Architecture (n=295) Platform Engineering (n=295) Event-Driven Architecture (n=293) Applying AI/ML to Applications (n=295) High importance Moderate importance Low importance n varies, Engineering Leaders with teams focused on application development/software engineering, excluding unsure Q07. In your opinion, what is the level of importance of these skills to deliver software that meets the business needs of your organization? Source: 2022 Gartner Software Engineering Leaders Role Survey ID: Importance of skills to deliver software that meets business needs More than half of the respondents consider Application security, API design and Management, DevOps and Cloud-Native Apps Architecture as highly important to meet business needs Considered low in importance by more than 1/3rd respondents
22. 22 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Rebalance Your Technology Portfolio Changes in Technology Investments Percentage of Southeast Asia Respondents n varies by question, Southeast Asia CIOs and technology executives answering, excluding not sure Q. What are the technology areas where your enterprise will be spending the largest amount of new or additional funding in 2023 compared with 2022? Q. What are the technology areas where your enterprise will be reducing funding by the highest amount in 2023 compared with 2022? Source: 2023 Gartner CIO and Technology Executive Survey 5% 0% 2% 2% 2% 7% 5% 14% 0% 51% 9% 5% 12% 9% 5% 5% 2% 0% 5% 2% 21% 70% 66% 58% 47% 47% 42% 40% 36% 32% 30% 28% 26% 26% 26% 15% 13% 13% 13% 4% 4% 2% Business intelligence/data analytics Cyber/information security Application modernization Cloud platforms Integration technologies/APIs/API architecture Total experience solutions Artificial intelligence/machine learning Enterprise resource planning Hyperautomation Legacy infrastructure and data center technologies Connectivity Business continuity management Containerization and orchestration of application workloads Digital workplace Product portfolio management tools Digital media Digital twins Internet of Things Human augmentation Next-generation compute technology None Percentage of Respondents Increasing Investment (n = 53) Percentage of Respondents Decreasing Investment (n = 43)
23. 23 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Top Ranked Challenges of API Strategy Top Challenges to API Strategy 16% 4% 6% 20% 24% 39% 43% 49% 59% 2% 10% 18% 12% 18% 29% 0% 100% Other No challenges No digital program Immature tooling Obtaining executive buy-in Security concerns Lack of skills Lack of API standards Missing key roles, such as API product manager Sum of Top 3 1st choice
24. 24 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. What’s Next
25. 25 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Top Technology Trends That Will Impact API Development and Consumption APIs Software Supply Chain Security API Observability Green Software Engineering Generative AI Platform Engineering Developer Experience
26. 26 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. API Infrastructure
27. 27 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Magic Quadrant API design API testing API monitoring API security API portals and ecosystem management API marketplaces
28. 28 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. API Protection Platforms 42Crunch; Akamai; Cequence Security; Imperva (CloudVector); Neosec; Noname; Salt; Traceable; Wib
29. 29 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. New Gartner Market Guide for API Gateways • Security • Routing • Policy enforcement • Throttling • Metering, Logging
30. 30 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. Recommendations and Key Takeaways