APIs (Application Programming Interfaces) are now central to the functionality of most enterprises. As companies increasingly rely on these integration points to power digital transformations, the complexity of managing them becomes more pronounced.
Governing a sprawling API portfolio is no longer just a technical challenge, it’s a business imperative. A well-thought-out governance strategy can simplify operations, improve security, and better collaboration across teams.
The explosive growth of APIs and why it’s making your life harder
APIs are growing at an unprecedented rate, making it harder for enterprises to keep track of their usage and governance. According to a 2022 report from 451 Research, the average organization now uses 15,564 APIs, with an astonishing 201% growth in API usage within a single year.
Cloudflare reports that over 50% of its traffic is API-based, emphasizing just how important APIs are to modern data transfer and system interoperability. With APIs powering everything from mobile apps to complex enterprise systems, businesses are faced with the task of managing this massive influx while avoiding chaos.
How to manage the flood of integrations
Enterprises today are integrating APIs just for internal operations and for technologies like generative AI, web3, and blockchain. It has led to a situation where many APIs remain ungoverned, causing potential security vulnerabilities, inefficiencies, and technical debt.
As companies continue to adopt these technologies, the complexity of managing APIs, many of which serve multiple business functions, has created an urgent need for governance frameworks.
Most companies use a mix of API styles, from traditional REST to modern GraphQL and event-based architectures.
Each of these styles serves different business needs, but the lack of standardization across them can lead to disjointed systems and a poor developer experience. Add to that the fact that many organizations are using multiple API gateways at once, and the challenge of API governance becomes even more pressing.
Bringing all these disparate systems under a unified governance umbrella is key to avoiding fragmentation and creating more efficient development cycles.
Why API adoption is skyrocketing
Several trends are contributing to the explosion of API adoption across industries. APIs are now a fundamental part of business operations, powering digital transformations, customer interactions, and compliance with new regulations.
APIs are now the primary mechanism for facilitating machine-to-machine communication in mobile and web app development. Startups and fast-moving enterprises have been leveraging APIs for years, but larger organizations are finally catching up, driving further API adoption.
As companies modernize their legacy systems, APIs serve as the bridge to more agile, cloud-based services, providing the speed and flexibility required to meet modern business needs.
In industries like finance, open banking regulations have compelled banks to create and expose APIs for the first time, with the Open Banking Tracker currently cataloging over 500 APIs globally.
Compliance initiatives across finance and healthcare are similarly driving the creation of public-facing APIs, as companies must now expose certain data and services to comply with regional and global standards.
Are you ready?
APIs are playing a key role in artificial intelligence (AI) by providing the data that powers machine learning models. They also simplify the development of low-code and no-code applications, making it easier for non-technical users to build digital tools. APIs, in this sense, are becoming like electricity, they provide the power and infrastructure necessary for businesses to function in a digital-first world.
Reliance on APIs will only grow as AI and automation continue to advance.
As organizations scale, they often find themselves dealing with multiple API styles, making it harder to maintain a coherent architecture. Fragmentation can lead to inefficiencies, duplication of efforts, and even security risks.
How to navigate multiple API styles with confidence
Many enterprises still rely on REST APIs for most of their internal and external integrations due to its compatibility with HTTP standards. However, newer technologies like GraphQL and gRPC are gaining popularity for their ability to improve development velocity and performance.
GraphQL is frequently used for high-performance service-to-service communication, while gRPC is favored in scenarios where low latency is key. Businesses need to understand when to use each style to maximize efficiency across domains like finance, healthcare, and logistics.
Without proper governance, it’s common for teams to solve the same problem using different API standards. Duplication of effort leads to wasted resources and, more importantly, increases the technical debt within an organization.
A standardized approach to API governance can mitigate these risks, helping teams avoid redundant work and align on common standards across the organization.
Every company is struggling to manage multiple tools
The widespread use of multiple API gateways and management tools complicates governance. Many enterprises find themselves using different solutions for different business units or geographical regions, making it harder to monitor and secure their API traffic.
Organizations often rely on multiple API gateways due to parallel procurement, different business units may choose their own tools to meet their specific needs. It is especially common in hybrid and multicloud environments, where different API management solutions are required at various stages of cloud migration.
Although necessary in some cases, this proliferation of tools makes it harder to enforce consistency, monitor usage, and make sure that all APIs comply with internal standards and regulations.
Cracking the code on API governance
As API portfolios grow, the need for structured governance becomes key. A well-implemented governance strategy gives consistency, security, and reusability across the API lifecycle, reducing complexity and improving operational efficiency.
One of the first steps in creating an API governance framework is to discover and document all APIs in use. Adopting a specification-first approach makes sure that APIs are well-documented and machine-readable. This makes APIs easier to discover and reuse across the organization, promoting consistency and reducing the risk of duplication.
Federated API management allows enterprises to unify disparate gateways under a common governance framework, making sure that the entire API catalog is accessible and manageable from a central location.
Consolidating API gateways for maximum efficiency
Many organizations juggle multiple API gateways, which can lead to inefficiencies and fragmentation. Consolidating these gateways into a single control plane improves visibility and allows for more effective monitoring and management of API traffic.
A process such as this also involves cataloging all existing APIs and attributing ownership, which improves accountability and makes sure that APIs are properly maintained and governed.
Master API security and design by centralizing standards and patterns
Centralized governance improves the consistency of API design and improves security. When creating a unified identity layer and implementing strict access control policies, businesses can make sure that their APIs are secure and that only authorized users can access sensitive data.
The hidden benefits of strong API governance
API governance offers several benefits, including improved security, reduced duplication of efforts, and more consistent design standards. When centralizing governance efforts, companies can unlock efficiencies across their development teams and create APIs that are more secure and easier to maintain.
Governance helps businesses comply with regulations like GDPR and HIPAA, while making sure that APIs adhere to strict security standards. Proper governance reduces the risk of shadow IT, where teams bypass formal processes to build unauthorized APIs, potentially introducing security vulnerabilities. It further enforces better access control policies, reducing the likelihood of breaches caused by weak or inconsistent security protocols.
Effective governance eliminates the duplication of effort, making sure that teams don’t waste time reinventing solutions that already exist within the organization. When maintaining a centralized API catalog, businesses can encourage reusability and reduce the time spent on finding and integrating APIs into new projects.
Consistency is key
Governance frameworks that include style guides, linting rules, and contract tests create more predictable API designs, reducing the number of defects and security risks. When standardizing these processes, organizations can make sure that APIs meet both internal and external requirements, making it easier to integrate with other systems.
AI, security, and leadership will shape tomorrow
As the API ecosystem continues to grow, organizations will need to rethink their approach to governance. Emerging technologies like AI, growing security requirements, and cultural changes within organizations will drive the next wave of API governance strategies.
The future of API governance will see a stronger push towards adopting industry-wide standards such as OAuth, GraphQL, OpenAPI, and AsyncAPI. Standards will make it easier for businesses to manage and secure their API portfolios, while also facilitating better interoperability across different systems and industries.
