API stands for Application Programming Interface. It is the software technology that allows two applications to talk to each other. It describes the code of connectivity between applications. Anytime you check the weather on your phone, or look for a cheap flight on a booking site, for example, you are using an API. As you can tell from simply using the internet, APIs are an integral part of our online experience.
Today, modern APIs have become extremely valuable both figuratively speaking as well as literally. APIs allow companies to easily include certain features in products that would otherwise take a long time to build by themselves. Uber, for example, uses the Google Maps API to pull your location data.
The phrase the “API economy” is widely used because today's APIs comprise a major portion of business revenue. Google and Amazon are examples of major companies that now make a significant amount of money from their APIs.
Moreover, modern APIs adhere to standards that are developer-friendly, easily accessible and understood broadly like HTTP and REST.
They are also treated like products, designed for consumers. Because of this characteristic, APIs are well-documented, standardized, and constantly versioned. Due to their standardizations, companies can easily monitor their APIs, as well as keep a level of security and governance.
APIs enable companies to turn their businesses into platforms, exposing important data and features to their customers without building those resources from scratch. Because of this significant ability, APIs are not only a technology tool, but a business one. The new age of APIs is certainly here and businesses are becoming aware of its colossal financial potential.
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