Closing The Gap Between API

Development And API Consumption

They’ve Built Hundreds Of APIs. Now IT And Business Leaders See API Adoption,
Management, And Measurement As Critical To Achieving Business Goals.

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FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022

 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 2
Overview

Overview Key Findings

Overview

Early in their digital transformation journeys, many companies Consuming APIs effectively leads to increased
focused on building application program interfaces (APIs) and revenue. 86% of API decision-makers know
Current State

opening up available information. Now there is a shift to concentrate the value of APIs isn’t in developing them, but
more on increasing adoption and consumption of those APIs to bring in consuming them. Yet they struggle to gain
real value to the business. This value through API consumption leads API adoption.
to greater ROI.
To be successful in this next phase of digital transformation,
Critical technology and business challenges
Challenges

companies need to do more than build APIs: They must also make
cause a gap between development and
it easy to catalog them, secure them, and discover them to drive
consumption of APIs, resulting in missed
adoption and reuse. In addition, they need to be able to analyze
business goals and an inability to make
usage and performance to guide future API investments.
data-driven API investment decisions.
Closing the development/consumption gap requires organizations to
Benefits

address some common business and technical challenges, including:

Vendor expertise and effective API
• An API strategy that’s not driven by business needs and management can close that gap, increasing
desired results. API usage, revenue, and business value while
• Minimal API reuse due to development silos, poor discoverability, decreasing API complexity and costs.
Conclusion

and difficult onboarding.

• No way to measure API success or failure.
FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 3
API Initiative Priorities Over The Next 12 Months
(Showing “Moderately important,”
Overview

Companies Focus On API Priorities To “Very important,” and “Critical”)

Combat Critical Challenges
On the journey to digital maturity, companies continue to encounter
97% Improving CX
Current State

obstacles. Internally, legacy systems and business processes limit

agility. At the same time, IT complexity is growing as more APIs and
integrations are created — but not effectively managed. Externally,
complex partner onboarding, security threats, disconnected user 96% Securing digital experience

experiences, and data privacy concerns persist.

92%
Challenges

The IT and business leaders surveyed in this study recognize that Increasing adoption of digital
business initiatives
APIs are the path forward, and their companies are committed to
pursuing strategic API initiatives over the next 12 months. Improving
customer experience, ensuring security, and moving to cloud are
among their top priorities. 86% Moving workload to cloud
Benefits

More than three-quarters 84% Entering new markets

of respondents are prioritizing

78%
Conclusion

API initiatives in the next year.

Disrupting the industry

FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022 Base: 311 IT and LOB decision-makers with influence over driving digital business at global organizations
with multiple types of deployment technologies and a digital business emphasis
Source: A commissioned study conducted by Forrester Consulting on behalf of Axway, December 2021
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 4
ROI Of APIs Increases With Consumption
Overview

API Value Is Driven By API Consumption

The value of an API increases every time it’s consumed since the

86%
cost to build it remains fixed while its productive benefits continue to
Current
Current State

mount over time, driving up ROI.

The study shows the majority of companies have published 100 agree or strongly
agree that the value of
State

71%
or more APIs. Eighty-six percent of API decision-makers agree the
their APIs is not in their
value of APIs is not in their existence alone, but in their consumption. existence alone but in
Two-thirds say the full value of APIs isn’t realized until they are their consumption agree or strongly
Challenges

widely used. Yet more than half of respondents say APIs are agree that they didn’t
experience the business
never — or rarely — reused and that many internal APIs have only results they had planned
one or two users. Use would increase if developers could more from their APIs
easily discover, subscribe, and use their APIs. In fact, with these
improvements, returns on APIs are expected to increase by 21%. Lack
Benefits

of API consumption has undermined hopes of achieving expected

business results for 71% of API decision-makers, who say they did not However, 69% expect return on APIs to
increase if developers could more easily
experience the business results they planned for with their APIs.
discover, subscribe, and use their APIs.
The majority of companies currently have Returns on APIs were expected to increase
Conclusion

100 or more APIs published. by 21% if developers could more easily

discover, subscribe, and use their APIs.
FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022 Base: 311 IT and LOB decision-makers with influence over driving digital business at global organizations
with multiple types of deployment technologies and a digital business emphasis
Source: A commissioned study conducted by Forrester Consulting on behalf of Axway, December 2021
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 5
Overview

Overcoming Failure to achieve expected business results from APIs is due in part to challenges centered around
discoverability, user experience, adoption, and API performance metrics.
Obstacles To
The study shows that bridging the adverse gap between API development and consumption is critical
Drive Business
to driving adoption and digital business growth, with almost three-quarters of IT and business leaders
Growth
Current State

agreeing so.

Top 4 Challenges With Aspects Of Current APIs

Challenges

(Showing “Agree” and “Strongly agree”)

We struggle to obtain measurable-value
Greater API Adoption Increases Digital Business Growth
data from our APIs. 68%
Greater API adoption can address these challenges as 72%
We find it challenging to create a good
of decision-makers would expect digital business growth to 65%
Benefits

user experience for discovering APIs.

increase if they were able to increase API adoption today.

We find it challenging to create a good

Digital business growth is user experience for onboarding of APIs
and other digital assets.
63%
expected to increase by 26%
Conclusion

with increased API adoption. We struggle to drive adoption

and usage of our APIs. 61%
FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022 Base: 311 IT and LOB decision-makers with influence over driving digital business at global organizations
with multiple types of deployment technologies and a digital business emphasis
Source: A commissioned study conducted by Forrester Consulting on behalf of Axway, December 2021
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 6
Overview

Nonactionable Challenges related to API development, management, and consumption have a real impact on overall
business, with 57% of respondents citing failure to achieve business goals as the top consequence.
Data Prevents
Respondents also say difficulties in obtaining insightful data about APIs have significant consequences,
Valuable API including a lack of data-driven API investment decisions (52%) and a lack of a holistic view of API data (48%).
Insights
Current State

Without actionable, measurable data, companies don’t have a clear picture of which APIs are being
consumed, which ones add value, which ones they should invest in, or which ones they should deprovision.

52% of respondents see a lack of data-driven API investment

decisions due to challenges with current APIs.
Challenges

Consequences
Of API-Related
Challenges Not achieving business goals 57%

Lack of data-driven API investment decisions 52%

Benefits

Lack of holistic view of API data 48%

Compromised security 43%

APIs are underused 38%

Conclusion

Difficulty troubleshooting issues 29%

Inability to reuse APIs 26%

FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022 Base: 311 IT and LOB decision-makers with influence over driving digital business at global organizations
with multiple types of deployment technologies and a digital business emphasis
Source: A commissioned study conducted by Forrester Consulting on behalf of Axway, December 2021
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 7
Benefits Of A Business-Led Approach For APIs
Overview

A Business-Led Approach To API Strategy

Can Increase API Consumption Forrester found that organizations taking a business-led
approach via API product management are better able to:
Most companies have established business priorities and
Current State

performance metrics that will show they’re on a path to growth.

However, if these are not created from a business perspective, KPIs
could fall short because APIs should be viewed as interfaces into
business capabilities, not only as interfaces into IT systems.1
1.
Create new
While IT-based expertise is important, companies are better able to business
Challenges

achieve high-level business goals by taking a business-led approach opportunities

to API design, testing, management, and analysis that leads to
greater API adoption and consumption.
2.
Increase
agility and
revenue
Benefits

3.
Improve
customer
satisfaction
Conclusion

FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022 Source: David Mooter, “Your IT-Led API Strategy Is Doomed To Fail: Use API Product Management,” Forrester
Blogs, October 5, 2021
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 8
Top 5 Benefits Of An API Management Product
That Closes The Gap Between API Development
Overview

Companies Need A Combination Of Vendor And Consumption

Expertise And API Management Technology Increased revenue

One way to close the API development/consumption gap is through

(direct or indirect) from
API traffic 59%
Current State

vendor expertise and an API platform or management system.

Sixty percent of API decision-makers say that business and digital
expertise from a vendor is valuable to developing more consumable
APIs. Fifty-eight percent find the same value in centralized tracking
55% Increased usage and
value of production APIs

and management of API assets across multiple API gateway vendors.

Challenges

API management solutions also help companies increase API

utilization and decrease the complexities of API governance
and onboarding, ultimately creating more value and revenue for
Reduced complexity of
managing APIs 50%
the business.

49%
Benefits

Reduced onboarding

59%
complexity

of respondents believe increased revenue is

48%
the top benefit of an API management product. Increased adoption of
Conclusion

new services

FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022 Base: 311 IT and LOB decision-makers with influence over driving digital business at global organizations
with multiple types of deployment technologies and a digital business emphasis
Source: A commissioned study conducted by Forrester Consulting on behalf of Axway, December 2021
 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 9
Overview

Conclusion
To close the gap between API development and consumption, API Project Director:
decision-makers need to understand and remove the barriers that
Emily Drinkwater,
Current State

are keeping it open.

Senior Market Impact Consultant
• Simply creating APIs is not a recipe for success. The value of
Caitlin Wall,
APIs is in their adoption and consumption.
Associate Market Impact Consultant
• Low API adoption is largely due to a lack of insightful data on API
usage and performance.
Challenges

Contributing Research:
• A business-led approach to API strategy that focuses on API
Forrester’s Application Development
consumption is critical to success in achieving high-level
& Delivery research group
business goals.
• API management technology combined with business and
Benefits

digital expertise from a vendor is valuable to developing more

consumable APIs and closing the gap.
Conclusion

FORRESTER OPPORTUNITY SNAPSHOT: A CUSTOM STUDY COMMISSIONED BY AXWAY, MARCH 2022

 CLOSING THE GAP BETWEEN API DEVELOPMENT AND API CONSUMPTION 10
Overview

Methodology Demographics
This Opportunity Snapshot was commissioned by Axway. To create this
GEOGRAPHY INDUSTRY (TOP 4)
profile, Forrester Consulting supplemented this research with custom survey
questions asked of 311 IT and line-of-business (LOB) decision-makers with NA 29% Financial services and/
13%
Current State

or insurance
influence over driving digital business at global organizations with multiple APAC 28%
types of deployment technologies and a digital business emphasis. The Manufacturing and
12%
EMEA 26% materials
custom survey began and was completed in December 2021.
Brazil 17% Retail 12%

Healthcare and/or
11%
Challenges

pharmaceuticals
ENDNOTES
ANNUAL REVENUE
1
Source: David Mooter, “Your IT-Led API Strategy Is Doomed To Fail: Use API Product Management,”
Forrester Blog, October 5, 2021.
$5 billion or more 12% LEVEL
$2.5 billion to $4.99
27% C-level 9%
billion
Benefits

ABOUT FORRESTER CONSULTING $1 billion to $2.49 VP 20%

35%
Forrester Consulting provides independent and objective research-based consulting to help leaders billion
succeed in their organizations. Ranging in scope from a short strategy session to custom projects,
Director 41%
Forrester’s Consulting services connect you directly with research analysts who apply expert insight $500 million to $999
26% Manager 30%
to your specific business challenges. For more information, visit forrester.com/consulting. million
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Information is based on best available resources. Opinions reflect judgment at the time and are
Conclusion

subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total
Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of
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