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Application Programming Interface
The term API is an acronym, and it stands for “Application Programming Interface.”

Think of an API like a menu in a restaurant. The menu provides a list of dishes you can order, along with a description of each dish. When you specify what menu items you want, the restaurant’s kitchen does the work and provides you with some finished dishes. You don’t know exactly how the restaurant prepares that food, and you don’t really need to.

Similarly, an API lists a bunch of operations that developers can use, along with a description of what they do. The developer doesn’t necessarily need to know how, for example, an operating system builds and presents a “Save As” dialog box. They just need to know that it’s available for use in their app.

This isn’t a perfect metaphor, as developers may have to provide their own data to the API to get the results, so perhaps it’s more like a fancy restaurant where you can provide some of your own ingredients the kitchen will work with.

But it’s broadly accurate. APIs allow developers to save time by taking advantage of a platform’s implementation to do the nitty-gritty work. This helps reduce the amount of code developers need to create, and also helps create more consistency across apps for the same platform. APIs can control access to hardware and software resources.

APIs Make Life Easier for Developers
Let’s say you want to develop an app for an iPhone. Apple’s iOS operating system provides a large number of APIs—as every other operating system does—to make this easier on you.

If you want to embed a web browser to show one or more web pages, for example, you don’t have to program your own web browser from scratch just for your application. You use the WKWebView API to embed a WebKit (Safari) browser object in your application.

If you want to capture photos or video from the iPhone’s camera, you don’t have to write your own camera interface. You use the camera API to embed the iPhone’s built-in camera in your app. If APIs didn’t exist to make this easy, app developers would have to create their own camera software and interpret the camera hardware’s inputs. But Apple’s operating system developers have done all this hard work so the developers can just use the camera API to embed a camera, and then get on with building their app. And, when Apple improves the camera API, all the apps that rely on it will take advantage of that improvement automatically.

This applies to every platform. For example, do you want to create a dialog box on Windows? There’s an API for that. Want to support fingerprint authentication on Android? There’s an API for that, too, so you don’t have to test every different Android manufacturer’s fingerprint sensor. Developers don’t have to reinvent the wheel over and over.

What an API Also Provides Is a Layer of Security
Your phone’s data is never fully exposed to the server, and likewise the server is never fully exposed to your phone. Instead, each communicates with small packets of data, sharing only that which is necessary—like ordering takeout. You tell the restaurant what you would like to eat, they tell you what they need in return and then, in the end, you get your meal.

APIs have become so valuable that they comprise a large part of many business’ revenue. Major companies like Google, eBay, Salesforce.com, Amazon, and Expedia are just a few of the companies that make money from their APIs. What the “API economy” refers to is this marketplace of APIs.

The Modern API
Over the years, what an “API” is has often described any sort of generic connectivity interface to an application. More recently, however, the modern API has taken on some characteristics that make them extraordinarily valuable and useful:

Modern APIs adhere to standards (typically HTTP and REST), that are developer-friendly, easily accessible and understood broadly
They are treated more like products than code. They are designed for consumption for specific audiences (e.g., mobile developers), they are documented, and they are versioned in a way that users can have certain expectations of its maintenance and lifecycle.
Because they are much more standardized, they have a much stronger discipline for security and governance, as well as monitored and managed for performance and scale
As any other piece of productized software, the modern API has its own software development lifecycle (SDLC) of designing, testing, building, managing, and versioning. Also, modern APIs are well documented for consumption and versioning.

Innovating with APIs

Exposing your APIs to partners or the public can:

  • Create new revenue channels or extend existing ones.
  • Expand the reach of your brand.
  • Facilitate open innovation or improved efficiency through external development and collaboration.

Sounds great, right? But how can APIs do all that?

Let’s return to the example of the book distributing company.

Suppose one of the company’s partners develops an app that helps people find books on bookstore shelves. This improved experience brings more shoppers to the bookstore—the distributor’s customer—and extends an existing revenue channel.

Maybe a third party uses a public API to develop an app that lets people buy books directly from the distributor, instead of from a store. This opens a new revenue channel for the book distributor.

Sharing APIs―with select partners or the whole world―can have positive effects. Each partnership extends your brand recognition beyond your company’s marketing efforts. Opening technology to everyone, as with a public API, encourages developers to build an ecosystem of apps around your API. More people using your technology means more people are likely to do business with you.

Making technology public can lead to novel and unexpected outcomes. These outcomes sometimes disrupt entire industries. For our book distributing company, new firms―a book borrowing service, for example―could fundamentally change the way they do business. Partner and public APIs help you use the creative efforts of a community larger than your team of internal developers. New ideas can come from anywhere, and companies need to be aware of changes in their market and ready to act on them. APIs can help.

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