We thought we would delve into a theme we heard time and again at the API Days Conference, the unbundling of API Management Platforms. This concept of a one-size fits all approach being traded for a smaller more bespoke options is not a new one. In fact, it’s something we see quite often, whether its the move from cable TV to (perhaps way too many) streaming services, or department stores like Target and Sears competing with online niche shops like All-Birds and Warby Parker. The move to custom options seems to be the natural progression of many industries. But to understand where we are today, lets look back at where we started.
Traditional API Management
At the start there was a benefit to having everything in one place. Many companies used to rely on bundled API management solutions that provided all necessary functionalities, such as endpoint routing, rate limiting, developer portals, documentation, and observability. Here are some of the key reasons this approach was the standard.
1. All-in-One Convenience
Traditional API management platforms provided comprehensive functionality in a single solution. Covering everything from endpoint routing, security (e.g., authentication, rate limiting), and developer portals to monitoring, analytics, and documentation. This all-in-one approach meant that companies could deploy one platform to cover all their API needs, reducing complexity and integration effort.
2. Reduced Operational Overhead
Using a single, bundled product allowed companies to avoid the challenge of orchestrating multiple tools. They didn’t have to spend time selecting, integrating, and maintaining several different products, which simplified operations and maintenance. A unified platform meant fewer vendors to deal with and fewer updates or patches to manage.
3. Ease of Implementation
API management was still a relatively new discipline when these platforms emerged. Companies were trying to figure out how to expose their APIs securely and efficiently, and bundled platforms offered a turnkey solution. These platforms provided out-of-the-box solutions that required less in-house expertise to deploy. This was appealing to teams that were still gaining knowledge about best practices for APIs.
4. Holistic Support
Many traditional platforms offered enterprise-level support, including compliance with standards, SLAs, and scalability. For companies with limited internal resources, this offered peace of mind. They could rely on the vendor to handle things like security, reliability, and performance, making it easier to trust the platform in production environments.
5. Consistency and Standardization
Using one platform across the organization provided consistent governance and enforcement of security policies, usage limits, and monitoring practices. This consistency was beneficial in ensuring uniform API management across departments and teams, reducing risks of discrepancies in how APIs were managed.
6. Comprehensive Developer Experience
Traditional platforms often provided a robust developer portal that included tools for API documentation, testing, and client registration. This improved the developer experience, making it easier for external or internal developers to discover and consume APIs, which accelerated API adoption.
7. Security and Compliance
Large API management platforms offered integrated security features, such as OAuth, JWT, rate limiting, and API access controls. They often complied with industry standards, such as PCI-DSS or GDPR, which made them attractive to enterprises with stringent security and compliance requirements. A bundled platform could address many security concerns without needing third-party integrations.
8. Vendor Reliability and Stability
Many of the traditional API management solutions were backed by large, established companies like Google (Apigee), IBM, or Kong, which offered the reliability and support businesses needed. For companies just starting out with APIs, the ability to rely on a proven product with large vendor backing was an attractive option.
9. Unified Analytics and Monitoring
Traditional platforms came with built-in analytics and performance monitoring, allowing organizations to get a comprehensive view of how their APIs were being used and performing. Having this functionality included helped companies track API consumption, identify bottlenecks, and enforce SLAs without needing to integrate separate tools.
10. Early Market Maturity
At the time when traditional API management platforms first emerged, API-first and microservices architectures were still new concepts. There weren’t as many specialized, smaller tools available, and integrating multiple niche products was often more complicated and riskier than choosing a unified solution. Early on, the market maturity and feature set of traditional platforms were ahead of smaller, more focused alternatives.
A More Mature API Industry
As the market has matured new approaches have taken hold, and companies have looked for a more tailored way of managing their APIs. Enter the unbundling of API management. Instead of using a single, comprehensive platform to handle all aspects of API management, companies are adopting specialized tools that focus on individual functionalities. This approach offers more flexibility, control, and the ability to tailor solutions to specific needs. Let’s have a look at the main benefits of unbundling.
Key Aspects of API Unbundling:
1. Decoupling Functionalities
- Traditional API management platforms provided an all-in-one solution for tasks like:
- Traffic management (rate limiting, routing)
- Security (authentication, authorization)
- Analytics and monitoring
- Developer experience (documentation, onboarding)
- Monetization and billing
- Lifecycle management
- With unbundling, each of these functionalities can now be handled by dedicated, specialized tools, allowing companies to pick the best tool for each function.
2. More Control and Flexibility
- By using smaller, fit-for-purpose tools, organizations gain greater control over their architecture. They can:
- Deploy components closer to their APIs (e.g., API gateways or security services running as part of a Kubernetes cluster).
- Implement custom scaling and reliability strategies for individual tools, rather than managing the entire platform’s scalability as one unit.
- Replace or upgrade individual components without overhauling the entire system.
- For example, a company can use Kong for API gateways, Auth0 for identity management, and Prometheus for monitoring, each integrated into their cloud-native infrastructure.
3. Cloud-Native Compatibility
- Unbundled API management aligns well with cloud-native architectures that prioritize containerization, microservices, and continuous integration/continuous deployment (CI/CD) workflows.
- Smaller tools are typically designed to integrate easily with cloud-native practices, such as Infrastructure-as-Code (IaC) and GitOps, allowing them to be automated and configured alongside other microservices.
- Example: Companies can use Kubernetes-native API gateways like Istio or Envoy as lightweight sidecar proxies that manage traffic and enforce policies on a per-service basis, fitting seamlessly into microservices architectures.
4. Faster Innovation and Adaptation
- Specialized tools often innovate faster than monolithic platforms because they focus on one problem area. This allows companies to adopt new features and technologies more quickly.
- Organizations can also more easily adapt their API management stack to support new architectures (e.g., serverless, edge computing) without waiting for a large platform to catch up.
5. Cost Efficiency and Vendor Flexibility
- With unbundling, companies can optimize costs by selecting tools that meet their exact requirements, avoiding paying for unused features in a full-lifecycle API management platform.
- Vendor lock-in becomes less of a concern since organizations can switch out individual tools if a vendor changes pricing models, goes out of business, or no longer meets their needs.
- For instance, if a developer portal solution no longer fits business needs, it can be swapped out without disrupting traffic management or security tools.
6. Developer Autonomy and Choice
- Unbundling enables bottom-up decision-making, where developers have the autonomy to choose and test specific tools for their needs, rather than being forced to adopt a platform imposed by senior management.
- Developers can mix and match solutions based on criteria like performance, security, or ease of use, leading to a more customized development environment.
The Downside of Un-Bundling
While the unbundling trend seems to be widely adopted, there are always downsides to consider. Although unbundling offers flexibility, it comes with operational complexity:
- Orchestration: Managing multiple tools requires teams to orchestrate, monitor, and ensure all services are running as expected, which can increase operational overhead.
- Maintenance: More tools mean more products to update, patch, and secure, which can be challenging, especially during security incidents.
- Networking issues: With more components communicating across a network, the likelihood of latency or connectivity issues rises.
- Cost tracking: While unbundling can reduce costs for specific functionalities, tracking and managing costs across multiple vendors can be more complicated than using one comprehensive platform.
Conclusion
The unbundling of API management is a natural evolution driven by the need for cloud-native compatibility, flexibility, and the ability to quickly adapt to new technologies. While it introduces more operational complexity (not un-like the streaming analogy mentioned in the intro), the ability to tailor API management tools to specific needs offers significant benefits in terms of control, innovation, and cost-efficiency.
If you are looking for guidance on what tools and products to consider for your project or organization, reach out to That API Company. We have vetted hundreds of products and can provide you with a solid combination of tools based on your unique needs. Book a free consultation here.
