APIs, or Application Programming Interfaces, are transforming the digital economy. They are tools for building software applications, acting as sets of routines, protocols, and tools. APIs make it easier to develop a program by providing building blocks.

In the past, software was a one-off purchase, installed from a disc and rarely updated. Today, software is more often a service, updated continually and accessed via the cloud. This shift has been facilitated by APIs. They allow developers to tap into functionality of other software components, platforms or services, accelerating innovation and reducing time to market.

Companies like Facebook, Google and Twitter have been built on APIs. They allow third-party developers to create a range of applications, services and businesses which drive traffic back to their platforms. This has created an ‘API economy’ where services are not just end products but platforms for further innovation.

APIs are now seen as a key business tool. They can unlock new business models, open up partnership opportunities and drive growth. However, they also present new security challenges. As more services become interconnected, the potential for data breaches increases. As such, robust API management is crucial.

In summary, APIs are driving the shift towards a more interconnected, innovative and dynamic digital economy. They are a key business tool, but also present new security challenges.

Go to source article: http://thenextweb.com/dd/2014/03/28/api-economy/?awesm=tnw.to_g4q1I