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Some examples include Twilio (communications API), Stripe (payments API), and Sendgrid (email API), which offer a “Platform as a Service” (PaaS) model. Many companies also use external APIs, which the developer community uses to launch products. Some businesses don't just employ internal APIs, which their engineers use to build features for their consumers. Launching this new infrastructure enabled the creation of Amazon Web Services, which has since become Amazon’s largest revenue driver.Īmazon’s decision to move to service interfaces enabled the launch of AWS. Once the APIs and infrastructure were in place, Amazon’s teams were able to operate much more efficiently. Bezos ordered all of his teams to communicate and expose data and functionality through service interfaces, that is, APIs. Amazon's change of direction shows how APIs helped it move faster than its competitors, and is reportedly the reason Amazon is so successful. Consider, as an example, Jeff Bezos' famously-issued 2002 mandate. Nearly all businesses that use any kind of modern technology use APIs at some level to retrieve data or interact with a database for customers to use.Īn API’s defined communication protocol is what enables developers to build, connect, and integrate applications quickly and at scale. Whenever you use an app on your phone or computer or log onto Twitter or Facebook, you’re interacting with several different APIs behind the scenes. Some examples of API-based interactions include a cloud application communicating with a server, servers pinging each other, or applications interacting with an operating system. In fact, API integrations have become essential to operations and revenue professionals.ĪPI stands for “application programming interface.” An API is essentially a set of rules that dictate how two machines talk to each other.
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API-based tools are the reason why data integrations between essential business software are possible. They have introduced an entirely new vertical of “platform as a service” software companies. In this article, we’ll not only cover what APIs are, but we’ll also answer the question: “How do APIs work?” Understanding the function of APIs is the key to understanding how they can help business users in any role accomplish more, faster - without necessarily having to learn coding.ĪPI tools have fundamentally transformed how developers write applications. Anyone who works with business software has heard terms like “API” and “ webhooks” thrown around.