Web APIs critical to driving reach and productivity in the app economy

(December 15, 2011) Hurwitz & Associates today announced the results of its recent Web application programming interface (API) study, “The Benefits of APIs in the App Economy.” This study examined how early adopters of Web APIs were able to gain significant business value by utilizing APIs across multiple platforms and devices. Hurwitz & Associates surveyed more than two dozen leading edge companies that are using APIs to transform their businesses. The results were significant. The research indicates that companies that took advantage of APIs experienced benefits in the following areas:

• Significant Improvement in Partner/Customer Reach. There was a greater than 70% increase in connecting to important customers and partners to build more profitable relationships.
• Increase in Web Traffic. Companies interviewed reported gains in Web traffic and Web Usage. For instance, respondents cited a 70% increase in Web traffic once the Web API was implemented.
• Faster Time to Onboard Partners. Early adopters discovered that there was a 30% decrease in the amount of time required to onboard partners. At the same time there was a 30% increase in the ability to bring new innovative ideas to market quickly.

Download the report: Hurwitz Web API Study (PDF 452 KB)

A key finding of the research is that APIs have a major impact on a company’s ability to quickly add partners to their ecosystem with a modest investment. In addition, it was relatively quick for these companies to enable their applications to support emerging devices and platforms before their competitors. The results indicate that enterprises can harvest significant value in terms of reach, agility, and innovation using APIs to increase distribution through a third party ecosystem.

“The results of this study indicate that companies that are leading the way today are seeing increasing reach via Web APIs, particularly through growing their own partner ecosystems. Many businesses have realized that they can no longer expect to connect with a sufficient number of customers only through a Web browser, and they are therefore leveraging apps to reach new customers and partners wherever they reside, across hundreds of mobile devices and platforms,” according to Judith Hurwitz, President of Hurwitz & Associates.

About Hurwitz & Associates.

Hurwitz & Associates is a strategy consulting, market research and analyst firm that focuses on how technology solutions solve real world customer problems. Hurwitz research focuses on disruptive technologies such as cloud computing, service orientation, service management, and information management. Our experienced team merges deep technical and business expertise to deliver the actionable strategic advice that clients demand.