Enterprise IT faces a three-pronged onslaught: Digital transformation, open APIs and security threats. First, most organizations are still navigating ongoing digital transformations and cloud migrations. Second, development teams continue to increase their use of open APIs, leading to sprawl concerns. And third, we’ve witnessed a slew of cybersecurity threats that appear to be growing in sophistication. Tech leaders are attempting to govern this influx of new tools and risks, yet it can be challenging to innovate quickly while ensuring that sensitive data is always protected.
The Axway 2022 Open Everything Survey shed light on some of the above challenges and attitudes of those invested in API development and API-enabled managed file transfer (MFT). Most notably, the survey found that 86% of respondents feared an expertise gap in the coming years, in which their organization won’t have the skilled software and IT infrastructure talent they needed to innovate. Below, we’ll review other findings from the survey, focusing on the responses from those who indicated they’re invested in API development.
Cloud Migrations Are Still Underway
Digital transformations are still underway in the vast majority of organizations. Only 12% reported being wholly digital and leading innovation. The rest were either just beginning transformations, were midway through or were still largely brick-and-mortar. More than one-third (38%) also said their company’s digital makeup is a hybrid of old and new technology.
The most-adopted computing environment is the public AWS cloud, at 47%. Yet other options trailed close behind, including hybrid (37%), managed cloud services (32%), Azure (28%), private (25%) and Google Cloud Platform (18%). Other reports substantiated how modern IT is becoming increasingly hybrid and multi-cloud. As digital journeys continue to shift and evolve, some organizations are embracing multiple fit-for-purpose clouds.
Although multi-cloud offers unparalleled flexibility, the primary drawback is security. Just over half (55%) of respondents said that tracking and controlling the flow of personal data into and through the cloud is a key hurdle to a multi-cloud strategy. And 53% reported that dealing with different security requirements for regional instances of cloud infrastructure was a top challenge. This concern is warranted, as companies doing business internationally must carefully navigate many specific regional data regulations.
Open Data Strategies Abound
As the Open Everything name indicates, many different sectors are becoming more “open.” The report highlighted the adoption habits of APIs within supply chains, where they are most often used to configure applications, operate and monitor applications and integrate internal data sources. Popular use cases here included payment and tracking systems. APIs also have a significant role to play in the financial world—41% of those working in finance said open banking is an opportunity to discover new business models. But nowhere is the need for more open data more crucial than in health care, which was found to be the area most in need of digital transformation.
We’d like to think of the API revolution as being driven by API-first startups and SaaS services. While these trends get attention, it’s not the most common use case for APIs. In fact, 44% of the time APIs are used to support IT consulting and system integration requirements. This is followed by providing cloud applications for customers (35%), developing a partner network (35%) and offering cloud services for customers or partners (34%). Although there are certainly business use cases for generating revenue through APIs, they are most often adopted to supplement existing platforms or to glue together internal services and data.
Most Technology Leaders Fear API Sprawl
Security is an encompassing concern for all walks of IT, but is especially top-of-mind when opening up data. Respondents said security is the most important concern when creating APIs (30%). This concern is warranted, as attacks on APIs have increased exponentially in recent years. Other top concerns are API adoption or consumption (15%), customer experience (14%), ease of API management (14%) and design and development (11%).
As APIs and microservices become more abundant within an organization, it’s easier for sprawl to set in. Unbridled technology sprawl can have a deteriorating effect on design standards and lead to unknown shadow APIs that may pose a security vulnerability. As a result, over two-thirds of respondents said the prospect of API sprawl worries them.
To mitigate sprawl and address other concerns, most companies are investing in tools to help manage the growing number of APIs. The majority (83%) said their budget for API management has either increased or stayed the same over the last two years. For 18%, this budget has risen by over 25%. Operationalizing API life cycle management capabilities can have benefits such as standardizing design style and increasing the discoverability of internal services.
API Security Must Still Mature
In a perfect world, we could share data without fear of misuse. But in reality, APIs are a common target for hackers. Publicly exposed endpoints with broken access control or missing object-level authorization can be easily abused for things like privilege escalation and data exfiltration. And although these risks persist, many APIs don’t adopt industry best practices regarding API security.
Although most APIs use authentication and token schemes, under half (43%) implemented OAuth. Furthermore, only 30% implemented policies with an API gateway. OAuth 2.0 and gateways have become best practices in serving APIs, as there are too many vulnerabilities to rely solely on HTTP Basic Authentication and API keys. As such, we will likely see these adoption rates increase as API security matures.
As with other cybersecurity endeavors, it’s really about taking a holistic perspective and applying defense-in-depth. Thankfully, most technology professionals understand this point—developing a more holistic approach to security was ranked as the top strategy for protecting personal data. Other strategies, like data encryption, advanced multifactor authentication, data loss prevention tools and highly-secured data transactions will also be necessary to protect cloud-native assets.
Final Thoughts
The Axway 2022 Open Everything Survey asked 1,000 IT leaders, architects and developers about their top concerns. Above, we focused on results from technology leaders engrossed in cloud and API development. For more insights and the findings from those using managed file transfer (MFT), readers can pick up a copy behind an email gate here.
