API integration is the process of using application programming interfaces (APIs) to connect different software systems, applications and workflows so they can share data and work together.
An API is a set of rules that allows software programs to talk to each other. APIs are used in many simple tasks, such as letting an online store connect to a payment system like PayPal or pulling social media posts into a blog.
In a business setting, APIs help link larger systems and platforms. For example, they allow real-time data to move between company databases or help different applications work together automatically.
Older integration methods, like point-to-point connections, rely on custom coding and are difficult to maintain. These methods are not ideal for modern businesses that use many different applications across various locations.
API integration offers a more flexible and efficient way to connect software, systems and data in today’s complex IT setups.
Why is API Integration Important?
API integration supports tools like integration platforms as a service (iPaaS) and helps modern businesses upgrade their technology. It allows companies to connect both new and older systems without replacing everything at once.
Modernizing IT systems takes time. While a company works to upgrade different parts of its technology, it still needs to connect data, services and workflows from both the old and new systems. API integration makes it possible to separate the connection layer from the application itself, which helps businesses stay flexible and continue to improve while upgrading in stages.
API Integration vs. API Management
API integration and API management serve different purposes but work well together.
API integration focuses on using APIs to connect different systems, applications and workflows so they can share data and work together.
API management involves the tools and processes needed to create, publish and manage APIs throughout their entire life cycle. It includes controlling access, tracking usage and keeping APIs secure.
Good API management practices help businesses make better use of API integrations. It makes sure existing APIs are used effectively and reduces the need to build new ones unnecessarily.
Common Use Cases for API Integration
1. Connecting Databases
AI tools work best when they have access to accurate and up-to-date information. If data is scattered across departments or is outdated, it limits what AI can do. API integration helps combine different sources of data to improve AI performance and decision-making.
2. Expanding Access to Data and Tools
Innovation is no longer only the job of IT teams. Business departments and non-technical users now take on more tasks, including integrating systems. API integration, along with iPaaS solutions, gives these users the tools to do this work safely and efficiently using no-code or low-code platforms.
3. Supporting Old Systems While Upgrading
Many businesses still rely on older, on-site systems that are hard to replace. These systems often don’t work well with newer technology. API integration allows companies to keep using these systems by connecting them with modern tools and applications.
4. Connecting Different System Environments
Businesses often use software that is hosted in different locations. For example, an on-site ERP system might need to share data with a cloud-based CRM like Salesforce. API integration helps these different systems work together by keeping their data in sync.
Examples of API Integration
Enterprise Software Integration
APIs help businesses connect different software systems to make workflows smoother. For example, they can link an inventory system with a sales system so staff can see stock levels in real time.
Cloud Service Integration
APIs allow businesses to move data between systems hosted on the cloud and on-site. This supports better workflows and reduces data silos.
Messaging Integration
Apps like Slack use APIs to connect with other tools. For example, a file sharing service can be added to Slack so users can upload and share files without leaving the app.
Types of APIs
APIs can be grouped based on how they’re used:
- Open APIs: Available to anyone and follow set rules for requests and responses.
- Partner APIs: Used by business partners with secure access.
- Internal APIs: Used only within a company to help teams work together.
- Composite APIs: Combine several services or data sources in one request, helpful in complex setups like microservices.
Common API Protocols and Formats
- REST: The most common API type today. Uses HTTP methods like GET and POST to interact with data.
- SOAP: A messaging method using XML that works over many communication protocols.
- RPC: Allows functions on remote servers to be used as if they were local.
- XML-RPC: A simpler version of SOAP that also uses XML.
- JSON-RPC: Like XML-RPC but uses JSON, a lighter data format.
- gRPC: A fast, open-source RPC system made by Google. Often used in modern services.
- WebSocket: Allows two-way communication without needing to reconnect each time.
- GraphQL: A tool that lets users ask for exactly the data they need, often using fewer lines of code.
Features of API Integration Platforms
Many companies use API integration platforms—sometimes called middleware—to manage all their integrations. iPaaS is a popular type of platform that gives users one place to control all their connections.
These platforms often include prebuilt tools, templates, and low- or no-code options to make setup easier and reduce mistakes.
Key Features Include:
- Support for All Integration Types: These platforms can link different data, apps and services to help automate business processes.
- Abstraction: Helps simplify complex systems by using APIs as a middle layer to connect old and new systems.
- Support for Hybrid Setups: Works across on-site, cloud and vendor-managed environments.
- User-Friendly Tools: Allows business users (not just IT staff) to create integrations using simple, self-service tools.
Benefits of API Integration
- Automation: Helps connect systems to automate workflows and save time.
- Support for Legacy Systems: Allows older systems to keep working with newer tools.
- Better Scalability: Makes it easier to add or change features without rebuilding systems.
- Improved AI Use: Gives AI tools access to better data for more accurate insights.
- Data Consistency: Keeps data accurate and up to date across different systems.
- Improved Experience: Helps users find the data they need faster, without having to look in multiple places.
