In a very basic term, API is used to access and consume services. For example, electricity is a service and we receive electricity service via appropriate socket in the wall. Once connected to socket one can receive electricity (service), so socket here is an example of API.

In the last decade companies have adopted SOA framework and its a good investment. If we go by design/development/implementation cycles in SOA framework it seems more of a TOP/DOWN paradigm. It follows a “rip and replace” approach which sometimes causes budget overrun and hence more chance of SOA implementation failure.

API Management is next generation of SOA, here BOTTOM/UP approach is followed. First interfaces are defined and implementation is postponed until interfaces are clearly designed. Here depending on the requirement we can have front end interface, intermediate layers (could be multiple) and back end interface. This way it provides “layered” approach to implementation and more agility to application development environment. There is relatively less chance of budget overrun and hence more success rate.