When companies face the decision between building an API from scratch or using a Unified API, they must carefully consider the costs, time, and resources involved. We’ve compared it for you!

Costs of Internal API Development

Developing an API internally may seem like an attractive option for many companies seeking customization and full control. However, this approach comes with a series of costs that should be considered:

1. Personnel Costs

Developing an API requires a team of developers, designers, and possibly security specialists. According to industry data, the average hourly cost of a software developer ranges from $50 to $150, depending on their experience and location.
Let’s assume a team of five developers is needed at an average cost of $100 per hour.
If development takes six months (approximately 960 hours per developer), the total cost would be:

5 developers × $100/hour × 960 hours = $480,000

Real Example: A tech company that decided to develop its own API for a customer relationship management (CRM) system hired a team of five developers. If each works 20 hours per week for six months, the total personnel cost could exceed $240,000.

2. Infrastructure Costs

In addition to personnel, companies must invest in technological infrastructure, including servers like AWS, GCP, or Azure, databases, and development tools. These costs can vary significantly depending on the project’s size and complexity.

Real Example: A startup developing an API for a streaming service invested approximately $50,000 in servers and development tools during the implementation phase.

• Maintenance Costs
  Once the API is operational, it must be maintained and regularly updated. This can represent between 15% and 20% of the total development cost each year.
  Maintenance is estimated to cost approximately 20% of the initial development cost:

0.20 × $480,000 = $96,000

Real Example: The same tech company mentioned earlier spent around $48,000 annually on API maintenance and updates after its launch.

Costs of Using a Unified API

Opting for a Unified API may seem more economical and time-efficient. However, there are also associated costs that should be considered:

1. License Cost

Unified API solutions usually require an initial license cost, which can vary depending on the provider and the functionalities included. This cost may be a one-time investment or a recurring payment.

Let’s assume the annual license cost for a Unified API is $30,000.

Real Example: An e-commerce company decided to acquire a Unified API to integrate its inventory management system. The license cost was $30,000 annually, which included support and updates.

2. Implementation Costs

Although the implementation of a Unified API is faster, there may still be costs associated with integration and customization to make it work with existing systems.
Integration and customization of the Unified API can cost around $10,000.

Real Example: The same e-commerce company spent $10,000 integrating the API with its existing platform, which included the necessary customization to fit its processes.

3. Support and Maintenance Costs

Unified API solutions often include support and maintenance, which can reduce the burden on the internal team. However, it is important to consider that some providers may charge additional fees for technical support.
Technical support may additionally cost $5,000 annually.

Real Example: The e-commerce company paid $5,000 annually for additional support, adding up to a total of $45,000 in annual API-related costs.

Final Price Comparison

Time Comparison

Internal Development

The time required to develop an internal API can be considerable. According to industry studies, the average development time ranges from three months to two years, depending on the complexity and available resources.

Real Example: The tech company mentioned earlier took approximately 9 months to develop and launch its API, delaying other important projects.

Unified API

Real Example: The e-commerce company implemented its Unified API in just 3 weeks, enabling it to improve its inventory management quickly.

The implementation of a Unified API is generally faster. Many solutions can be operational within weeks, allowing companies to start benefiting from the integration immediately.

The decision between developing an API internally or using a Unified API depends on various factors, including costs, time, and the specific needs of the company.

Internal Development

Offers control and customization but can be costly and time-consuming. Costs can exceed $300,000, and development time can extend to several months or even years.

Unified API

Provides faster implementation and more predictable costs, with an initial investment that can be significantly lower (around $30,000 annually in the example). However, there may be limitations in customization.

Each company must evaluate its specific needs, available resources, and long-term goals before making a decision. The chosen option should align with the company’s overall strategy and its ability to adapt to an ever-evolving technological environment.

How is it to Obtain Konvex’s Unified API?

Obtaining Konvex’s Unified API is a process that allows companies to integrate multiple accounting and ERP systems through a single interface, thus optimizing financial management in digital environments

Benefits of Choosing Konvex

• Quick Integrations: Konvex offers over 10 pre-configured integrations with systems like Siigo, Alegra, SAP, Oracle NetSuite, QuickBooks, and Shopify. This allows companies to avoid the arduous process of integrating each system separately, which can take weeks and be very costly.
• Ease of Implementation: The API is designed to be user-friendly, allowing for the synchronization, query, and analysis of financial information in real-time. This is ideal for companies that want to implement solutions quickly.
• Support and Security: Konvex provides technical support and security audits, ensuring that user data is protected and integrations function smoothly.
• Complete and Ready-to-Use Solution: Konvex’s Unified API includes multiple endpoints that allow companies to access different functionalities without needing to develop their own infrastructure.
• Cost Savings: By choosing Konvex, companies can avoid additional costs on cloud servers and maintaining multiple APIs, thus optimizing their available resources.

Konvex’s Unified API not only simplifies the integration of accounting and ERP systems but also provides companies with a robust platform with multiple endpoints to manage their financial operations effectively and efficiently.

Integrate and Simplify! Access our Unified API and start syncing your accounting systems today.