What’s the Best Option? Let’s Find Out
In the world of system and data integration, choosing between building an API from scratch or acquiring a pre-built solution that integrates multiple platforms is a strategic decision that can have a significant impact on operational efficiency and business success. Both options have their own advantages and challenges, and it’s important to carefully consider each approach before making a decision. Let’s explore the pros and cons of building versus buying an API to help you make the best decision for your company.
Building an API
Building an API internally may seem attractive to some organizations that want complete control over the development and customization of their integration solution. Some of the benefits of this approach include:
Total control: By building your own API, you have total control over the design, functionality, and scalability of the solution. This allows you to tailor the API exactly to the specific needs of your company.
Flexibility: Building internally gives you the flexibility to add new features and make adjustments as needed, without relying on third-party providers.
Internal knowledge: By developing the API internally, your team gains valuable knowledge and experience that can be useful for future projects and developments.
However, building an API from scratch also presents significant challenges:
Costs and development time: Developing an API can be costly and time-consuming, especially if your team lacks previous experience in this type of project.
Ongoing maintenance: Once the API is built, continuous maintenance will be required to ensure its optimal operation and compatibility with new updates and technologies.
Security and quality risks: Building internally carries risks associated with the security and quality of the code, especially if you don’t have an experienced team in cybersecurity.
According to McKinsey data, companies spend on average between $10,000 and $1 million on developing an API internally, depending on its complexity and functionality.
Buying an API that Integrates Multiple Platforms into Your Product
The alternative to building internally is to acquire a pre-built solution that integrates multiple platforms. Some of the benefits of this option include:
Faster implementation: By purchasing a pre-built solution, you can quickly implement it and start reaping its benefits without going through the lengthy development process.
Initial cost reduction: In many cases, buying an API can be more cost-effective than developing it internally, especially when considering development costs and time to market.
Support and maintenance: Pre-built solutions often come with support and maintenance included, which can reduce the workload for your IT team and ensure continuous and reliable operation of the API.
However, there are also considerations to keep in mind when buying an API:
Customization limitations: Although pre-built solutions are often highly functional, they may not exactly fit your specific needs, which may require compromises in terms of functionality and flexibility.
Vendor dependency: By purchasing a pre-built solution, you are inherently relying on the vendor for support, updates, and ongoing maintenance. It’s important to choose a reliable and stable provider to mitigate this risk.
Compatibility and scalability: You need to ensure that the API you’re buying is compatible with your existing systems and can scale as needed as your company grows and evolves.
Konvex offers much more than just accounting integration. Our comprehensive, ready-to-use solution goes beyond by synchronizing, querying, and analyzing financial information and processes in real-time, specially designed for the world of e-commerce. By choosing Konvex, companies can minimize the risks associated with internal development and benefit from a proven and reliable solution that fits their specific needs. Our platform is designed to facilitate financial management in digital environments, allowing businesses to focus on growth and optimization of their online operations.
Let’s analyze it better!
Average cost of developing API internally: According to industry studies, companies can spend between $20,000 and $500,000 on average on developing an API internally, depending on its complexity and scope.
Average time to develop API internally: It is estimated that the time required to develop an API from scratch can range from 3 months to 2 years, depending on the complexity of the required functionality and available resources.
Percentage of internally developed API projects exceeding budget: According to industry data, approximately 60% of internally developed API projects exceed their initial budget due to delays and additional costs.
Percentage of internally developed API projects failing to meet delivery deadlines: It is estimated that around 70% of internally developed API projects fail to meet established delivery deadlines due to technical and management challenges.
Percentage of companies considering purchasing pre-built APIs as a viable alternative: According to industry surveys, approximately 80% of companies consider purchasing pre-built APIs as an attractive option due to the speed of implementation and lower costs compared to internal development.
In summary, while building an API internally may offer some degree of control and customization, the option of purchasing a pre-built solution that integrates multiple platforms offers several significant benefits that may be decisive for many companies. Faster implementation, initial cost reduction, and continuous support provided by vendors are just some of the advantages that make the option of buying an API highly attractive.
By opting for a purchased API, companies can minimize the risks associated with internal development while benefiting from a proven and ready-to-use solution that fits their specific needs. Additionally, by choosing a reliable provider, companies can have peace of mind knowing that they will have continuous support and maintenance, ensuring optimal API operation in the long term.
Ultimately, the decision between building and buying an API will depend on the unique needs and circumstances of each company. However, given the advantages and convenience offered by pre-built solutions, many companies may find that purchasing an API is the most cost-effective, efficient, and reliable option for achieving successful integration of their systems and platforms.
Discover how Konvex can simplify your company’s financial management with a unified API. Schedule a demo at getkonvex.com!
Konvex Team
