API Economy Brings Demand for Managed Services

 
 
By Michael Vizard  |  Posted 2016-05-12 Email
 
 
 
 
 
 
 
 
 
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    1 - API Economy Brings Demand for Managed Services
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    API Economy Brings Demand for Managed Services

    Enthusiasm is picking up for digital business projects based on APIs. Also beginning to build is interest in managed services surrounding API projects.
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    2 - APIs at the Heart of Digital Business
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    APIs at the Heart of Digital Business

    50% of respondents use APIs; 46% of respondents currently have a digital business initiative that requires use of APIs.
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    3 - APIs Gaining Traction
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    APIs Gaining Traction

    6% of respondents plan to implement an API program in the next year. This figure is expected to increase by an additional 12% in the next two to three years. In about 30% of all cases, these initiatives are driven by technical and business motivations.
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    4 - Biggest API Challenges
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    Biggest API Challenges

    Topping the list of challenges are legacy systems and infrastructure (65%), support from senior managers (57%), security enforcement and management (54%), and governance and lack of flexible integration (both tied at 52%).
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    5 - Main Business Challenges
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    Main Business Challenges

    Nearly half (46%) cite operation efficiency as either top or second priority. Another 44% cite revenue growth/budget growth.
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    6 - EDI Still Plays a Role
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    EDI Still Plays a Role

    53% are using in-house or legacy EDI solutions, with 27 percent using more than three in-house or legacy EDI solutions. About a third (31%) of respondents have used existing B2B gateways/translation engines for more than eight years.
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    7 - Most Common B2B Integration Tasks
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    Most Common B2B Integration Tasks

    Certificate updates (69%), changes in trading partner agreements (60%), and changes in nature/privileges partner agreements and changes in translation/processes requirements (both at 54%) round out the top integration tasks.
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    8 - Impact of B2B Transaction Failure
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    Impact of B2B Transaction Failure

    Service-level agreement (SLA) violation (77%), followed by compliance issues (71%) and revenue loss (67%) top the list. More than half of enterprises also indicated that they have failed to comply with customer-driven SLAs in the past.
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    9 - B2B Visibility
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    B2B Visibility

    More than half have limited visibility into B2B transactions beyond the status of file transfers or the type of EDI document. A majority are aware of the potential business impact of B2B transaction failures.
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    10 - Inclination to Replace Existing B2B Integration Platform
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    Inclination to Replace Existing B2B Integration Platform

    About one-sixth have considered replacing their existing B2B integration solutions due to the high cost of ownership and inability to respond quickly to production issues, and for supporting business growth and/or entering new markets.
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    11 - Methods of B2B Integration Deployment
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    Methods of B2B Integration Deployment

    About one-third of respondents are considering consolidation of existing EDI solutions/infrastructure in the next 12 to 24 months.
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    12 - Cloud-Based B2B Integration Services
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    Cloud-Based B2B Integration Services

    About 10% of respondents are already using cloud-based B2B integration services, while 33% are considering doing so. Moreover, 18% are inclined to use a cloud-based B2B model under a managed services model.
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    13 - Using Managed Services Brings Big Savings
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    Using Managed Services Brings Big Savings

    Ovum finds that "cloud-based B2B integration services under a managed services model" reduces total operating costs 30% to 40%.
 

Interest is starting to build in managed services surrounding API projects in B2B environments, new research shows. "Cloud-based B2B integration services under a managed services model deliver people, process, and technical expertise with significant cost and performance advantages over internal approaches," according to a study conducted by Ovum on behalf of Axway, a provider of API and EDI gateways. "Enterprises can think of this approach as an outsourced B2B integration competency center." The study, based on a global survey of 450 IT managers, finds that nearly half the respondents have launched a digital business initiative that is dependent on APIs. At the same time, the survey also makes it clear that respondents remain significantly challenged by legacy systems integration, security, governance and, paradoxically, drumming up support from senior business managers for API projects. Rather than ripping and replacing most of their existing EDI-based platform, IT organizations will be running both EDI and API-based B2B platforms side by side for some time to come, the research suggests. Channel Insider looks at key takeaways from the study.

 
 
 
 
 
 
 
 
 
 
 
 

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