Published on

January 3, 2024

Business Intelligence
eBook

API Connectors: The Building Blocks for Better Software

API connectors serve a critical role enabling communication between software systems. Learn how these tools simplify integration and automate workflows!
Julia Dunlea
VP of Marketing
Business Intelligence

In today's increasingly connected digital landscape, the ability for software systems and applications to communicate with one another has become mission-critical. As businesses adopt solutions from vast libraries of software-as-a-service (SaaS) tools and migrate data to the cloud, integrating multiple platforms together through robust connections is paramount.

This is where API connectors enter the picture - serving as the fundamental mechanisms through which systems exchange data. API connectors play a pivotal role in optimizing data flows, unifying insights, and avoiding manual processes.

This article will explore what exactly API connectors are, their capabilities, classifications and use cases, as well as best practices for implementation and maintenance. After reading, you'll have a comprehensive understanding of why API connectors are so vital for modern tech stacks and digital strategies.

Key Takeaways

  • APIs set the rules and specifications for data integration, while connectors perform the actual data transfer between systems and applications. APIs expose capabilities, connectors consume them;
  • Connectors abstract away the complexity of working directly with APIs. They handle authentication, endpoints, rate limiting, etc. so developers don't have to. AI applications like Akkio offer a plethora of connectors for business use cases;
  • According to the 2023 State of the API Report, 26% of developers spend over 20 hours a week working with APIs. This aligns with the premise that 30% of developer time is spent on APIs;
  • Proper API connector maintenance is crucial as APIs rapidly evolve. Connectors need to be kept updated to avoid breaking integrations or interrupting data flows.

What Are API Connectors?

First, let's level-set on APIs. Application Programming Interfaces (APIs) are sets of protocols and definitions that govern how two software programs or platforms can communicate with each other. They allow information to be requested and permissioned access to resources to be granted.

API connectors serve as the mechanisms that bridge APIs together to actually facilitate that communication. They handle the transmission of data between applications, taking in requests made to the API and packaging up the response.

In other words, APIs expose capabilities and connectors consume them. APIs provide the specifications for data sharing, connectors perform the transfer.

This relationship allows connectors to abstract away all the complexity developers would otherwise face working directly with APIs. Connectors manage authentication, multiple endpoints, rate limiting, data validation, error handling, and more so engineering teams don't have to build this infrastructure themselves.

Key Connector Capabilities

Though implementations vary across integration platforms, most API connectors share common core capabilities:

Endpoints: The API endpoints are unique URLs that receive API requests and trigger appropriate data flow. Connectors map inbound requests to the correct endpoints.

Authentication: Handling identity verification, access permissions, and secure transmission of credentials to authorize data flows. Most APIs, like Google Analytics 4, or OpenAI's GPT-4, require some sort of authentication. Google APIs notoriously use oAuth for most of their APIs;

Actions: Actually carrying out API calls like create, read, update or delete operations on records and systems.

These features allow connectors to simplify connecting SaaS applications or automating workflows by offloading the underlying API complexities.

Classifications of Connectors

While the concept sounds straightforward, not all API connectors are created equal. Like APIs, there's a spectrum of connector types currently used for integration.

Native Connectors

Native connectors link applications that share a common codebase and vendor, like two products from the same software company. Since they're embedded in both systems, native connectors tend to offer the most seamless and robust integrations.

For example, HubSpot's native connector between its Marketing Hub and Sales Hub combines user data and activity seamlessly owing to the shared backend architecture. At the same time, both products have their own APIs, which could be connected to other vendors, for example, for reporting.

The main limitation is that native integrations require vendor alignment, which isn't always feasible.

API Connectors

API Connectors / Akkio

Pre-built API connectors are designed by integration platform providers to connect specifically to external applications. They're constructed using that application's open API and handle the data interchange process automatically.

Usually, pre-built connectors are designed to help users make the most of the platform. At Akkio, we offer integrations with all major platforms, like a salesforce connector, different data sources like Snowflake and Google BigQuery, and consumer tools like Google Sheets.

Third-Party Connectors

Finally, third-party connectors are created by independent developers to bridge two applications. Often custom-coded, they can range from simple to extremely complex integrations depending on the use case.

For example, third-party data connectors exist to funnel mainframe or legacy system data into modern data warehouses and analytics platforms. Since mainframes don't provide APIs, very custom extraction processes must be created.

The quality of third-party connectors varies widely. While some work seamlessly, others break frequently leading to integration issues. Lack of ongoing support also complicates long-term usage.

Today, platforms like Zapier and Make provide third-party options to connect applications between each other. This is scalable, but pricey, and can help when an integration you need isn't currently available in your tech stack.

Custom Connectors

Beyond using existing connectors, development teams can also build custom connectors tailored to their stack. Custom connectors allow for more control, customization, and flexibility when integrating proprietary systems.

For example, an e-commerce company could create a connector that connects their homegrown inventory management database to their Shopify frontend to sync product data.

The possibilities for custom connectors are endless, but they do require upfront and ongoing development investment to build and maintain.

Benefits of Leveraging Connectors

Now that we've broken down connector classifications and capabilities, let's explore some of the key benefits driving adoption:

Automating Manual Tasks

Forecasting in Akkio, with live data from API connectors

Perhaps the single biggest motivator for leveraging connectors is avoiding manual processes. Transferring data between systems via spreadsheets or flat files is enormously inefficient.

Connectors allow automated scheduled data syncs between multiple sources, like databases, APIs, cloud storage, and applications. This saves vast amounts of human effort while minimizing risks of human error.

For example, our GA4 integrations automatically re-syncs every 24h, meaning all reports and machine learning models created in Akkio automatically sync with your new GA4 data every day.

Unifying Data & Insights

With data now housed across a multitude of SaaS platforms and databases, achieving a single source of truth is extremely challenging. Connectors help tackle this by funneling data from tools like Stripe, Salesforce, Marketo etc. into central data warehouses.

Common use cases are unifying:

  • Customer data from CRMs, support portals and transactional systems
  • Marketing analytics from ad platforms, web analytics, email providers
  • Business data from ERPs, accounting tools and HR information systems

This consolidation results in more robust, holistic and actionable reporting existing data and analytics.

Enhancing Scalability

As companies grow, reliance on connectors also increases. The volume, variety and velocity of data flows outpace human-driven processes.

Connectors allow data integration to scale efficiently through automation. Workloads can be extended across tools without massively inflating headcount by leveraging reliable, managed connectors rather than custom coded scripts.

Increasing Agility

With connectors abstracting away API complexities and handling authentication, rate limits etc. developers are freed up to focus on higher value tasks.

They facilitate quicker integrations between tools, rapid prototyping and experimentation. This enables organizations to achieve greater agility responding to market dynamics.

Clearly, as data meshes grow more distributed, the business case for connectors becomes increasingly compelling. Let's now explore some common applications.

Real-World Connector Use Cases

API connectors power integrations across practically every function and vertical. Here are some of the most impactful applications:

Marketing Data Consolidation

Given the expansive martech landscape, marketing teams often leverage dozens of point solutions for channels, analytics, automation and more. Connectors help bring this data together.

For example, funneling ad data from Facebook Ads, Google Ads, TikTok etc. into a marketing analytics platform lets teams deduplicate leads, correlate campaigns to pipeline and attribute ROI more accurately.

CRM and Support Portal Integrations

Customer data lives across both CRM and customer support systems. Connectors enable users have a unified view of the customer between platforms like Salesforce, HubSpot, Zendesk, Intercom etc.

Rather than manually exporting and importing spreadsheets, connectors can automatically integrate and sync contacts, deals, support tickets and conversations via APIs. This provides sales and support reps enhanced context for interactions.

Internal Business System Connections

Virtually every business leverages a mix of proprietary applications, third party, software applications, databases etc. for managing internal processes. Connectors help unite platforms including:

  • HR Information Systems and payroll/benefits providers
  • Custom ERPs, accounting software, procurement tools and inventory databases
  • Data warehouses, business intelligence and analytics dashboards
  • File storage platforms like Sharepoint, Dropbox or Box

This breaks down data silos to uncover organization-wide insights.

Ecommerce Data Consolidation

Modern ecommerce ecosystems contain many moving parts. From product information databases and inventory management to order/shipping data and connection to external marketplaces, connectors smooth data interchange.

For example, an online retailer could leverage connectors between their Shopify storefront, Walmart or Amazon Marketplace accounts, 3PL logistics providers, payment gateways like Stripe or PayPal, and marketing platforms like Mailchimp. This enables robust tracking across the entire value chain.

These examples merely scratch the surface of connector use cases, but illustrate their potential for omnichannel data unification.

Implementing Connectors

When assessing tools and evaluating connectors, how can you identify the best options for your technology stack? Here are helpful guidelines:

Evaluate Connector Reliability

While pre-built API connectors simplify integration processes, some break more often than others do. Testing connector reliability in staging environments is advised before full production deployment.

Factors to examine include change logs from vendors detailing improvements and fixes, transparency around API updates, and customer reviews on factors like uptime. Conducting robust acceptance testing before launch helps safeguard against interruptions.

Assess Support Options

All connectors face issues periodically - APIs evolve, endpoints get retired, permissions change. Vetting available support models is crucial for rapid troubleshooting and to find valuable solutions.

Options range from self-service troubleshooting to premium 24/7 live support and managed services. Factor in access to documentation, forums, SLAs for response times, and scope of expertise available from technology partners before integrating connectors into vital processes.

Plan for Maintenance

While connectors abstract away API complexities, they don't eliminate the need for maintenance. As vendors enhance and iterate on APIs, connectors must adapt in parallel to avoid breaking.

Factor in the overhead of testing and deploying connector updates into operating budgets and resource planning. Integrating monitoring for connector failures into ops workflows is also best practice.

Involve Developers When Needed

While pre-built connectors minimize development needs, custom use cases like connecting proprietary systems often call for custom connectors.

In these scenarios, work closely with your development team or external consultants to spec connectors to meet integration requirements. Weigh the tradeoff of upfront build cost vs. long-term flexibility benefits for your use case.

Staying vigilant around testing, support and maintenance while tapping developer skills where needed will help ensure successful connector adoption.

The Connector-Driven Future

Given the irreversible dominance of cloud platforms and SaaS software, connectors will only grow in importance for business technology stacks. Here are some projections:

Connector Adoption Will Increase

As more businesses digitally transform and data complexity increases, connector usage will naturally expand in parallel. The growth rates for categories like enterprise integration platforms highlight rising demand.

Organizations will continue consolidating siloed data for centralized visibility and look to connectors to enable this. With AI becoming a household name in 2023, we will surely see organisations implement AI solutions across the board in 2024. AI is more powerful when relevant data is accessible.

New Connector Innovations Will Emerge

Right now, most connectors focus on point-to-point data interchange between discrete systems. However, as event streaming and microservices architectures using message queues or buses gain traction, more mesh-like peer-to-peer connector models will likely emerge.

Connectors Will Streamline Cloud Migration

For organizations migrating monolithic legacy systems to cloud-native applications, connectors will play an enormous role. Refactoring tightly coupled systems into best-of-breed cloud services necessitates robust API-based interchange.

Connectors essentially help stitch together modern microservices-centric ecosystems. This architecture shifts integration complexity from custom code to connectors.

Data Governance Demands Will Increase

As connectivity between systems grows, so too do risks of data leakage or unauthorized access. Connectors grant access to underlying data APIs, meaning securing them is critical.

Expect tighter controls, improved visibility and greater oversight into connector permissioning as threats like data exfiltration increase. The ease of use connectors provide must be balanced with rigorous governance.

Conclusion

As this exploration into API connectors has shown, they serve an invaluable and rapidly expanding role in today's increasingly connected digital landscape.

By simplifying system integrations, automating manual processes, unifying data silos, and enabling scalability, connectors provide the fundamental plumbing for modern cross-platform ecosystems. Their capabilities will only continue advancing in parallel with innovations in API design and cloud-native architectures.

However, as reliance on connectors grows, so too does the need for governance and access control measures to secure data flows. Overall though, connectors are undoubtedly pivotal mechanisms for optimizing data interchange and integration workflows across industries. Organizations not leveraging connectors face risks of inefficient, error-prone manual processes that hamper agility and insight.

With careful implementation and maintenance, connectors can smooth the evolution towards more unified, automated and intelligence-driven technology stacks.

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