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API Management: Security, Consumption, Governance

Key Points

  • API management provides a centralized, scalable platform for building, publishing, and controlling enterprise APIs across multi‑cloud environments, handling access, usage analytics, and security policies.
  • The “restaurant” analogy illustrates that an API acts like a menu and waiter, exposing only the needed functionality of complex backend services while shielding users from internal implementation details.
  • In micro‑service architectures, individual backend services (e.g., contact and inventory databases) expose their own APIs, which are then consumed, combined, and re‑exposed by front‑end services such as shopping carts and checkout flows.
  • An API management system adds value through core components—starting with the API gateway that sits between clients and backend services—to enforce policies, route traffic, and provide a secure entry point for all API interactions.

Full Transcript

# API Management: Security, Consumption, Governance **Source:** [https://www.youtube.com/watch?v=fh3VaXLzH5Y](https://www.youtube.com/watch?v=fh3VaXLzH5Y) **Duration:** 00:10:02 ## Summary - API management provides a centralized, scalable platform for building, publishing, and controlling enterprise APIs across multi‑cloud environments, handling access, usage analytics, and security policies. - The “restaurant” analogy illustrates that an API acts like a menu and waiter, exposing only the needed functionality of complex backend services while shielding users from internal implementation details. - In micro‑service architectures, individual backend services (e.g., contact and inventory databases) expose their own APIs, which are then consumed, combined, and re‑exposed by front‑end services such as shopping carts and checkout flows. - An API management system adds value through core components—starting with the API gateway that sits between clients and backend services—to enforce policies, route traffic, and provide a secure entry point for all API interactions. ## Sections - [00:00:00](https://www.youtube.com/watch?v=fh3VaXLzH5Y&t=0s) **Enterprise API Management Overview** - Whitney Lee explains how enterprises can build, publish, and manage secure, consumable APIs across multi‑cloud environments, using a restaurant metaphor to illustrate API concepts. - [00:03:16](https://www.youtube.com/watch?v=fh3VaXLzH5Y&t=196s) **Core Components of API Management** - The passage explains how exposing backend services via an API can be enhanced by an API management system, highlighting its four main elements—particularly the gateway for routing, security, and aggregation, and the developer portal for self‑service documentation and faster time‑to‑market. - [00:06:28](https://www.youtube.com/watch?v=fh3VaXLzH5Y&t=388s) **API Analytics & Portals in Practice** - The speaker explains how automated API analytics and developer portals enable enterprises—such as banks using phone‑verification APIs and rideshare services with non‑relational databases—to monitor usage, monetize services, and streamline data modeling across teams. - [00:09:41](https://www.youtube.com/watch?v=fh3VaXLzH5Y&t=581s) **Engage, Subscribe, Earn Badges** - The speaker thanks viewers, invites comments, requests likes and subscriptions, and promotes free IBM Cloud Labs for interactive Kubernetes training and badge acquisition. ## Full Transcript
0:00How can enterprises ensure 0:02that their APIs are consumable, secure, and managed? 0:08My name is Whitney Lee. 0:09I'm a cloud developer here at IBM. 0:12Before I answer that question, 0:14please go ahead and hit that subscribe button. 0:18API management is the process of building, 0:22publishing, and managing APIs 0:24across an enterprise and multi-cloud setting. 0:28More than just a place for these APIs to live, 0:31API management offers a centrally visible, scalable platform, 0:35where enterprises can share and socialize their APIs 0:39while ensuring controlling access, 0:42collecting usage statistics, 0:45and enforcing associated security policies. 0:49So, what is an API? 0:52A popular way to talk about what an API is is by using a restaurant metaphor. 0:57So, let's think of a kitchen at a restaurant. 1:00Now, there's a lot of complexity here. 1:02There's what ingredients the kitchen uses? 1:05Where they source those ingredients? 1:06The personnel? The equipment? 1:09But as a diner, all you need to know is what is on the menu. 1:14So, in this analogy the kitchen would be an application or service, 1:19and the menu would be an API definition. 1:22And, once the diner knows what they want, 1:25how do they communicate that? 1:27Well, they do that through their waiter. 1:29So, an API is like a waiter, 1:31it's a way to interface with the application, 1:34without understanding the complexity. 1:36So, the user would make a request to the API, 1:39some time would pass, and they would get what they asked for back. 1:44Now where this analogy falls short 1:46is that it is possible to supply information to an API. 1:51So, imagine a restaurant where, 1:53as a diner, you could supply some raw ingredients to your server, 1:57and the server could use that in the kitchen 1:59to affect what dish is coming back out to you. 2:05So, let's talk about a retail application where APIs are used 2:09to kind of give a sense of how they're used in microservices. 2:14So, let's consider a contact information database, 2:20and then that is going to expose information through an API, 2:25and maybe there's an inventory database, 2:28and these are backend services, 2:33and then for front end, let's say we have a shopping cart, 2:38and that will use our inventory, but not necessarily a contact information API. 2:44Let's have a check out which will need both, 2:50and then finally let's do reviews, 2:54which might only need contact information, 2:57not necessarily inventory. 3:00So, these are consuming information from our backend services, 3:05transforming it, and then exposing those results through their own APIs, 3:10and these APIs up top are exposed to the public. 3:16So, it's possible, too, to expose your backend service to the public 3:23if you want with its own API. 3:25So, if you wanted to create an API that lets your 3:31users change their contact information directly, you can definitely do that. 3:37So, an API management system, 3:40how is that going to improve upon what's already happening here? 3:45So, there are 4 core elements of an API management system. 3:48So, the first one is going to be the gateway. 3:53So, the gateway sits between the web client 4:00and the systems and services that it's connected to. 4:04So, the gateway is going to handle all routing requests. 4:10It handles a data composition and protocol transformations. 4:16In addition to that, the gateway handles security authentication and authorization, 4:21and it can use state-of-the-art security like OAuth, OpenID, JWT. 4:26The gateway also handles data aggregation, 4:30so it receives one request from the web client 4:32that may involve multiple services, 4:34but then it will aggregate that and send it back as one response. 4:39The next part of an API management system is a developer portal. 4:47So, the developer portal is a self-service hub 4:52where developers can go to browse access and share 4:57API documentation. 5:00So, if an API definition is like our menu, 5:04this is like a menu of menus, 5:07and this is going to really streamline communication between teams in an enterprise, 5:13which results in faster time to market 5:15and lower development costs. 5:18This example has six APIs, 5:21so you can imagine across an enterprise there could be hundreds or even thousands of APIs. 5:25So, being able to centralize access to that is invaluable. 5:30Next up, we have a lifecycle manager. 5:36So, we can think of an API as a building block. 5:40If you make an API and expose that for other people to use, 5:44and they incorporate your API into their system, 5:48they're trusting you to keep your part of their system healthy. 5:52So, the life cycle manager will help you build, test, 5:58on board, manage, and eventually retire your APIs. 6:03You can manage your APIs every step of the way, 6:05while ensuring adequate version control. 6:09Last up is reporting and analytics. 6:17API management solutions use synthetic monitoring 6:21to watch each API's availability, response time, and overall health. 6:28You can also incorporate analytics solutions 6:31for automated recording over time. 6:35So, these can be used to 6:38diagnose and troubleshoot integration issues as they arise 6:42and they can also help enterprises make better informed decisions 6:47about their applications and services. 6:52So, how how does this affect some real life scenarios? 6:58So, let's consider banks and now they offer login through a mobile app. 7:05That mobile app login requires two-factor authentication. 7:08So, regular login plus a phone number verification. 7:13So, a telecommunications company might build an API, build a service, 7:19that verifies phone numbers and expose that service via an API, 7:23and in that way they're able to monetize their existing data 7:27and create an entirely new source of revenue. 7:32So, they're going to use the reporting part of the API management 7:37to be able to see who's using their new API, how it's being used, 7:41and to set their prices and eventually collect money. 7:46Or, let's consider a rideshare app. 7:49That rideshare app, 7:50let's say they decided to use a non-relational database for their back end. 7:55They want to do this for scalability and flexibility, 7:58but in practice communicating between teams can result in really messy data. 8:04So, the the rideshare company can use the developer portal 8:10to define objects like a car, a journey, a time slot, 8:16and it can formalize the relationships between those objects, 8:23and then communicate all of that with the developer portal, 8:27and that's going to result in much more powerful data queries. 8:30So, they can harness the flexibility and the scalability of a non-relational database, 8:36while using the control of a more traditional relational database. 8:41And, finally, let's consider a bank 8:44that wants to offer third-party products and services to their clients. 8:49They can do this by using the API gateway. 8:55So, the API gateway is going to centralize access and security. 9:02So, the user has a unified login experience 9:06and then the bank can use internal APIS 9:09to expose their customers to third-party products and services, 9:14and then only share that information with the third parties if the customer agrees. 9:19So, they're using the gateway to centralize access, 9:22to aggregate data, so it presents a unified experience, 9:27and they're also using the gateway to ensure their high security standards. 9:31So, API management can be used by enterprises 9:35to make sure their APIs are secure, consumable, and managed. 9:41Thank you. If you have questions please drop us a line below. 9:46If you want to see more videos like this in the future please like and subscribe, 9:51and don't forget: 9:52you can grow your skills and earn a badge with IBM Cloud Labs, 9:56which are free browser-based interactive Kubernetes labs.