Great article in TechCrunch today about the Rise of APIs.
Application program interface (API) is a set of routines, protocols, and tools for building software applications. A good API makes it easier to develop a program by providing all the building blocks, which are then put together by the programmer.
The number of SaaS applications has exploded and there is a rising wave of software innovation in the area of APIs that provide critical connective tissue and increasingly important functionality. While getting to market more quickly at a lower cost is a huge advantage, there is an even more important advantage: Companies that focus on their core capabilities develop differentiated functionality, their “secret sauce,” at a higher velocity.