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September 9, 2016

Google Acquires Apigee: API Critical for Cloud Computing

Written by Shina Neo

Google Acquires Apigee: API Critical for Cloud Computing

Yesterday, Alphabet, Inc.’s Google announced its acquisition of San Jose-based cloud software company, Apigee, for $17.40 a share, valued roughly at $625 million.

Apigee provides application programming interface (API) management solutions to effectively integrate and deliver digital business. According to a Bloomberg article, this deal is the largest since Google acquired Nest Labs two years ago for $3.2 billion. 

“The addition of Apigee’s API solutions to Google cloud will accelerate our customers’ move to supporting their businesses with high quality digital interactions,” said Diane Green, Google SVP, in a Google blog. “Apigee will make it much easier for the requisite APIs to be implemented and published with excellence.” 

In today’s fast-paced and digitally innovative marketplace, enterprises are quickly changing and adapting the way business communication and content delivery is executed. With the growth in digital engagement and increasing pressure to jump on the bandwagon, successful organizations have implemented strategies not only to keep pace with our ever-evolving tech-savvy workforce, but to attempt to stay ahead of their competition. Smart organizations understand it is critical to align and adapt business strategies to consumer needs. According to Apigee, APIs are the way to do just that.

Apigee’s service is critical for businesses transitioning to the cloud, said Greene, former CEO of VMware. 

Increasing in popularity, content enablement and cloud computing have become the driving forces in enterprise content sharing and just-in-time content delivery. APIs have further enabled companies to provide content to their customers in a more effective and efficient way. On a more granular level, an API is a set of instructions and tools built into a software application that allows users to control programs through a set of standardized protocols. Essentially, an API allows two applications to share data and “communicate” with one another, according to a Content Raven blog. 

A Forrester report on API management solutions predicted U.S. companies will spend nearly $3 billion on API management in the next five years and will quadruple by the end of the decade from $140 million in 2014 to $660 million in 2020.

As explained in a CNBC article, Google has fallen behind Microsoft Azure and Amazon Web Services in cloud computing; however, in the past year, Greene has made strides to put Google’s name back on the radar. Companies report big sales increases after turning on APIs, said Greene in an interview with The Wall Street Journal.

“The transition toward cloud, mobile and digital interaction with customers and partners via APIs is happening, and fast,” said Greene. “It’s happening because customers of every stripe- in the consumer realm and in the enterprise- are demanding it, and because it translates to engaging and valuable businesses.”

Shina Neo

Shina Neo is the content marketing manager at Content Raven where she is responsible for the publication of all blog posts, white papers, eBooks, infographics and social media campaigns. Previously, Shina worked as a news reporter and has written for numerous newspapers and magazines nationwide. She holds a Masters of Science in Journalism from Boston University.

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