Moving your Organizationto an API-First ApproachJune 2021

0102030405Maximizing the APIs’ valuefrom strategy to operate2

Digital Transformation is still highly depending on the capacity of the organizations tobreak down silos and overcome limitations of their legacy IT90%82%60%organizations facechallenges caused byData Silosorganizations don’tprovide a connecteduser experienceacross all channelsorganizations claimchallenges tointroduce newtechnologies due to ITInfrastructureTop 10 Biggest challenges to Digital Transformation34%LegacyInfrastructureand Systems30%Risk Mgmt,Complianceand/or LegalImplicationsSource: MuleSoft/Deloitte 2021 Connectivity Benchmark Report28%27%27%26%25%22%Resources and Migrating Legacy Business and ITIntegrating Time Constraints Over-RelianceBudgetCode or AppsAlignmentSiloed Apps andon Central ITAllocationData18%CompanyCulture andMindset14%Creating a SingleView of OurCustomers3

APIs do represent already a strategicenabler in modern enterprises to build upconnected experiences and unlock valuefrom existing data96%organizations use APIs in2021 – up from 80% in 2020Characteristics of APIs in the organizationsThey are used tobuild integrationsThey are part of dev processfor new projectsof a company’s revenue isgenerated by APIs and relatedimplementationsSource: MuleSoft/Deloitte 2021 Connectivity Benchmark Report51%They arereusable45%They are managedlike productsThey arediscoverable27%53%They areexposed to 3rd PartiesThey aremonetized40%28%25%23%4

Starting a new API program – or nurturing an existing onerequires organizations to invest on 4 main pillarsDefine StrategyAlign OrganizationBuild TechnologyEngage Ecosystem5

An effective API Strategy, closely aligned with the Digital Strategy ofyour organization, improves level of success of API programsALIGN WITH BUSINESS GOALSWhat is your winningaspiration for your DigitalTransformation?Understand current business capabilities, identify the businessobjectives and intended market positioning, and define thevision and principles that will guide the API program69%of organizationsalready have a topdown Integrationand API StrategyU N D E R S TA N D T H E E C O S Y S T E MWhere will you play? Whatkind of positioning are youaiming to have in themarketplace?How will you win? Whatcapabilities and businessmodels will be required tosucceed?Who will benefit from your APIs? Who are your customers,partners and developers? What capabilities should we have tosupport them?D E F I N E A P I VA LU E P RO P O S I T I O NEnvision the experiences to offer to the ecosystem, identifypotential API products and quantify benefits that will arisefrom having data and services exposed as APIs84%of organizationsconsider API integrationto be critical or verycritical to the businessstrategyDEFINE THE API BUSINESS MODELUnderstand how to generate revenue from APIs - directly orindirectly - and ensure API metrics are defined at differentlevels: revenue based, operational metrics and developerbasedSource: MuleSoft/Deloitte 2021 ConnectivityBenchmark Report6

The entire organization should embrace APIsas a new vital product to enable digitaltransformation at speed and unlock its fullpotential to achieve a composable enterprise65% of organizations that provide public APIswill establish the API Product Owner role by 2021API Strategy LeadsIndependently of the API Strategy established in yourorganization - focusing on internal or external services - agovernance and operating model should be clearly definedto ensure a:1) vision is maintained for each API domain catalog;2) the organization is ready to scale API adoption;3) APIs are infused as part of the delivery methodology in-API Product OwnersDelivery Teams(decentralized / centralized)Delivery EnablementAPI Platform Teamplace.Source: Gartner’s API Strategy Maturity Model 7

KEY FEATURES TO CONSIDEREstablishing the right technology foundations is key to ensure yourorganization will not be slowed down when the time comes to scaleAPI driven business modelsDigital strategyenablement, includingmonetization strategyFull API Lifecyclemanagement, includingCI/CD automationSecurity enforcementby design and strongfocus on reliability andperformanceFoster asset reusage andmove to composableenterprisesAvailability ofconnectors to configuremore and custom codelessEmpower deliveryteams to move fasterand overcomedependenciesDiscoverable APIcatalogs andcompelling API PortalsDeployment flexibilityand cloud-nativetechnologies basedTechnology Adoption Focusin the Next 12 monthsAn increase in using SaaSto administer workloads52%An increase in hybridcloud adoption50%An increase in multiregion deployments21%An increase inmicroservices adoption19%An increase in servicemesh adoption16%Source: MuleSoft/Deloitte 2021 ConnectivityBenchmark Report8

Closing the loop: you will only be successful if your API community thrivesEnsure propersupport andfeedback cyclesEnsure partners cantest APIs beforecommitting to itsusageAvoid friction: provide easyto-access and easy-to-graspdocumentation is aprerequisite for API successUnderstand theEcosystemneedsBoost ecosystemengagementPromotecollaborationand co-creationwith partnersEstablish API Storefront& onboardingprocedures52%of IT decision-makersconsider that APIsaccelerateinnovation byenabling partners toleverage digitalassets at scale47%of the top APIinitiatives is to createa developerecosystemSource: MuleSoft/Deloitte 2021 ConnectivityBenchmark Report9

Deloitte has an extended footprint helping organizations thrive in the API echnologyEngageEcosystem3Establish FoundationsDefine API Strategy& Business ModelScaleDefine API ReferenceCatalog Deloitte Strategic ChoiceCascadeEstablish BusinessOutcomes & KPIsDefine APIGovernance & TOMEvangelize Ways ofWorking Governance and operatingmodel templates (CoE/C4E)Enable TeamsDesign ArchitectureSetup PlatformEstablishFoundation AssetsDefine Design Guidelines& Best PracticesDefine API Market UserJourney (B2B/B2B2C)Deloitte Accelerators& AssetsDefine CI/CDProcessesBuild MarketplaceDefine RO Strategy& Ops ModelBuild APIProducts Reference architecture &foundational guidelines API design standards Foundational assets & CI/CDprocesses* B2B API MarketplaceAccelerator for Telcos andInsurance sectors* SAP API Vault*MuleSoft specific accelerators10

You can find more interestingfigures about the state ofconnectivity in MuleSoft 2021Connectivity Benchmark vitybenchmark11

0102030405APIs and Connectivity:What’s the integrationarchitecture future?12

Digital forces are driving innovation in the Integration space The reports of my death aregrossly exaggeratedThe 4 emerging forces driving Integration needs Mark Twain, 1987Omni-ChannelIntegration as the practice ofconnecting systems is ever evolving.Technologies may changeParadigms may changeStandards may changeThe need to connect will keep ongrowing.Better Omni-ChannelCustomer Experience andImproved ServiceEcosystemsEcosystems driving ExtendedValue Propositions in B2B andB2B2C modelsEfficiencyIncreasing Need forAutomation to ImproveEfficiency and Reduce CostsNew Revenue StreamsUnlock Value from existingAssets to generate newRevenue Streams13

Integration is an evolving practice having started a longway since simple data mapping and transformationsOrganizations needcomprehensive integrationplatforms to manage fulllifecycle.The high number and diversityof integrations requireplatforms to be agile andintegrate easily with diversesystems.Full life cyclemanagementEngagement of mmunication protocolconnectorsIntegration flowoperational monitoringand managementiPaaSRouting and orchestrationCloud integrationwith SaaSData mapping andtransformationAt the same time, the need tocontrol and manage theseintegrations is crucial.Initial Stages ofan ESBExtended ESBwith SOAcapabilitiesFull Fledged ESBsNew generationintegrationplatforms14

It’s not just technology. More and more agility and speed indelivering Integration is impacting IT Operating Model changesMore EnablementIT must transitio n from centralizeddesign of complex solutions.New targets: Define ground rules to develop applications and provide thetools for developers to deliver Monitor assets (number of API consumers, API calls, etc) Monitor asset’s quality (number of errors) Less upfront design time, more breakdown deliveriesInternal/LoBs/ExternalDeveloper’s CommunityConsumptionFeedback andusage metricLess Centralized DeliveryDelivery teams design and buildnew integratio ns reusing existingassets as possible.New targets: Create community culture - reuse existing assets Need to document APIs in a way that makes them attractive toother developers Design first principleITReusable AssetsASSETSProductionInternal/LoBs Developer’sCommunity15

API-Led Connectivity is nowadays thecornerstone of a reusable, lego-likearchitecture to meet digital needs of theenterpriseAPI Led Connectivity APIs can be categorized in four major categories, each ofwhich targets a broad category of business opportunities:1) Internal (“private”) APIs improve organizational agility,efficiency, and effectiveness;2) B2B (“partner”) APIs optimize processes andrelationships outside the organization;3) Open web (“public”) APIs expand market reachthrough openness and innovation;4) Product APIs increase product value by connecting toand expanding the ecosystem.Forrester The role of API Management in theIntegration LandscapeEnforce governance, common standards & security policiesFoster consumption & community engagementEnable partner integration & API monetization16

Event Stream Processing is a fundamental add-on to an all encompasing Integationarchitecture. Not everything is real-time enabled. The role of Event Stream in the Integration LandscapeEvent Stream Processing is the capacity to perform nearreal-time analysis or calculations on event data that isbeing generated on a continuous flow ordered by time,the event stream. Common Use CasesAnalyticsData IntegrationPromote highly scalable, highlyresilient solutions based on ahigh level of decouplingTransfer huge amounts of data in anear real time with limited impact onoperational performanceArchitecture models Patterns detectionBig data aggregation, filtering, cleansingNear Real time response to changes based on event dataNear Real time dashboards, alerts, decision automation Near real time extraction and processing of data sources Data synchronization to offload data and processing power fromlegacy systems Master data synchronization Micro-services Orchestration Event Chain Processing (enrich event data with analytics data) CDC – Change Data Capture17

What about Microservices?Where do they fit in the IntegrationLandScape? "Microservices" or "Microservices Architecture"describes a new software development practice meantto increase the speed and efficiency of developing andmanaging software solutions at scale Microservices are not all equalBusiness Logic MicroserviceIntegration Logic MicroserviceThe role of Microservices in IntegrationAPI ContractBusiness LogicAPI ContractBusiness LogicIntegration LogicData InterfacevsIntegration LogicData InterfaceEnable new ITarchitectures ofhighly scalable &highly modularcomponentsTechnologicallymirror an Agilemodus operandiDespite the rationale to build Integration Microservices should be challenged against the alternative option of using an Integration Platform OOBcapabilities and accelerators to build integration flows (e.g. connectors, orchestration components) , times will come where Microservices will be theoption to go.In these cases, it’s highly recommended to centralize discovery, monitoring and security in the same platform that serves the remaining integrationsflows.18

This is Deloitte view on what a high-level architecture of future Integration Landscape looks like3rd PartyAppsWebAPI Developer API MarketingPortalsPortalsGovernance, Monitoring & AnalyticsDevOps Mgmt & Infra-structure ServicesIdentity and Access Management3rd Party DevsMobileVoiceChatOmni-ChannelAPI GatewayESB / SOAMessageBroker&OrchestrationService MeshTransformation &AdaptersFile & Large DataProcessingIntegrationMicro-servicesEvent StreamProcessing3rd Party APIs andServicesStandard capabilitiesSystems of Record / Backends & DataBusinessMicro-servicesEmerging capabilitiesEmerging capabilities(not integration related)19

How we view a Brown-Field IntegrationArchitecture coming togetherComplex business ecosystems tend to suffer from a lack of agility and reusability.To solve this issue, a multi-layered approach based on reusable logic blocks, be itAPIs, Microservices or Events needs to come together, with very specificresponsibilities depending on the layer in which they are introduced.API GatewayExperience LayerAnypoint API ManagerAnypoint Community ManagerService MeshProcess LayerEvent StreamConnectors Event Broker & StreamEvent HandlerAnypoint Service MeshSystem LayerAnypoint WebSockets ConnectorTo be releasedAnypoint DataGraphNEW ITMicroservicesLEGACY ITAPIsAsyncAPI20

Integration practice is not a “one-size-fits-all” solution.It needs to be tailored to each enterprise current andfuture needs.Event StreamingPromote event streams as non real-time, highvolume, decoupled architecturesHigh level of decouplingGreat for huge volumes of dataAPI ConnectivityMonitoring is difficultCreate building blocks to acceleratedigitalization.Discoverability, governabilityReuse & AbstractPromote ecosystems and partnershipsNot suitable for huge volumes of dataNext GenINTEGRATIONARCHITECTUREReal time actionabilityAPIs as a product in itselfMicroservicesAdapt IT organizations to new architecture paradigmsHighly scalable & Highly Flexible due to modularityCloud CompatibilityComplexitySecurity & Governance21

Embracing Technology Darwinism is a necessity on enterprises that takeinnovation seriously It is not the strongest of the species that survives, nor the mostintelligent. It is the one that is the most adaptable to change.Charles Darwinbelieves that Integration withis a key enabler ofenterprises that are driving fast innovation while minimizing cost of failure ionDefine Goal KPIsBuild Integrations(APIs, Events, Other)Actively MonitorUsage & AdoptionDiscontinueIntegrations thatdon’t meet KPIs22

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Technology Adoption Focus in the Next 12 months An increase in using SaaS to administer workloads An increase in hybrid cloud adoption An increase in multi-region deployments An increase in microservices adoption Establishing the right technology foundations is key to ensure your organiza