Company
Date Published
Author
Nick Gottlieb
Word count
1116
Language
English
Hacker News points
2

Summary

The modern software industry is heavily reliant on third-party APIs, known as "prefabrication," to keep pace with growing demand. This shift has its roots in the construction industry, where prefabricated components were developed to make building faster, cheaper, and more accessible. Similarly, Amazon Web Services (AWS) pioneered this approach for software developers by releasing APIs that made it possible for companies to tap into excess compute resources without having to build their own infrastructure. Since then, hundreds of other API-as-a-service companies have emerged, including Twilio, Stripe, Shopify, and Okta, which represent over $350 billion in enterprise value. As a result, the "build vs buy" decision has become increasingly important for developers, with many choosing to leverage existing APIs rather than building their own custom solutions. This trend is expected to continue as the software industry becomes more digital, with new APIs emerging to serve industries such as insurance, healthcare, education, and finance, and addressing growing regulatory concerns around privacy and security.