How to Reduce 3rd Party API Costs: Part I

Reducing third-party API costs is a growing concern for businesses, especially as reliance on these services increases. API providers use various pricing models, such as pay-as-you-go, subscription, and tiered models, each with its own risks and challenges, like unexpected costs or inefficient resource allocation. To manage these expenses, businesses can implement strategies such as setting alerts and thresholds to monitor usage, tracking provider SLAs to negotiate better terms, and employing optimization techniques like caching and preemptive mechanisms such as circuit breakers. These tactics help prevent unnecessary API calls and manage API budgets effectively, ensuring alignment with financial objectives. Lunar, a team of experienced engineers, offers expertise in designing optimal mechanisms for API management to help businesses reduce API expenses and improve efficiency.