The Hidden Costs Beyond the $92 Billion: Why Internal API Documentation Matters

The recent APImetrics report shook the industry with its finding that poor API performance costs as much as $92 billion annually. While this staggering figure rightfully focuses on API performance issues, there's an under-addressed element that could be silently adding to this cost: poor internal API documentation.

The $92 Billion and Beyond: What's Missing?

The APImetrics report detailed the financial implications of poor API performance across aspects such as high latency, outages, and engineering issues. However, what's not included in this eye-popping figure are the hidden costs associated with poor or missing internal API documentation.

Increased Onboarding Time for New Developers

Without proper documentation, new developers spend additional time deciphering the existing architecture and functionalities. This delays their contributions, creating a ripple effect on productivity.

Difficulty in Troubleshooting and Debugging

Inadequate documentation complicates debugging, requiring developers to sift through code or rely on 'tribal knowledge.' This inefficiency can translate into real financial costs, although they are not often calculated.

Inefficiency and Redundancy

As Joyce Lin from Postman astutely pointed out, "Not having an easy way to discover internal APIs negatively impacts the ability to reuse schemas, establish consistent design patterns, and enforce governance rules." This oversight leads to redundant efforts and compromises governance.

Security Risks

Poorly documented or undocumented APIs often lack clear security protocols. This ambiguity creates vulnerabilities, adding yet another layer of financial risk.

Strained Cross-functional Collaboration

Poor documentation inhibits effective collaboration between departments like development, QA, and operations. This bottleneck can indirectly add to the costs of API management.

A Holistic Approach to API Management

At Theneo, we aim to bridge this gap in understanding the full scope of API-related costs. Our platform offers AI-assisted documentation creation, integrated development tools, and an intuitive API explorer, providing a more comprehensive solution to both performance and documentation challenges.

Conclusion

While the $92 billion figure from APImetrics serves as a dire warning about the costs of poor API performance, it’s crucial to also consider the unquantified but significant costs of inadequate internal API documentation. By adopting a holistic approach that tackles both performance and documentation, we can strive for more efficient, secure, and cost-effective API management.

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