New WSO2 Research Reveals Where Organisations Are Floundering to Successfully Digitise Services

• While APIs are at the heart of digital transformation, 74% of survey respondents do not have a fully rolled out API strategy.
• 87% of respondents value open-source platforms combined with hybrid environments that deliver flexibility and enable deployment choices.
• 95% of respondents are experiencing challenges with their CIAM platform.

London, UK – 1st November 2022 – WSO2, the leader in digital transformation technology, today released the UK&I findings from its survey examining how organisations are tackling their IT infrastructure in order to deliver the best possible digital services to employees, customers and partners.

To achieve success, digital transformation involves three critical components: an API-first approach, effective and API-led integration of systems and applications, and comprehensive identity and access management for users. Organisations also require a flexible platform that enables each of these capabilities to perform well either in isolation or together, and this is where the survey found organisations are currently falling short.

In the survey, nearly three quarters of respondents (74%) admitted that they do not have a fully rolled out API strategy. Furthermore, 88% concede that the technology they currently use to build, manage, and integrate APIs needs to be better—requiring anywhere from a moderate or major improvement to a complete overhaul. The two most common challenges cited with current API platforms are difficulty re-using existing or legacy APIs for new projects and services (53%) and managing the full lifecycle of APIs (52%).

Organisations need flexible deployment options for new platforms

The survey also found that most organisations require a mix of deployment options. Only 10% of respondents currently opt for on-premises wherever possible, while only 3% said that their IT infrastructure is in the cloud wherever possible. Looking ahead to the next three years, only 5% expect to be on-premises wherever possible, while only 15% say cloud wherever possible.

“For the majority of companies we surveyed, both now and in the future, hybrid environments are expected to be the norm. Therefore, flexibility is critical for any new platforms to deliver the deployment choices that customers want to make,” said Ricardo Diniz, WSO2 vice president and general manager for UK&I and Southern Europe. “Likewise, from an API perspective, organisations need to take a step back and revisit how they manage and use APIs in order to realise the full benefits they can deliver.”

Even as hybrid deployments continue to dominate, the study points to a growing adoption of software as a service (SaaS) and other cloud-based solutions with a five-fold increase in planned cloud-only deployments. SaaS offerings address both the current economic challenges and the continued shortage of skilled developers. They enable enterprises to free often-understaffed development teams from managing the underlying infrastructure to focus on innovating new digital services and applications that deliver business value.

The value of open-source platforms recognised

Taking an open-source approach can deliver real value to the business, with 87% of respondents agreeing that the ability to use an open-source platform for building, managing and integrating APIs would significantly benefit developers and architects within their organisation. Not only do open-source software and pre-templated libraries save time; they also free up precious internal resources who can focus their energies on innovating and improving the end user experience.

Open-source software also undergirds all major cloud platforms being delivered to the market today, whether SaaS or platform as a service (PaaS). This approach facilitates integration and the ability to take advantage of new technologies as they emerge.

”More than half of the respondents surveyed said that digital transformation initiatives are driving demand for APIs. But innovation can only be achieved if engrained challenges stemming from underperforming technology platforms are rectified,” Ricardo Diniz observed. “This is where a digital platform as a service and other SaaS offerings come into play. They enable development and operations teams to deliver new integrations, services, and APIs in hours or days, not weeks or months.”

Organisations repurpose IAM platforms for CIAM purposes

The research also examined how organisations are using customer identity and access management (CIAM) platforms to deliver a more personalised experience. It found that 80% of respondents are using or planning to use a single platform for employees, partners and suppliers as well as their customers.

However, the survey responses also suggest that existing identity and access management (IAM) platforms are being repurposed for CIAM needs; an approach that can quickly prove frustrating given that these platform types are not like-for-like. This can often create challenges, such as limited scalability and extensibility, and lead organisations to compromise on critical CIAM needs, which is why 95% of those surveyed indicated that they are experiencing challenges with CIAM.

Interestingly, 85% of respondents believe their IAM platform needs either a complete overhaul or major or moderate improvement, with 80% saying the same about their CIAM platform, and 74% agreeing that when IAM/CIAM platforms do not work as they should, customer, partner and supplier relationships are negatively impacted.

“Organisations are struggling with their current platforms predominantly because they are being repurposed for CIAM, which is not what they were built for. Companies will realise much greater business benefits if they use either a true CIAM platform or at a minimum one that takes a CIAM-first approach,” concludes Ricardo Diniz.

About the Study
The study was conducted by independent research organisation, Vanson Bourne, in March 2022. It recorded the views and experiences of 200 IT decision makers and those from related functions in the UK&I, in organisations with a global annual revenue of at least £50 million and from a range of private and public sectors.

The study explores both current and future IT infrastructure and any associated challenges. It assesses where organisations are on their API journey, reviewing what organisations want from an API platform. It also delves into how respondents are currently managing identity requirements, whether they are performing to the expected level, and what challenges they might be experiencing with either their IAM or CIAM platform.

The full WSO2 research whitepaper based on the study findings, “A Road to Success Without Compromise: Managing APIs and Identity Effectively”, is available to download here: https://wso2.com/reports/managing-apis-and-identity-effectively/

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About WSO2
Founded in 2005, WSO2 enables thousands of enterprises, including hundreds of the world’s largest corporations, top universities, and governments, to drive their digital transformation journeys—executing more than 60 trillion transactions and managing over 1 billion identities annually. Using WSO2 for API management, integration, and customer identity and access management (CIAM), these organisations are harnessing the full power of their APIs to securely deliver their digital services and applications. Our open-source, API-first approach to software that runs on-premises and in the cloud helps developers and architects to be more productive and rapidly compose digital products to meet demand while remaining free from vendor lock-in. WSO2 has over 900 employees worldwide with offices in Australia, Brazil, Germany, India, Sri Lanka, the UAE, the UK, and the US. Visit https://WSO2.com to learn more. Follow WSO2 on LinkedIn and Twitter.

About Vanson Bourne
Vanson Bourne is an independent specialist in market research for the technology sector. Their reputation for robust and credible research-based analysis is founded upon rigorous research principles and their ability to seek the opinions of senior decision makers across technical and business functions, in all business sectors and all major markets. For more information, visit www.vansonbourne.com.

Source: RealWire