The benefits for the provider are often the potential of innovation, ease of communicating the resources available and a value promise to the consumers, ease of adding value to consumers through data, services and products. The life cycle of a system or overall solution that uses APIs is often longer, making investments in development more profitable. On the other hand, changes related to user experience or operating models can be implemented more quickly.
From the API provider's point of view, innovations developed by consumers through the API are often a way to obtain and test product development ideas at low cost, without their own significant investment. The provider may also have
Sometimes the provider first has to acquire an information system or technology providing an API or technology as a ready-made software or product, or as software or technology development. The possibilities, costs and access rights of the API may be influenced by the conditions set out in the procurement contract, as well as by licenses and patents related to the technologies used (e.g. programming languages, documentation standards, data models and communication protocols).
The data provided by the API may be owned by the provider or may be data stored by the API consumers. The data Terms and Conditions are therefore to be resolved separately.