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Custom API Development: Why and How to Create Your Own API?

Auteur n°14 – Guillaume

By Guillaume Girard
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In an environment where mastering data flows and customizing digital services define competitive advantage, developing a tailor-made API proves to be a strategic asset. Beyond standard solutions, a custom API ensures full control over your systems’ security, evolution, and integration. This article explores the main use cases, from TCO reduction to data monetization, before diving into the key steps, best practices, and technological choices. The goal: to provide a clear roadmap for IT decision-makers and developers to design, deploy, and maintain a customized API that truly aligns with business priorities and the digital roadmap of the organization.

Why choose a tailor-made API?

An API specifically designed to meet your needs offers end-to-end control over security and performance.It also promotes native integration with your existing systems while reducing technical debt over time.

Enhanced security and control

When an API is developed in-house, every authentication layer and encryption mechanism can be tailored to the company’s security policies. This customization avoids compromises imposed by some third-party platforms that offer generic but sometimes overly permissive or rigid options.

API key management, precise definition of access scopes, and implementation of standards such as OAuth2 or JWT are handled within a framework your team knows inside out. Log auditing and incident management can be organized according to business priorities and local regulatory requirements, particularly in banking or healthcare.

Moreover, a tailor-made API can integrate scalable security mechanisms, readily accommodating certificates or Hardware Security Modules (HSM). This flexibility translates into continuous strengthening of processes without disrupting existing integrations, creating a reliable foundation for the future.

Flexibility and personalization

Packaged solutions often show their limitations when adding new features or restructuring a workflow. An in-house API built on a modular and microservices architecture makes incremental updates to each component straightforward. This “from scratch” design allows free choice of language, framework, database, and patterns suited to the use case: REST, GraphQL, event-driven, or even RPC mechanisms. It then becomes easy to deploy independent services, each with its own versioning cycle and automated tests. The result is increased agility to respond swiftly to business changes, whether adding specific endpoints for a new digital channel or adapting data structures to emerging regulations. The API remains a living, evolving, and controlled asset.

Reduction of TCO and control of technical debt

While the initial investment in developing a tailor-made API may appear higher, the mastery of Total Cost of Ownership (TCO) becomes evident over the long term. Maintenance, updates, and adaptations cost less when they rely on well-documented, tested code aligned with architectural best practices.

By avoiding ad hoc hacks or overlays on “off-the-shelf” solutions, the company minimizes the risk of blockages during upgrades or version migrations.

Ultimately, the ability to internalize expertise, automate deployment, and reuse software components significantly lowers support and refactoring costs, while promoting a more predictable roadmap.

Concrete example of a tailor-made API development

A mid-sized Swiss e-commerce company replaced a standard middleware with a custom RESTful API. Leveraging a microservices architecture, it natively integrated its ERP, CRM, and logistics platform. The organization reduced integration incident resolution time by 30% while adding three new sales channels in six months, with zero service interruptions. This demonstrates how a tailor-made API can immediately unify a company’s various operations without friction, impacting business metrics and performance indicators.

Key steps to designing a custom API

A structured approach, from initial analysis to production deployment, ensures an API aligned with your business objectives.Each phase must involve both IT and business stakeholders to clearly define scope, performance, and security requirements.

Needs analysis and scope definition

The first milestone is mapping the use cases, workflows, and business processes to expose via the API. IT and functional teams identify critical data, expected volumes, and SLAs required for each endpoint.

This preliminary work establishes a clear roadmap, preventing scope creep and ensuring the API addresses strategic challenges.

A detailed specification, accompanied by sequence diagrams and payload examples, is validated before any development begins. This phase ensures shared understanding and provides a foundation for subsequent testing.

Choosing architecture and technology stack for your API

Selecting the architecture (modular monolith, microservices, event-driven) depends on the organization’s size, call volumes, and resilience needs. Best practices today favor decoupled microservices orchestrated via containers and orchestrators like Kubernetes to guarantee scalability and resilience.

On the technology side, adopting an open-source stack (Node.js/NestJS, Spring Boot, Laravel, etc.) limits vendor lock-in while leveraging active communities. Strong typing (TypeScript, Java) enhances maintainability and reduces production bugs.

Finally, continuous integration and continuous deployment (CI/CD) must be planned at this stage, with automated pipelines for tests, builds, and rollbacks.

Data modeling and API endpoint design

Structuring APIs relies on a clear model of resources and their relationships. Choices between REST and GraphQL, or between CRUD endpoints and events, depend on performance and consumption needs.

Each endpoint is defined with its parameters, response codes, and JSON or protobuf schemas. Dependencies, notably on databases or message queues, are documented to facilitate scaling.

Simultaneously, defining coherent versioning (versioned URIs, headers, or media types) prepares for multiple coexisting versions and ensures seamless migration for existing consumers.

Example of API development for an industrial player

A Swiss industrial manufacturer initiated the design of an internal API to orchestrate connected production lines. After a prototyping phase in GraphQL, the team opted for a hybrid REST/events model to meet low-latency and variable volume requirements. Upon deployment, this API reduced integration delays between the MES and SCADA systems by 25%, enhancing responsiveness to failures.

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Best practices for efficient in-house API development and deployment

High code quality and an automated delivery pipeline are essential to guarantee reliability and rapid deployment.Testing, security, and governance must be integrated from the design phase to mitigate risks throughout the API’s lifecycle.

Automated testing and CI/CD implementation

Unit and integration tests cover business classes and calls to external resources. They validate API contracts (contract tests) to ensure each update doesn’t break existing functionality. CI/CD pipelines execute these tests on every commit, build signed container images, and trigger progressive deployment scenarios (blue/green, canary) or rollbacks in case of anomalies. This automation reduces downtime and minimizes human errors.

Securing and managing access to a tailor-made API

Implementing an API gateway, paired with a key and quota management tool, helps limit abuse and control load. CORS policies, throttling, and payload limits prevent DDoS attacks and excessive usage.

Centralized authentication via an OAuth2 or OpenID Connect service enforces unified token management. Token refresh mechanisms and revocation in case of incidents ensure a secure lifecycle for each consumer.

Regular vulnerability testing and security audits, complemented by dependency scanners, prevent flaws related to open-source libraries.

Documentation, versioning, and governance

Living documentation, generated automatically (Swagger/OpenAPI, AsyncAPI), facilitates adoption by internal teams and partners. It describes each endpoint, data schema, examples, and error codes. Clear versioning, coupled with dedicated governance, prevents contract breaks.

A cross-functional committee approves each new version, defines support duration for older versions, and manages deprecations. Critical change management follows a formal approval process, ensuring major updates receive impact analysis and a migration plan for consumers.

Ensuring scalability and continuous integration of your API

To support growth and diverse use cases, the API must rely on a scalable architecture and proactive monitoring.Integration with internal and third-party systems must guarantee functional consistency and optimal responsiveness.

Scalable architecture and microservices

Segmenting into microservices allows each component to scale independently based on load. Event Sourcing or CQRS patterns can manage traffic peaks efficiently.

Container orchestrators like Kubernetes automate scaling, load balancing, and resilience, while service meshes simplify inter-service communication management.

In some cases, adopting serverless for highly targeted functions offers maximum elasticity and an operational cost proportional to actual usage.

Monitoring and API performance

Key metrics (latency, error rate, throughput) are tracked using tools like Prometheus and Grafana, coupled with distributed tracing (OpenTelemetry). They provide real-time visibility into API behavior. Alerts configured on precise thresholds enable teams to react immediately to degradation before end users are impacted. Automated load tests regularly simulate expected volumes and validate scaling capabilities, ensuring the robustness of contractually defined SLAs.

Integration with internal and third-party systems

Orchestrating calls to ERPs, CRMs, or third-party solutions uses modular connectors isolated from business services, avoiding side effects when switching providers. Retry mechanisms, circuit breakers, and backoff strategies are essential for resilience: they protect the ecosystem against latency or temporary unavailability. Finally, data-transformation middleware ensures consistency of formats and semantics, facilitating collaboration with external partners and SaaS platforms.

Concrete example of integrating an internal API with third-party systems

A Swiss financial services provider implemented an internal API to aggregate data from multiple business applications and fintech partners. Using a microservices architecture and a service mesh, the solution now handles ten times more requests than at launch, while maintaining an average latency below 50 ms. This shows how an adapted API architecture makes all the difference.

Accelerate your digital transformation with a custom-developed API

Developing a custom-tailored API is a powerful lever to optimize security, flexibility, TCO, and integration across your digital ecosystem.

By following a structured approach, leveraging open-source technologies, and adopting best practices in testing, versioning, and monitoring, each organization can build an evolving and resilient foundation.

Whether you aim to connect business systems, open new channels, or monetize your data, our Edana experts are ready to support you at every stage of your custom API project and ensure alignment with your strategic objectives.

Discuss your challenges with an Edana expert

By Guillaume

Software Engineer

PUBLISHED BY

Guillaume Girard

Avatar de Guillaume Girard

Guillaume Girard is a Senior Software Engineer. He designs and builds bespoke business solutions (SaaS, mobile apps, websites) and full digital ecosystems. With deep expertise in architecture and performance, he turns your requirements into robust, scalable platforms that drive your digital transformation.

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