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Modern apps and APIs rise in a multicloud world

May 2024 by F5

Modern applications are taking over enterprise portfolios, new research from F5 has found. Apps classed as modern now make up 51% of the total, up by more than a quarter in the last year.

According to the
2024 edition of F5’s State of Application Strategy Report (SOAS)1,
now in its tenth year, the proportion of modern apps will reach 60% in 2025 before topping out at around 85%. The remaining “traditional” apps are likely to be most present in industries such as financial services that provide mission-critical infrastructure.

The API era has arrived

The huge growth in modern apps and their microservices has created an exponential rise in the number of APIs.

Companies with over $10 billion USD in annual revenue claimed they manage more than 1,000 apps and nearly 1,400 APIs, on average. A handful reported they managed more than 10,000
APIs.

90% of survey respondents said they manage fewer than 200 apps, and that number tends to decrease as digital transformation proceeds. At the same time, API counts only go up.
More than one-third of respondents (41%) manage at least as many APIs as apps.

Central to this shift is the fact that APIs have become a fact of life for enterprises that are consolidating applications, automating processes, and seeking to integrate AI
into their business models. The SOAS report found that, at each successive stage of digital transformation, the average number of APIs being maintained increased by 5%.

The proliferation of APIs has led companies to embrace new methods to manage and secure their growing networks. Almost all (95%) have now implemented API gateways to provide
authentication, validate requests and rate limit traffic. While close to half (43%) have automated their security infrastructure for both apps and APIs.

“API-related security and management solutions are now more important than ever as APIs, apps, and the data they exchange become ever more strategic to businesses,” said Cindy
Borovick, Director of Market and Competitive Intelligence, F5.

“However, individual technologies such as API gateways won’t be enough. Automating the app and API security infrastructure can help, but automation rates in the IT domain are
still below 50%. The best-protected and most efficient organizations will need to deploy comprehensive strategies for keeping track of, managing, and protecting their APIs.”

Multicloud operations are the new normal

Another key finding in this years’ report is that, whether modern or traditional, today’s apps and the APIs that accompany them, are overwhelmingly being deployed into a multicloud
landscape.

Nearly 90% of organizations now operate in multicloud environments. In fact, more than one third of respondents – 38%, nearly double the 2023 figure – operate apps deployed
in six different environments. In 2020, only 18% used five.

With apps more widely distributed than ever, their management becomes ever more challenging.

Although no single challenge dominates, the top difficulty, as in 2023, is managing operational complexity. Day-to-day, this entails multiple tools and dashboards, bespoke security
solutions and policies, lack of visibility into app health, too many vendors, and telemetry trapped in silos.

Migrating apps between environments has risen from fifth place last year to become the second most cited challenge. Around one-third of respondents still struggle with multicloud
security, a perennial concern since at least 2017.

App visibility, another lingering concern, hovers in the middle of the pack this year. These shifts suggest some organizations are meeting those two challenges with solutions
such as with Security as a Service (SECaaS).

Against this backdrop, the urgency to further alleviate complexity resulted in multicloud networking being flagged as organizations’ third most exciting trend for the second
year in a row.

“Multicloud networking can connect apps across deployment environments and enable what’s been called a supercloud architecture. In essence, it simplifies and standardizes the
way networks operate across environments—whether public or private cloud, data center, or the edge. A network mesh imposed across them all reduces complexity by employing the same constructs, configurations, and consoles to operate and monitor every app location,”
explained Lori MacVittie, F5 Distinguished Engineer.

“Among other things, multicloud networking can increase visibility, reveal outdated or overlooked APIs, ensure more consistent and more dynamic policy deployment, and enable
app migration as a service across environments and cloud providers.”

###
1More than 700 global respondents representing organizations of all sizes completed the 2024 State of Application Strategy survey, our tenth annual. Approximately one-third of those organizations operate on less than $200 million USD in annual revenue, while about one-quarter operate on over $1 billion. As usual in the last decade, the technology industry was best represented, but many others participated. Meanwhile, the percentage of respondents from senior IT roles
has increased significantly in recent years to nearly one-third (30%). Other respondents represented a wide variety of operational roles and their respective interests and decision-making perspectives.


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