
This represents a pretty standard three-tier architecture with external service integration:
Presentation tier with the Front end + Client
Logic/Application tier housing the business logic
Data tier handling Your database + external databases
This pattern is used by countless web applications, from simple websites to complex enterprise systems
This diagram makes two things apparent that to create a software service you don’t need to entirely have only your own database or only your own logic.
Even how complex and specialized the world has become, it is not even wise to try to do everything on your own when there are experts ready to offer it to you for a price.
And with increasing complexity there come newer problems.
So definitely in the world there are more problems to solve today than yesterday.
The objective is to create value while minimizing own logic part.
To see the “My logic” layer mainly for orchestration/routing rather than heavy processing.
You want to be the middleman who creates value by connecting and orchestrating different services, taking a cut while the underlying APIs do the heavy lifting
You want to be an API pimp
APIs may go in and out of demand but the pimp stays on making cash and connections
You add value through curation, transformation, and combining APIs & revenue comes from the convenience layer, not building everything yourself
API arbitrage is the term.
Be a merchant of value with SaaS as medium and not a merchant of software
If you knew 100 really talented people you would make a really amazing company
If you knew 100 really cool APIs you’d make dozens of valuable SaaS.
Just like knowing talented people creates compound value through introductions and collaborations, knowing powerful APIs creates exponential possibilities.
If you know a lot of APIs and keep up with what’s going on in business world then sure as hell you would never say I am out of ideas
And I personally cannot come up with any other paradigm where you can spin off MVPs faster and cheaper than this.