The Hidden Costs of Siloed Tools
Today’s enterprises run on APIs, but many teams still rely on a patchwork of disjointed tools across the API lifecycle. This fragmentation creates silos and mismanaged interdependencies that undermine efficiency, drive up costs, and expose the business to security and compliance risks.
Below, we examine recent statistics and insights (2023–2025) that highlight the drawbacks of using too many isolated API tools and the business impact of poor API governance – and why a unified platform approach is increasingly seen as the solution.
Over time, these mismanaged interdependencies can compound – services fail because an updated API wasn’t tested on all clients, or a deprecated endpoint remains in use by a team that missed the memo. The result is a fragile integration environment that slows innovation to a crawl.
“It's alarming that most organizations have only a portion of their APIs documented… The lack of visibility and lack of documentation highlights the security blindspot that APIs pose to organizations.”
Edward Roberts, VP at Neosec
Outcomes of Poor API Governance: Cost, Risk, and Delays
When API governance is lacking, the operational inefficiencies and business risks become severe.
Teams without strong governance often duplicate efforts or make inconsistent design decisions. For instance, without an authoritative registry of APIs and standards, developers might rebuild an API that already exists (or one very similar to it) simply because they weren’t aware of it. This redundancy isn’t trivial – industry observers note that API sprawl can result in paying at least double what an API should cost due to duplicate development and maintenance.
Aside from the direct waste of developer hours, running redundant services incurs needless infrastructure and OPEX costs.
Lost productivity is a major hidden cost. Every hour developers spend wrestling with fragmented tools or reinventing the wheel is an hour not spent on delivering new features.
A recent 2025 study calculated that for a team of 50 engineers, the time lost to tool sprawl equates to nearly $1 million in lost productivity per year (2025 State of Internal Developer Portals). This kind of budget overrun on “undifferentiated heavy lifting” directly impacts the bottom line and can cause project budgets to blow up without obvious external results.
Outcomes and Business Implications
of organizations lack formal API governance standards
of APIs fail compliance audits
of organizations report redundant or conflicting APIs
of APIs lack proper documentation
of organizations have no API version deprecation policy
of APIs have security vulnerabilities due to poor governance
Visibility into Your API Ecosystem is profitable
Discover, manage, and analyze all your APIs in one central location.
.avif)
A 4 step guide on how to get started with { api module for usecase }
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Step 1: heading
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Step 1: heading
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Step 1: heading
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Step 4: heading
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
.avif)
Poor API Governance Raises Costs, Slows Delivery, and Increases Risk
Redundant APIs Inflate Costs and Waste Time
Teams often rebuild APIs that already exist due to lack of visibility and standards. This duplication leads to rising OPEX, wasted developer hours, and fragmented systems that require expensive, ongoing maintenance.
Lack of Oversight Weakens Security and Compliance
Only 10% of organizations fully document APIs. Shadow endpoints and inconsistent enforcement of policies leave gaps that attackers exploit—resulting in breaches, audit failures, and erosion of stakeholder trust.
Inconsistent Practices Delay New Capabilities
66% of companies delay releases due to API security gaps. Without governed processes, development cycles stretch out, and innovation suffers—teams firefight issues instead of delivering business value.
What’s new
Stay Updated with the Latest Trends, Features, and Expert Insights
