Startups

To cope with stricter data regulation, enterprises should look to fully open APIs

Comment

High angle view of many yellow padlocks on yellow background. One of them is open.
Image Credits: Javier Zayas Photography (opens in a new window) / Getty Images

Jean-Paul Smets

Contributor

Jean-Paul Smets is the CEO of Rapid.Space, a hyper open cloud provider offering virtual private servers (VPS), content delivery networks (CDN) and global IPv6 (SDN).

Picture this scenario as a young enterprise: You are a customer of Azure, AWS, or the Google Cloud Platform, assuming they are the frontrunners. While traveling in Russia or a European Union country on a mission to expand your business, you discover that you’re required to have data locally stored. Even worse, in the EU, you face the GDPR and have national regulatory authorities warning you how using U.S.-based clouds in the EU violates the GDPR.

This is a huge problem. No matter where you go outside the U.S., you’ll have to comply with different regulations that could ultimately prevent you from deploying your applications successfully. By using the APIs of the big players, there’s either the possibility of no connectivity or even legal risk.

How can enterprises get around this issue? This is where fully open APIs based on open source software are a great help and the technology of the future.

“Fully open” APIs contain open source software with open source operation procedures so that the technology can be reproduced and audited in any region, which resolves the geopolitical conflict mentioned above.

Fully open APIs give the end-user control on how to debug the software (which powers the API) while also potentially keeping costs down due to their scalability and a complete lack of maintenance costs compared to a closed-loop system. These closed systems are limited by their dependency on a particular platform, driving costs and other limitations on developers. Fully open APIs don’t just harness open-source software, but rather are combined with a complete description of how the infrastructure is made and how it operated – it’s an entirely open process.

In Europe, security is becoming increasingly critical. New security qualifications, such as the French-German ESCloud Label for secure cloud computing, are examples of cooperation aimed at raising the level of cybersecurity in Europe. Any technology that extends the extraterritorial application of U.S. law could soon be banned from both government markets and processing personal data.

In many international markets, local laws regarding personal data require that the services or technologies used are free of technical components that could lead to foreign surveillance by the U.S. This creates an apparent conflict that is deeply connected to legislation, and U.S.-based companies that provide APIs are in the middle of it.

Adopting fully open APIs

To implement a fully open API, you essentially require an open process that lets third parties implement APIs independently of their original creator. For the process to be open, all the steps need to be described in such a way that a third party can reproduce them and verify that the outcome satisfies customer expectations.

Ideally, the software and hardware that implement the API should also be open source. Use of software without being able to audit its source code poses a risk of backdoor presence, which is incompatible with certain legislations for data protection. Use of hardware without being able to audit its design poses a risk of logistics attacks. Both risks are well understood by hyperscalers for their own infrastructures, which are now mainly based on open source hardware and software.

Enterprises should adopt the same attitude as hyperscalers when selecting an API. They should ask their API vendor: “Can you provide us with the detailed process, software, and hardware to implement this API by ourselves on a network without Internet access?”

If the vendor says “Yes,” it’s safe to assume this is a “fully open” API and you can use it without risk. Just make sure the API subscription agreement includes reversibility provisions with prices so that you can later access the process, software, and hardware to implement the API yourself.

If the vendor refuses, though, it will mostly be illegal to use the API in many regions globally, unless they already have independent, local partners to implement it in every region.

In Europe, ten cloud providers are offering governments to license their APIs – software, hardware, and processes. OVHCloud, which previously acquired VMWare vCloud, announced that it would make its cloud platform and APIs open source.

Rapid.Space has produced a step-by-step tutorial on installing open source networking APIs for the Accton Operating System on the Edgecore AS5812 switch. Many companies related to the open source community are ready to provide or develop fully open APIs at a very reasonable cost.

If your API vendor is adamant on refusing to let you maintain the API yourself, try explaining that you are not requesting to make its technology open source but only to license it. If they still refuse, then do as hyperscalers do – develop or sponsor the development of an open source software for a fully open API. This could even get you a tax break.

Why fully open APIs are the answer

We have already seen the implementation of document storage APIs used by the /e/ Foundation as an alternative to Google Drive. They provide the service, the source code, and the corresponding steps for installation so that anybody can reinstall it anywhere in the world despite any geo-restrictions in place.

Taking it a step further, enterprises that want to create a content delivery network (CDN) or implement their own instant messaging can look beyond Cloudflare or Whatsapp, which are restricted in various countries. Delta.Chat enables end-to-end encrypted instant messaging everywhere, even in North Korea, based on the standard Incoming Mail (IMAP) and Outgoing Mail (SMTP) server APIs.

Both APIs, widely available and already used by Gmail, can be replicated with open source software called Dovecot and Postfix. Nexedi’s SlapOS operation management software includes a cloud-native, open-source CDN that can be self-deployed everywhere, including in China. Again, these two solutions quell the problems created by data access being blocked in a particular country.

How secure is open source software?

Those considering switching cloud providers know that security is a priority concern – customers will make buying choices based on the reputation for confidentiality, integrity, and resilience, and the security services offered by a provider, more so than in traditional environments.

The development of fully open APIs marks a clear point of transformation regarding business behavior with data. The common wisdom used to be that organizations need to do everything in their power to hold data on their premises. This has evolved into enforcing trust through contracts and policy compliance with facility management and cloud. However, to take advantage of the sharing of tools and data through a “plug-and-play” model, it’s crucial to use fully open APIs.

In the case of clouds powered by proprietary software, the customer has no hope of discovering backdoors, because they have no access to the source code. They just have to trust the supplier without any way to verify what they are doing.

Open source projects at the core of fully open APIs are less likely to include bugs and security vulnerabilities than closed source clouds, because closed source clouds tend to have much longer release cycles for some of their software, so vulnerabilities will take longer to resolve. Many open source projects have hundreds or thousands of contributors who can review any problems almost immediately.

Beyond fully open APIs, open processes

Fully open APIs give any developer the same level of control and freedom in the cloud as open source brought to the software industry, with no adverse effects. They present an opportunity for greater innovation to customers, partners, and vendors in ways that we may not have already considered for APIs.

Creating a fully open API that the external end-user can integrate into their application and customize removes any barriers. With data regulations imposed by governments worldwide continuing to tighten, cloud computing isn’t far from hitting a wall, and embracing a completely open process for cloud-based on open source software could well prove to be the answer.

More TechCrunch

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo

Sony Music Group has sent letters to more than 700 tech companies and music streaming services to warn them not to use its music to train AI without explicit permission.…

Sony Music warns tech companies over ‘unauthorized’ use of its content to train AI

Winston Chi, Butter’s founder and CEO, told TechCrunch that “most parties, including our investors and us, are making money” from the exit.

GrubMarket buys Butter to give its food distribution tech an AI boost

The investor lawsuit is related to Bolt securing a $30 million personal loan to Ryan Breslow, which was later defaulted on.

Bolt founder Ryan Breslow wants to settle an investor lawsuit by returning $37 million worth of shares

Meta, the parent company of Facebook, launched an enterprise version of the prominent social network in 2015. It always seemed like a stretch for a company built on a consumer…

With the end of Workplace, it’s fair to wonder if Meta was ever serious about the enterprise

X, formerly Twitter, turned TweetDeck into X Pro and pushed it behind a paywall. But there is a new column-based social media tool in town, and it’s from Instagram Threads.…

Meta Threads is testing pinned columns on the web, similar to the old TweetDeck

As part of 2024’s Accessibility Awareness Day, Google is showing off some updates to Android that should be useful to folks with mobility or vision impairments. Project Gameface allows gamers…

Google expands hands-free and eyes-free interfaces on Android

A hacker listed the data allegedly breached from Samco on a known cybercrime forum.

Hacker claims theft of India’s Samco account data

A top European privacy watchdog is investigating following the recent breaches of Dell customers’ personal information, TechCrunch has learned.  Ireland’s Data Protection Commission (DPC) deputy commissioner Graham Doyle confirmed to…

Ireland privacy watchdog confirms Dell data breach investigation

Ampere and Qualcomm aren’t the most obvious of partners. Both, after all, offer Arm-based chips for running data center servers (though Qualcomm’s largest market remains mobile). But as the two…

Ampere teams up with Qualcomm to launch an Arm-based AI server

At Google’s I/O developer conference, the company made its case to developers — and to some extent, consumers — why its bets on AI are ahead of rivals. At the…

Google I/O was an AI evolution, not a revolution

TechCrunch Disrupt has always been the ultimate convergence point for all things startup and tech. In the bustling world of innovation, it serves as the “big top” tent, where entrepreneurs,…

Meet the Magnificent Six: A tour of the stages at Disrupt 2024

There’s apparently a lot of demand for an on-demand handyperson. Khosla Ventures and Pear VC have just tripled down on their investment in Honey Homes, which offers up a dedicated…

Khosla Ventures, Pear VC triple down on Honey Homes, a smart way to hire a handyman

TikTok is testing the ability for users to upload 60-minute videos, the company confirmed to TechCrunch on Thursday. The feature is available to a limited group of users in select…

TikTok tests 60-minute video uploads as it continues to take on YouTube

Flock Safety is a multibillion-dollar startup that’s got eyes everywhere. As of Wednesday, with the company’s new Solar Condor cameras, those eyes are solar-powered and use wireless 5G networks to…

Flock Safety’s solar-powered cameras could make surveillance more widespread

Since he was very young, Bar Mor knew that he would inevitably do something with real estate. His family was involved in all types of real estate projects, from ground-up…

Agora raises $34M Series B to keep building the Carta for real estate

Poshmark, the social commerce site that lets people buy and sell new and used items to each other, launched a paid marketing tool on Thursday, giving sellers the ability to…

Poshmark’s ‘Promoted Closet’ tool lets sellers boost all their listings at once

Google is launching a Gemini add-on for educational institutes through Google Workspace.

Google adds Gemini to its Education suite

More money for the generative AI boom: Y Combinator-backed developer infrastructure startup Recall.ai announced Thursday it has raised a $10 million Series A funding round, bringing its total raised to over…

YC-backed Recall.ai gets $10M Series A to help companies use virtual meeting data

Engineers Adam Keating and Jeremy Andrews were tired of using spreadsheets and screenshots to collab with teammates — so they launched a startup, CoLab, to build a better way. The…

CoLab’s collaborative tools for engineers line up $21M in new funding

Reddit announced on Wednesday that it is reintroducing its awards system after shutting down the program last year. The company said that most of the mechanisms related to awards will…

Reddit reintroduces its awards system

Sigma Computing, a startup building a range of data analytics and business intelligence tools, has raised $200 million in a fresh VC round.

Sigma is building a suite of collaborative data analytics tools