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

Welcome to Week in Review: TechCrunch’s newsletter recapping the week’s biggest news. This week Apple unveiled new iPad models at its Let Loose event, including a new 13-inch display for…

Why Apple’s ‘Crush’ ad is so misguided

The U.K. Safety Institute, the U.K.’s recently established AI safety body, has released a toolset designed to “strengthen AI safety” by making it easier for industry, research organizations and academia…

U.K. agency releases tools to test AI model safety

AI startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others