Integration by sector
API integration for software companies
For a software company, integrations are part of the product. Prospects ask whether you connect to the tools they already use, existing customers ask for new connections, and a public API lets others build on your platform. Each integration you ship becomes something to maintain as the other product changes. Deciding which integrations to build natively, which to leave to automation platforms or partners, and how to offer your own API and webhooks shapes both the product and the engineering workload.
This page looks at integrations as a product decision for software companies.
Illustrative diagram
Your product
- Native
- Core tools
- Owned and monitored
- Marketplaces
- Platform listings
- Their requirements
- Connectors
- Automation platforms
- Long tail
- Public API
- OAuth and keys
- Webhooks
Kinds of product integration
| Kind | What it means |
|---|---|
| Native integration | You build and maintain a connection to another product |
| Marketplace listing | Your app listed in another platform's app store |
| Automation platform connector | Customers connect you to many tools through a third-party automation service |
| Public API and webhooks | Customers and partners build their own connections |
| Embedded integration tool | A third-party service powers integrations inside your product |
Choosing which integrations to build
Requests for integrations arrive constantly, and each native one is a lasting commitment. Collect the evidence: which tools lost deals mention, which ones existing customers ask for, and how many accounts use each. Build natively where the integration is central to how customers use your product, and cover the long tail through your API, webhooks and an automation platform connector. Revisit the list as your market changes.
Ask what customers actually want to happen, not just which product they want to connect; the answer often shapes the integration more than the other product's API does.
Listing in other platforms' marketplaces
Many platforms run app marketplaces with their own requirements, such as security reviews, data handling commitments, branding rules and support standards. Requirements and review times vary by platform and change over time, so read each one's current developer terms before planning a launch date. A listing can bring customers, but it also means meeting that platform's rules on an ongoing basis.
Offering a public API and webhooks
Access
- Personal keys for customers' own scripts
- OAuth for third-party apps acting for customers
- Scopes limiting what each app can do
Events
- Webhooks for key changes
- Signed payloads and retries
- Event history customers can replay
Developer experience
- Reference and guides
- Sandbox or test accounts
- Changelog and deprecation policy
Maintaining native integrations
Every native integration depends on another company's API, which will change. Give each integration an owner, monitor errors per customer connection, subscribe to the other product's developer announcements and budget time for updates. Customers judge your product by whether its integrations keep working, even when the cause lies elsewhere.
Supporting customers' connections
Show customers the status of each connection inside your product, with clear messages when authorisation expires or a sync fails, so they can fix common problems without contacting support.
Example: a backlog of integration requests
Illustrative example — not a client case study
Situation: A booking software company has a list of over forty integration requests and a small engineering team.
- Requests are counted against lost deals and active accounts; three tools stand out clearly.
- Those three are built natively, each with an owner, error monitoring and in-product connection status.
- The rest are covered by improving webhooks and publishing a connector on an automation platform.
What this shows: Sales had answers for most prospects, and engineering was not stretched across forty integrations. This example is illustrative.
Build integrations or use an embedded integration service?
Build in-house
Suits you when
- A few integrations are central to the product
- You need full control of behaviour
- Engineering capacity is available
Watch out for
- Every API change is yours to handle
- Authentication and retries built per integration
Embedded integration service
Suits you when
- Many integrations are wanted quickly
- They follow similar patterns
- Speed matters more than control
Watch out for
- Ongoing fees
- Dependence on another vendor
- Check data handling and where data is processed
Customer data in integrations
Integrations move your customers' data to and from other products. Document what each integration sends and receives, request only the scopes it needs, and make sure customers can disconnect and have tokens revoked. Your data protection documentation should describe integrations accurately, since customers' own compliance depends on it.
Measuring integration value
Track how many accounts enable each integration, whether they keep it switched on and whether connected accounts stay with you longer. These figures guide which integrations deserve more investment and which could be retired.
Questions about API integration for software companies
Which integrations should we build ourselves?
Those central to how customers use your product; cover others through your API and connectors.
Is a marketplace listing worthwhile?
It can bring customers, but you must meet that platform's ongoing requirements.
Should our API use OAuth?
For third-party apps acting on customers' behalf, OAuth with scopes is the usual approach.
Why offer webhooks?
So customers and partners can react to changes without polling your API.
How do we keep integrations working?
Owners, monitoring, watching the other product's announcements and budgeted updates.
Can customers fix connection problems themselves?
Often, if the product shows connection status and clear error messages.
Sources referenced
Platform features, guidance and rules change. We check the current versions before committing to an approach. This page is general information, not legal advice.
- IETF: RFC 6749: The OAuth 2.0 Authorization Framework (opens in a new tab) — reviewed 2026-10-23
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