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Yilialinn committed Feb 17, 2025
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title: Cloud vs Open Source vs Commercial API Gateways: Which One Fits Your Needs?
title: "Cloud vs Open Source vs Commercial API Gateways: Which One Fits Your Needs?"
authors:
- name: Ming Wen
title: Author
Expand Down Expand Up @@ -29,8 +29,129 @@ API gateways have become essential components in modern cloud architectures. The

Broadly, API gateways fall into three categories:

- Cloud API Gateways (e.g., Amazon API Gateway, Google Apigee)
- Open Source API Gateways (e.g., Apache APISIX, Kong Gateway, Tyk)
- Commercial API Gateways (e.g., MuleSoft, Boomi)
- **Cloud API Gateways** (e.g., Amazon API Gateway, Google Apigee)
- **Open Source API Gateways** (e.g., Apache APISIX, Kong Gateway, Tyk)
- **Commercial API Gateways** (e.g., MuleSoft, Boomi)

Each option has its advantages and trade-offs. This article provides a deep dive into their differences, hidden risks, and a strategic recommendation for companies looking to scale API usage and adopt hybrid cloud architectures.
Each option has its advantages and trade-offs. This article provides a deep dive into their differences, hidden risks, and a **strategic recommendation** for companies looking to scale API usage and adopt hybrid cloud architectures.

## Cloud API Gateways: Convenience vs. Lock-in

### Pros:

✅ Fully managed, reducing operational burden

✅ Deep integration with cloud provider services (IAM, logging, monitoring)

✅ High availability and auto-scaling out of the box

### Cons:

**Vendor Lock-in**: API definitions, policies, and configurations are tied to the cloud provider

**No Customization**: Cloud API gateways are closed-source, limiting the ability to add custom plugins or functionality

**No Hybrid Cloud Support**: Cloud-managed API gateways cannot be deployed on-premise or across multi-cloud environments

### Use Case:

Cloud API gateways are ideal for **startups and small teams** that need a quick, managed solution without worrying about infrastructure maintenance. However, as API traffic grows or hybrid cloud requirements arise, their limitations become apparent.

🔹 **Example**: Amazon API Gateway is a popular choice for cloud-native applications but lacks flexibility for on-premises deployments.

## Open Source API Gateways: Control and Flexibility

### Pros:

✅ Fully customizable, allowing teams to extend functionality as needed

✅ No licensing fees, reducing costs in the long run

✅ Can be deployed anywhere—**on-prem, multi-cloud, hybrid cloud**

### Cons:

**Operational Overhead**: Requires self-hosting, upgrades, and security management

**Governance Risks**: Some open-source projects are controlled by a single vendor, which may later change licensing terms (e.g., Redis, ELK Stack)

**Scalability Complexity**: Running an open-source API gateway at enterprise scale requires expertise in deployment and maintenance

## Key Consideration: Choosing a Foundation-Owned Open Source Project

Some open-source API gateways are **vendor-controlled**, meaning the company behind them can change licensing terms. For example, Redis and Elasticsearch modified their open-source licenses to prevent cloud providers from offering managed services.

To **avoid future licensing risks**, it's safer to choose an API gateway governed by a **neutral open-source foundation**, such as:

- [Apache APISIX (Apache Software Foundation)](https://apisix.apache.org/)
- [Envoy Proxy (Cloud Native Computing Foundation)](https://www.envoyproxy.io/)

## Commercial API Gateways: Enterprise Features with Pricing Risks

### Pros:

**Enterprise-grade security**

**SLA-backed support** with 24/7 assistance

**Monetization and API analytics** for businesses offering APIs as a service

### Cons:

**High Licensing Costs**: Typically charged per API call, which can become expensive

**Potential Pricing Changes**: Many vendors modify pricing models over time, significantly increasing costs (e.g., Apigee, Kong Enterprise)

**Limited Deployment Flexibility**: Some solutions require vendor-managed infrastructure, reducing control

### Use Case:

Best suited for **large enterprises** with strict security, compliance, and SLA requirements. However, pricing unpredictability is a concern—many companies have faced sudden cost increases.

## Strategic Recommendation: A Hybrid Approach for Growth

If your API traffic is **growing rapidly** and **hybrid cloud** is part of your strategy, the best approach is:

**1. Start with an Open Source API Gateway**

- Avoid vendor lock-in
- Maintain control over deployment and customization
- Lower costs by eliminating per-call fees

**2. Upgrade to a Commercial Version When Needed**

- When security requirements increase
- When managing multi-cluster deployments
- When enterprise support and SLAs become necessary

By following this approach, you get the best of both worlds: flexibility, cost control, and enterprise-grade features when needed.

🔹 **Example Strategy**: A company starts with Apache APISIX (open source) and later upgrades to API7 Enterprise when requiring advanced security and SLA support.

## FAQ: Common Questions About API Gateway Selection

**1. Why not start with a cloud API gateway and switch later?**

Switching API gateways is complex due to differences in configurations, rate-limiting rules, authentication methods, and monitoring setups. If hybrid cloud or multi-cloud is part of your strategy, starting with an open-source gateway ensures long-term flexibility.

**2. How do I avoid open-source licensing risks?**

Choose projects governed by neutral software foundations (e.g., Apache Software Foundation, CNCF). Avoid projects fully controlled by a single company, as they may change their licensing model.

**3. What is the best API gateway for hybrid cloud?**

Open-source gateways like Apache APISIX and Envoy Proxy offer full deployment flexibility, making them ideal for hybrid and multi-cloud architectures.

## Conclusion: Making the Right Choice

Choosing the right API gateway depends on your **scalability, budget, and cloud strategy**:

| Criteria | Cloud API Gateway | Open Source API Gateway | Commercial API Gateway |
|---------------------------|----------------------------|----------------------------|----------------------------|
| **Cost** | High (Pay per API call) | Low (Free) | High (License fees) |
| **Customization** | Limited | Full control | Limited |
| **Deployment Flexibility** | Cloud-only | Anywhere (Hybrid, Multi-cloud) | Varies |
| **Enterprise Features** | Basic | Requires customization | Advanced (Security, Compliance) |
| **Support** | Cloud provider support | Community-driven | SLA-backed |

If **API traffic is growing rapidly** and **hybrid cloud adoption is planned**, a **hybrid approach**—starting with **open source** and upgrading to a **commercial enterprise solution** when needed—offers the best flexibility and cost efficiency.

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