API Management Costs: AWS API Gateway vs Azure API Management

May 23, 2022

Introduction

APIs have become the backbone of modern software development that enables seamless connectivity across various applications. As a result, businesses are increasingly investing in API management solutions to ensure an efficient API development and management lifecycle. However, the cost of these solutions can be a significant factor for small to medium businesses that aspire to make it big in the world of API development.

In this blog, we will compare the pricing of two of the most popular API management solutions, AWS API Gateway, and Azure API Management. By comparing the pricing of these services, we aim to help businesses make informed decisions that align with their budgets.

AWS API Gateway

AWS API Gateway is a fully managed API gateway service that enables developers to create secure APIs for external and internal usage. AWS API Gateway comes with several essential features, including rate limiting, caching, and integrations with backend services like AWS Lambda and Amazon EC2.

AWS API Gateway pricing has two components: API calls and data transfer. The standard pricing for API calls is $3.50 per million calls, while the pricing for data transfer is $0.09 per GB for the first 10 TB. One interesting aspect of AWS API Gateway is that it offers a free tier that includes up to one million API calls per month, making it easier for new businesses to get started.

Azure API Management

Azure API Management is a comprehensive API management solution that supports API governance, analytics, and developer engagement. Azure API Management comes with features like token validation, developer portal, and automatic SSL certificates.

Azure API Management pricing has two components, the fixed cost and the consumption cost. The fixed cost is $528 per month for the basic tier and $1572 per month for the standard tier. The consumption cost includes the number of API calls per second and the amount of data transfer. For instance, the consumption cost for the basic tier is $1.50 per million API calls plus $0.10 per GB.

Cost Comparison

Let's compare the pricing for AWS API Gateway and Azure API Management to understand which solution offers better value for money:

Solution Component AWS API Gateway Azure API Management
Pricing API Calls $3.50/million $1.50/million
(per month) Data Transfer $0.09/GB up to 10 TB $0.10/GB
Basic Tier Fixed Cost Free Tier $528
(per month) Consumption Cost $0.00 $1.50/million calls + $0.10/GB
Standard Tier Fixed Cost N/A $1572
(per month) Consumption Cost $3.50/million calls + $0.09/GB up to 10 TB $4.50/million calls + $0.10/GB

From the comparison above, it's evident that AWS API Gateway has a lower pricing for API calls and data transfer, making it more affordable for small and medium-sized businesses. Besides, AWS API Gateway also offers a free tier that can help businesses to reduce the costs of API development and management.

Conclusion

API management is an essential component of modern software development, and selecting the right solution can make a big difference in cost management. When selecting between AWS API Gateway and Azure API Management, businesses must compare the pricing and features to ensure that they get the best value for their money.

Based on the cost comparison and free tier offering, AWS API Gateway seems to be a better choice for small to medium-sized businesses that are looking to reduce API management costs.

References

  1. AWS API Gateway Pricing
  2. Azure API Management Pricing
  3. AWS Free Tier

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