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HomeBlogAPI ManagementAzure API Management vs. AWS API Gateway: A comparison for banks and insurance companies

Azure API Management vs. AWS API Gateway: A comparison for banks and insurance companies

In today's digitally connected world, API management systems play a central role in providing secure, scalable and efficient APIs. Banks and insurance companies in particular rely on powerful API gateways to meet regulatory requirements, optimize integrations and manage data securely. Two of the leading API management platforms are Azure API Management and AWS API Gateway. But which is the better choice for financial companies? In this article, we compare both solutions based on key criteria such as security, scalability, integration and cost.

2 min read

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1. security: protection of sensitive financial data

Security is the most important criterion for banks and insurance companies when selecting an API gateway.

Azure API Management

  • Offers comprehensive security functions such as OAuth2, OpenID Connect, JWT and Mutual TLS (mTLS).
  • Enables IP whitelisting, firewalls and network integrations with Azure Virtual Network.
  • Automatic DDoS defense mechanisms through Azure Security Center.
  • Full adherence to compliance standards such as GDPR, PCI-DSS, ISO 27001 and FINMA.

AWS API Gateway

  • Supports AWS IAM, Lambda Authorizer, OAuth2, JWT and API Keys for access control.
  • Integrates seamlessly with AWS Shield for DDoS defense.
  • Can be combined with AWS WAF (Web Application Firewall) to implement targeted protection measures.
  • Meets compliance requirements such as SOC 1/2/3, GDPR, PCI-DSS, FINMA and HIPAA.

Conclusion: Both platforms offer high security standards, but Azure scores with closer integration into company networks through Azure Virtual Network.

2. scalability: manage API traffic efficiently

Azure API Management

  • Enables automatic scaling through Azure Kubernetes Service (AKS).
  • Provides a caching system to process repeated requests more efficiently.
  • Can be used in hybrid and multi-cloud scenarios.
  • Suitable for companies with a high API volume, e.g. Open Banking.

AWS API Gateway

  • Scales automatically with AWS Lambda and Amazon ECS.
  • Has a burst mode that is suitable for irregular API traffic.
  • Provides edge-optimized delivery to deliver APIs globally with low latency.
  • Perfectly suited for microservices architectures.

Conclusion: AWS API Gateway is better for event-driven and microservices architectures, while Azure API Management is ideal for large enterprise APIs with constantly high traffic.

3. integration: cloud and on-premise connectivity

Azure API Management

  • Tight integration with Azure services such as Azure Functions, Logic Apps and Event Grid.
  • Connects on-premises systems using Hybrid Connections and ExpressRoute.
  • Enables API deployment directly from Visual Studio and Azure DevOps.

AWS API Gateway

  • Native connection with AWS Lambda, Step Functions and DynamoDB.
  • Hybrid support through AWS Direct Connect and AWS VPN.
  • Direct integration in AWS CodePipeline and Terraform.

Conclusion: Azure is the better choice for companies that rely heavily on Microsoft products, while AWS API Gateway is ideal if AWS services are already in use.

4. costs: price structure and profitability

Azure API Management

  • Pricing based on instance types (Developer, Basic, Standard, Premium).
  • Monthly fixed costs with additional fees for API calls.
  • Advantageous for large, constant API loads.

AWS API Gateway

  • Uses a pay-per-use model in which API calls are charged per million requests.
  • Additional costs for data transfer and CloudFront acceleration.
  • Better suited for variable API traffic patterns.

Conclusion: Azure is more predictable, but AWS is often cheaper for low to medium API usage.

Conclusion: Which platform is the right choice?

  • Azure API Management is ideal for banks and insurance companies that use enterprise APIs, hybrid environments and Microsoft integrations.
  • AWS API Gateway is ideal for cloud-native applications, event-driven architectures and microservices.

Both solutions offer outstanding functions – the choice depends on the specific requirements of your company. Do you need advice? ONLU is at your side as your IT consulting partner in Switzerland!

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