Should You Host Public APIs on a Dedicated Server or Endpoint? Best Practices for SaaS Applications

In the development of SaaS platforms, a common architectural decision involves how to manage and expose your application’s APIs. When you separate your core frontend from your backend services, it often raises the question: how should you handle public API access, especially when third-party developers or partners want to build integrations or extensions?

A typical scenario might look like this: your internal API endpoints serve your web and mobile applications, but now you want to enable external developers to connect with your platform, build custom apps, or extend functionalities. The key consideration here is whether to set up a distinct API endpoint—say, api.example.com—dedicated solely to external usage, separate from your internal APIs.

Hosting a dedicated public API can offer several advantages. It allows for stricter access controls, tailored rate limiting, and better security measures without impacting your internal systems. Additionally, it provides a clear boundary that helps in organizing API versioning, monitoring usage, and maintaining service separation.

On the other hand, managing multiple API endpoints can introduce complexity, especially across deployment cycles and maintenance. The decision ultimately depends on your application’s architecture, security requirements, and how you plan to support third-party integrations.

In summary:

• Create a dedicated public API endpoint if you want a clear boundary, enhanced security, and tailored management for third-party access.
• Use your existing internal API with strict access controls if external use is minimal or can be securely managed via authentication and rate limiting.

By thoughtfully architecting your API infrastructure, you can ensure robust, scalable, and secure integrations that help your SaaS grow and adapt to your users’ needs.