---
title: "Open APIs Are Over"
description: "Salesforce, Datadog \u0026 Epic are locking down APIs. AI accelerates development, enabling incumbents to compete with partners. Platform businesses minted billions, but that ground is shifting. Here's the offensive response."
categories: ["SaaS","strategy","AI","startups"]
keywords: ["API restrictions 2025","Salesforce Slack API changes","Datadog blocking competitors","Epic patient data lawsuit","platform lock-in risk","startup platform strategy","systems of record","data moats","enterprise software defense","AI software development","Veeva Salesforce platform","Klaviyo Shopify dependency","open API era ending","software incumbent defense"]
ai_summary: "Software incumbents (Salesforce, Datadog, Epic) are restricting API access as AI accelerates development. Platform businesses like Veeva ($36B) \u0026 Klaviyo ($8.8B) succeeded on open APIs, but building on systems of record is now riskier. Defensive moves telegraph where value lies. The offensive response : use AI's speed to own your stack end-to-end."
date: 2026-01-10
lastmod: 2026-07-23
canonical_url: https://www.tomtunguz.com/defense-comes-to-software/
author: "Tomasz Tunguz"
---


Salesforce, Datadog & Epic are building walls. After two decades of flourishing through open APIs & data portability, the software industry's largest incumbents are locking down.

Salesforce restricted Slack's API[^1] in May 2025, limiting third-party apps to one API call per minute & fifteen messages per request. Datadog deactivated accounts[^2] for Deductive AI, a competing observability startup. Epic faces a Texas lawsuit[^3] accusing it of turning patient records into a "gatekeeping tool."

The pace of software development, as a result of AI, is accelerating, enabling incumbents to broaden their suite & compete with previous partners. Faster execution means more defense from those with established businesses. This is the new normal.

Platform businesses have minted billions in the past. Vlocity ($1.33B acquisition)[^4] & Veeva ($36B market cap)[^5] built multi-billion dollar businesses on the Salesforce platform. nCino reached a $2.9B market cap[^6] serving financial services on Salesforce. ServiceMax sold to GE Digital for $915M[^7]. Klaviyo built a $8.8B business[^8] with 78% of its revenue from Shopify customers.

But building on top of a system of record offers less stable ground than it once did. When Salesforce throttles Slack's API, they're telegraphing where the value is. When Epic locks down patient records, they're drawing a map. Incumbents don't build walls around worthless assets. And they don't build defenses unless they perceive credible & urgent challengers.

AI's speed enables both startups & incumbents to own a stack end-to-end. That's offense in an era of walls.

[^1]: [Computerworld : Salesforce changes Slack API terms](https://www.computerworld.com/article/4005509/salesforce-changes-slack-api-terms-to-block-bulk-data-access-for-llms.html)
[^2]: [Deductive : Datadog, Thank You for Blocking Us](https://www.deductive.ai/blogs/datadog-thank-you-for-blocking-us)
[^3]: [Regulatory Oversight : Texas Takes Aim at Epic](https://www.regulatoryoversight.com/2025/12/texas-takes-aim-at-epic-systems-in-sweeping-challenge-to-ehr-data-control/)
[^4]: [TechCrunch : Salesforce grabs Vlocity for $1.33B](https://techcrunch.com/2020/02/25/salesforce-grabs-vlocity-for-1-33b-a-startup-with-1b-valuation/)
[^5]: [Google Finance : Veeva Systems (VEEV)](https://www.google.com/finance/quote/VEEV:NYSE)
[^6]: [Yahoo Finance : nCino (NCNO)](https://finance.yahoo.com/quote/NCNO/)
[^7]: [TechCrunch : GE Digital snags ServiceMax for $915 million](https://techcrunch.com/2016/11/14/ge-digital-snags-servicemax-for-915-million/)
[^8]: [Yahoo Finance : Klaviyo (KVYO)](https://finance.yahoo.com/quote/KVYO/)