An API proxy is an API that acts as a proxy for another API, which is usually the backend service that provides the actual functionality. An API proxy can be used to add security, monitoring, caching, transformation, and other features to the backend API. An API provider is a logical grouping of APIs that share a common connection to the backend service. An API provider can be used to discover and import APIs from the backend service into the API Management capability within SAP Integration Suite. The relationship between an API provider and an API proxy is that the API proxy uses the API provider as a source of information and configuration for accessing the backend service. The API proxy also provides a unique URL that can be used by clients to invoke the API without exposing the details of the backend service. Reference: SAP Integration Suite | SAP Community, Create an API Proxy | SAP Tutorials