API : product with opportunity & responsibility
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1 Forum The Ark API Culture - Comment augmenter la valeur de votre logiciel en le dotant de sa propre API? API : product with opportunity & nicolas@galixo.com
2 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
3 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
4 Salesforce in February 2000 Sales force automation as a "Internet as a service", with XML APIs were part of Salesforce.com from day one.
5 ebay Application Program Interface (API) November 2000 with the ebay Developers Program, but for only a select number of licensed ebay partners &developers
6 Amazon Web Service (AWS) 2002 The modern Web API movement was kicked off.
7 How do you reach your users/clients? Web Site Online Population Reach Lost business opportunities Limited reach Lost business opportunities Limited brand awareness Web scraping risks Important SEO and SEM costs Digital Content & Services Source: Dion Hinchcliffe Dachis Group and 3scale Martin Tantow & Guillaume Balas (~2008)
8 Develop a distributed web strategy and make your content/services ubiquitous Online Population Reach Web Site 3 rd Party Apps Extended Reach Widgets Gadgets Badges Social Network Apps (Facebook, Opensocial..) Web services / open API non-visual services Digital Content & Services Mobile Apps (iphone, Android) next: Semantic Web APIs unlock new distribution channels and unleash the power of your web service and online business. Source: Dion Hinchcliffe Dachis Group and 3scale Martin Tantow & Guillaume Balas
9 API growth rate October 2013! :
10 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
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15 Forget the web site, let s focus on the API Qwerly shutters profile pages in favor of lucrative DNS for people API TechCrunch, May 5, 2011 John Musser, SemTech 2011
16 John Musser,
17 APIbrandJohnMusserProgrammableWeb2012 John Musser,
18 APIs: some very competitive markets Number of APIs, Top 15 Categories Based on directory of 3,200 web APIs listed at ProgrammableWeb, May 2011
19 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
20 Open APIs: Why bother? Make money 60% of all listings on ebay.com added via their APIs Save money SmugMug saves > $500K/year with Amazon S3 Storage Build brand Google Maps 300% growth vs 20% MapQuest Move to the cloud Over 50% of all transactions via their API Go anywhere Netflix now available on over 200 devices John Musser, SemTech 2011
21 Why Unlock business of data & services assets, but considering Lack of resource Need of external to mix & combine (mashup) Use partner s communication, marketing, & sales Mobile first needs & supports RESTful (en)force a correct service-oriented architecture (SOA) Reverse IT systems aspect that were sometime barrier to innovation instead of a barrier to entry
22 API needs: systems challenges More than SOA (change: internal > external) developer portals ( on boarding ) access (key) management & approval metering, monitoring, reporting, billing For SOA native: from SOAP & XML to RESTfull (& Json) Hybrid architecture taking account of legacy systems (for integration) different integration technologies on-premises & cloud-based integration solutions Forrester : The Hybrid² Integration Challenge
23 REST vs. SOAP: Simplicity wins again Distribution of API protocols and styles Based on directory of 3,200 web APIs listed at ProgrammableWeb, May 2011 John Musser, SemTech 2011
24 JSON Rising: 55% of all new APIs support JSON 20% of all new APIs support only JSON with with only Percentage of new APIs with (only) JSON support Based on directory of 3,200 web APIs listed at ProgrammableWeb, May 2011 John Musser, SemTech 2011
25 API management solutions (1/2)
26 API management solutions (2/2)
27 API B2B users (evolution, inspiration for step-by-step implementation) Internal developers (same group, other departments, subsidiaries, acquired firms) Known customers (under contract) API as (free) subpart of other product(s) API as standalone product (own business model) Known partners (Resellers, Affiliates, Suppliers) Unknown external developers new customers & partners from online self-service (switch) from partner model to platform model
28 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
29 API business models Who What How Amazon Associates Retail Affiliate Model Amazon S3 Infrastructure Pay-as-you-go ebay Auctions APIs for listings Exact Target Bulk Tiered pricing Rhapsody Music Partnerships Salesforce.com CRM / SFA SaaS per-seat licenses Best practice: Bake your business model into your API John Musser, SemTech 2011
30 Salesforce API pricing (license upsell)
31 John Musser,
32 Free John Musser,
33 Developer pays
34 premium access annually contracted subscription each billing cycle with given a datapoint allotment how much data access with subscription Compete API Pricing
35 Developer gets paid
36 Indirect
37 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
38 Success: Consider API as a product! Strategy & concept (checklist) identify the goals and audience (segmentation of developers/companies and of end-users) understanding how an API can grow your business: make money or expand your service? (revenue, retention or reach?) / differentiation to competition? / etc. Business model? freemium? revenue share? cover costs? benefit of opening up my data & servicres in terms of reach and revenue outweigh the risk and cost (really?) who in the company (department) will own the product able to devote the resources needed to build a successful API team and program use of API management tools & platforms or do it alone, internally (on premise vs. SaaS)
39 Action plans Content and services are the digital assets Identify your core digital assets Brainstorm what solutions could be invented with the help of your digital assets Define a few scenarios for an API-based business strategy and business model Scope out requirements to implement your API initiative Start with one strategy and business model, and be ready to adapt and change scale Networks S.L.
40 API : product with opportunity & responsibility History of Web API (one API fits all) Who is doing What Why having an API opportunity Business models product How & tips from best practices Developers' onboarding responsibility
41 You cannot substitute, change heavily, or just stop!
42 Attract developers (1/3) What kind of recognition does your brand already have? What makes your service or your API different Offer developers something meaningful - usually that s fame or fortune (direct economic benefit or indirect) Target developers who need your API to solve a real problem they have What kind of buzz will you get from an API launch? Highly segmented, individual campaigns are much more successful ( reach Twitter developers building mobile apps, than it is to say, I m going to reach everyone ) Enough focus in the marketing in the initial months after an API launch How much are you willing to invest in promoting your API and supporting its users?
43 Attract developers (2/3) Be part of the community of developers you re trying to build: online communities (Blogs, wikis with documentation, newsgroups, venues for code examples, developers can share their own codes), reward the best apps, organize dev camps & hackathons, contests with interesting prizes, evangelize No slow onboarding, e.g. avoid complex registration and key issuance protocols As simple to use as possible (e.g. follow REST design principles and lower the barrier to entry, lots of communication and documentation. Code samples. Active forums where questions are answered quickly and accurately) How fast will you act on feedback from your API users?
44 Attract developers (3/3) Having references (developers) that relate to your business Few trusted developers to use a private, pre-alpha version of your API, and put your API through a thorough beta stage Use the feedback you get to improve your design, find & squash bugs, plan new version Partnering with other companies with APIs related to your business (complement each other, ready for mashup) Ready for the scope and scale of API traffic, different from the traffic your web app might see (build your infrastructure accordingly) Be ready to change direction / Start small. Get an API out there and learn
45 - questions nicolas@galixo.com
46 -- backup slides --
47 Simple pricing
48 Data.com Connect pricing (Jigsaw API)
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52 1 in every 5 new APIs says goodbye XML Percentage of APIs with XML support 1 in every 5 new APIs says goodbye XML Based on directory of 3,200 web APIs listed at ProgrammableWeb, May 2011 John Musser, SemTech 2011
53 App Developer Big Box Retailer National Chain Mobile App Device App Web Retail Department Store Web Catalog Specialty Store Indirect Sales Direct Sales Source: Sam Ramji, VP Strategy
54 Hardt s Theorem: The Internet Power Law The first wave of the Internet demonstrated the economic impact of web-based business models. 99:1 80:20 Previous eras of business showed a normal distribution for revenue, with most firms getting most of the revenue. In the later half of the 20 th century, business model innovations focused revenue in the 2 nd standard deviation above the mean. The 80:20 rule became conventional wisdom. 95:5 The HTML-driven Internet showed new business models that focused revenue in the 3 rd standard deviation (examples: Amazon, EBay). Reality reflected a 95:5 rule where 5% of companies dominated the transactions and profits. The API-driven Internet is demonstrating the next concentration of power and is reflecting a 99:1 distribution (examples: Twitter, Facebook) due to the high switching costs and effective lock-in through software. The next wave of the Internet is demonstrating the economic impact of API-based business models. Source: Sam Ramji, VP Strategy
55 Mobile Social Cloud Source: Sam Ramji, VP Strategy
56 Mobile APIs Social Cloud Source: Sam Ramji, VP Strategy
57 Private Cloud DBs Mainframe Caching DBs Domain-specific Data APIs Data API Data Warehousing Flat file Silos Data Shared RDBMS Source: Sam Ramji, VP Strategy
58 App Org Cross-org Cross-business Mainframe Databases Middleware APIs Source: Sam Ramji, VP Strategy
59 Source: Sam Ramji, VP Strategy (netflix example) Model Controller View Flexible Stable Agile iphone Wrapper Recommendations User Info Similar Movies Movie Metadata Viewing History Ratings R12n Service User Service Similar Movie Service Data Normalization & Resiliency UNIFIED LIST/TITLE API USER API SHARED API INTERFACES Xbox Wrapper Wii Wrapper PS3 Wrapper Roku Wrapper ipad Wrapper Apple TV Wrapper PC / Mac Wrapper TiVo Wrapper Source Data Layer Web Service Layer API Repository Layer API Layer Shared Layer Wrapper Layer App Layer
60 5 Keys to a Great API A valuable service (data, function, audience, ) A plan and a business model Simple, flexible, easily adopted Managed and measured Great developer support "What Makes a Great Open API? partially from page 8
61 Three technical approaches for API management platform market API gateways: on premises precise control of API traffic (to data center & public cloud) Plugin: access in the cloud (authentication and portal capabilities), traffic Cloud-based proxy: easy to deploy, but costs scale with traffic The Forrester Wave : API Management Platforms, Q1 2013
a + b =? Open APIs: State of the Market
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