Post on 14-Jan-2015
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Discovering the Value of API Management – Introduction and Product Overview
Mike BurkettWetumpka, AlabamaAugust 28, 2014
API Economy OverviewMike BurkettITS, IBM WebSphere Connectivity Great Lakes / Southeast RegionWetumpka, Alabama
Recent shifts present business opportunities and IT challenges
and growth is accelerating dramatically
By 2014, 75% of the Fortune 1000 will offer public Web APIs.
By 2016, 50% of B2B collaboration will take place through Web APIs.
Sources: Gartner, Predicts 2012: Application Development, 4Q, 2011; Gartner, Govern Your Services and Manage Your APIs with Application Services Governance, 4Q 2012; Gartner, Open for Business: Learn to Profit by Open Data, 1Q 2012
APIs are a path to new business opportunities
Web APIs are the new, fast-growing business channel
Businesses are Evolving
stores (800) ###s web sites
Web APIs are Emerging Across All Industries
Energy and Utilities
Government Healthcare Transportation Retail
Banking Insurance Telco Chemical and Petroleum
Electronics
Banking
APIs are available in a sandbox environment
Some hold contest to see to who can develop the best app a modest reward
Some charge for use of apps
Types of APIs Comments
Customer API
Account API
Transaction API
Branch Locations
Drivers
Banks are having challenges in the marketing ability to create, test and evolve new services and adapt better to the needs of the users in the changing of their uses.
Need to deliver multiple focus apps on many different devices.
Financial Overview
Financial Timelines
Mapping Financial Relationships
Added Valued Services such as loyalty, couponing and target marketing
Examples of Apps
Insurance
APIs are available in a sandbox environment
Some hold contest to see to who can develop the best app a modest reward
Some charge for use of apps
Types of APIs Comments
Policy API
Customer API
Account API
Drivers
Business trend to leverage partnerships and decentralize the business value chain
Pressing need to become more agile
Business flexibility to try new things to drive revenue
Increase need to improve effectiveness of working with external partners in delivery of business solutions
Retail
Products APIs are typically open
Some APIs require further approvals to use
Types of APIs Comments
Products API
Store Locator API
Deals of the Day API
Reviews API
Top Sellars API
Categories API
Drivers
Shifts in buying patterns customers
Need to be where customers are purchasing – mobile devices
Capitalize on every small channel that is created.
Milo.com – searches for best prices
Gazaro – deal finder
GetGlue – social network for movie tv shows
eBay Gifts Nearby -
Examples of Apps
The Market Pressure
The explosion of devices and channels• How do you support delivery of your services and products
on all of these devices?
Applications are smaller, more focused, and come and go very fast• How do you keep up with the rate of change?
Competitive pressure forcing the need for faster innovation• How do you foster innovation to beat out competition?
Partnerships need to be established quicker and connected quicker• How do you create new partnership fast which our outside
of your normal interactions?
Brand loyalty is always under attack• How do you get and maintain brand loyalty?
What is a Business API? A Business API is a public persona for an enterprise; exposing defined
assets, data or services for public consumption A Business API is simple for app developers to use, access and understand A Business API can be easily invoked
What Value Does a Business API Provide? Extends an enterprise and opens new markets by allowing external app
developers to easily leverage, publicize and/or aggregate a company’s assets for broad-based consumption
What “assets, data or services” are exposed via a Business API?: Product catalogs Store listings Order status Inventory Social interaction
Business API = Web API = Productized Service
App DeveloperApp Developer
© 2014 IBM Corporation
© 2014 IBM Corporation
Are APIs just a new name for SOA?
There are many similarities – but one very important difference:
The objective most have been focusing on achieving with them
APIs SOA
“How can I increase the pace of innovation?”
“How can I increase the agility and effectiveness of delivery?”
Reuse → Speed to deliverSharing → ExpediencyEncapsulate → Less to learn
Reuse → Effort to deliverSharing → EffectivenessEncapsulate → Less to change
Each style sprung from the systems they were most focused on…
APIs SOATo control the creation and operational behavior of Systems of Record services, use WSRR
To control the creation and operational behavior of Systems of Record services, use WSRR
To foster innovation through the consumption of API’s across Systems of Engagement, use API Mgmt
To foster innovation through the consumption of API’s across Systems of Engagement, use API Mgmt
Services
•Focus on the provider•Stable interface to systems of record
Services
•Focus on the provider•Stable interface to systems of record
APIs
•Focus on the consumer•Easy to learn, easy to use
•Simplified access to gateway capabilities
APIs
•Focus on the consumer•Easy to learn, easy to use
•Simplified access to gateway capabilities
Private Cloud
Back-office Processes
Analytics
Services Databases
CRM
Internet of Things
Mobile
Public Cloud
Social Web
Partners
GatewayGateway IntegrationIntegration
Two similar worlds converging
Service Management
API Management
Mainly about Services Mainly about APIs
Govern services through the lifecycle
Expose APIs to the Web, manage them to prevent chaos in usage
Began with Web Services Began with REST
100’s of services Smaller number of APIs
Typically internal, behind firewall
External and Internal
Driven by Enterprise Architects
Driven by Business, Marketing, Mobile teams, Innovation teams
Governs with a Stick Governs with a Carrot
Established market presence
Newer in market
Contracts enforced with ESBs and Gateways
Security and Entitlements controlled by Gateway
“The overlap between SOA governance technology and API management is significant.”
“It is about tracking and monitoring the artifacts in an SOA or an API project, enforcing and ensuring compliance with the policies associated with the artifacts and measuring the outcomes related to their use.”
- August 2013, Gartner’s Application Services Governance report
Application Services Governance
API ManagementSOA Governance
Introduction to APIs and API Management
API Management Introduction and General Concepts
- Terminologies
- Roles & Responsibilities
- Architectural Use Cases
- Types of APIs
- API Styles
Terminologies: Web APIs, Mashups, Apps
Terminologies: Web APIs, Mashups, Apps
App Developer Business User IT Person
• Develops cool new applications against new public or private APIs
• Understands one or more web programming languages
• Spends his free time developing Apps too
• Wants to reach new markets through new channels
• Understands the business and value of assets being exposed
• Needs to experiment with different programs and campaigns to drive adoption
• Product Manages the initiative
• Exposing public APIs might be new to the IT Person
• Worried about security and scalability of infrastructure
• Short on time to do new projects
Roles & Relationships in the API economy
Companies Need to Become an Engaging Enterprise
Apps
Customer
Business User
IT
Enterprise
App Developer
• Business Users want to engage Customers in new markets
• They need to Externalize the Enterprise
• They need to get Apps in front of these Customers
• Apps need APIs that Externalize the Enterprise
• App Developers use APIs
• App Developers are now External to the Enterprise
• IT Guys need to secure, scale and support the externalized Enterprise
• Business Users and IT Guys needs Insights so they can respond to business needs
The Platform
Enterprises wants to tap into innovation from a large
community of developers, not just developers they employ
Public, Open-To-All APIs
Protected, Open-To-Partner APIs
Private, Internal APIs
• APIs are open to any developer who wants to sign up
• Apps are more targeted towards end consumers
• The business driver is to engage customers through external developers
• APIs are open to select business partners
• Apps could be targeted at end consumers or business users
• The business driver is usually different, based on the data and type of business of the enterprise
• APIs are exposed only to existing developers within the enterprise
• Apps are usually targeted at employees of the enterprise
• The business driver is more around productivity of employees
Customers will require a combination of three API types
Drives Adoptions of APIsTypically low valued assetsDrive brand loyaltyEnter new channels
For Free
Facebook Login API provides free authentication for any Web / mobile app
Example:
Developer Pays
Business Asset must be of high value to the Developer
For example, marketing analytics, news,
Capabilities such as credit checks
Amazon EC2 Web Services – APIs charge per usage to launch and manage virtual servers.
Example:
Developer Gets Paid
Provides incentive for developer to leverage web API
Ad placements
Percentage of revenue sold product or services
Google AdSense APIs pay developers who include advertising content into apps
Example:
Indirect Use of API achieves some
goal that drives business model.
E.g. Increase awareness of specific content, or offerings
eBay Trading APIs offer developers access to trading services extending the reach of listings and transactions
Example:
API Monetization Models
Typical App Developer Requirements
API Exposure Considerations
• APIs can change scope over time if needed from private to protected or public and from protected to public.
• Once an API is made public though, it is considered a contract with the consumer and would need to follow a formal deprecation process to be removed.
Explore, Experiment, Expand & Embrace
Essentials for successful API
Big Data Assets
Big data sources provide insights that are shared and monetized through APIs
Social Users
Social APIs fuel personalized experiences for users and new business models
Cloud Web Apps
Cloud services are exposed through Web APIs enabling rapid composition environments
Mobile Apps
Mobile applications make calls to back end services through Web APIs
APIAPI APIAPI
APIAPIAPIAPI
1. Omni-channel2. Operates with agility3. Re-invents itself
Attributes of a Composable Business
APIs are the foundation of a Composable Business
Speed Creation and Consumption
Creation Consumption
• Assembly• Transformation• Rationalization
• Discovery• Composition• Deployment
Assets & Services Application End Points
Grow revenue through new channels
Deliver a differentiated customer experience
External APIs
Partner APIs
Internal APIs
Service Aorg/proxy1_serviceA
org/proxy2_serviceB Service B
Invoke Service AHTTP/JSON
Invoke Service BHTTP/JSON
HTTP/JSON
HTTP/JSON
Client App
Client Layer API Management Layer
On Premise/CloudResource
Service A
DataBase B
Invoke AssembledService
HTTP/JSON
HTTP/JSON/Detail1/get
HTTP/JSONdatabase/update
Client App
Client Layer API Management Layer
On Premise/CloudResource
org/assembly1_getNupdate
Proxy Style – For Pass through style APIs
Assembly Style – For composition and orchestrations in your APIs
API Styles - Proxies and Assemblies
Typical Architecture - Internal
Internet
DMZSecurity Gateway
Rich Internet Applications
DataControllers
Dojo.dijit Dojo.baseDojo.dojox/
Dojox.mobile
Dojo.dataNavigationControllers
Templating(django)
Other UI Tech
AuthenticationAuthorization
Routing/Transformation
Ecryption/DecryptionRouting/
Transformation
Enterprise Connectivity & Integration
APIs
AssembliesProxies
Internal Developers
IT Operations
Business User
Enterprise Information Systems
Enterprise DataBase
Core Application Backend
Enterprise ESB
ProtocolTransformation
Adapters REST Services SOAP Services
HTP/XML HTTP/SOAP
HTTP/JSON
OtherEIS
HTTP/JSON/XML
Intranet
Typical Architecture – External & SaaS Based
DMZ
Intranet
Internet, Cloud
API Management SaaS Offering
Security Gateway
AuthenticationAuthorization
REST InterfaceEcryption/DecryptionRouting/
Transformation
Enterprise Connectivity & Integration
Enterprise Information Systems
Enterprise DataBase
Core Application Backend
Enterprise ESB
ProtocolTransformation
Adapters REST Services SOAP Services
SOAP/HTTP
OtherEIS
HTTP/JSON/XML
APIs
Assemblies
ProxiesDev Portal
Usage Mertics
API Management SaaS Offering
Consumers
Business User
IT Operations
View PortalUse APIs
Create Apps
Define APIs
Publicize APIMeasure Metrics
HTTP/JSON/XML
ExternalApp Developers
ConsumeApps