APIs for Biz Dev 2.0 - Which Business Model?
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Transcript of APIs for Biz Dev 2.0 - Which Business Model?
APIs for Biz Dev 2.0 Which Business Model?
Guillaume Balas - CMO @3scale
[email protected] - @guillaumebalas
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
THE RISE OF THE APIS Introduction
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
APIs are growing & reshaping the new Web This is not a trend, this is a fact
5B / Day (April ‘10)
5B / Day (Oct ‘09)
75% Traffic (April ‘10)
8B / Mth (Oct ‘09)
3B / Day (March ‘09)
50% Traffic (March ‘08)
Success for these businesses is heavily relying on their API(s)
Annual growth in # of APIs: 100%
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
APIs are everywhere Examples
Media & Content
Social & e-Commerce Others
SaaS Integration
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Interest is broad and deep Currently disrupting the web !
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
WHY IS IT IMPORTANT? What is an API ?
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
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Application Programming Interface Definition
“A particular set of rules and specifications that a software
program can follow to access and make use of the services and resources provided by another particular software
program that implements that API.
It serves as an interface between different software programs and facilitates their interaction, similar to the way the
user interface facilitates interaction between humans and computers.”
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
Web sites are local There was 255 Million Web sites as of December 2010
Disadvantages:
Limited reach
Lost business opportunities
Limited brand awareness
Web scraping risks
Significant SEO and SEM costs
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Source: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
APIs help you grow your business APIs are Biz Dev 2.0 – The first paradigm shift
Advantages:
APIs unlock distribution channels and enable you to
expand your business beyond the limits of your web site.
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Source: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
Create New Distribution
Channels
APIs Deliver Raw Data, Content and Services
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Allowing you to…
Partner Up Power Mobile Apps
Build an Ecosystem
Protect your
IPR
Decrease your cost of serving your customer
Serve any type of device, software,
anywhere
“Externalize” your R&D and
Foster Innovation
Lower Barriers to Integration
Create New Business Models
Rationalize and Control who
accesses your resources
Reach More Customers
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
APIs Deliver Raw Data, Content and Services
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Strategic Advantage
New Revenue Streams
Business Advantage
Generating
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
SO WHAT NOW?… An API?
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API business strategy Get the most from your API
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APIs enable cloud scale MVC, ① Identify your own core asset
② Choose the complementary asset which will deliver most value
③ Define the strategy to capture the value most effectively
allowing you to focus on your core asset.
Examples of API Business Strategy
Presentation Logic Data Mission
✓ Simplify the world of telecom by providing simple, powerful, pay-as-you-go IaaS
✓ Increase the world's access to data, especially free and open data
✓ Revolutionize the way people watch movies
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API typology Concepts
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Private APIs
They are used internally to facilitate the integration of different applications/systems used by your company.
Partners APIs
Enable the integration of software between your organization and your business partners.
Public APIs
Publicly expose information and functionality of one or various of your systems/applications to 3rd that don’t necessarily have a business relationship with your company
Rationales
Rationalize infrastructure
Reduce costs
Increase flexibility
Improve internal operations
Value-added service
Up sell
Must have for your partners
Foster innovation
Increase reach, traffic
New revenue stream
Typical Evolution of an API 1
1 Not necessarilly always the case (e.g musiXmatch, Seevl, Genability)
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API business model Another paradigm shift
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Source: John Musser, ProgrammableWeb.com
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API delivery How?
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Partners
Affiliates
Mobile Users
Internal Projects
Developers
Customers Your content &
services
Your API
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API delivery How?
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Partners
Affiliates
Mobile Users
Internal Projects
Developers
Customers Your content &
services
Your API
Security?
Monitoring?
Access Control?
User Experience?
Monetizing ?
Scalability? Flexibility?
Reach?
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API delivery “Managing” your API operations
Partners
Affiliates
Mobile Users
Internal Projects
Developers
Customers Your content &
services
Your API
AP
I Bus
ines
s En
gine
Access Control & Security
Analytics & Reporting
Developer & Partner Portal
Billing & Payments
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API Management Solution
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
API managemen solution To deliver the power of your APIs to the Internet
AP
I Bus
ines
s En
gine
Access Control & Security
Analytics & Reporting
Developer & Partner Portal
Billing & Payments
A key enabler for your API Business and Operations
API Management Solution
① Flexible & Configurable
② Speed time to market
③ Highly Scalable
④ Cost Effective ⑤ Value Added
Services
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The
Plu
g &
Pla
y C
loud
AP
I Man
agem
ent
Pla
tfor
m
for
Star
tups
, SM
Bs
and
Ente
rpri
ses
Your API is the product?
Extends the reach of your product?
Promotes your product?
Makes your product be<er, richer?
Business Partners?
Customers?
Developers?
Your Company?
User Experience?
Business Model?
MarkeDng, PromoDon?
Technology choice?
WHAT
What is your API?
WHO
Who will use your API? H
OW
How do you offer your API?
Facilitate the integra<on of your product in as many devices, services or soBware provided by your business partners (e.g. Samsung & Skype, Spo2fy & 7Digital)
Sell your product (content, data or services) directly to clients through your API (e.g. Twilio, Daily Telegraph, LiveOps)
“Outsource” your R&D to Developers. Tap into their fantas<c crea<vity and innova<on skills to evolve your product (e.g. Twilio, Salesforce)
Make it easier, faster and more flexible to use/access your assets. Homogenize and centralize access to your data. (e.g. NeClix, Seevl, The Guardian, NPR)
SDK? Widget? Interac<on and Support? T&C and SLAs proposed? Blogs? Forum? Documenta<on?
Direct/Indirect? Tiered/Freemium? Revenue sharing? White labeling? Partnerships?
(e.g. Bluevia, Wine.com, PeopleBrowsr)
Hackathons, Dev. Challenges? Private Beta, Public Beta? Use cases? (e.g. Viadeo Dev Challenge)
Authoriza<on, provisioning and control of accesses? Usage Tracking? Proxy versus Plugin API Management solu<on?
Calls/requests to your API are the primary (only?) way to interact with your technology, data, content (e.g. Twillio, Amazon AWS, SImpleGeo, Musixmatch )
Your API is a way for your partners to make their customers experience your product via their own apps, devices, solu<on or service (e.g. Skype, Maxdome, 7Digital)
Adver<se your product in different ways -‐ such as via an affiliate program. (e.g. Wine.com, Oodle.com)
Your API is a channel to get new content/value "into” your business that goes to make up part of the service. (e.g. TwiNer, eBay, Facebook)
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
RECOMMENDATIONS Conclusion
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
Dos & Don’ts Tips and tips to avoid pitfalls
Dos ① API first, Mobile second, Web third
② Do your homework (Who, What, How)
③ Start “small” in terms of functionalities (you can always add but you can never remove)
④ Provide a compelling value proposition to drive adoption and grow your API ecosystem
⑤ Remain flexible to evolve with the needs of your user base
Don’ts ① API as a “side project”
② Neglect developers
③ Bad documentation (or inexistent)
④ Bad sample code/examples (or inexistent)
⑤ No versioning planned
⑥ No or unclear Terms & Conditions
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
QUESTIONS & ANSWERS Thank you !
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
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3scale SPAIN Calle Llacuna 162-164
08018 Barcelona Spain
+34 933 092 786
3scale USA. 440 N Wolfe Rd,
Sunnyvale, CA 94085 USA
+1 (408) 524 1503
3scale UK Techhub, 76-80 City Rd
London EC1Y 2BJ United Kingdom
+44 758 069 2832
Thank you !
Email: [email protected]
Twitter: @guillaumebalas
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
ABOUT 3SCALE Annexes
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The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
3scale Overview
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Infrastructure as a Service for APIs – create business value from APIs
Gartner cool vendor / Cloud Computing, March 2010
Barcelona / Spain – London / England – San Francisco / California
International Team
Founded in 2007
Deep technical expertise
High perf. infrastructure
and
mor
e…
The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises
3scale API managemen platform Helps you “Deliver the power of APIs to the Internet”
AP
I Bus
ines
s En
gine
Access Control & Security
Analytics & Reporting
Developer & Partner Portal
Billing & Payments
3scale, a key enabler for your API Business and Operations
API Management Solution
① Flexible & Configurable
② Speed time to market
③ Highly Scalable
④ Cost Effective ⑤ Value Added
Services
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