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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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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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 !


WHY IS IT IMPORTANT? What is an API ?

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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.”


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


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


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


APIs Deliver Raw Data, Content and Services

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Strategic Advantage

New Revenue Streams

Business Advantage

Generating


SO WHAT NOW?… An API?

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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


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)


API business model Another paradigm shift

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Source: John Musser, ProgrammableWeb.com


API delivery How?

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Partners

Affiliates

Mobile Users

Internal Projects

Developers

Customers Your content &

services

Your API


API delivery How?

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Partners

Affiliates

Mobile Users

Internal Projects

Developers


services

Your API

Security?

Monitoring?

Access Control?

User Experience?

Monetizing ?

Scalability? Flexibility?

Reach?


API delivery “Managing” your API operations

Partners

Affiliates

Mobile Users

Internal Projects

Developers


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


API managemen solution To deliver the power of your APIs to the Internet

AP

I Bus

ines

s En

gine




Billing & Payments

A key enabler for your API Business and Operations


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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RECOMMENDATIONS Conclusion

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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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QUESTIONS & ANSWERS Thank you !

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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


ABOUT 3SCALE Annexes

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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…


3scale API managemen platform Helps you “Deliver the power of APIs to the Internet”

AP

I Bus

ines

s En

gine




Billing & Payments

3scale, a key enabler for your API Business and Operations


①  Flexible & Configurable

②  Speed time to market

③  Highly Scalable

④  Cost Effective ⑤  Value Added

Services

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