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APIs for Biz Dev 2.0 - Which Business Model?

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APIs are [R]evolutionizing the Internet and the way companies distribute their data, content and services to the Web. …

APIs are [R]evolutionizing the Internet and the way companies distribute their data, content and services to the Web.

This presentation prepared for the MEITO "API, le Net+ ultra" workshop in France will walk you through some key elements of consideration when embracing the API [R]evolution.

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  • 1. APIs for Biz Dev 2.0Which Business Model? Guillaume Balas - CMO @3scale guillaume@3scale.net - @guillaumebalas
  • 2. IntroductionTHE RISE OF THE APIS The Plug & Play Cloud API Management Platform 2 for Startups, SMBs and Enterprises
  • 3. APIs are growing & reshaping the new WebThis 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 Annual growth in # of APIs: 100% heavily relying on their API(s) The Plug & Play Cloud API Management Platform 3 for Startups, SMBs and Enterprises
  • 4. APIs are everywhereExamplesMedia & Content SaaS IntegrationSocial & e-Commerce Others Interest is broad and deep Currently disrupting the web ! The Plug & Play Cloud API Management Platform 4 for Startups, SMBs and Enterprises
  • 5. What is an API ?WHY IS IT IMPORTANT? The Plug & Play Cloud API Management Platform 5 for Startups, SMBs and Enterprises
  • 6. Application Programming InterfaceDefinition “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 6 for Startups, SMBs and Enterprises
  • 7. Web sites are localThere 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 costsSource: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe The Plug & Play Cloud API Management Platform 7 for Startups, SMBs and Enterprises
  • 8. APIs help you grow your businessAPIs 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.Source: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe The Plug & Play Cloud API Management Platform 8 for Startups, SMBs and Enterprises
  • 9. APIs Deliver Raw Data, Content and Services Allowing you to… Create New Build an Power Mobile Distribution Partner Up Ecosystem Apps Channels Rationalize andServe any type of Protect your Decrease your Control whodevice, software, cost of serving IPR accesses your anywhere your customer resources“Externalize” your Lower Barriers to Create New Reach More R&D and Integration Business Models CustomersFoster Innovation The Plug & Play Cloud API Management Platform 9 for Startups, SMBs and Enterprises
  • 10. APIs Deliver Raw Data, Content and Services Generating Strategic Advantage Business Advantage New Revenue Streams The Plug & Play Cloud API Management Platform 10 for Startups, SMBs and Enterprises
  • 11. An API?SO WHAT NOW?… The Plug & Play Cloud API Management Platform 11 for Startups, SMBs and Enterprises
  • 12. API business strategyGet the most from your APIAPIs enable cloud scale MVC,   Identify your own core asset   Choose the complementary asset which will deliver most value   Define the strategy to capture the value most effectively Examples of API Business Strategyallowing you to focus on your core Presentation Logic Data Missionasset. Revolutionize the way people ✓   watch movies Simplify the world of telecom ✓   by providing simple, powerful, pay-as-you-go IaaS Increase the worlds access ✓   to data, especially free and open data The Plug & Play Cloud API Management Platform 12 for Startups, SMBs and Enterprises
  • 13. API typologyConcepts Typical Evolution of an API 1Private APIs RationalesThey are used internally to facilitate the  Rationalize infrastructureintegration of different applications/systems  Reduce costsused by your company.  Increase flexibility  Improve internal operationsPartners APIsEnable the integration of software between  Value-added serviceyour organization and your business partners.  Up sell  Must have for your partnersPublic APIsPublicly expose information and functionalityof one or various of your systems/  Foster innovationapplications to 3rd that don’t necessarily have  Increase reach, traffica business relationship with your company  New revenue stream 1 Not necessarilly always the case (e.g musiXmatch, Seevl, Genability) The Plug & Play Cloud API Management Platform 13 for Startups, SMBs and Enterprises
  • 14. API business modelAnother paradigm shift Source: John Musser, ProgrammableWeb.com The Plug & Play Cloud API Management Platform 14 for Startups, SMBs and Enterprises
  • 15. API deliveryHow? Developers Your content & services Customers Partners Your API Affiliates Mobile Users Internal Projects The Plug & Play Cloud API Management Platform 15 for Startups, SMBs and Enterprises
  • 16. API deliveryHow? Access Control? Developers Your content & services Security? Customers Your Monitoring? Partners API Monetizing ? Affiliates User Experience? Mobile Users Scalability? Internal Projects Flexibility? Reach? The Plug & Play Cloud API Management Platform 16 for Startups, SMBs and Enterprises
  • 17. API delivery“Managing” your API operations Developers Your content & services Access Control Customers & Security API Business Engine Analytics & Partners Your Reporting API Developer & Affiliates Partner Portal Billing & Mobile Users Payments API Management Solution Internal Projects The Plug & Play Cloud API Management Platform 17 for Startups, SMBs and Enterprises
  • 18. API managemen solutionTo deliver the power of your APIs to the Internet Access Control   Flexible & & Security Configurable   Speed time to API Business Engine Analytics & Reporting market Developer &   Highly Scalable Partner Portal   Cost Effective Billing &   Value Added Payments Services API Management Solution A key enabler for your API Business and Operations The Plug & Play Cloud API Management Platform 18 for Startups, SMBs and Enterprises
  • 19. WHAT   WHO   HOW   What  is  your  API?   Who  will  use  your   How  do  you  offer   API?   your  API?   Your  API  is  the  product?   Business  Partners?   Business  Model?   Calls/requests   to   your   API   are   the   primary   Facilitate   the   integra<on   of   your   product   in   Direct/Indirect?   Tiered/Freemium?   Revenue   The Plug & Play Cloud API Management Platform (only?)   way   to   interact   with   your   technology,   as   many   devices,   services   or   soBware   sharing?  White  labeling?  Partnerships?   data,  content   provided  by  your  business  partners   (e.g.   Twillio,   Amazon   AWS,   SImpleGeo,   (e.g.  Samsung  &  Skype,  Spo2fy  &  7Digital)   (e.g.  Bluevia,  Wine.com,  PeopleBrowsr)   for Startups, SMBs and Enterprises Musixmatch  )   Extends  the  reach  of  your  product?   Customers?   Technology  choice?   Your   API   is   a   way   for   your   partners   to   make   Sell   your   product   (content,   data   or   services)   Authoriza<on,   provisioning   and   control   of   their  customers  experience  your  product  via   directly  to  clients  through  your  API   accesses?  Usage  Tracking?     their  own  apps,  devices,  solu<on  or  service   (e.g.  Twilio,  Daily  Telegraph,  LiveOps)   Proxy   versus   Plugin   API   Management   (e.g.  Skype,  Maxdome,  7Digital)   solu<on?   Promotes  your  product?   Developers?   User  Experience?   Adver<se   your   product   in   different   ways   -­‐   “Outsource”   your   R&D   to   Developers.   Tap   SDK?  Widget?  Interac<on  and  Support?   such  as  via  an  affiliate  program.   into   their   fantas<c   crea<vity   and   innova<on   T&C   and   SLAs   proposed?   Blogs?   Forum?   (e.g.  Wine.com,  Oodle.com)   skills  to  evolve  your  product   Documenta<on?   (e.g.  Twilio,  Salesforce)   Makes  your  product  be<er,  richer?   Your  Company?   MarkeDng,  PromoDon?   Your   API   is   a   channel   to   get   new   content/ Make   it   easier,   faster   and   more   flexible   to   Hackathons,   Dev.   Challenges?   Private   Beta,   value   "into”   your   business   that   goes   to   make   use/access   your   assets.   Homogenize   and   Public  Beta?  Use  cases?   up  part  of  the  service.   centralize  access  to  your  data.   (e.g.  Viadeo  Dev  Challenge)   (e.g.  TwiNer,  eBay,  Facebook)   (e.g.  NeClix,  Seevl,  The  Guardian,  NPR)   19
  • 20. ConclusionRECOMMENDATIONS The Plug & Play Cloud API Management Platform 20 for Startups, SMBs and Enterprises
  • 21. Dos & Don’tsTips and tips to avoid pitfallsDos Don’ts   API first, Mobile second, Web third   API as a “side project”   Do your homework (Who, What,   Neglect developers How)   Bad documentation (or inexistent)   Start “small” in terms of functionalities (you can always add but   Bad sample code/examples (or you can never remove) inexistent)   Provide a compelling value   No versioning planned proposition to drive adoption and grow your API ecosystem   No or unclear Terms & Conditions   Remain flexible to evolve with the needs of your user base The Plug & Play Cloud API Management Platform for Startups, SMBs and Enterprises 21
  • 22. Thank you !QUESTIONS & ANSWERS The Plug & Play Cloud API Management Platform 22 for Startups, SMBs and Enterprises
  • 23. Thank you ! Email: guillaume@3scale.net Twitter: @guillaumebalas 3scale USA. 3scale SPAIN 3scale UK 440 N Wolfe Rd, Calle Llacuna 162-164 Techhub, 76-80 City RdSunnyvale, CA 94085 08018 Barcelona London EC1Y 2BJ USA Spain United Kingdom +1 (408) 524 1503 +34 933 092 786 +44 758 069 2832 The Plug & Play Cloud API Management Platform 23 for Startups, SMBs and Enterprises
  • 24. AnnexesABOUT 3SCALE The Plug & Play Cloud API Management Platform 24 for Startups, SMBs and Enterprises
  • 25. 3scale Overview and more… International Deep technical Team expertiseInfrastructure as a Servicefor APIs – create businessvalue from APIs High FoundedGartner cool vendor / Cloud perf. in 2007Computing, March 2010 infrastructure Barcelona / Spain – London / England – San Francisco / California The Plug & Play Cloud API Management Platform 25 for Startups, SMBs and Enterprises
  • 26. 3scale API managemen platformHelps you “Deliver the power of APIs to the Internet” Access Control   Flexible & & Security Configurable   Speed time to API Business Engine Analytics & Reporting market Developer &   Highly Scalable Partner Portal   Cost Effective Billing &   Value Added Payments Services API Management Solution 3scale, a key enabler for your API Business and Operations The Plug & Play Cloud API Management Platform 26 for Startups, SMBs and Enterprises