Bigger, Better Business With OAuth

Bigger, Better Business withOAuth11.11.17 @ 11:05 PSTVOIP or Dial-in (see chat)groups.google.com/group/api-craftSam Ramji @sramjiBrian Mulloy @landlessness

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THE PLATFORMIMPERATIVE

Every market in history has had intermediaries

Business Intermediaries Customers

These intermediaries connect buyers andsellers by knowing what both want andcreating convenient ways to transact

Apps are the new intermediaries.

Business Apps Customers

They occupy many niches already andcontinue to multiply

App Store Growth 2008-2011 600 12 500 10 Apps AvailableThousands Total App Downloads 400 8 Billions 300 6 200 4 100 2 0 0 Data from Wikipedia

As do devices.

Mary MeekerKleiner Perkins

Companies cannot build for all these niches aseach one requires distinct expertise in designand development, and there are too manyniches.

As Marc Andreessen observed recently

“ In short, software is eating the world. We are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy. Marc Andreessen

Evans, Hagiu, and Schmalenseeexplored this deeply in 2006

And Annabelle Gawerhas formalized the solution

The platform business model.

PLATFORMSAREOPEN

As we’ve learned from digital natives like

open platforms grow the fastest.

Visualization by Apigee

In the API era of competition, speed is crucialbecause critical mass leads rapidly to marketdominance.

[Ecosystem Competition] Kishore S. Swaminathan, Chief Scientist, Accenture

Open platforms mean thatapps can be built by developers quicklywithout formal commitment tojoint research,joint development, andjoint marketing.

Open platforms decouple partners from theplatform provider’s business cycles.

This reduces the cost of innovation,enabling many more experiments to be mademore quickly,increasing the chance of a major improvementto the platform business, its customers, and itsintermediaries.

This is low-friction innovation.

OPENDOES NOT MEANSECURE

This takes us to the stakes required for adigital business in the API era.

For an intermediary to connect a buyer andseller, there must be trust.

The intermediary must be trustworthy,and the transaction must be trustworthy.

In modern businesses, buyers (users)have accounts with sellers (providers)which are filled with dataas well as transaction privileges.

For the system to function well, buyers must be able to fire their intermediarywithout breaking their relationship with the seller.

With apps as the intermediary, new dynamicsexist on top of the historical foundation.

Apps are new.They are often short-lived.Their business model depends on building ahigh volume of users.They must have some way to attain their firsttransaction and be proven or else improved.

And this way must align with theloose coupling philosophy at the heartof an open platformotherwise we’ve just secured our way backinto old-fashioned closed businessesand killed our platform opportunity.

“ 20th Century IT was about raising barriers to entry for competitors. 21st Century IT is about lowering barriers to participation. James Governor Redmonk

So how do you build a trustworthy systemin an open world?

It takes an open security architecture.

INTRODUCINGOAUTH

It’s a free and open protocol built on licenses from the Open Web Foundationand it’s the right choice for securing open platforms.

The Valet Key Metaphor

Eran Hammer-Lahav comparesthe OAuth model to a valet key.This is an apt metaphor.

A Valet Key for Open Platforms

The heart of OAuthis an authorization token with limited rightswhich the user can revoke at any timeshould they become suspicious or dissatisfiedwith the app they’re usingto access your business.

When the token is first grantedthe business shows the user what rights theapp is asking for

and this negotiation is invisible to the app.

A perfect design for bootstrapping trust.

Just Enough Permission

An app should have just enough permissionto do the things the user wants it to.

OAuth allows for granular access to the user’saccount.The current alternative is all or noneGive the app your username and password –which gives the app access to everythingabout you.

In OAuth, permissions can be gracefullyupgraded as well.If the user tries to do something in an app andthey haven’t authorized the correspondingpermission, the business can give the usersthe option to add that permission, using thebootstrapping sequence used to grant thetoken in the first place.

Just Enough Responsibility

App developers are not security experts.

A developer’s job is to make software thatdoes what it is supposed to do.A security expert’s job is to make suresoftware never does what it is not supposedto do.

App developers DO NOT WANT theresponsibility of holding a user’s secretinformation.Usernames and passwords,Credit card and banking information,Lifetime history of everyone you’ve emailedThese are heavy secretsand require heavy security.

The right place for these is within your ownbusiness, secured by your own experts andyour own infrastructure investments.

Decoupling partners from these challengeskeeps security consistentwith the open platform potential forlow-friction innovation.

THE OAUTHIMPERATIVE

The most popular intermediariesare connecting buyers with severalcomplementary sellers at the same time

That increases their value to the buyerbut also multiplies the difficulty andrisk of security

If one app holds secrets for many businessesthat app becomes the highest-risk part of thesystem.

As more businesses follow the platformimperative and add APIs

there is an imperative for the healthy growthof the market through the new intermediaries.

The imperative is to make it easy fordevelopers to build great appsthat can delight usersand grow businesses.

The imperative is for businessesto standardize on OAuth.

“We have our own version of OAuth”

“We invented something that’s kind of like OAuth”

The imperative is to make it easy fordevelopers to build great appsthat can delight usersand grow businesses.

The imperative is for businessesto standardize on OAuth.

No developers were harmed in the production of thispresentation.

A BRIEF HISTORYOF OAUTH

3 B.O. 89

App 90

U CANT HAS PLZ? MAH PASWORDZ! App AppDeveloper User 91

App App LimitedDeveloper User 92

PLZ? NO MOAR 4 U! App APIDeveloper Team 96

App App App World of API Internal App APIUser Store Developer APIs Team Systems 97

Big Company Big Big BigCustomer Partner Company App App API User Developer Team 98

4 A.O. 99

Big Company API Team Big BigCustomer Partner App App User Developer 100

ba 101

bsecurity a capability 102

Questions? 103

THANK YOUQuestions and ideas to:@sramji@landlessnessgroups.google.com/group/api-craftyoutube.com/apigee

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