How to segment developers for your API strategy

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Sam Ramji and Brian Mulloy

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  • Hi - great deck. What are the sources for slides 30-33 please? I want to see what's changed since. Thanks, Ben
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  • Creative Commons Attribution-Share Alike 3.0 United States License
  • Creative Commons Attribution-Share Alike 3.0 United States License
  • SCOTT: Frequent question: how big are these segmentsEvans DataO’Reilly heat maps what languages are popularWeb research
  • Aim for a specific target segment
  • No clear winner over time. HTML5 not included on this chart.
  • Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  • Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  •  (Analogous to &quot;freemium&quot; - give the user more value than they are paying for at every level of the pricing curve.)
  •  (Analogous to &quot;freemium&quot; - give the user more value than they are paying for at every level of the pricing curve.)
  •  (Analogous to &quot;freemium&quot; - give the user more value than they are paying for at every level of the pricing curve.)
  • Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  • Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  • How to segment developers for your API strategy

    1. 1. How to Segment Developers foryour API Strategy8.11.11 @ 11:05 PSTVOIP or Dial-in (see chat)groups.google.com/group/api-craftSam Ramji @sramjiBrian Mulloy @landlessness
    2. 2. A moment of silence
    3. 3. He cared about the human experience.
    4. 4. Okay.
    5. 5. On with the rest of our lives.
    6. 6. How to Segment Developers foryour API Strategy8.11.11 @ 11:05 PSTVOIP or Dial-in (see chat)Sam Ramji @sramjiBrian Mulloy @landlessness
    7. 7. Your hosts
    8. 8. @landlessness @sramji
    9. 9. API Workshop Webinar Series(videos & slides at http://blog.apigee.com/taglist/webinar)Mapping out your API StrategyPragmatic REST: API Design Fu10 Patterns in Successful API ProgramsWhat to Measure: API AnalyticsIs your API Naked? API Tech & OperationsDoes your API need PCI? (Compliance)Developers Hate Marketing: Driving API AdoptionOAuth: The Big Picture“Boss, we need an API”Your API is not a website!How to Segment Developers for your API Strategy
    10. 10. Topics why segmentation? how many developers are there? how can you classify them? how can you reach them? examples
    11. 11. why segmentation? Why do you care about developers?
    12. 12. why segmentation? Because they are your new channel
    13. 13. 20th Century: Packaged GoodsProducer Retail Store Consumer 21st Century: Internet ServicesProvider Developer App Consumer
    14. 14. why segmentation? Would you have sold to Nordstrom the same way you sold to Wal-Mart?
    15. 15. why segmentation? Of course not. They’re different.
    16. 16. why segmentation? So are developers.
    17. 17. why segmentation? “We’re targeting everybody”
    18. 18. why segmentation? You don’t have unlimited resources.
    19. 19. why segmentation?
    20. 20. how many developers are there?
    21. 21. how many developers are there? First, how do we define a developer?
    22. 22. de·vel·op·er noun (də-ve-lə-pər): one that develops: as a: a chemical used to developexposed photographic materials b: a person who developsreal estate c: a person or company that develops computersoftwareExamples of DEVELOPER<the developer of software that is used the world over>First Known Use of DEVELOPER1796Related to DEVELOPERSynonyms: contriver, designer, inventor, deviser,formulator, innovator, introducer, originator
    23. 23. how many developers are there? Definitions I’ve heard: Enterprise software company Games company Device manufacturer Independent contractor News/media company Advertising agency Hobbyist Individual coder Startup software company Alpha geek
    24. 24. how many developers are there? Let’s start by calling an individual human a coder.
    25. 25. how many developers are there? A coder is located in a larger organizational context. Each exhibits similar behavior and technology adoption patterns.
    26. 26. how many developers are there? The term "long-tail" is inappropriately applied as a single group. What businesses should be thinking about is whether theyre working with known companies or unknown coders
    27. 27. how many developers are there? In many cases building for the unknown coder will help you with your business efforts with known companies since unknown coders often work there
    28. 28. how many developers are there? Facebook Twitter Mobile Ruby Flash Python .NET VB ASP.NET J2EE JSP Javascript PHP 0 10 20 30 40 Developers in 100,000s
    29. 29. how many developers are there?
    30. 30. how many developers are there?
    31. 31. how many developers are there?
    32. 32. how can you classify them? Horizontal Vertical Tribal Modal
    33. 33. how can you classify them?
    34. 34. how can you classify them? Horizontally LARGE ECOSYSTEM PLAYERS LARGE ENTERPRISES ISV SYSTEM INTEGRATORS SMB | SMALL ENTERPRISE SAAS SOFTWARE STARTUPS HOBBYIST |OPPORTUNIST
    35. 35. Vertically SOCIAL MEDIA MOBILE RETAIL DIGITAL MEDIA PUBLISHING how can you classify them? FINANCIAL SERVICES HOSPITALITY LOGISTICS AIRLINESTELECOMMUNICATIONS
    36. 36. how can you classify them? Modally Public Open Closed Private
    37. 37. how can you classify them? Tribally C#.net jQuery CoffeeScript SproutCore dojo Ruby JavaScriptHeroku Rails HTML5 backbone.js Sencha Node.js iOS Android AWS PHP Java Scala
    38. 38. how can you reach them?
    39. 39. how can you reach them? No one size fits all, but… Open is smart because it accelerates innovation. Public should make it easy to "taste" the value creating demand from coders to jump through hoops in order to use the super-tasty Private functionality.
    40. 40. how can you reach them? Incentives that match the vertical and horizontal coordinates you’re targeting
    41. 41. how can you reach them? Horizontally LARGE ECOSYSTEM PLAYERS PAY THEM MEDIUM & LARGE ENTERPRISE SHOW THEM OPPORTUNITY ISV BUSINESS DEVELOPMENT SYSTEM INTEGRATORS SHOW CUSTOMER DEMAND SMB | SMALL ENTERPRISE MICROSOFT ECOSYSTEM SAAS EFFICIENCY SOFTWARE STARTUPS FREE AND COOL HOBBYIST |OPPORTUNIST FREE
    42. 42. how can you reach them? Vertically TELECOMMUNICATIONS FINANCIAL SERVICES DIGITAL MEDIA SOCIAL MEDIA HOSPITALITY PUBLISHING LOGISTICS AIRLINES MOBILE RETAIL Be at meetups and conferences that coders in the vertical already go to. Have a relevant offer.
    43. 43. how can you reach them? Modally Public PUBLISH YOUR API ESTABLISH A CONTEST ADVERTISE ON CODER SITES Open Closed EVANGELIZE WITHIN YOUR ADVERTISE YOUR PARTNERS’ DEVELOPMENT TEAMS BUSINESS MODEL Private
    44. 44. how can you reach them? Tribally C# jQuery CoffeeScript SproutCoreFormal FORUMS INDUSTRY EVENTS dojo EXISTING COMMUNITIES Ruby JavaScript HTML backbone.js Heroku Rails 5Informal MEETUPS, HACKATHONS Sencha TWITTER Node.js iOS BEER AND COFFEE INSIDE YOUR COMPANY? STACKOVERFLOW Android HACKERNEWS AWS PHP Java Scala Offline Online
    45. 45. Example: Netflix The Netflix (Medium Enterprise horizontal, Digital Media vertical) API (Public) gives access to any coder who wants to improve the Netflix movie browsing & recommendation experience (Open) to improve utilization and reduce churn… but Netflix restricts access to its Streaming Video API (Private) to known partners in order to enforce licensing and consumer experience quality standards. Once a partner has signed, any coder who works for that partner (Open) can access the Private API to build new cool prototypes and innovate on the experience. To gain business advantage, Netflix created a contest on the Open API, and to sustain it they enabled partners’ engineering teams to build and evangelize new applications of the API.
    46. 46. Example: Twitter The Twitter (Large Ecosystems horizontal, Social vertical) API (Public) gives access to any coder who wants to create apps that connect to the Twitter social network (Open) to increase engagement… but Twitter provides increased access (Private) to known partners in order to drive revenue. Once a partner has signed, any coder who works for that partner (Open) can access the Public API with increased access (higher rate limits) to build apps that have monetization potential. To gain adoption, Twitter encouraged a huge ecosystem of 3rd party apps , and to sustain it they enabled partners’ engineering teams increased levels of access to meet their higher levels of demand.
    47. 47. final thought
    48. 48. THANK YOUQuestions and ideas to:@sramji@landlessnessgroups.google.com/group/api-craft

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