APIs for biz dev 2.0 - Which business model to win in the API Economy?

APIs for Biz Dev 2.0 Which Business Model to Win in the API Economy? Guillaume Balas http://www.3scalet.net - @3scale guillaume@3scale.net - @guillaumebalas _______________

The Plug & Play Cloud API Management Platform & Infrastructure 2

The Plug & Play Cloud API Management Platform & Infrastructure THE API ECONOMY Welcome to 3

The Plug & Play Cloud API Management Platform & Infrastructure APIs are everywhere, reshaping the web IoT: 8.7 Billion devices (Rob Soderbery, Cisco Executive, Forbes July 2013) Internet: 633 Million websites (Netcraft, December 2012 survey) Mobile: 1.3 Trillion in-app events (Prashant Fuloria, Chief Product Officer for Flurry, MobileBeat 2013) 4

The Plug & Play Cloud API Management Platform & Infrastructure … and reshaping all Businesses 5

The Plug & Play Cloud API Management Platform & Infrastructure 10,000 APIs: just the tip of the Iceberg At 3scale we actually believes that there is 5x to 10x this number out there. With an approximated 100% annual growth, that would mean around 1 Million APIs by 2017 6

The Plug & Play Cloud API Management Platform & Infrastructure HOW DID WE GET THERE? But… 7

The Plug & Play Cloud API Management Platform & Infrastructure “Software is eating the World” Marc Andreessen, WSJ, 2011 8

The Plug & Play Cloud API Management Platform & Infrastructure “APIs are the building blocks of the Digital economy” Laura Merling, VP Ecosystems and Solutions at AT&T, PWC 2011 9

The Plug & Play Cloud API Management Platform & Infrastructure “APIs are eating Software”Steven Willmott, CEO at 3scale, June 2013 10

The Plug & Play Cloud API Management Platform & Infrastructure CONTROL AND UNIFY THE CORE INTERFACES TO YOUR BUSINESS The need to 11

The Plug & Play Cloud API Management Platform & Infrastructure “[APIs] will be essential for competitive survival” Dion Hinchcliffe, Zdnet, November 2008 12

The Plug & Play Cloud API Management Platform & Infrastructure AN API DRIVEN BUSINESS Towards 13

The Plug & Play Cloud API Management Platform & Infrastructure Your organization’s core asset is what is valuable. 14 The API is “just” the channel into this.

The Plug & Play Cloud API Management Platform & Infrastructure “What API for my business model?” 15

The Plug & Play Cloud API Management Platform & Infrastructure 16 APIs can drive success in 5 different ways: Mobile Enablement Customer & Partner ecosystem growth Digital distribution channels Powering new business models Internal efficiency & innovation

The Plug & Play Cloud API Management Platform & Infrastructure KEY CONSIDERATIONS API Business 101 17

The Plug & Play Cloud API Management Platform & Infrastructure APIs enable cloud scale MVC, ①  Identify core asset ②  Choose complementary asset which will deliver most value ③  Define strategy to capture the value most effectively allowing you to focus on your core asset. Examples of Business Strategy Presentation Logic DataMission ✓ 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 18 Organization’s core asset MVC analysis framework Model Controller View = Data/Content Presentation = = Logic View

The Plug & Play Cloud API Management Platform & Infrastructure CORE ASSETS Raw Service Mesure, Collect, Analyze Internal Re-Use Inter Depts, Dashboards, Processes Customer Re-Use Apps, Integration Partners & Distribution New Revenue, New Reach, Ecosystem Open to Anybody 1000 Flowers, Market Extension 19 Degree of openness The openness cycle

The Plug & Play Cloud API Management Platform & Infrastructure Source: John Musser, ProgrammableWeb.com 20 Revenue model Your imagination is your limit

The Plug & Play Cloud API Management Platform & Infrastructure Partners Affiliates Mobile Users Internal Projects Developers Customers Your content & services Your API Security? Monitoring? Access Control? UX/UI? Documentation ? Scalability? Flexibility? Reach? 21 Delivery A Dev Ops & Business decision Support?

The Plug & Play Cloud API Management Platform & Infrastructure Partners Affiliates Mobile Users Internal Projects Developers Customers Your content & services Your API APIBusinessEngine Access Control & Security Analytics & Reporting Developer & Partner Portal Billing & Payments API Management Solution 22 Delivery A Dev Ops & Business decision

The Plug & Play Cloud API Management Platform & Infrastructure API TYPOLOGY Business Opportunities 23

The Plug & Play Cloud API Management Platform & Infrastructure e.g The API is the product1 The API projects the product2 The API powers and feeds the product4 The API promotes the product3 24 Functional roles 4 Types of APIs

The Plug & Play Cloud API Management Platform & Infrastructure Others Brings easy access to complex Telecom technologies e.g Ecosystem Strategy Direct customer usage Encourage resellers Build tech knowledge Encourage 3rd party tools Enable new services $ If Core service sees usage growth. API API is Core Value The API is the product Core value is tied up in the API 25

The Plug & Play Cloud API Management Platform & Infrastructure 1,700+ Apps on Force.com 50k+ Developers e.g Ecosystem Strategy Cultivate partner ecosystem Innovation opportunities Build switching costs Enables new services Encourage 3rd party tools $ If Increasing customer spend (primary) and number of customers (secondary) for core product The API Projects the product Extends availability of functionalities to new places Others Mobile apps 3rd Parties integration Added utility Added to a product API 26

The Plug & Play Cloud API Management Platform & Infrastructure Ecosystem Strategy Distribute “Teaser” information Brand Diffusion Promote to niches Improve partners Impact Cultivate partners 10’s 1000’s of affiliates Widgets to Whole sites powered e.g Others $ If Increasing customer number (primary) and spend (secondary) on core product API Secondary (non core) service Designed to drive leads/ trafficWidget The API Promotes the product Secondary function and indirect revenue impact 27

The Plug & Play Cloud API Management Platform & Infrastructure 13 Billion calls/day on API >75% of traffic by API 250,000 Apps (probably less now…) e.g Others Ecosystem Strategy Leverage social networks Brand Diffusion Facilitate Access Improve partners & businesses Impact Virtuous circle data in/out $ If when UGC (user generated content) brings appreciable value to the central product API Content, User information, Ratings, comments Etc. into the service The API Powers & Feeds the product Content acquisition via the API 28

The Plug & Play Cloud API Management Platform & Infrastructure Is the product •  Direct revenue •  Utility / Pay per transaction •  Tiered pricing bands Projects the product •  Reach more places •  Provides more utility •  Enable mobile •  Allow deeper integration Promotes the product •  Biz Dev / Lead Gen •  User acquisition •  Advertising •  Brand promotion •  Affiliate programs Powers and feeds the product •  Content acquisition •  Partner tie-in •  Internal innovation 1 2 3 4 Summarizing Each type of API has different potential business value associated with it 29

The Plug & Play Cloud API Management Platform & Infrastructure 23.60% 26.30% 20.10% 7.20% 12.50% 10.40% Business Models Diversity API is the Product Product Addi?on Product Projec?on Government Scien?ﬁc Non-‐Proﬁt 1.  It is the your organization’s core asset which is valuable 2.  The API is the channel into it 3.  What API(s) for your Business Model? 4.  DevOps & Business considerations 5.  Management buy-in and commitment needed 30 Conclusion

The Plug & Play Cloud API Management Platform & Infrastructure 3scale SPAIN Calle Napols 187, 8 08013 Barcelona Spain +34 933 092 786 3scale USA. 450 Townsend Street, San Francisco, CA 94107 USA +1 (408) 524 1503 THANK YOU !guillaume@3scale.net @guillaumebalas, @3scale 31 Out-of-the-Box API Management solution http://www.3scale.net

The Plug & Play Cloud API Management Platform & Infrastructure Resources •  http://www.3scale.net/wp-content/uploads/2012/06/What-is-an-API-1.0.pdf •  http://www.youtube.com/watch?feature=player_embedded&v=7r7QpIDEI_o •  http://www.slideshare.net/3scale/apis-the-glue-of-cloud-computing •  http://blog.programmableweb.com/2012/06/13/the-new-api-apps-partners-income/ •  http://www.youtube.com/watch?v=lFv5lH7nNX8 •  http://www.slideshare.net/3scale/more-than-the-sum-of-its-parts-the-apis-whole •  http://blog.programmableweb.com/2011/11/03/private-api/ •  http://www.slideshare.net/3scale/reaching-1-million-apis-and-what-to-do-when-we-get- there •  http://blog.apievangelist.com/2011/02/28/if-you-build-it-they-will-come/ •  http://www.slideshare.net/jmusser/j-musser-apishotnotgluecon2012 •  http://www.3scale.net/2012/11/building-great-apis-the-api-gold-standard-part-i/ •  http://www.slideshare.net/3scale/the-api-economy-api-provider-perspective-european- identity-summit-2012 •  http://www.3scale.net/2013/09/why-your-api-is-your-strategy/ •  http://tnw.co/17Fuqey 32