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Astella API Experience

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Presentation made for API Experience event at Cubo in Sao Paulo

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Astella API Experience

  1. 1. APIS FOR HEROES
  2. 2. WHAT IS AN API? faberNovel 2012 ••• 6 ••• In other words, APIs are like male and female plugs allowing software to share data and functionalities. Processing Input Output API Provider Program Consumer Program APIs are like male and female plugs allowing software to share data and functionalities Source: FaberNovel
  3. 3. THERE IS NOTHING NEW ABOUT AN API faberNovel 2012 ••• 11 ••• Historically, APIs were used by big software companies but their usage is becoming more democratic today 1985-2001 2002 2006 APIs for operating systems •  Create application for OS •  Attract developers •  Enlarge customer base •  Limited to big software companies Application Services APIs •  Build new functionalities •  Trouble-free interoperability •  Accessible to big companies Infrastructure services APIs •  Allows companies to externalize IT infrastructures •  Access to computing power •  Available to anyone Web services APIs •  Share data or services internally and externally •  More unified communication protocol •  Accessible to any company •  Easy integration 1990s Source: 3Scale, What is an API? Source: FaberNovel
  4. 4. HOW THINGS EVOLVE Source: GardeViiance
  5. 5. A HISTORICAL PERSPECTIVE
  6. 6. FIVE TECHNOLOGICAL ERASIN LAST 250 YEARS Industrial Revolution 1771 Steam and Railways 1829 Steel and Electricity 1875 Oil & Automobile 1908 Information Technology 1971 Britain Britain Continent and US US & Germany Britain US Germany US Europe & Asia Each generated an important all-pervasive low cost input: a source of energy, or a crucial material, or transportation, or communication Arkwright’s Mill opens in Cromford Test of the “Rocket” steam engine for the Liverpool- Manchester Railway The Carnegie Bessemer plan opens in Pittsburg First Model T comes out of Ford’s plan in Detroit The Intel microprocessor is announced in Santa Clara Source: Carlota Pérez – Technological Revolutions and Financial Capital
  7. 7. FIVE ECONOMIC PARADIGM SHIFTS' Each unleashed a profound transformation in ‘the way of doing things’ across the whole economy Resulting in a best-practice model made up of a set of all-pervasive technological and organizational principles, thus a new way of ‘management’ Industrial Revolution 1771 Steam and Railways 1829 Steel and Electricity 1875 Oil & Automobile 1908 Information Technology 1971 Mechanization Productivity/time keeping Fluidity of movement Economies of agglomeration Economies of scale Standard parts Vertical integration Cartels Cost accounting Mass production Standardization of products Functional specialization Segmentation Economies of scope Globalization Source: Carlota Pérez – Technological Revolutions and Financial Capital
  8. 8. Mainframe Computing 1960 Mini Computing 1970 Personal Computing 1980 Desktop Computing 1990 Mobile Computing 2000 1MM+ units 10MM+ units 100MM+ units 1B+ units 10B? units Source: Morgan Stanley, IBM, Nokia THE IT ERA IS ABOUT HALF WAY THERE Cycles with the Era last about 10 years. New companies often win big in new cycles. New cycle often create more market capitalization than prior cycles. IBM NCR Control Data Honeywell Digital Equipment Data General HP Prime Microsoft Cisco Intel Apple Oracle Dell Google AOL eBay Tencent Rakuten Apple Google Samsung
  9. 9. THE INSTALLATION PERIOD OF THE IT ERA Infrastructure Telecommunications Platforms Software & Services Aggregators Content & Applications Commerce Retail Like in previous eras, a cluster of new products, industries and infrastructure lay the groundwork for dissemination. Source: MorganStanley
  10. 10. ENABLINGTHE DIGITAL TRANSFORMATION faberNovel 2012 ••• 7 ••• An analogy: The evolution of the car industry follows the logic of APIs Yesterday Today Tailor made Custom design for each element of the car (wheels, seats, brakes, lights, roof, etc.) Restricted modularity No standardized processes Car divided into subsystems (powertrain, brakes, steering, suspension, etc.) Main elements designed separately and reused in different cars Standardized processes Communication interfaces between different engineering teams Carmaker = craftsman Carmaker = system integrator Source: 3Scale, What is an API? Source: FaberNovel
  11. 11. A PATH TO NEW OPPORTUNITIES Source: IBM
  12. 12. THREE TECTONIC SHIFTS ConsumptionProduction Product Source: Business Model Generation
  13. 13. EXAMPLES faberNovel 2012 ••• 44 ••• APIs allow companies to effectively pursue the classical triptych of business goals Business Development #1 Product Development #2 SupplyChain Management #3 Source: FaberNovel
  14. 14. WHAT ARE THE REAL POSSIBILITIES?
  15. 15. SIX WAYS AN API CAN CHANGE YOUR LIFE faberNovel 2012 ••• 47 ••• An API is more than the sum of its parts, it combines many advantages Newbusinessmodel andrevenuestreams Newdistributionchannels andextendedreach Partnershipdevelopment ExternalizedR&D andfosteredinnovation Rationalizationandcontrolover whoaccessesyourresources Organizationflexibility withinternalAPIs Source: FaberNovel
  16. 16. 1. NEW BUSINESSMODELS faberNovel 2012 ••• 49 ••• An API represents a shift in traditional business models Free User pays User gets paid Indirect Any developer who signs up can access the API and use its functionalities. This is the model used by the Facebook Like API. API providers get paid for the use of their APIs. Different revenue models exist. Variant: •  Pay as you go •  Tiered •  Freemium •  Unit-based •  Transaction fee API providers share revenue with users for leads they bring to their website. Variant: •  Revenue share •  Affiliation API providers receive indirect revenue from the use of their APIs. Salesforce for instance sell its API as a SaaS. Variant: •  Content acquisition •  SaaS •  Content syndication •  Internal use Source: John Musser, ProgrammableWeb.com Source: FaberNovel
  17. 17. 2. NEW DISTRIBUTION CHANNELS Source: AdaptivePath
  18. 18. 3. PARTNERSHIP DEVELOPMENT Source: Salesforce
  19. 19. 4. CROWDSOURCEDPRODUCT DEVELOPMENT Source: Jawbone
  20. 20. APIs revolutionize the way products and services are delivered
  21. 21. www.astellainvest.com

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