API Management in Digital Transformation

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© 2013 Persistent Systems Ltd

API Management in Digital Transformation Aditya Thatte Architect Cloud & Digital Transformation Practice

© 2013 Persistent Systems Ltd 2

Topics of Discussion• Why APIs & API Evolution• API Initiatives / Programs• API Management (What & Why)• Components of API Management Platforms• API Management Myths • Deployment Models• API Management Evaluation Criteria• Case Study


Amazon’s Fiery Secret Sauce…1. All teams will henceforth expose their data and

functionality through service interfaces.

2. Teams must communicate with each other through these interfaces.

3. There will be no other form of IPC allowed: no direct linking, no direct reads of another team’s data store, no shared-memory model, no back-doors whatsoever. The only communication allowed is via service interface calls over the network.

4. It doesn’t matter what technology they use. HTTP, CORBA, Pub/sub, custom protocols — doesn’t matter.

5. All service interfaces, without exception, must be designed from the ground up to be externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions.

6. Anyone who doesn’t do this will be fired.

7. Thank you; have a nice day!


Why APIs?

DisruptEngage

Externalize

Growth Optimize

• Service visibility• Leverage internal systems & data• Partner adoption• Open new channels

• Drive consumption• Fuel App economy

• Accelerate innovation• New biz. Models• New revenue streams• Mashups• Customer Delight

• Target ubiquity• Max reach• Footprint• Drive revenue

• Internal processes• Faster GTM • Time saver


Evolution of APIs & Business Impact

• Revenue Generated • Salesforce, 50% revenue via APIs• Expedia, 90% revenue via APIs• eBay, 60% revenue via APIs

• API Traffic explosion• Twitter gets > 15B API calls / day• Google gets > 10B API calls / day• Facebook gets > 7B API calls / day

APIs

Device and data explosion fuels the AE


Types of API Programs / Initiatives

Facilitates Integration & optimization of Internal services / processes

• Optimizing business processes• Atomic SOA based services• Reuse web services

For: Internal users, employees

• Streamlined operations• Service reuse (no reinvention)• Increased flexibility

Examples:• HR Payroll service• Travel Management service

Internal APIs Partner APIs Open APIs Product APIs

Product as an API

• B2B, B2C• Mindshare• Drive innovation

For: Developers, partners

• Grow product footprint• Foster app economy

Examples:• Amazon Web Services• Salesforce.com

Facilitates Integration with partnerorganizations

• B2B partner processes• Composite SOA based services• On-board new partners quickly

For: Internal users, suppliers, channel partners

• Upsell services • Lowers cost• Grow partner ecosystem

Examples:• Product Shipment API (e.g.

Deliv)• Payment API, Deals API

(Groupon)

Public APIs, Self-service

• B2B, B2C• Expand reach• Drive innovation

For: Developers, disruptors

• Grow developer ecosystem

• Open new channels & revenue streams

Examples:• Google Maps• BestBuy • Facebook, Twitter


API Management

Data LayerBusiness LogicAPI EndpointsApplications

Analytics

Quotas Product Management

Portals

Security

Transformation

Caching

Lifecycle Management

Develop • API Manageability (100’s of APIs)• E.g. Amazon Web Services

• Faster Time to Market • Product / Service / API Analytics • Monetizing services• API Versioning • Scalability


Key Components of API Management Platforms

API Portal

API Gateway

Data Layer

Security Performance Transformation

Documentation Onboarding Packaging Analytics

Lifecycle Managemen

t

Data Backend as a Service (DBaaS)

Caching

Monetization


API Management Scenario

API Management (API Proxy)

API Strategy for an e-commerce company:- B2B & B2C API Program (~100,000

users)- 20 Public & 100 Internal APIs- Automatic Key Generation- 500 API calls / day per user- XML, JSON support- Create app ecosystem around product

& inventory data

Security

Caching Analytics

Transform

Quotas

Onboarding

- Register (proxy) the backend API- Enable OAuth / SAML / API key- Automatic key registration- Define Quotas (500 per day)- XML to JSON transformation- Cache tokens, product details

Data LayerBusiness LogicAPI EndpointsApplications


A Microservices approach


Forrester Wave (Oct 2014) & Gartner Quadrant (Apr 2015)


Other Vendors…Commercial Open Source

Oracle API Grove

Azure API Mgmt. ApiAxle

Software AG Tyk

WaveMaker API Umbrella

SAP StrongLoop

Mashape RESTFiddle

Repose


Selection / Evaluation Criteria Strategic Technical Non- Technical

Audience- B2B- B2E- B2C

Metrics & Goals- UX- No. of

downloads- API calls / day- Revenue / callGTM Strategy- Business Models- Standalone app- Integration

Support Services- Community - Forums

Global Presence

Technical & Domain Expertise- Vertical consulting- API Strategy- Custom Engineering- Engineering

services

Security- OAuth, SAML

Monetize- Rate Plans- Business Models

Analytics- API KPIs- SLAs, Monitoring- Revenue, Traffic

PatternsTransformation- Caching, Mediation

Compliance- FIPS, PCI, HIPAA

Budget


API Management Deployment Models

Cloud On-Premise• Typical PAYG model• Multi-tenant• Economies of scale• Focus on the core business, not

the infrastructure• Resiliency (HA, FT, DR)• Faster Go To Market (GTM) • Compliance• Managed service

• All API management services & data would run in the cloud (security)

• Latency

• Management & control• Data compliance• Reduced Latency• Varied levels of security

• Increased CAPEX & OPEX


API Management Myths • API Management is different from SOA• API Management is SOA Governance

• API Management is an extension of SOA (from inside to the outside)

• SOAP is dead• SOAP is traditional YES, but by no means dead. SOAP projects are converted to

REST projects

• APIs are only REST based• Most favored for building next generation apps

• APIs need NO management• Oh boy, APIs do need to be managed

• API Management == Digital Transformation• APIs fuel the mobile, social and data economy, thus driving the digital force


Case Study • Enterprise in the Media Industry

• API Program: Public + Partner + Internal

• Goals:• Offer USAToday content on any device• Grow strategic partnerships• Facilitate easy partner onboarding• Mashup & remix data like never before

• Approach: • API Management Platform + API Strategy services

• Results:• 700+ partners onboarded• 200+ applications developed around the APIs


Key Takeaways• APIs have exploded, and sit at the heart of the application economy

(Great time to be a developer and an agile business)

• APIs when grow in number, need to be managed (APIs are not as trivial as we think. Get it right the first time!!)

• API management is one of the key stepping stones towards a Digital Transformation Strategy


ReferencesArticle Link

Strategic Value of APIs https://hbr.org/2015/01/the-strategic-value-of-apis

The Success to Amazon’s Internal APIs

http://apievangelist.com/2012/01/12/the-secret-to-amazons-success-internal-apis/

The Forrester Wave: API Management Solutions

https://www.forrester.com/The+Forrester+Wave+API+Management+Solutions+Q3+2014/fulltext/-/E-RES119266

Gartner Magic Quadrant for Application Services

http://www.gartner.com/technology/reprints.do?id=1-2DE91TX&ct=150410&st=sg&aliId=14066789

Building blocks of a successful API strategy

https://gigaom.com/2011/03/19/the-building-blocks-for-a-successful-api-strategy/

Why APIs are not SOA++?

https://blog.apigee.com/detail/qa_why_apis_are_not_soa


Q&A

API Management in Digital Transformation

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