APIs for biz dev 2.0 - Which business model to win in the API Economy?
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Transcript of 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
[email protected] - @guillaumebalas
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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)
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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
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“Software is eating the World”
Marc Andreessen, WSJ, 2011 8
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“APIs are the building
blocks of the Digital
economy” Laura Merling, VP Ecosystems and Solutions at AT&T, PWC 2011
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“APIs are eating
Software” Steven Willmott, CEO at 3scale, June 2013
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CONTROL AND UNIFY THE CORE INTERFACES TO YOUR BUSINESS
The need to
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“[APIs] will be essential for competitive survival”
Dion Hinchcliffe, Zdnet, November 2008 12
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Your organization’s core asset is what is valuable.
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The API is “just” the channel into this.
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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
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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 Data Mission
✓ 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
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Organization’s core asset MVC analysis framework
Model
Controller View
= Data/Content
Presentation = = Logic
View
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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
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Degree of openness The openness cycle
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Source: John Musser, ProgrammableWeb.com
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Revenue model Your imagination is your limit
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Partners
Affiliates
Mobile Users
Internal Projects
Developers
Customers Your content &
services
Your API
Security? Monitoring?
Access Control?
UX/UI?
Documentation ?
Scalability?
Flexibility? Reach?
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Delivery A Dev Ops & Business decision
Support?
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Partners
Affiliates
Mobile Users
Internal Projects
Developers
Customers Your content &
services
Your API
API B
usin
ess E
ngin
e
Access Control & Security
Analytics & Reporting
Developer & Partner Portal
Billing & Payments
API Management Solution
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Delivery A Dev Ops & Business decision
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API TYPOLOGY Business Opportunities
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e.g
The API is the product 1
The API projects the product 2
The API powers and feeds the product 4
The API promotes the product 3
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Functional roles 4 Types of APIs
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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
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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
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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/traffic Widget
The API Promotes the product Secondary function and indirect revenue impact
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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
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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
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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
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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 ! [email protected]
@guillaumebalas, @3scale
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Out-of-the-Box API Management solution
http://www.3scale.net
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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
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