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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

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

  • 1. 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 _______________  
  • 2. The Plug & Play Cloud API Management Platform & Infrastructure 2
  • 3. The Plug & Play Cloud API Management Platform & Infrastructure THE API ECONOMY Welcome to 3
  • 4. 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
  • 5. The Plug & Play Cloud API Management Platform & Infrastructure … and reshaping all Businesses 5
  • 6. 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
  • 7. The Plug & Play Cloud API Management Platform & Infrastructure HOW DID WE GET THERE? But… 7
  • 8. The Plug & Play Cloud API Management Platform & Infrastructure “Software is eating the World” Marc Andreessen, WSJ, 2011 8
  • 9. 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
  • 10. The Plug & Play Cloud API Management Platform & Infrastructure “APIs are eating Software”Steven Willmott, CEO at 3scale, June 2013 10
  • 11. The Plug & Play Cloud API Management Platform & Infrastructure CONTROL AND UNIFY THE CORE INTERFACES TO YOUR BUSINESS The need to 11
  • 12. The Plug & Play Cloud API Management Platform & Infrastructure “[APIs] will be essential for competitive survival” Dion Hinchcliffe, Zdnet, November 2008 12
  • 13. The Plug & Play Cloud API Management Platform & Infrastructure AN API DRIVEN BUSINESS Towards 13
  • 14. 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.
  • 15. The Plug & Play Cloud API Management Platform & Infrastructure “What API for my business model?” 15
  • 16. 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  
  • 17. The Plug & Play Cloud API Management Platform & Infrastructure KEY CONSIDERATIONS API Business 101 17
  • 18. 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  
  • 19. 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
  • 20. The Plug & Play Cloud API Management Platform & Infrastructure Source: John Musser, ProgrammableWeb.com 20 Revenue model Your imagination is your limit
  • 21. 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?
  • 22. 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
  • 23. The Plug & Play Cloud API Management Platform & Infrastructure API TYPOLOGY Business Opportunities 23
  • 24. 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
  • 25. 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
  • 26. 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
  • 27. 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
  • 28. 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
  • 29. 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
  • 30. 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
  • 31. 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
  • 32. 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