APIS for Startups - Running your Business Inside Out

APIS: Running your Business Inside out

Steven Willmott 3scale Inc. @njyx, @3scale

Thank you for the Invitation!

or…: “APIs for Startups:

3scale is…API

Management Provider

!Power 400+

APIs !

120,000 Developers writing Apps

!

API Tech Operations API Business Operations Developer Support

(Selection)

3scale.net

+ Apitools

Also have a new service for

Developers !

Track Transform Analyze

API Traffic !

http://www.apitools.com

Onward …

Agenda

Inside Out Business & APIs API Models Execution Not so obvious Gotchas

Who has APIs?(and why?)

Technical Reasons… !

Business Reasons…

Common API DebatesWhich framework to use?

REST/SOAP - What is Rest anyway?

Streaming API?

Internal / External?

Versioning?

Make it public?

Should we charge?

By API Call?

Should we put rate limits on?

Won’t it kill our Ad-Revenue?

Inside Out Business

Rethinking what you do

Truism #5471: Business is Changing Fast..

One of the ways is in how we build stuff..

Build Everything!

Build Nothing!

2000 2014

Meaning

Core Value

Reuse as Much as Possible

Wrap and Ship

But what is Core Value?

Engineering Answer

Our Beautiful Unique Code! Made by Rockstars over Many Months! (even) our awesome UI!X X X

Wrong Answer

Your Value is one or more of:

1.Your Data 2.Key Functionality 3.Your Audience/Reach

That’s all people care about

The Following Help but are secondary

1. Being Cool 2. Having a Nice UI 3. Having a Nice API

None is a reason for

people use you per se

Lipstick / Pig

I.e.

Make sure your Bacon is Good

Otherwise Packaging isn’t going to help

So..

Core Value

Stuff you really don’t

want to build!!

Open as many

channels as you can

So..

Core Value

Stuff you really don’t

want to build!!

WebMobile

Customers

Distributors

Resellers

New apps

Different Access for Different Targets. E.g.

An app for Seniors, who are Piano Teachers and need a very advanced UI -> API?

A new humorous content for an 18-25 Audience Demographic -> API?

A new advanced algorithm for predictive price plan optimization for retailers ->API?

Inside Out Means…

Providing potentially deep access to your core functionality to others at whatever level they can handle Reusing the core functionality of others where you possibly can

Don’t write code you don’t have to!

API Models

“A ‘startup’ is a company that is confused about – 1. What its product is. 2. Who its customers are. 3. How to make money.”

Dave McClure, 500Startups

“A ‘startup’ is a company that is confused about – 1. What its product is. 2. Who its customers are. 3. How to make money.”

Here are some options…

Mobile EnablementBackend for your own Mobile Apps Multi-platform and/or supporting HTML5 / SPA Focus: stable backend

• Often combined with others • Assume it is not private • Apps drive business

Customer Ecosystem

Data Integration for reporting (in / out) Increases comfort level v’s lock in Allows self customization

• Normally free or bundled • Useful for driving up-sell • Big driver for stickiness

Partner Ecosystem3rd Parties can add value that you can’t Can be smaller or larger Alternative to manual software integration

• Increase functionality • Add data • Increase reach

Content/eCommerce Distribution

Special case of partners Partners resell & amplify Focus: gaining audience / transactions

• Partners may pay • Or be paid • Drive transactions to core

API As A Business

What everyone thinks APIs are about… Access / per transaction fee Instant gratification

• Often data on demand • Or functionality on demand • API is the Business

Internal Innovation

Sorting out internal legacy Cross-department teams made more agile Focus: refactoring

• Increase agility • Reduce cost • Up developer happiness

e.g.

Other ModelsMany companies use multiple models

Models often change over time

Some apply more / less to startups

Feel free to invent new ones

Whatever happens: be

clear which your model is !

Execution

“I find your lack of faith disturbing”

Skipping the Captain Obvious Errors…

(e.g. poor docs, crappy design, …)

1. Make it valuable

2. Have a plan and a business model 

3. Make it simple, flexible and easy to adopt

4. Make it managed and measured

5. Provide great support

6. Make sure it scales

7. (Meta) !

Create more value than you capture

Providing Value

Gotchas

A Surprise in Every Egg..

1. An incomplete API

2. API code bifurcation

3. The “Developer Middleman”

4. Not choosing your poison

5. API launch coolaid

6. Premature future-proofing

7. Not caring about performance

Expected Use of Your APIExpected

Unexpected

DesiredUndesired

Yay!

Innovation

Not so Good

Oh-Oh..

Concept: Thor Mitchel / Google

As a Startup, Primary problemExpected

Unexpected

DesiredUndesired

Making this Happen

Conclusions

Covered

Inside Out Business & APIs API (Business) Models Execution Not so obvious Gotchas

ConclusionsDon’t get religious

Make sure you are delivering genuine value

Treat the API as your product

Focus on the early key passionate users

Decide if you are a platform or an application/service

Always enhance your core company value - do make it a separate business

3scale: http://www.3scale.net APItools: http://www.apitools.com

APICodex: http://apicodex.3scale.net

Questions Please!Contact:

http://www.3scale.net @njyx - steve@3scale.net

Referenceshttp://www.3scale.net/2012/12/api-economics-create-more-value-than-you-capture/

http://www.3scale.net/2012/11/building-great-apis-the-api-gold-standard-part-i/

http://www.slideshare.net/timoreilly/measuring-the-economic-impact-of-the-sharing-economy

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

Image Creditshttps://www.flickr.com/photos/queen_of_subtle/7233340968/

https://www.flickr.com/photos/ornellas/2528690209/

https://www.flickr.com/photos/wfryer/716965391/in/photolist-26mCQg-5n43FU

https://www.flickr.com/photos/laughingsquid/616921109

https://www.flickr.com/photos/