APIS: Running your Business Inside out Steven Willmott 3scale Inc. @njyx, @3scale
Aug 23, 2014
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 - [email protected]
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/