Professional Documents
Culture Documents
1
November 2013
APIs
2013
2025
Whats an API?
Simply, APIs are ways of allowing different digital services to connect and share information with each other. They are ways to connect pieces of software togethereither a new user experience to backend services, or backend services together to a workow. Its closely related to, and is a bit of an outgrowth of, the IT strategy of service oriented architectures, which tried to reduce duplication and increase ROI by combining common enterprise functionality into single services. In contrast, web APIs are generally available to the broad public or to registered developers or partners. Web APIs also have very different technical requirementsin particular, security and scale are much more a concern for public APIs. In the lingo, you call an API, and the API does something and, usually, returns data. The following graphic visualizes that action behind the scenes of a movie ticket purchasing app. The person who provides the API function is said to publish an API, and is an API provider. You can nd descriptions of available APIs in registries like ProgrammableWeb.com or Khronos. The rapid pace of innovation in startups, funded by ready capital, is being lead by designer and developers, and the lingua franca of developers is APIs.
Payment API
can use Facebook APIs to nd their friends that have liked your content. You can use an Akamai API call to see where your site visitor is, and then Weather.com API to nd out if its hot where they are, and then adjust your website content or product recommendations accordingly. If you have a mobile app that uses data or content from your existing CMS systems, youre probably using APIs already to call back to your home systems for information. More interestingly, people are storing data from connected objects like Fitbits or Nike Fuelbandsin the cloud, where the data can be made widely available. With the right permission from your user, you can connect to that data, and change how your user experiences your brand. Also, with the right strategy, data, and technical planning, you might be able to provide valuable data and features through APIs yourself. You can make your unique functions available to partners, startups and even other groups in your own company. In addition to making your offering more accessible across emerging devices and platforms, you might be able to consider APIs as yet another channel for commerce and brand growth. APIs are the building blocks for a very interesting, exible future. Lets see how you can useand providethem.
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2005
2006
2007
2008
2009
8
2010
2011
2012
2013
http://blog.programmableweb.com/2013/04/30/9000-apis-mobile-gets-serious/
Customers are going to have a wide choice, and were not sitting back and watching that landscape hence, our API platform. Skip Potter, Senior DIrector of CapitalOne Labs
At the end of the day, there are two ways you can embrace APIs as a consumer, and as a provider. Its worth cataloging what features and functions youre providing now, and seeing if there are internal or external services you can leverage into an API instead of writing new systems yourself. Lets look at the reasons for leveraging external APIs more heavily for your experience architecture.
Consuming APIs
First, youre probably using a bunch of external APIs already on your websitelike Facebook Connect and Graph, posting things to Instagram or Twitter, or using a prefab widget for social sharing. But theres a world of emerging API providers that you might not be aware of. What do you gain by keeping on top of this market, and using external providers?
10
FOCUS
First, by leveraging external API providers and cloud based platforms, you gain focus. You no longer have to worry as much about developing custom features or spending time in complex system integration projects. You can spend more time and energy focused on developing rich, amazing experiences, and less building custom backends.
CONNECTION
Your customers are already using a growing set of mobile apps and websites to handle bits of their lives. By leveraging external platform APIs, you can connect to customers where they are, and use the data they are already sharing with their friends to drive better experiences and reach their network as well.
INNOVATION
You probably cant invest in building a high-volume SMS platform to provide extra security. Luckily, Twilio has already done it for you. You may have some crazy engagement idea that requires new technologies for your corporation most likely, theres a startup out there with an API. The more you can leverage external APIs, the broader your canvas becomes for providing amazing experiences and services to your customer.
AGILITY
Along with innovation comes marketing agility. You can nd new capabilities and build partnerships with critical components and features all faster than you could recreate that wheel that theyve already created, marketed, and are in dire competition to provide the best of.
NEW CONCERNS
Its not all roses, to be sure. Any startup you build an experience around might, themselves, pivot to something not so useful to you. They may run out of funding. They might get purchased or get a signicant investment by a competitor, or someone completely orthogonal to your business. Sometimes, startup APIs dont exactly work (or scale) as advertised. Or, like in the case of Twitter, the APIs and protocols change when they want, rather than when you need. The key is to pick and choose which APIs to keep internal, and which to push off. The good news is that the range of APIs to keep internal shrinks to the ones that make you awesome and unique, and the commodity ones can get pushed outside to someone else who specializes in deliver that service at high quality.
11
Providing APIs
More challenging, but potentially more powerful and protable, is becoming a provider of APIs. Youll need to pick and choose where you think you can add value to the world of APIs and developers. If you just have a simple website with a contact us form, theres probably not a whole lot of value in opening your infrastructure and data to the outside. But if youre providing a value-creating service to your usersrecipes, calorie tracking, nancial services and transactions, loan comparisons adding an API might prove extraordinarily valuable. You dont have to provide unlimited data and features for free. You can structure your API offering to be rate-limited, to charge per call, or as an intro device (use a lot, get a call from your sales team). A good strategy would consider all your options against the cost of providing the service. Here are a few reasons how this can pay off for you.
INNOVATION
Third-party developers could help raise the value of your data by combining it with other sources of data (e.g. a mashup combining a map API and an ATM locations API). You can unlock the creativity of the crowds, who may come up with something unexpected and delightful. Its a reasonably low-cost way to do experiments and ofoad risk to the development communities. If something amazing comes up. Startup Indeed initially offered online publishers the ability to pay for a real time search API of online jobs. Not many took them up on that offer. But when they injected their sponsored jobs into the API and offered to share the revenue with publishers, the demand was huge.
This is all about the customers. We allow developers to integrate Netix service into apps with full control over the user experience. So we are able to outsource innovation ... and thats a great thing. Michael Hart, Director of Engineering, Netix
12
BROADER REACH
Online businesses no longer measure their success on the number of users visiting a primary web domain or launching a mobile application. Internet startups now incorporate analytics quantifying the usage of their APIs by third-party applications. By building their services with an API at the core, online ventures are able to expand their reach to larger demographics through third-party services. If your business provides an API, its usage numbers could be as important as your primary web domain trafc data.
SOCIAL GOOD
Both JPMorgan Chase and Intel host and sponsor hackathons, where developers work over a weekend on some set of problems using APIs and other technologies. Theyre a great source of social capital, as well as a proving ground for digital talent.
A NEW FUNNEL
Depending on what kind of APIs you provide, and how you structure the business case around your APIs, you might even nd new customers. CNET provides a metered API if you start to exceed limits, youll get a call from the sales team. However, charging for API usage (like Alexa) might limit the reach and usage. A careful strategy that balances costs, API usage models, and potential success is vital. Your business is different than a startupsplan accordingly.
We tried charging for our API without much success. Then we paid developers to use it and it took off. Paul Forster, CEO, Indeed
NEW CONCERNS
Here, too, there are new concerns to address. Youll need to actively reach out, take feedback from, and work with developers. You may need to plan new IT infrastructure to handle external access to services. And, of course, youll have to think and plan what services to offer, and how to budget for them.
13
Web App
Smartphone
Television
Game Console
Connected Objects
With an adequate API strategy, you are ensuring your services will be available in any online connected context, present or future.
14
Developers are now sitting between you and consumers. They are like the retail store in the value chain. Sam Ramji, Software Strategist at Apigee
APIs are how we are going to build software in the future. We are just going to glue it together. John Musser, founder of Programmable Web
15
Lets look at some notable examples of API providers; some of them are well known and provide their own APIs, while some work behind the scenes as components of well-known mobile apps or solutions.
LEGO Australia teamed up with Google to build LEGO structures using Google Maps API.
16
Trulia uses Google Maps API for Business to let its visitors visualize data of the neighborhood around each of their listings (safety, commute, school quality, nightlife).
17
Facebook API
Previously known as Facebook Connect and part of the Facebook API, Facebook Login has simplied the authentication process for thousands of online services. It lets people safely sign-up and log-in using their Facebook credentials on third-party platforms. Those platforms can then optimize the experience based on the user personal data and their social circles. Twitter, Instagram, LinkedIn, Google, and Weibo among others are now providing similar authentication systems. One third party application using the Facebook API is AirBnB.
https://developers.facebook.com/docs/facebook-login/
18
AirBnb let users quickly and easily register into their website using Facebook Login.
Once connected, AirBnb leverages the Facebook user data (via the separate Facebook Graph API) to personalize the search results based on the users social graph.
19
Bake your business model into your API. John Musser, Founder, Programmable Web
20
PAY AS YOU GO
Amazon Web Services
TIERED
Mailchimp, Campaign Monitor
Developers pay weekly, monthly or yearly with usually a limit in the number of operations they can execute based on the tier level they belong to. Developers can use the API for free unless they are willing to go beyond a specic number of requests and transations per day/month. Developers purchase credits on demand or over a dened period which they use to call certain API services.
FREEMIUM
Google Maps
UNIT-BASED
Sprint, Yahoo!, BOSS, Wordstream
TRANSACTION FEE
PayPal, Braintree, Stripe
There is also the case of developers getting paid via revenue sharing or afliation.
21
22
The newspaper industry has been in crisis for the last 10 years. Rare are the newspapers that have been eager to innovate. The New York Times jumped early in 2008 onto the APIs bandwagon. The Times gives access to programmers and developers to 2.8 million news articles going back to 1981, but also to movie reviews, best sellers, events, real estate, comments and other user generated content. This is a newspaper that understands that content is just data that can be remixed and presented in many different ways.
http://gigaom.com/2009/02/08/the-nyt-api-newspaper-as-platform/
General Motors
General Motors has made the move towards APIs by providing developers with an development framework for vehicles. You can either build in-car apps or apps that remotely interact with the vehicles (unlocking doors, activating alarms).
https://developer.gm.com/apis
23
A new wave of API-only businesses are stealing market share from some of the Webs biggest players
The Internet era has brought up new services that have shaken entire industries. With the API era will come new services that will put even established digital platforms in uncomfortable positions. These services were born as APIs and dont have front-end tools of their own. They are building blocks to construct your platform with. They understand the new digital business models that are open and rely on innovation. Twilio, SendGrid and Stripe are respectively API-only equivalents of Skype, GMail and PayPal. They provide telephony, email and payments platforms to third-party developers wishing to integrate that type of services into their own applications.
24
Contentful is putting the CMS in the cloud via an API for content publishers to deal with fragmentation.
http://contentful.com
As API-only platforms, these businesses stand a better chance of ghting the upcoming fragmentation resulting from the multiplication of connected devices. By tapping into the huge network of developer talent that relies on open APIs, they are quickly making existing products in their respective industries look out of fashion.
25
The question is no longer whether an API should be builtit now revolves about how the API should be built (and how a company can retain power over it). Peter Weller, IBM API Management
WHAT DOES THIS MEAN FOR OUR CLIENTS? Web APIs require a new infrastructure,in most businesses: API management platforms. These platforms need to support developer portals, key management and approval, metering and billing. And of course, API security and access control must be enterprise level. Most companies dont support these requirements in their existing architecture.
26
HOW DO YOU BUILD THIS? API management is a new business in which a lot of pure players have emerged.
These new companies tend to provide native API solutions, which would perfectly suit companies that have not done previous investments in complex architectures. For a business whose previous investments in architecture are signicant, a solution providing a bridge between legacy communication systems and an API interface would be more than adequate. (IBM, Layer 7, Vordel, Apigee are some players in this space). Building an API is not easy, and building a business with an API at the core is difcult. But building and managing an API on top of your existing infrastructure for internal and external consumption is even tougher. API-only businesses devote entire teams to working on each part of their service, which is obviously not an easy task for a traditional IT department to take on. That is what API management software comes in, streamlining all of the API management, getting approval to unlock data for external consumption or providing the needed understanding of API performance requirements.
27
HOW DO YOU DRIVE USAGE? Twilio and Box are examples of companies that incentivized developers through contests with free trials or compensation to build applications on top of their APIs. Hackathons are another popular method for having developers building on top of an API. They are usually organized on weekends with all participants gathering into a venue dedicated to the event. A large potential payout is usually essential to draw quality talent. Out of the 160 Hackathons organized in the entire 2011 and the rst quarter of 2012, the top prize was US$100,000. It is very important to always keep in mind that because developers build applications, they are the rst and most important users of your API. And unless you are in a strict contractual agreement with them, do not expect them to use your API only when developing applications. Developers will eventually merge data and functionalities with what your competition is providing if that makes sense on a user experience point of view.
28
APIs WILL CHANGE EVERYTHING APIs challenge traditional business models. They require businesses to reweigh the value of adoption vs revenue, as well as direct vs indirect interactions. Established corporate concepts of IT security, metrics and data will all need to evolve.
THIS IS A DIGITAL REVOLUTION APIs will probably lead to a revolution bigger than the Web. It has already started with mobile apps reaching billions of downloads and most of them using APIs. This will continue as cars become connected and explode as most other objects in your life become connected to the Internet through APIs. The opportunity to make sense of all these services and to stitch them together for your users into valuable experiences cant be ignored.
29
WRITTEN BY LAURENT THEVENET EDITED BY TODD DRAKE JACK LEONARD DESIGNED BY KATHLEEN HANNA
30