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Trends inAPI Management

Matt RobertsTechnical LeadIBM API Management development

matt.roberts@uk.ibm.com

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Trends in API Management

Motivations

Models for exposure

Implementation themes

Business Goal: Why customers do APIs?

Mobile Digital / IoT New RevenueChannels

Innovation

Partnership InternalTransformation

Monetization Cloud

Developers are

King & Queen Makers in Digital Era

From a Single to Multi, now Omni channel

Connected Appliances

Partners Websites/Sensors

Internet TVs

Smartphones

Tablets

Game Consoles

Connected Cars

Branch / Store

Toll-Free / Telephone

eBusiness/ Web

Expand to new channels

Of enterprises say poor integration hurts customer-facing apps

Dollars in eBay transactions processed through APIs

Smartphone users by 2016

1 billion 7 billion 69.1%Increase in mobile transaction volume since 2011

10x traffic Reaches Twitter through APIs than the Web

42% 126 million Tablet users by 2016

x

API Economy Value Chain

Valuable Business assets

Exposed as APIs

Consumed by App

Developers

To develop innovative

Apps

Delightful experience

to customers

What wasWhat was Is nowIs now

Crossing industries and transforminguser experiences

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Models for API exposure

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Public versus Partner versus Internal?

Public, Open-To-All

APIs

Protected, Open-To-

Partner APIs

Private, Internal APIs

• APIs are open to any developer who wants to sign up

• Apps are more targeted towards end consumers

• The business driver is fostering external innovation, and quickly enter new customer facing ecosystems (Gaming, connected cars, Google glasses,…) or tools (IFTTT, wordpress,…)

• APIs are open to select business partners

• Apps could be targeted at end consumers or business users

• The business driver is often linked to the ability to automate processes, exchange data, and accelerate partner on-boarding

• APIs are exposed only to existing developers within the enterprise

• Apps are usually targeted at employees of the enterprise

• The business driver can be channel consistency, productivity through re-use, and internal innovation

Public API initiative● Drive visibility and

innovation

Public API initiative● Drive visibility and

innovation

Private API use● Drive scale

requirements

Private API use● Drive scale

requirements

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Retiring of public APIs – a mini trend?

Some early proponents of fully public APIs have made the decision to retire their public APIs in order to focus their resources on internal and partner use cases

Netflix - https://gigaom.com/2014/11/14/netflix-is-shutting-down-its-public-api-today/LinkedIn - https://developer.linkedin.com/blog/posts/2015/developer-program-changesESPN - http://espn.go.com/static/apis/devcenter/blog/read/publicretirement.html

“To better focus our efforts and to align them with the needs of our global member base, we will be retiring the public API program. Effective on November 14, 2014, public API developers will no longer be able to access Netflix content.”

“11 years worth of public API requests = one day of private API requests”

Daniel Jacobson, VP of Edge Engineering

Today we are announcing some significant changes to our Developer Program. Over the past several years, we’ve seen some exciting applications from our developer community. While many delivered value back to our members and LinkedIn, not all have.

As such, we’ve taken steps to refocus the Developer Program from primarily open APIs to partnership integrations that we believe provide the most value to our members, developers and business. [...]

Starting on May 12, 2015, we will be limiting the open APIs to only support the following uses...

Since the launch of the ESPN Developer Center in March 2012 the capabilities and direction of our API program have continued to evolve in order to serve sports fans in the best way possible.

As part of that evolution, we have made the difficult decision to discontinue our public APIs, which will enable us to better align engineering resources with the growing demand to develop core ESPN products on our API platform.

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Hackathons, Developer Challenges

• 48 hours, 25 developers, over 400,000 API calls

• Impressive 13 pieces of Intellectual Property for ASDA (Walmart UK)

• Winning Ideas

• “George Go!” - search application using multiple descriptors

• “Clothing Shaker” - create your outfit by shaking your device

• “Virtual Fitting Room” - use of Xbox Kinect and APIs

• IBM API Management on Cloud provided Developer Portal & secure access to APIs

• Looking to transform the Digital Banking landscape:

• Innovative mobile solutions & IoT/ Wearables

• 40,000 API calls from more than 100 different groups

• Prototype APIs allowing Developers to interact with fake accounts

• Account Details (APR/Interest Rate, Available Credit, Payment Due Date, etc)

• Customer Information (Name, Addresses, Phone Numbers, Email Addresses)

• Payment Details (Scheduled payments, payment history, etc)

• IBM API Management on Cloud provided Developer Portal & secure access to APIs

For Free

Facebook Login API provides free authentication for any Web / mobile app

Example:

Developer Pays● Business Asset must be

of high value to the Developer

● For example, marketing analytics, news,

● Capabilities such as credit checks

Amazon EC2 Web Services – APIs charge per usage to launch and manage virtual servers.

Example:

Developer Gets Paid● Provides incentive for

developer to leverage web API

● Ad placements

● Percentage of revenue sold product or services

Google AdSense APIs pay developers who include advertising content into apps

Example:

Indirect● Use of API achieves

some goal that drives business model.

● E.g. Increase awareness of specific content, or offerings

eBay Trading APIs offer developers access to trading services extending the reach of listings and transactions

Example:

The Business of APIs

● Drives Adoption of APIs

● Typically low valued assets

● Drive brand loyalty

● Enter new channels

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90% 60% 50%Revenue is through APIs

Show me the money!

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Implementation themes

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Digital Transformation = Multi-Speed IT

Speed & Agility

Integration & Scale

Core Enterprise

Digital Ecosystem

Fast

Speed

Ste

ady S

peed

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Public, private or hybrid cloud deployment?

On-premises

SharedPublic cloud

Hosted/manageddedicated

Hybrid

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Resource vs Experienced based APIs

Ref: http://www.slideshare.net/danieljacobson/top-10-lessons-learned-from-the-netflix-api-oscon-2014(slide 34-38)

Resource based requests

/users/{id}/ratings/users/{id}/recommendations/catalog/titles/movie

Experience based requests

/ps3/homescreen

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Microservices

Monolithic applicationwith dependentcode modules

Independent,single purpose

microservices withvisible interactions

Implementing a microservices architecture results in a large number of service endpoints with formal APIs that expose the capabilities they provide

Is it desirable to have API Management to control every microservice interaction?

http://martinfowler.com/articles/microservices.html

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