API Management Platforms

Transcription

1 API Management Platforms Digital Glue in the API economy The digital revolution is disrupting industries and organizations. They need to transform themselves into digital enterprises to stay competitive in the new economy. APIs provide organizations with a strong technology foundation for rapid transformations and to drive innovation.

2 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. INTRODUCTION TO APIS 3. THE API ECONOMY 4. HOW APIS ACTED AS A CATALYST FOR THE SOCIAL MEDIA REVOLUTION 5. HOW APIS POWER THE INTERNET OF THINGS 6. COMPONENTS OF AN API MANAGEMENT PLATFORM 7. EVALUATION PARAMETERS FOR SELECTING AN API MANAGEMENT PLATFORM 8. ENDLESS POSSIBILITIES WITH APIS 9. REFERENCES 10. ABOUT THE AUTHORS Executive Summary In today s digital world, Application Programing Interfaces (APIs) are a key business enabler. API management tools have gained significant traction in the past few years to become the de facto choice of integration technology. API Management tools are becoming pervasive because these platforms not only integrate just the technology components, but also integrate people. They act as a glue between API developers (producers) and App developers (consumers) to enable out-of-the-box collaboration and self-service tools. API platforms play a critical role in powering an organization s mobile and social media strategy. They also enable organizations to embrace a world of smart devices and sensors, popularly known as the Internet of Things (IoT). Smarter solutions stem from smarter devices that interact with each other. In this environment, data is considered to be the new oil of the digital world. APIs enable organizations to monetize their information assets by securely externalizing their valuable data. They can be leveraged to build revenue streams, while adding unmatched capabilities to the organization. This paradigm is often referred to as the API economy. This whitepaper serves as a guide to API management platforms, how they work, their critical components, and how to leverage it to create new business opportunities SYNTEL, INC.

3 Introduction to APIs The revolution in mobile technology has shifted the focal point of computing power from data-center servers to powerful mobile devices. Smartphones and tablets have changed the way customers engage with organizations and their brands. Digital, too, is no longer one of the channels; it is the primary channel for customer engagement. It is, thus, important for organizations to transform themselves into digital enterprises to offer a superior experience to digital natives. APIs provide organizations with a strong foundation that accelerates their digital transformation initiatives. It creates the required connectivity to launch initiatives that enables enterprises to share data and digital content over the internet. They also empower developers to create apps across new channels. The lifecycle of APIs are managed by software tools called API management platforms. API Management is the process of publishing, promoting, and overseeing application programming interfaces in a secure, scalable environment. It also enables creation of end-user resources such as API documentation and sandbox environment. The next generation of mobile apps will drive innovation at the intersection of technologies around Social, Big Data Analytics, Cloud and Internet of Things. Mobile apps are set to become more context-intelligent, by interacting with the surrounding environments. For example, mobile apps that interact with beacons/smart sensors using BLE (Bluetooth low energy), personalized and location aware mobile notifications, connected cars using sensors, and intelligent mobile kiosks. All these advancements will further propel APIs as a critical component of digital transformation. APIs thus enable multichannel, flexible and secure connections between the organization, partners and external third-party developers, by externalizing the organizations data assets. Organizations must position themselves to quickly deploy, scale, and manage APIs. This will ensure they stay ahead of the curve and are able to execute a variety of new digital business programs. Partners External API Internal Data APIs externalize an organizations data assets

4 The API Economy APIs accelerate an organization s digital transformation, and open new business opportunities to generate revenues from usage fees. Many digital enterprises have leveraged APIs to gain from this new trend. Here are some examples of organizations using APIs to build new business models. The Expedia API platform 1 enables third-party developers to seamlessly integrate the functionality of booking flights, hotels, and cars to generate more than 90% of its revenue through APIs. Salesforces AppExchange generates around 50% revenue by hosting hundreds of apps built by its partners using its APIs, through the Force.com 2 API platform. Developers use ebay APIs to integrate many ecommerce features into their own websites or apps. ebay generates around 60% of its revenue from its ecommerce API platform 3. Walgreens API platform 4 provides developers with APIs for printing photos to any of its 8,000+ locations. They also provide Prescription APIs to order refills of prescriptions, schedule clinic appointments, and share member health and wellness data. The API platform has enabled Walgreens to successfully enhance customer engagement and increase the revenue per customer. A winning API strategy can open doors to new revenue streams and help organizations create new ecosystems, thereby enabling them to expand into new markets. APIs act as a glue in the digital value chain as illustrated in the diagram below. The Digital Value Chain API Consumers API Exposure API API Consumer Mobile, Social, Web Apps APP developers (Internal/ External) API Management API Developer Organization Assets APIs in the digital value chain 2015 SYNTEL, INC.

5 How APIs Acted As a Catalyst for the Social Media Revolution Social Media platforms such as Facebook, Twitter and Pinterest have revolutionized the way digital natives engage in their social circles. Social Media has also blurred the boundaries between personal and professional life. The user experience of most social sites was confined to their website or mobile app, however now they have built APIs that enable third-party developers to pull social media data and use it to build new innovative apps. APIs play a key role in expanding the popularity of social media platforms. Below are a couple of examples. Twitter APIs 5 enable developers to build millions of apps for a variety of platforms. As per Twitter records, a new app is registered every 1.5 seconds on its API platform 6. These apps have enabled Twitter to expand its user base rapidly and have made the service more accessible. For example Xbox integration with Twitter, Tweet aggregators such as HootSuite, etc. Facebook APIs 7 enables developers to build highly engaging social games such as Farmville and Candy Crush. Farmville generated more than a billion dollars in revenue for Zynga 8 an excellent example of API monetization. American Express has an app on Facebook called Link Like Love it allows cardholders to link their cards with their Facebook account and avail coupon-less 9 offers LinkedIn APIs 10 have enabled developers to build apps that leverage the social network connections to improve business outcomes. For example, suggesting the right financial advisor in their network, suggest best fit products, share corporate information, connecting patients to doctors, etc. YouTube APIs 11 enable organizations to integrate video content in their websites. API-based innovative apps such as Soundslice sync guitar tabs with YouTube videos 12 so you can see which notes or chords are being played at the given moment. OAuth APIs provided by social platforms have become a popular authentication mechanism for many sites that offer the ability to sign in using a social account. Social APIs can also be used to integrate social media features into your website, such as the use of social widgets such as Like or Follow buttons on your website. You can have customers communicate socially on your corporate website by replying to a tweet, or posting on your FB page without having to leave the site. How APIs Power the Internet of Things In the digital world, more and more devices are getting smarter and connected to the Internet. These devices feed real-time information, and are changing the way we respond to challenges and opportunities. This technology paradigm is called the Internet of Things (IoT). The thing in IoT can be a sensor on an automobile, a biochip transponder on a living being, an intelligent soda vending machine, or a smart home device such as a thermostat. APIs enable interconnectivity of IoT devices. The Zetta framework 13 for example, turns any device into an API endpoint. Developers can communicate with a Zetta enabled smart device using the same programming paradigm of RESTful APIs. This lowers the entry barrier for connectedness and enables secure communication between any IoT device and backend applications in a cloud or data center. Below are some examples of API platforms that are powering the IoT. 1. ThingSpeak 14 is an open source IoT application API to store and retrieve data from things using HTTP over the Internet or via a Local Area Network (LAN). 2. Xively 15 provides enterprises with a complete stack required for building end-to-end IoT solutions along with an API platform to connect with devices. 3. The Crowsnest platform 16 provides a firmware library that runs on device, and provides APIs for logging and assertions 4. Apigee Link 17 is an API-first IoT product for connecting devices to the Internet. Apigee Link provides built-in REST APIs and end-to-end connectivity for devices, enabling makers to offer new digital experiences for their customers. 5. John Deere API-enabled IoT stack 18 comprises of smart sensors on its tractors that enable externalizing machine data to third-party developers using its API platform. API platforms provide device manufacturers with an ability to transform themselves into a digital platform business. This also creates a new ecosystem of partners to build innovative business solutions.

6 Components of an API Management Platform To deliver value to API developers and app developers, the API management platform needs to have the following six sub-systems: 1. App developer portal This is a self-service portal where developers can register for API keys, browse through API documentation and try different APIs in a protected sandbox environment. 2. API gateway The actual hub through which all API calls pass through, the gateway is responsible for applying run-time policies (e.g. security, throttling) and rate limits. It is also responsible for message transformation or protocol mediation. Note: The capabilities of most API gateways are very similar to that of an ESB (Enterprise Service Bus); hence it's not surprising to see many erstwhile ESB products metamorphose themselves into API gateway products. 3. API developer portal This is a portal where developers to create API proxies of backend services, and configure different policies for the exposed API. The developers can also configure rate limits for their APIs and have various service categories. They can publish these APIs to the API gateway. Some platforms also provide various sandbox environments for testing, pre-production and quality analysis. 4. API analytics Once you have your APIs built, you need to measure their usage. API analytics provide developers with unprecedented visibility on the entire business value chain, and help them take the right steps to maximize their investment in exposing APIs, such as the API calls with the highest latency, most popular, and devices/apps using the APIs. 5. Limited MBaaS capabilities The Mobile-First paradigm fueled the popularity of API management tools that enabled mobile app developers to build smart apps within compressed timelines. Hence many API management platforms also provide some limited Mobile Back-end as a Service (MBaaS) capabilities, e.g., out-of-the-box support for mobile push notifications, APIs for basic messaging, comments and social media integration. 6. API monetization module A flexible module customizes the monetization rules of your APIs, for instance, the ability to configure prepaid and post-paid plans with different rate limits. The monetization module should also provide out-of-the-box rich functions for usage reporting and billing. Many API management tools do not offer monetization as a separate component, but integrate monetization features into the API developer portal itself for a seamless user experience. Digital Channels Mobile Desktop Chat POS Kiosk Wearables API Platform API Gateway Proxies Security Message Transformation Protocol Mediation App Developers (Consumer) App Developer Portal Rate Limits Policy Enforcement Rules API Analytics </> API Monetization Pre-paid / Post-paid Plan Configuration MBaaS (optional) Push Notifications Social APIs / OAuth API Developers (Producer) API Developer Portal Billing Reporting Other Utils Services 2015 SYNTEL, INC.

7 Evaluation Parameters for Selecting an API Management Platform Any organization that plans to invest in procuring an API management platform should define the evaluation criteria against which products would be compared. Some of the key parameters against which API platforms can be evaluated or compared are listed in the table below. During the evaluation phase, each criteria can be given a weightage and score to drive a metrics-driven quantitative approach to platform selection. 1. Core Features Criteria Management/Configuration API consumer experience Rate limiting Monetization Routing Transformations/Mapping Orchestration Protocol support/mediation Access management Analytics Notes Ease of performing administrative tasks on API management and configuration Out-of-the-box developer portal, ease of creating API documentation and publishing, discovery, self-service registration and accessing APIs Ability to limit the number of API calls from each client, restricting traffic sent by each client depending on the predefined limit Ability to configure and customize monetization rules for the API Ability to route a request to a particular backend service provider based on some criteria (consider static routing and dynamic routing) Ability to convert the incoming request payload to a format understood by the service provider Low-level coordination of different service implementations Support on various protocols and the ability to mediate across various protocols Support to initiate, capture, record, and manage user identities, their related access, and the protocols supported Support on prebuild and custom reporting Support on analytical models and reports 2. Quality of Service Attributes Criteria Security Scalability Performance/Latency Availability Globalization/Language support Version upgrade Flexible deployment models Notes Out-of-the-box support for securing APIs without any coding Support for open API security standards such as OAuth, secure token services, and policy-driven security Horizontal scalability, growth and accommodation of increasing number of users and transaction volumes Latency added by the API management platform proxies, proven performance benchmarks Hot failover or Cold failover Support for multiple languages and globalization for admin screens and developer portal Frequency and ease of upgrade, amount of automation available for the upgrade process Support for in-premise and cloud deployments, pay-as-you-go features 3. Vendor Assessment: Criteria Market reach and positioning Financial stability Product upgrade and roadmap Support and customer service Notes Number of live implementations, size, customer profiles and geographical reach Funding, top-line and bottom-line review Well defined roadmap for the next three years Ability of the vendor to provide 24*7 support

8 4. People Criteria Criteria Training needs and resource skill levels Market availability of talent Support and operations Notes Learning curve, existing skill-sets of resources in the organization Availability of required API platform skills Platform support by data center DevOps team or specialized talent Endless Possibilities with APIs The API revolution is disrupting organizations across industries. APIs initially started as enablers of quick integration in B2B and B2C scenarios, but has now evolved to become a driver of new business models and new revenue streams. Syntel knows that APIs can help our customers innovate faster. They create a digital ecosystem enabling new products and services that generate sustained value for organizations. We have extensive experience in crafting enterprise-level API strategies and implementing API platforms for customers in various industry segments. Here s a glance at some of the projects Syntel has transformed: Enabled a large financial firm to implement APIs for instant credit checking, card authorization and also to integrate marketing workflows with social media APIs Partnered with a large insurance firm to create an API layer on top of their legacy policy admin systems to enable real-time integration Assisted a large healthcare payer with evaluating multiple API management products and selecting the best fit for the enterprise For more information on how we can enable your organization to craft an API implementation strategy and build a strong foundational digital platform, contact us at SYNTEL, INC.

9 References For more information, write to or visit About the Authors Narendra Naidu Practice Director, Digital One, Syntel Narendra Naidu is a technology leader with extensive experience in defining digital transformation roadmaps and helping customers deal with the impact of digital disruption on traditional ways of doing business. He specializes in crafting technology-centric enterprise architecture strategies through smart adoption of Mobility, Cloud, Social, Big Data Analytics and Internet of Things technologies. Vijai Vasantharaj Technical Architect, Digital One, Syntel Vijai Vasantharaj is a solution architect specializing on digital technologies such as APIs, Social, Mobility and IoT. He has deep experience in integrating end-to-end business processes across a broad range of heterogeneous platforms leveraging API management platforms and REST architecture paradigms.

10 about SYNTEL: Syntel (Nasdaq:SYNT) is a leading global provider of integrated information technology and knowledge process services. Syntel helps global enterprises evolve the core by leveraging automation, scaled agile and cloud platforms to build efficient application development and management, testing and infrastructure solutions. Syntel s digital services enable companies to engage customers, discover new insights through analytics, and create a more connected enterprise through the internet of things. Syntel s "Customer for Life" philosophy builds collaborative partnerships and creates long-term client value by investing in IP, solutions and industry-focused delivery teams with deep domain knowledge. To learn more, visit us at SYNTEL 525 E. Big Beaver, Third Floor Troy, MI phone info@syntelinc.com v i s i t S y n t e l ' s w e b s i t e a t w w w. s y n t e l i n c. c o m