Trends in API Management

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1 GUIDE SHARE EUROPE Trends in API Management Matt Roberts Technical Lead IBM API Management development IBM Corporation

2 GSE Belux Trends in API Management Motivations Models for exposure Implementation themes IBM Corporation

3 Business Goal: Why customers do APIs? Mobile Partnership Digital / IoT New Revenue Channels Internal Monetization Transformation Innovation Cloud

4 Developers are King & Queen Makers in Digital Era

5 From a Single to Multi, now Omni channel Connected Cars Partners Websites/Sensors Game Consoles Branch Toll-Free / ebusiness/ / Store Telephone Web Smartphones Connected Appliances Internet TVs Tablets

6 Expand to new channels 1 billion 7 billion 69.1% 10x traffic 42% 126 million Smartphone users by 2016 Reaches Twitter through APIs than the Web Dollars in ebay transactions processed through APIs Of enterprises say poor integration hurts customer-facing apps Increase in mobile transaction volume since 2011 Tablet users by 2016 x

7 API Economy Value Chain To develop innovative Apps Exposed as APIs Valuable Business assets Consumed by App Developers Delightful experience to customers

8 Crossing industries and transforming user experiences What was Is now

9 GUIDE SHARE EUROPE Models for API exposure IBM Corporation

10 Public versus Partner versus Internal? Public, Open-To-All 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, ) Protected, Open-ToPartner APIs 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 onboarding Private, Internal APIs 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

11 Public API initiative Drive visibility and innovation Private API use Drive scale requirements

12 Retiring of public APIs a mini trend? GSE Belux 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 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. 12 Netflix - LinkedIn - ESPN IBM Corporation

13 Hackathons, Developer Challenges Looking to transform the Digital Banking landscape: 48 hours, 25 developers, over 400,000 API calls Innovative mobile solutions & IoT/ Wearables 40,000 API calls from more than 100 different groups Impressive 13 pieces of Intellectual Property for ASDA (Walmart UK) Prototype APIs allowing Developers to interact with fake accounts Winning Ideas Account Details (APR/Interest Rate, Available Credit, Payment Due Date, etc) George Go! - search application using multiple descriptors Customer Information (Name, Addresses, Phone Numbers, Addresses) Clothing Shaker - create your outfit by shaking your device Virtual Fitting Room - use of Xbox Kinect and APIs Payment Details (Scheduled payments, payment history, etc) IBM API Management on Cloud provided Developer Portal & secure access to APIs 13 IBM API Management on Cloud provided Developer Portal & secure access to APIs 2015 IBM Corporation

14 The Business of APIs For Free Drives Adoption of APIs Developer Pays Typically low valued assets Drive brand loyalty Enter new channels Business Asset must be of high value to the Developer For example, marketing analytics, news, Capabilities such as credit checks Developer Gets Paid Provides incentive for developer to leverage web API Ad placements Percentage of revenue sold product or services Example: Example: Example: Facebook Login API provides free authentication for any Web / mobile app Amazon EC2 Web Services APIs charge per usage to launch and manage virtual servers. Google AdSense APIs pay developers who include advertising content into apps Indirect Use of API achieves some goal that drives business model. E.g. Increase awareness of specific content, or offerings Example: ebay Trading APIs offer developers access to trading services extending the reach of listings and transactions

15 GSE Belux Show me the money! 90% 60% 50% Revenue is through APIs IBM Corporation

16 GUIDE SHARE EUROPE Implementation themes IBM Corporation

17 GSE Belux Fast Speed Digital Transformation = Multi-Speed IT Digital Ecosystem Speed & Agility Integration & Scale 17 Steady Speed Core Enterprise 2015 IBM Corporation

18 GSE Belux Public, private or hybrid cloud deployment? Shared Public cloud Hosted/managed dedicated Hybrid On-premises IBM Corporation

19 GSE Belux Resource vs Experienced based APIs Resource based requests Experience based requests /users/{id}/ratings /users/{id}/recommendations /catalog/titles/movie /ps3/homescreen Ref: (slide 34-38) IBM Corporation

20 GSE Belux Microservices Monolithic application with dependent code modules Independent, single purpose microservices with visible 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? IBM Corporation

21 IBM Corporation