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What can be done with an API is limited only by imagination. However, what should be done using your API may have a more definable answer. Whether you are planning to leverage your API to extend your business model into new channels or to capture new revenue, it is The Business of APIs.
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Open APIs: State of the Market
John Musser, ProgrammableWeb
Business of APIs Conference, Nov 16th, 2009
Introduc7on
ProgrammableWeb.com
• Launched summer 2005 • API directory, news, community, reference
• 1,500+ Web APIs
Open APIs: State of the Market
• Why do we care? • Where is the growth?
• How are they moneDzing?
• What makes a winning API?
Open APIs: Why Bother?
4
• Make money 60% of all lisDngs on eBay.com added via their APIs 6 billion API calls per month
• Save money SmugMug saves > $500K/year with Amazon S3 Storage
• Build brand Google Maps 300% growth vs 20% MapQuest
• Move to the cloud Over 50% of all transacDons via their API
• Disrupt markets 10,000 applicaDons in 6 months Today nearly every social network has an API
APIs hiding in plain sight, if you know where to look
5
+
+
APIs moving to the cloud
6
Old Model New Model
PrintFile UpdateRow
ConvertLead
FindProduct DrawMap
• APIs are now in the cloud
• Open, global
• New business opportunities
Open API 7meline
7
2000 2002 2005
Facilitating Power Sellers
Extending the Affiliate Network
2006 2007
105 APIs Listed at PW
352 APIs Listed at PW
2003
Enterprise SaaS
Platform
2008
1,116 APIs Listed at
PW
601 APIs Listed at PW
Over 1,000 new APIs in 2008 & 2009
Double the total of prior 7 years combined
2009
? APIs
APIs: Some very compe77ve markets
8
Number of APIs in each of the top 15 categories
Based on directory of web APIs listed at ProgrammableWeb, November 2009
Open APIs: Sampling growth by sector
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Open APIs: Sampling growth by sector
10
YouTube sells for $1.7B
Open APIs: Sampling growth by sector
11
Facebook opens platform
Business focused segments seeing rapid growth
12
Information Services
SaaS for Enterprise & SMB
Platform as a Service
API business models
Who What How
Amazon eCommerce Retail Affiliate Model
Amazon S3 Infrastructure Pay-‐as-‐you-‐go
eBay AucDons APIs for lisDngs
Salesforce.com SaaS CRM Seat licensing
Exact Target Bulk Email Tiered pricing
Facebook Social Network Pixel sharing
Cypress Golf ASP Tee Times IntegraDon
Rhapsody Music Strategic partnerships
Best practice: Bake your business model into your API
APIs as a biz-‐dev enabler
“Decentralized business development” An API can lower barriers to working with you
-Toni Schneider
Consumer/Hacker Business/Partner
Flickr API
What makes an open API successful?
• Rule #1, the underlying service • Or, a good API on a bad service is lipsDck on a pig
• A plan and a business model
• Simple, open, easily adopted
• Providing choices
• Good developer support
Where are we headed?
• APIs opening new business & revenue models • New ecosystems of tool & service providers
• APIs becoming more sophisDcated & ubiquitous
Have we seen this before?
17
1995
Why do we need a Web site?
2000 2005 2010
Of course we have a Web site
Of course we have an API
Why do we need an API?
