exposing telecoms apis camille mendler dimitris mavrakis informa telecoms & media survey results...
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Exposing Telecoms APIs
Camille Mendler
Dimitris Mavrakis
Informa Telecoms & Media
Survey results
December 2012
What is an API?
1. An interface defining rules to interact with software components
• Exposes specific functionality and/or data • Allows communication with other apps
2. Simplifies access to complex processes• Improves customer experience• Speeds up time to consumption
3. Stimulates innovation• Supports mashups: the combination of APIs
to create a new application
2
‘APIs are how people get to your business.’Sam Ramji, Apigee
2 December 2012
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Picture: flickr/droetker0912
Informa’s Exposing Telecoms APIs survey
3
Goals• Which telecoms APIs are valued?• Is demand rising?• Who is involved?
Results• 369 respondents• 72% already directly involved in the API ecosystem
Method• Online survey, November 2012
Telecom operator
35%
Software de-veloper / ven-
dor22%Network in-
frastructure vendor
12%
Integrator / consulting
firm10%
Cloud services provider
6%
Device / module / chipset maker
4%
Content producer / vendor / owner
3%
API broker/ aggregator /
distributor3%
Other*6%
Exposing Telecoms APIs: Survey respondents
n= 369Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
*Broadcaster, regulator/government, academia/research
December 2012© Informa UK Ltd. All rights reserved.
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Survey respondents by geography
4 December 2012
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Respondents from 60 countries
• Balanced between developed
and emerging economies
• Notable response from Africa Western Europe31%
Asia Pacific20%
North America
15%
Africa13%
Eastern Europe and CIS
9%
Latin America
7%
Middle East5%
Exposing Telecoms APIs: Survey respondents by geography
n= 369Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
Highlights
5 December 2012
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• Two-thirds of operators already have an API initiative under way• Emerging-market operators are rapidly getting involved.
• APIs for telco big data analytics are the No. 1 new requirement• Developers want to dig into telco subscriber behavior.
• Three-quarters of (non-telco) API market stakeholders expect telecoms API demand to multiply over the next two years
• Mobilization of the Web is the key driver of API demand.
• A fifth of API stakeholders don’t know of any telco API program• Telco API fragmentation is the leading reason for developer discontent
and lack of awareness.
• More than half of API stakeholders want telcos to pool APIs• Suggestions include an existing API aggregator or as a telco-only group,
despite the failure of the Wholesale Applications Community.
Exposing APIs is becoming the rule
6
A flood of new telecoms APIs is set to happen in 2013. December 2012
© Informa UK Ltd. All rights reserved.www.informatandm.com
Base: Telecom operator respondents (n= 126)Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
35% no plans30% launched35% under development
Telecoms operators: Are you developing your own APIs?
Pict
ure:
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It’s a truly global trend
7 December 2012
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Lebanon
Malaysia
Developed-market telcos are active
So are many in emerging markets
IndonesiaKenya
Telecoms APIs: They’re not just for SMS
8
Other
Number portability
Unified communications
Social networking
Security/identity mgmt
Device management
Location/presence
Billing
Messaging
18%
28%
29%
30%
34%
37%
52%
66%
66%
Telecom operators: APIs on offer
% of respondents
• Account management/provisioning• API for B2B2C operations (ex contact APIs)• Behavior management• Call control, Micropayment, credit transfer• Call management• Customer-service management• Eligibility• Interactive TV• Inventory management• Mobile payment• M2M, digital commerce and advertising• Predictive medicine• Service activation
Although the top three are no surprise, operators’ API portfolios are diversifying.
Base: Telecoms-operator respondentsalready active in API ecosystem (n=83)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
December 2012© Informa UK Ltd. All rights reserved.
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Telecoms APIs are in demand
9
• A third of nontelco respondents already use telecoms APIs
• 40% plan to use telecoms APIs
• But one-fifth aren’t aware of telecoms API capabilities
Other
They have become irrelevant due to similar offerings from nontelco
companies
They are valuable but can be replaced
They are critical for the market
3%
11%
37%
49%
Nontelcos: What’s your view of APIs provided by telecoms operators?
However, for telcos, being needed is not the same as being paid for their APIs. December 2012
© Informa UK Ltd. All rights reserved.www.informatandm.com
Base: Non-telco respondents involved in the API ecosystem (n=192)Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
Appetite for telecoms APIs will grow
10
APIs will need to adapt to hypermobile environments; economy in dataconsumption and battery use will be important capabilities.
Demand levels will stay the same
Demand will drop, APIs from nontelco firms will dominate
Demand will grow because of ongoing mobilization of Web/
cloud
8%
17%
75%
December 2012© Informa UK Ltd. All rights reserved.
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Nontelcos: How will demand for telecoms APIs evolve over the next two years?
Base: Non-telco respondents involved in the API ecosystem (n=192)Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
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Today: Billing tops telecom API needs
11
Other
Device capability discovery
Presence and IM
Security
UC and related call control
M2M
SMS/MMS
Location
Identity/subscriber data management
Billing/payments
25%
13%
16%
20%
20%
20%
26%
28%
46%
61%
Nontelcos: Which telecoms APIs are most valuable?
% of respondents
• Airtime top-up• Data roaming• Device configuration• Mobile money• Number portability• Prioritization• QoS• RCS service APIs• SIM/UICC APIs• Voice/video calling
Although priorities are broadly aligned, telecoms operators believe that their billing and M2M APIs are more valuable than nontelcos give them credit for.
December 2012© Informa UK Ltd. All rights reserved.
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Base: Non-telco respondents involved in the API ecosystem (n=192)Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
Future: Two-thirds want access to telco big data
12
Telco usage analytics lead the API shopping list, but avoiding data protection and privacy pitfalls won’t be easy.
Managing prepaid data roaming and interstandard roam-ing (e.g. LTE)
Providing a virtual office-in-a-box to small businesses (e.g. UC, virtual desktop, business apps)
Automating access to cloud-based storage and compute resources (e.g. IaaS)
Access a global carrier’s worldwide reach for wholesale billing, voice + messaging delivery
Exposing subscriber, device, app and network analytics to preferred partners (e.g. Big Data)
40%
43%
54%
59%
70%
Nontelcos: Which other telecoms APIs have high potential?
Respondents
December 2012© Informa UK Ltd. All rights reserved.
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Base: Nontelco respondents involved in the API ecosystem (n=192)Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Perceptions of telcos’ biggest challenges vary
13 December 2012
© Informa UK Ltd. All rights reserved.www.informatandm.com
Other
Oversupply from alternative API suppliers
Evolution of WebRTC can replace many APIs, telco differentiation
Speed of API and service evolution is too fast
Unclear and complex value proposition
Lack of clear business case
2%
34%
25%
28%
32%
50%
9%
24%
25%
35%
40%
43%
What challenges do telecom operators face in monetizing APIs?Nontelcos Telcos
Respondents
Telecoms operators are worrying more about their competition than about how they can differentiate, but sustainable business models are unclear to all.
Base: Respondents from telecoms operators (n=101), nontelcos involved in API ecosystem (n=192)Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
What are the biggest issues? Some out-takes
14 December 2012
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“Inconsistent APIs between carriers are off-putting to developers, especially for enterprise applications.”
API broker
“APIs are not telcos’ strong suit, and it’s really thenimbleness and rapid evolution that makes it tough for telcos to keep up.
“Fragmentation by creating various universal coalitions/standards, but they never work.
“A developer needs to know that their messages will get delivered regardless of the carrier the user has.”
Cloud service provider
“It is mandatory that telcos expose standardized APIs (e.g. Parlay X, or extensions for billing).
“It is a major missed opportunity that Telcos did not agree on APIs to offer features that OTTs cannot have (e.g. billing, QoS).”
Integrator
“Make APIs as easy to use as possible. Avoid making developers’ lives miserable (e.g. keep an eye on what Twilio or Voxeo have done on simplifying voice APIs ).”
Software developer
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Awareness of telecoms API initiatives is poor
15
Note: Others cited include Alcatel-Lucent New Conversation APIs, Sprint Developer Program, Tropo, Twilio, Vodafone Betavine, WAC.
December 2012© Informa UK Ltd. All rights reserved.
www.informatandm.com
Base: Respondents from telecoms operators (n=126), software firms (n=77)Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Telenor CPA
DTAG Developer Garden
AT&T ACS
Orange Partner
Telefonica BlueVia
GSMA OneAPI
0% 20% 40% 60% 80%
16%
28%
37%
43%
46%
44%
7%
2%
3%
3%
1%
21%
Software firms: Telecom API initiat-ives recognized
Heard of it Worked with it
Respondents
Telenor CPA
DTAG Developer Garden
AT&T ACS
Orange Partner
Telefonica BlueVia
GSMA OneAPI
0% 20% 40% 60% 80%
19%
31%
37%
43%
33%
44%
3%
2%
3%
6%
9%
20%
Telecoms operators: Telecoms API initiatives recognized
Heard of it Worked with it
Respondents
Telecom API initiatives are fragmented – and mostly inward-facing.
Telecoms operators don’t want to lose ‘control’
16
Telecoms operators want to manage their API ecosystem.
No, only selling directly to our developer
community and enter-prise customers, 66%
Yes, looking for widest possible distribution
options, 28%
Yes, looking for a single partner to manage APIs for
us globally; 6%
Are you seeking partners to market your APIs?
Base: Telecoms-operator respondentsalready active in API ecosystem (n=83)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
December 2012© Informa UK Ltd. All rights reserved.
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What should telcos do to be successful?
17
To succeed, telcos must market APIs beyond their direct sphere of control. December 2012
© Informa UK Ltd. All rights reserved.www.informatandm.com
Base: Nontelco respondents involved in the API ecosystem (n=192)Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
They will never be successful, because of the strength of existing competition
Become trusted brokers of their own and third-party APIs
Focus on developing their own Web-standard APIs to improve their own services
Outsource API monetization to a trusted partner
Ally with other operators to sell APIs globally
5%
18%
20%
26%
26%
Non-telcos: What’s the No. 1 action that telcos should take to be successful in the API ecosystem?
For telcos, APIs are part of a wider transformation
Telcos must avoid putting APIs into another operational silo.
OSS
BSS
Policy
Basestations
Serverfarms
Telecoms
IT
‘Cloud’
APIs
SDN
VirtualizationVerticalization
Standardizedhardware
18
‘Big Data’
December 2012© Informa UK Ltd. All rights reserved.
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Final thoughts
19 December 2012
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• APIs are becoming the common currency of the digital economy
• Telecoms operators must offer APIs in order to trade
• Telecoms APIs have a strong and growing role in the post-PC world
• Their subscribers remain their key asset
• Success lies in wide telecoms API distribution
• Telecoms operators can’t do it alone
• Direct monetization of telecoms APIs remains questionable
• Consequential benefits need further validation
Picture: flickr/droetker0912
20
For more information:
Camille Mendler Dimitris MavrakisPrincipal Analyst Principal [email protected] [email protected] Twitter: @cmendler Twitter: @dmavrakis