new opportunities in the api economy · infrastructure sde: bluemix + openstack, sce+ 2.0,...

© 2013 IBM Corporation

NEW

OPPORTUNITIES IN

THE API ECONOMY

JIM A. LAREDO, STSM

IBM T.J. Watson Research Center

[email protected]

12/12/13

mailto:[email protected]


API Economy

2013 GTO: Scalable Services Ecosystem (SSE)

2

• Overview

• API Reference Architecture

• API Provider

• API Consumer

• Ecosystems and Marketplaces


CHALLENGE

TREND

OPPORTUNITY

Cloud, mobile and social are fueling the hyper-growth of API-centric,

business as-a-service economies

Born-on-the-web companies are co-creating value through APIs at an

accelerated pace and enterprises are starting to explore them

Transform enterprises towards an agile, composable and scalable

model

Ensure services meet enterprise operational needs: reliability,

security, governance, scalability, etc.

API Economy: Scalable Services Ecosystems

Rapid growth of Scalable Services Ecosystems where business domains are being enabled via APIs and delivered as-a-service, allowing businesses to engage with speed and scale

This API-centric, as-a-Service delivery is disrupting the consumption of business services as Cloud disrupted the IT consumption model


APIs as a strategic business tool for value co-creation and front-office digitization is growing in Fortune 500 companies

0

50000

100000

150000

200000

250000

300000

2004 2006 2008 2010 2012 2014 2016 2018 2020

Projected +300k APIs by 2020

APIs registered on a multitude of business areas

We see an emergence of Scalable Services

Ecosystems where more business domains

are being enabled via APIs and delivered as-a-

service, allowing businesses to engage with

speed and scale

Enterprises are beginning to CONSUME and

EXTERNALIZE Business Services, often for

realizing Front Office Digitization, with speed

and scale

+80B API Invocations per day

API-centric model is at the core of mature

born-on-the-web companies

Registrations in Programmable Web have

more than doubled this year. At that pace we

could see more than 100,000 APIs registered

by 2016.

Fortune 500 companies are aggressively

pursuing some form of APIs Source: Analysis done on the programmableweb.com registry data. 3Q 2012

Example players in the new services economy

$1.5B revenue

of 10K+

affiliates

More than $10B

mobile

transactions

40% total units

sold by outside

sellers

40% new

business comes

from non-CRM

offerings

API only company

reaches 150,000

developers and

1.5M calls a day 4.5B API

invocations

per month


The API-centric, as-a-Service delivery is disrupting the consumption of business services as Cloud disrupted the IT consumption model

Dedicated IT Cloud

Integrated Business

Functions

As-a-service delivery

Composable Web

Short Innovation

Lifecycle

API-centric

Business Services

API API

Dedicated IT

investments

Contracts &

Negotiations

People & Hand-offs

Packaged

Applications

SOA Based Custom

Development

Long Project

Planning and

Development

Pay-per-use and other

models

Standard Contracts

DevOps

Business

Solutions

Infrastructure


“API Ecosystem” Example … See developer.carepass.com

6


“API Ecosystem” Example … See developer.carepass.com

7


API REFERENCE ARCHITECTURE

Capabilities for API Providers

Capabilities for API Consumers

Social Feedback and Communities

Marketplaces

Self-Service Portal: Registration • Documentation • Sandbox

Security and Management

API Design and Integration

Analytics and Metering

DevOps for API

Composition

Platform and Infrastructure

Services

DevOps and App

Management

Mobile/Client Accelerators

Internal

Developers

Partner

Developers

External

Developers

Services: Data • Processes • Applications • Cloud Code

AP

I S

trate

gy C

on

su

ltin

g A

PI T

ech

nic

al C

on

su

lting

Channels: Smartphones • Tablets • Desktops • Cars • TVs • Others

Business Support Systems

Cloud / On-prem / Hybrid


The API Provider

9

• Externalization Challenges

• API Management Value

• Risk / Reward Assessments


Robust

Extensible

Consumable

Enterprise Core Functions

API Enablement

Services

API

API

API

. . .

Data

CRM

Merchant

Billing

10

API Definition Enterprise App & Data Model Analysis

Usage & Access Requirements

Consummability & Flexibility

Rapid API Development Service Patterns

Business Object Reuse

Integration with existing enterprise apps

Payment

Fulfillment Infrastructure Scalable Infrastructure

Robust Security

Enterprise Externalization is concerned with defining

the APIs and integrating with the right-scaled core

function infrastructure

Des

ign

B

uild

R

un


Scalable

Secure

Insightful

11

Ecosystem Engagement Community Foundations

Multi-Channel Client Evolution

Multi-Modal Interactions

Traffic & Partnership Affinity Analytics

API Mashup Tools for rapid composition

API Operations & Management Message Format Translation

Usage & Access Policy Management

Service Throttling

Version & Change Management

API Hosting Platform & Services Runtime Gateway Services

Secure Back office Connectivity

Service Virtualization

Policy

Request Caching

API

API

Enterprise Endpoint

API Management

API Analytics

Managed Services : On-Premise/Remote

API

… .

Gateway Services

Partner Entrypoint

11

API Management is concerned with hosting the APIs in a secure &

scalable environment; managing their lifecycle; and deriving

insights from their history


billing

provisioning

promo

order

vendor

contract

account

12

customer

Application data

billing

provisioning

order

contract

account

customer

Application data

billing

promo

order

vendor

contract

customer

Application data

Prod1 Prod2 Prod3

Enterprise Externalization Dilemma

Application Modernization • Migration to Cloud • Refactoring • Anticipate new workloads • Larger Investment

Edge Integration • Touchpoint Analysis • Data/process provenance • Exploit current infrastructure • Smaller Investment

vs.

Determining the right Risk/Reward benefits


billing

provisioning

promo

order

vendor

contract

account

13

customer

Application data

billing

provisioning

order

contract

account

customer

Application data

billing

promo

order

vendor

contract

customer

Application data

Prod1 Prod2 Prod3

Managing Risk with API Management

Policy

Request Caching

API

API Enterprise Endpoint

API Management

API Analytics

Managed Services : On-Premise/Remote

API

… .

Gateway Services

Partner Entrypoint

Use API Management for • Service Throttling • API entitlements • Monitoring

To manage Strategy • Assess workload • Plan changes • Selectively Scale

Functional capabilities Governance capabilities

© 2013 IBM Corporation 14

Developing the Ecosystem

billing

quickprints

promo

order

stores

account

customer

Application data

API Mgmt Gateway

… .

partners partners

partners partners

partners

partners

partners

partners

Hackathon

…

New partnerships


The API Consumer

15

• Application Development

• Let’s meet Ana!

• Architecture Control

• Application Management


Application Development and API Composition

16

Language Bindings Packages Documentation & Self Service Help

Discovery

Platforms


Meet Ana the Fashion Blogger!

17


Real Application Development

18

“You give us permission to use your name, profile picture, content, and information in connection with commercial, sponsored, or related content (such as a brand you like) served or enhanced by us.”

Terms of Service

“You agree to defend, indemnify and hold harmless the owners and creators of Polldaddy and its Related Parties from any claims and expenses, including reasonable attorney's fees”

“In return You hereby grant Twilio a limited, non-exclusive, non-transferable, non-sublicenseable license during the Term of this Agreement to display Your trade names, trademarks, service marks, logos, domain names…”

Quality of Service


Architecture Control and Application Management

19

Federated Architecture • Separate Provisioning mechanism

• Disparate entitlements • Independent Keys • Separate Bills

• Tracking • Independent logging • Lack of SLA and ToS tracking

• Change Management • Versioning

• Reliability • Availability • Security


Ecosystems and Marketplaces

20

• Ecosystem Support

• Evolving into a Marketplace

• Cloud Runtimes


The Make of an Ecosystem

Catalog

Application

Composition Quality of

Service

Ru

ntim

e

Eco

syste

m

Sandbox and

enterprise

security

Enterprises

Startups

IBM

IaaS Cloud

PaaS Cloud

Integration with

legacy systems Scalable PaaS cloud

2

1

Systematizing best

practices

API

Ecosystem

Enterprise

considerations

Consumability of

APIs

Design for

elasticity and high

availability

Linking to external

services


Cross industry CRM

SaaS

1995

Add AWS for Developers

1999

Store front Grow ecosystem

Add 3rd Party via API

Marketplace

2008

Add Force.com 3rd party CRM Apps

Retail

2000 2007

Retail S

cale

with

C

lou

d

+

Add GovCloud for Federal

and 1500+ ISV, Reseller

Retail

1000s o

f M

erc

han

ts

+

2012

2010

10

0s

of

Me

rch

an

ts

Retail

22

Core: CRM

Add Heroku PaaS

Force.com 3rd party CRM Apps

New core: Cloud

Core: CRM

Core: CRM

Scale

w

ith

Clo

ud

+

New core: PaaS

Start from the core: Build the credibility

Expand with APIs and Scale with Cloud


In Summary

23


Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

API

Economy

Cloud

Operating

Environment

Software

Defined

Environment

API-accessible Business Services Made Available

to Third-party Innovators Composing Solutions

• Developer-centric Platform, Marketplace, and

Services for Born-on-the-Cloud Applications

• Dynamic Next-generation Infrastructure for

deploying Cloud Service & Enterprise Data

Centers

Three Independent Layers that Build Off Each Other to Enable the New

Generation of Dynamic Service Composition and Delivery

IBM Strategy – Enabling Enterprises into the API

Economy


Reference Model – Sample functional details

Capabilities for API and Service Providers

Capabilities for API and Service Consumers

Social Feedback and Communities

Marketplaces

Self-Service Portal: Registration • Documentation • Sandbox

Security and Platform Man.

API & Service Design & Integ.

Analytics and Metering

API & Service DevOps

Composition

Industry Accelerators

App Management

and DevOps

Mobile Accelerators

Internal

Developers

Partner

Developers

External

Developers

Services: Data • Processes • Applications • Cloud & 3rd party integration

Channels: Smartphones • Tablets • Desktops • Cars • TVs • Others

Business Support Systems

Cloud / On-prem / Hybrid Hosting

•Mobile connectors (D2X)

•Mobility services (e.g. push

notification, location)

•Business Glossary and Ontology

•API design and publish

•API patterns

•Deployed business API’s

•Business Monitoring

•Policy management

•Security management

•Operational dashboards

•Industry models

•Predefined API content packs

•Cloud connectors

•3rd party connectors

•Trusted Information as a Service

•Master Data Management

•Data connectors

•Data mashups

•Gateway runtime

•Policy and entitlement enforcement

•Intrusion protection

•Application integration

•COTS connectors

•Pricing

•Metering

•API business usage analytics

•PaaS and provisioning

•Virtualization

•Caching

•Dynamic routing and

optimization

•Billing

•Business contracts

•End user license agreements

•Marketing

•Communities

•Ratings

•Collaboration Services

•IP protection and licensing

•Publishing

•Storefront

•User and identity management

•Tenant management

•Developer portal

•Self service registration

•API sample documentation

•Sandbox


Research Hackathon Transforming the Culture, Enabling Collaboration/Innovation

Goal Have fun, eat junk food, and write code!

Scenarios &

Awards

Innovative API Award

Customer Experience Award

Cloud Innovation Award

SDE Innovation Award

Outputs 60-second demos, highlight creative problem solving, no slides!

SSE Fabric 35 IBM APIs + 10 external APIs

Infrastructure SDE: BlueMix + OpenStack, SCE+ 2.0, Worklight, Weaver, Splice

Hackathon platform Gitlab, HackTube, workshops, voting system, hackers lounge in all participating

labs, all hands on deck, 280+ hackers registered,

Hacks 38 submitted for judging (from 135 hackers)

Learnings and

Outlook

Lead up to hackathon critical – “services first” mindset

Emphasize the “human element” – Working side-by-side, meeting new people,

learning new things, rapid prototyping … tap into the “hacker culture”

Great innovation platform for Research, partners and clients

new opportunities in the api economy · infrastructure sde: bluemix + openstack, sce+ 2.0,...

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