Discovering the Value of API Management – Introduction and Product Overview

Mike BurkettWetumpka, AlabamaAugust 28, 2014

API Economy OverviewMike BurkettITS, IBM WebSphere Connectivity Great Lakes / Southeast RegionWetumpka, Alabama

Recent shifts present business opportunities and IT challenges

and growth is accelerating dramatically

By 2014, 75% of the Fortune 1000 will offer public Web APIs.

By 2016, 50% of B2B collaboration will take place through Web APIs.

Sources: Gartner, Predicts 2012: Application Development, 4Q, 2011; Gartner, Govern Your Services and Manage Your APIs with Application Services Governance, 4Q 2012; Gartner, Open for Business: Learn to Profit by Open Data, 1Q 2012

APIs are a path to new business opportunities

Web APIs are the new, fast-growing business channel

Businesses are Evolving

stores (800) ###s web sites

Web APIs are Emerging Across All Industries

Energy and Utilities

Government Healthcare Transportation Retail

Banking Insurance Telco Chemical and Petroleum

Electronics

Banking

APIs are available in a sandbox environment

Some hold contest to see to who can develop the best app a modest reward

Some charge for use of apps

Types of APIs Comments

Customer API

Account API

Transaction API

Branch Locations

Drivers

Banks are having challenges in the marketing ability to create, test and evolve new services and adapt better to the needs of the users in the changing of their uses.

Need to deliver multiple focus apps on many different devices.

Financial Overview

Financial Timelines

Mapping Financial Relationships

Added Valued Services such as loyalty, couponing and target marketing

Examples of Apps

Insurance

APIs are available in a sandbox environment

Some hold contest to see to who can develop the best app a modest reward

Some charge for use of apps

Types of APIs Comments

Policy API

Customer API

Account API

Drivers

Business trend to leverage partnerships and decentralize the business value chain

Pressing need to become more agile

Business flexibility to try new things to drive revenue

Increase need to improve effectiveness of working with external partners in delivery of business solutions

Retail

Products APIs are typically open

Some APIs require further approvals to use

Types of APIs Comments

Products API

Store Locator API

Deals of the Day API

Reviews API

Top Sellars API

Categories API

Drivers

Shifts in buying patterns customers

Need to be where customers are purchasing – mobile devices

Capitalize on every small channel that is created.

Milo.com – searches for best prices

Gazaro – deal finder

GetGlue – social network for movie tv shows

eBay Gifts Nearby -

Examples of Apps

The Market Pressure

The explosion of devices and channels• How do you support delivery of your services and products

on all of these devices?

Applications are smaller, more focused, and come and go very fast• How do you keep up with the rate of change?

Competitive pressure forcing the need for faster innovation• How do you foster innovation to beat out competition?

Partnerships need to be established quicker and connected quicker• How do you create new partnership fast which our outside

of your normal interactions?

Brand loyalty is always under attack• How do you get and maintain brand loyalty?

What is a Business API? A Business API is a public persona for an enterprise; exposing defined

assets, data or services for public consumption A Business API is simple for app developers to use, access and understand A Business API can be easily invoked

What Value Does a Business API Provide? Extends an enterprise and opens new markets by allowing external app

developers to easily leverage, publicize and/or aggregate a company’s assets for broad-based consumption

What “assets, data or services” are exposed via a Business API?: Product catalogs Store listings Order status Inventory Social interaction

Business API = Web API = Productized Service

App DeveloperApp Developer

© 2014 IBM Corporation

© 2014 IBM Corporation

Are APIs just a new name for SOA?

There are many similarities – but one very important difference:

The objective most have been focusing on achieving with them

APIs SOA

“How can I increase the pace of innovation?”

“How can I increase the agility and effectiveness of delivery?”

Reuse → Speed to deliverSharing → ExpediencyEncapsulate → Less to learn

Reuse → Effort to deliverSharing → EffectivenessEncapsulate → Less to change

Each style sprung from the systems they were most focused on…

APIs SOATo control the creation and operational behavior of Systems of Record services, use WSRR

To control the creation and operational behavior of Systems of Record services, use WSRR

To foster innovation through the consumption of API’s across Systems of Engagement, use API Mgmt

To foster innovation through the consumption of API’s across Systems of Engagement, use API Mgmt

Services

•Focus on the provider•Stable interface to systems of record

Services

•Focus on the provider•Stable interface to systems of record

APIs

•Focus on the consumer•Easy to learn, easy to use

•Simplified access to gateway capabilities

APIs

•Focus on the consumer•Easy to learn, easy to use

•Simplified access to gateway capabilities

Private Cloud

Back-office Processes

Analytics

Services Databases

CRM

Internet of Things

Mobile

Public Cloud

Social Web

Partners

GatewayGateway IntegrationIntegration

Two similar worlds converging

Service Management

API Management

Mainly about Services Mainly about APIs

Govern services through the lifecycle

Expose APIs to the Web, manage them to prevent chaos in usage

Began with Web Services Began with REST

100’s of services Smaller number of APIs

Typically internal, behind firewall

External and Internal

Driven by Enterprise Architects

Driven by Business, Marketing, Mobile teams, Innovation teams

Governs with a Stick Governs with a Carrot

Established market presence

Newer in market

Contracts enforced with ESBs and Gateways

Security and Entitlements controlled by Gateway

“The overlap between SOA governance technology and API management is significant.”

“It is about tracking and monitoring the artifacts in an SOA or an API project, enforcing and ensuring compliance with the policies associated with the artifacts and measuring the outcomes related to their use.”

- August 2013, Gartner’s Application Services Governance report

Application Services Governance

API ManagementSOA Governance

Introduction to APIs and API Management

API Management Introduction and General Concepts

- Terminologies

- Roles & Responsibilities

- Architectural Use Cases

- Types of APIs

- API Styles

Terminologies: Web APIs, Mashups, Apps

Terminologies: Web APIs, Mashups, Apps

App Developer Business User IT Person

• Develops cool new applications against new public or private APIs

• Understands one or more web programming languages

• Spends his free time developing Apps too

• Wants to reach new markets through new channels

• Understands the business and value of assets being exposed

• Needs to experiment with different programs and campaigns to drive adoption

• Product Manages the initiative

• Exposing public APIs might be new to the IT Person

• Worried about security and scalability of infrastructure

• Short on time to do new projects

Roles & Relationships in the API economy

Companies Need to Become an Engaging Enterprise

Apps

Customer

Business User

IT

Enterprise

App Developer

• Business Users want to engage Customers in new markets

• They need to Externalize the Enterprise

• They need to get Apps in front of these Customers

• Apps need APIs that Externalize the Enterprise

• App Developers use APIs

• App Developers are now External to the Enterprise

• IT Guys need to secure, scale and support the externalized Enterprise

• Business Users and IT Guys needs Insights so they can respond to business needs

The Platform

Enterprises wants to tap into innovation from a large

community of developers, not just developers they employ

Public, Open-To-All APIs

Protected, Open-To-Partner APIs

Private, Internal APIs

• APIs are open to any developer who wants to sign up

• Apps are more targeted towards end consumers

• The business driver is to engage customers through external developers

• APIs are open to select business partners

• Apps could be targeted at end consumers or business users

• The business driver is usually different, based on the data and type of business of the enterprise

• APIs are exposed only to existing developers within the enterprise

• Apps are usually targeted at employees of the enterprise

• The business driver is more around productivity of employees

Customers will require a combination of three API types

Drives Adoptions of APIsTypically low valued assetsDrive brand loyaltyEnter new channels

For Free

Facebook Login API provides free authentication for any Web / mobile app

Example:

Developer Pays

Business Asset must be of high value to the Developer

For example, marketing analytics, news,

Capabilities such as credit checks

Amazon EC2 Web Services – APIs charge per usage to launch and manage virtual servers.

Example:

Developer Gets Paid

Provides incentive for developer to leverage web API

Ad placements

Percentage of revenue sold product or services

Google AdSense APIs pay developers who include advertising content into apps

Example:

Indirect Use of API achieves some

goal that drives business model.

E.g. Increase awareness of specific content, or offerings

eBay Trading APIs offer developers access to trading services extending the reach of listings and transactions

Example:

API Monetization Models

Typical App Developer Requirements

API Exposure Considerations

• APIs can change scope over time if needed from private to protected or public and from protected to public.

• Once an API is made public though, it is considered a contract with the consumer and would need to follow a formal deprecation process to be removed.

Explore, Experiment, Expand & Embrace

Essentials for successful API

Big Data Assets

Big data sources provide insights that are shared and monetized through APIs

Social Users

Social APIs fuel personalized experiences for users and new business models

Cloud Web Apps

Cloud services are exposed through Web APIs enabling rapid composition environments

Mobile Apps

Mobile applications make calls to back end services through Web APIs

APIAPI APIAPI

APIAPIAPIAPI

1. Omni-channel2. Operates with agility3. Re-invents itself

Attributes of a Composable Business

APIs are the foundation of a Composable Business

Speed Creation and Consumption

Creation Consumption

• Assembly• Transformation• Rationalization

• Discovery• Composition• Deployment

Assets & Services Application End Points

Grow revenue through new channels

Deliver a differentiated customer experience

External APIs

Partner APIs

Internal APIs

Service Aorg/proxy1_serviceA

org/proxy2_serviceB Service B

Invoke Service AHTTP/JSON

Invoke Service BHTTP/JSON

HTTP/JSON

HTTP/JSON

Client App

Client Layer API Management Layer

On Premise/CloudResource

Service A

DataBase B

Invoke AssembledService

HTTP/JSON

HTTP/JSON/Detail1/get

HTTP/JSONdatabase/update

Client App

Client Layer API Management Layer

On Premise/CloudResource

org/assembly1_getNupdate

Proxy Style – For Pass through style APIs

Assembly Style – For composition and orchestrations in your APIs

API Styles - Proxies and Assemblies

Typical Architecture - Internal

Internet

DMZSecurity Gateway

Rich Internet Applications

DataControllers

Dojo.dijit Dojo.baseDojo.dojox/

Dojox.mobile

Dojo.dataNavigationControllers

Templating(django)

Other UI Tech

AuthenticationAuthorization

Routing/Transformation

Ecryption/DecryptionRouting/

Transformation

Enterprise Connectivity & Integration

APIs

AssembliesProxies

Internal Developers

IT Operations

Business User

Enterprise Information Systems

Enterprise DataBase

Core Application Backend

Enterprise ESB

ProtocolTransformation

Adapters REST Services SOAP Services

HTP/XML HTTP/SOAP

HTTP/JSON

OtherEIS

HTTP/JSON/XML

Intranet

Typical Architecture – External & SaaS Based

DMZ

Intranet

Internet, Cloud

API Management SaaS Offering

Security Gateway

AuthenticationAuthorization

REST InterfaceEcryption/DecryptionRouting/

Transformation

Enterprise Connectivity & Integration

Enterprise Information Systems

Enterprise DataBase

Core Application Backend

Enterprise ESB

ProtocolTransformation

Adapters REST Services SOAP Services

SOAP/HTTP

OtherEIS

HTTP/JSON/XML

APIs

Assemblies

ProxiesDev Portal

Usage Mertics

API Management SaaS Offering

Consumers

Business User

IT Operations

View PortalUse APIs

Create Apps

Define APIs

Publicize APIMeasure Metrics

HTTP/JSON/XML

ExternalApp Developers

ConsumeApps