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APIS: Running your
Business Inside out
Steven Willmott
3scale Inc.
@njyx, @3scale
Thank you for the Invitation!
or…: “APIs for Startups:
3scale is…
API
Management
Provider
!
Power 400+
APIs
!
120,000
Developers
writing Apps
!
API Tech Operations
API Business
Operations
Developer Support
(Selection)
3scale.net
+ Apitools
Also have a
new service for
Developers
!
Track
Transform
Analyze
API Traffic
!
http://www.apitools.com
Onward …
Agenda
Inside Out Business & APIs
API Models
Execution
Not so obvious Gotchas
Who has APIs?
(and why?)
Technical Reasons…
!
Business Reasons…
Common API Debates
Which framework to
use?
REST/SOAP - What is
Rest anyway?
Streaming API?
Internal / External?
Versioning?
Make it public?
Should we charge?
By API Call?
Should we put rate limits
on?
Won’t it kill our Ad-
Revenue?
Inside Out Business
Rethinking what you do
Truism #5471:
Business is Changing Fast..
One of the ways is in how
we build stuff..
Build
Everything!
Build
Nothing!
2000 2014
Meaning
Core
Value
Reuse as
Much as
Possible
Wrap and
Ship
But what is Core Value?
Engineering Answer
Our Beautiful Unique Code!
Made by Rockstars over Many
Months!
(even) our awesome UI!X X XWrong Answer
Your Value is one or more of:
1.Your Data
2.Key Functionality
3.Your Audience/Reach
That’s all people
care about
The Following Help but are
secondary
1. Being Cool
2. Having a Nice UI
3. Having a Nice API
None is a
reason for
people use you
per se
Lipstick / Pig
I.e.
Make sure
your Bacon is
Good
Otherwise
Packaging
isn’t going to
help
So..
Core
Value
Stuff you
really don’t
want to
build!!
Open as
many
channels as
you can
So..
Core
Value
Stuff you
really don’t
want to
build!!
Web
Mobile
Customers
Distributors
Resellers
New apps
Different Access for Different
Targets. E.g.
An app for Seniors, who are Piano Teachers and need
a very advanced UI -> API?
A new humorous content for an 18-25 Audience
Demographic -> API?
A new advanced algorithm for predictive price plan
optimization for retailers ->API?
Inside Out Means…
Providing potentially deep access to your core
functionality to others at whatever level they
can handle
Reusing the core functionality of others where
you possibly can
Don’t write code
you don’t have to!
API Models
“A ‘startup’ is a company that is confused about –
1. What its product is. 2. Who its customers are. 3.
How to make money.”
Dave McClure, 500Startups
“A ‘startup’ is a company that is confused about –
1. What its product is. 2. Who its customers are. 3.
How to make money.”
Here are some options…
Mobile Enablement
Backend for your
own Mobile Apps
Multi-platform and/
or supporting
HTML5 / SPA
Focus: stable
backend
• Often combined with others
• Assume it is not private
• Apps drive business
Customer Ecosystem
Data Integration for
reporting (in / out)
Increases comfort
level v’s lock in
Allows self
customization
• Normally free or bundled
• Useful for driving up-sell
• Big driver for stickiness
Partner Ecosystem
3rd Parties can add
value that you can’t
Can be smaller or
larger
Alternative to
manual software
integration
• Increase functionality
• Add data
• Increase reach
Content/eCommerce Distribution
Special case of
partners
Partners resell &
amplify
Focus: gaining
audience /
transactions
• Partners may pay
• Or be paid
• Drive transactions to core
API As A Business
What everyone
thinks APIs are
about…
Access / per
transaction fee
Instant gratification
• Often data on demand
• Or functionality on demand
• API is the Business
Internal Innovation
Sorting out internal
legacy
Cross-department
teams made more
agile
Focus: refactoring
• Increase agility
• Reduce cost
• Up developer happiness
e.g.
Other Models
Many companies use
multiple models
Models often change
over time
Some apply more / less
to startups
Feel free to invent new
ones
Whatever
happens: be
clear which your
model is !
Execution
“I find your lack of faith
disturbing”
Skipping the Captain
Obvious Errors…
(e.g. poor docs, crappy design, …)
1. Make it valuable
2. Have a plan and a
business model 
3. Make it simple, flexible
and easy to adopt
4. Make it managed and
measured
5. Provide great support
6. Make sure it scales
7. (Meta)
!
Create more value than you
capture
Providing Value
Gotchas
A Surprise in Every Egg..
1. An incomplete API
2. API code bifurcation
3. The “Developer
Middleman”
4. Not choosing your poison
5. API launch coolaid
6. Premature future-proofing
7. Not caring about
performance
Expected Use of Your API
Expected
Unexpected
DesiredUndesired
Yay!
Innovation
Not so
Good
Oh-Oh..
Concept: Thor Mitchel / Google
As a Startup, Primary problem
Expected
Unexpected
DesiredUndesired
Making this
Happen
Conclusions
Covered
Inside Out Business & APIs
API (Business) Models
Execution
Not so obvious Gotchas
Conclusions
Don’t get religious
Make sure you are delivering genuine value
Treat the API as your product
Focus on the early key passionate users
Decide if you are a platform or an application/service
Always enhance your core company value - do make it
a separate business
3scale: http://www.3scale.net
APItools: http://www.apitools.com
APICodex: http://apicodex.3scale.net
Questions Please!
Contact:
http://www.3scale.net
@njyx - steve@3scale.net
References
http://www.3scale.net/2012/12/api-economics-create-
more-value-than-you-capture/
http://www.3scale.net/2012/11/building-great-apis-
the-api-gold-standard-part-i/
http://www.slideshare.net/timoreilly/measuring-the-
economic-impact-of-the-sharing-economy
http://apievangelist.com/2012/01/12/the-secret-to-
amazons-success-internal-apis/
Image Credits
https://www.flickr.com/photos/queen_of_subtle/
7233340968/
https://www.flickr.com/photos/ornellas/2528690209/
https://www.flickr.com/photos/wfryer/716965391/in/
photolist-26mCQg-5n43FU
https://www.flickr.com/photos/laughingsquid/
616921109
https://www.flickr.com/photos/

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