Open APIs: State of the Market John Musser, ProgrammableWeb @johnmusser Cloudstock, December 6th, 2010

Introduction ProgrammableWeb.com API & mashup directory News, community, dev tools 2,400 Web APIs 5,300 mashups

Open APIs: State of the Market The big picture The business of open APIs Design and technology Trends

Open APIs: Why bother? Make money Save money Build brand 60% of all listings on eBay.com added via their APIs 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 transactions via their API Go anywhere Netflix now available on over 200 devices

2010 has a 2x increase in new APIs per month over last year Open API timeline It took 8 years to get to 1,000 APIs, but only 18 months to get to 2,000 APIs 2010 has a 2x increase in new APIs per month over last year 2000 2002 2003 2005 2006 2007 2008 2009 2010 105 APIs 352 APIs 601 APIs 1,116 APIs 1,628 APIs ? APIs

APIs: Some very competitive markets Based on directory of 2,300 web APIs listed at ProgrammableWeb, November 2010

Open APIs: Sampling growth by sector

Open APIs: Sampling growth by sector YouTube sells for $1.7B

Open APIs: Sampling growth by sector Facebook opens platform

Open APIs: State of the Market The big picture The business of open APIs Design and technology Trends

What makes an open API successful? The underlying service Or, a good API on a bad service is lipstick on a pig A plan and a business model Simple, open, easily adopted Providing choices Good developer support 11

Best practice: Bake your business model into your API API business models Who What How Amazon Associates Retail Affiliate Model Amazon S3 Infrastructure Pay-as-you-go eBay Auctions APIs for listings Exact Target Bulk Email Tiered pricing Rhapsody Music Partnerships Salesforce.com CRM / SFA SaaS per-seat licenses Best practice: Bake your business model into your API

APIs as biz-dev enabler (aka Bizdev 2.0) “Decentralized business development” -Toni Schneider Flickr API Business/Partner Consumer/Hacker

API Billionaires Club 5 billion API calls / day (April 2010) 5 billion API calls / day (October 2009) 3 billion API calls / day, 75% of all traffic (April 2010) 8 billion API calls / month (Q3 2009) 3 billion API calls / month (March 2009) 1.1 billion API-delivered stories / month (March 2010) Over 50% of all traffic via API (March 2008) Over 100 billion objects stored in S3 (March 2010)

Open APIs: State of the Market The big picture The business of open APIs Design and technology Trends

The big technical debates Protocols and styles REST vs. SOAP vs. … Data formats XML vs. JSON vs. … Standards So many to choose from… 16

REST vs. SOAP: Simplicity wins again Distribution of API protocols and styles Based on directory of 2,300 web APIs listed at ProgrammableWeb, November 2010

REST vs. SOAP, more of both, but a lot more REST Total number of APIs based on protocol and style Based on directory of 2,300 web APIs listed at ProgrammableWeb, November 2010

Data formats: lots of choices XML, JSON, RSS, Atom, YAML, iCalendar, CSV, Serialized PHP, HTML, PNG, GeoRSS, vCard, Text, RDF, OPML, MediaRSS, VML, TV-Anytime, hCalendar, FOAF, XSPF, SQL, GML, CDF

JSON Rising: 45% of all new APIs support JSON 197 APIs are now JSON-only, including Facebook Graph, Etsy, and Twitter’s Streaming API Percentage of new APIs with JSON support Based on directory of 2,300 web APIs listed at ProgrammableWeb, November 2010

20% of all “Social” APIs now with OAuth support OAuth picking up steam 120+ APIs with OAuth support 20% of all “Social” APIs now with OAuth support

Open APIs: State of the Market The big picture The business of open APIs Design and technology Trends

APIs growing up: versioning & other best practices Old Twitter http://twitter.com/users/show/noradio.xml New Twitter http://api.twitter.com/1/users/show/noradio.xml

APIs growing up: keeping developers informed

APIs growing up: keeping developers informed http://www.programmableweb.com/api/ebay/status

API monitoring: don’t let this happen to you … via http://monitor.programmableweb.com

APIs are the glue of SaaS Firewall Customize Integrate API Internal App: web/desktop Traditional Platform Customize Integrate API SaaS App SaaS Service Internal Apps & Systems

SLAs and Premium Support for APIs Service Level Agreements and Premium Support Google Maps Premier (starts at $10K/yr) Amazon’s new Premium Support packages

1 API can support 100’s of devices Source: Michael Hart, Netflix 29 29

Mobile explosion is driving API explosion Pageview growth: NPR.org vs NPR mobile Source: NPR 30 30

API as Product When an API is not an extension of your product, but it is your product

Invisible Mashups, part 1 Classic mashup Invisible mashup HousingMaps.com Ooyala.com + EC2 + S3 + SQS 32 32

Invisible Mashups, part 2 + APIs are hiding in plain sight, if you know where to look

Have we seen this before? Why do we need a Web site? Of course we have a Web site Why do we need an API? Of course we have an API 1995 2000 2005 2010

thank you Questions, ideas, comments? Email me: john@programmableweb.com Twitter: @programmableweb @johnmusser