Punctuated Equilibrium, Celestial Navigation and APIs - Web 2.0 API Strategy Talk Video »

At this year's Web 2.0 Expo in San Francisco, our Sam Ramji and Netflix's Dan Jacobson and Michael Hart gave an API strategy talk called "Punctuated Equilibrium, Celestial Navigation and APIs."

The talk focuses on the evolution of business models, architecture and data in the age of APIs, with a focus on strategic frameworks for developer, partner and innovation success, plus a look at the cutting-edge API architecture of today. Check out the new video of the talk and slides, below, and see our API Resources page for more API strategy goodness. 

Sam Ramji's Web 2.0 Lecture, 2011 from Apigee on Vimeo.

Punctuated Equilibrium, Celestial Navigation, and APIs - Web 2.0 2011 API Strategy talk »

Sam Ramji from Apigee, along with Dan Jacobson and Michael Hart from Netflix, recently gave this API strategy talk at the Web 2.0 Expo in San Francisco. 

It includes frameworks, best practices and lessons learned to help in thinking of your API strategy from a business model, architecture, and data perspective.   

Why Punctuated Equilibrium and Celestial Navigation? See the slides below and look out for the full video shortly. 

Partner or Open API strategy: Where should you start? »

Embarking on an API project--let alone an enterprise-wide API strategy--can be a scary proposition. It's easy to imagine a big-budget API project costing more than expected, taking longer than planned and ultimately not delivering the anticipated value.

We've observed that many successful API initiatives are done in stages. With each stage more risk and larger investment can be made by building on previous projects.

Stage 1: Internal APIs

Typically the first stage is to create an API for an internal development team to use. Often times at this stage, the demand for an API is driven by the need for mobile applications. The API doesn't have to be perfect, but it has to be good enough to meet the concrete needs of the mobile application. Tackling the internal, mobile project as a first step allows the API team to learn big lessons while keeping the project scope small so that the API starts to add value immediately while setting the ground work for later stage developments.

Stage 2: Partner APIs

The second stage is to collaborate with partners. At the beginning of this phase we see companies work with one or two strategic partners, who will create applications, add-ons or integrations with the API. At this stage the API will be hardened and because the API will be used across organizational boundaries, the API team will learn a new set of lessons including support, documentation, authentication schemes and so on. One key benefit is that the business development team will start to see movement with their backlog of projects into IT. After the API team gets comfortable with a couple strategic partners it is a natural next step to create resource portals and automated systems for provisioning partner keys so that more and more partners can take advantage of the API.

Stage 3: Open Innovation

The final phase is open innovation. After the API team has learned from internal and partner projects there will be a vast amount of institutional wisdom and courage for opening the API to the world of innovative developers, who can take the API in creative, valuable directions for the business.

Exceptions to the rule
Netflix has followed the opposite direction and has found huge success. They started with the open API strategy (as a result of a contest) and found over time that by far most of their traffic came from a few partners who were building streaming services for specific connected devices.  

The month the new interface went out for Xbox, streaming went up very noticeably. While Netflix still supports the pubic API, they put more focus behind adding and supporting larger partners over 'the long tail' of developer apps, until they had over 200 mobile partners and 25% of prime time internet traffic. Later, internal developers re-engineered their private streaming API.. by using the public API.  

So while long tail innovation is good for buzz... the enterprises that focus on collaboration with partners and customers will win. Even at NPR, the API project was successful because it powered the internal website and partner collaboration.

For the full story, check out this webcast on the Netflix API strategy. 

But what about smaller companies? Many smaller companies or startups might not have large partners that can give them huge distribution. In this case, an open API can be a way to get some uptake of an API. More on that next.

What the Netflix Button Means to Your Business Strategy »

Will Richmond at VideoNuze has some great insights on Netflix’s announcement that 11 different consumer electronics companies will have a dedicated Netflix button on their remote controls. 

Will points out the connection between consumer’s demand for content and applications and the accelerating sales of electronics devices, and how Blu-ray player sales took off once connectivity was added.

We’ve already witnessed the huge demand in the last couple years for the iPad, iPhone, and other ‘smart,’ ‘connected’ devices.  

If you are in charge of an online product strategy or your company’s go-to-market strategy, your alarm bells should be furiously ringing. There’s huge demand for connected devices. Phones, iPads and DVD player are being purchased en mass to get access to connected apps. How do you reach consumers where they are obviously going? What is your connected app strategy? How do you even have a connected app? The app has got to have something to *connect* to!! What’s your app going to connect to? FIRE! FIRE!

And THAT is why the Netflix button on your Samsung Blu-ray play means you need to have an API strategy. As Adam Kleinberg of Traction put it, every brand needs an API. It sounds trite but not having an API today is like not having a website in 1998. Companies like Netflix are showing you the way- check out their engineers speaking about their API strategy in this video. Don’t ignore the alarm bells. 

RESCHEDULED: Netflix and the Second Coming of the Internet - Webcast Now Wednesday, December 15 »

Last week we experienced technical difficulties during the scheduled webcast on Netflix's API strategy. We apologize and have rescheduled the event for Wednesday, December 15 at 10:00 am PT / 1:00 pm ET. People who registered for last week's event do not need to register again, and new registrants can sign up here. A dial-in number for audio will be provided to all registrants in addition to the screencast and VOIP option. 

In Netflix and the Second Coming of the Internet: The Biz and Tech of the API Economy, Netflix's Daniel Jacobson, director of API engineering and Michael Hart, director of social engineering, will discuss the Netflix API platform and strategy. Here are some additional details:   

We'll hear about how Netflix's API strategy has evolved and discuss some of the top issues and best practices for API platform providers, teams and developers, including:

• Building an effective partner program
• Identifying the right API metrics to measure and drive the business 
• Reaching the hundreds of devices that define today's internet, from TV set-top boxes to gaming consoles
• Getting to mobile
• Rapidly testing application experiences 
• New technology like HTML5 and WebKit and where it fits
• API design best practices 
• Security, scale and management
• Developer experience 

And more! Hope to see you there for some great content and lively Q&A with the audience! Shoot us a note on Twitter if you have any ideas or questions you hope to see answered. 

Netflix vs. Hulu: Why Looking at Web Traffic Isn’t Enough in the Age of the API »

Business Insider recently posted a chart comparing the web site traffic of Netflix.com and Hulu.com over the past few years. The chart shows that in late 2009, Hulu's traffic began to surpass Netflix's. The article's headline suggests that Hulu is "coming up" on Netflix- but these numbers don't tell the whole story.

Much of Netflix's usage comes from the Netflix API, which serves customers using set-top boxes, applications and gaming consoles- allowing users all over to access their content without coming to their website. Google Analytics, Quantcast and Alexa can't tell you about the customer watching videos on their iPad or xBox, or through applications on their mobile phone. In the new world of APIs, multiple devices and multiple channels, website traffic numbers aren't enough- you need to measure API traffic to see what is really going on.

Looking at website traffic alone is like trying to measure Twitter usage by looking at how many people visit Twitter.com via a browser, as opposed to looking at how many people access it through the number of web, mobile and desktop applications that consume the Twitter API. 

The problem with looking at the wrong business metrics- like focusing on website analytics instead of the complex ways customers now consume media- is that it can lead you to the wrong conclusions.... and the wrong business decisions. API analytics are an essential business metric in the post-browser era- and a metric that businesses, analysts and press all need to look at as they try to get the full picture of how companies and content are growing and evolving.

Retailer Markets Moving to Open APIs »

When one of the largest, most successful retailers on the planet makes a move, you can definitely consider it a confirmation of a trend.

Last week, the WSJ reported that Wal-Mart is opening smaller-format stores in new urban locations.  Wal-Mart CEO Mike Duke stated in their annual report that their growth will be driven by “innovated new formats”, which includes the smaller stores and stores with drive-throughs for picking up internet purchases.

Essentially, Wal-Mart is going to where their customers are…. taking their brands to different chnnels where customers spend their time, to be there when those customers want to buy.

What does that have to do with APIs?  Everything.

Retailers as diverse as Sears, Netflix, and BestBuy are opening APIs to take their brands and their services to where their customers spend time.  Those customers are on Facebook, on Twitter, on enthusiast sites, on their iPhones, iPads, Xboxes, etc. 

As the image below from Sam's Web 2.0 talk depicts - you may have to connect to customers across many diverse channels, from smartphones to Xboxes to your car and kiosks.)

Getting your capabilities into these environments where customers are spending time requires that you fit into new formats… like an iPhone or Android app, or an iPad or Xbox app.  You can’t possibly be an expert in the dozens (hundreds?) of platforms, sites, and devices out there.  Developers can help you do that, if you have your catalogs and services exposed via web APIs.

By the way, we have a new whitepaper out on Retail 2.0 today, you can get a sneak preview here.

Apigee API Contest Winner at iPad Developers Camp - Netflix Actors »

The winners of the Apigee sponsored prize at the iPad developers camp was the "Netflix Actors" application. Check out a quick demo of the application below.

APIs for connected devices - the rush is on »

My favorite Superbowl ad was for Vizio HDTV - it was great to see about a dozen leading Web APIs showcased right up there with Beyonce.

Yesterday Michael Zimablist posted on the New York Times Bits blog about how the NYT’s content must now support a growing range of devices like the Vizio, from web-connected printers to mobile apps to the new iPad.

And the Wall Street Journal's Martin Peers asks if the iPad’s e-book store is the new model for the television industry, citing how Netflix is streaming to over 50 different devices to build new audience. Blockbuster is pursuing a similar strategy to deliver it’s movies to “nearly every connected device.”

So the rush is on… just like a decade ago when companies scrambled for a ‘www’ address, companies today are rushing to create APIs - making their data and services available to execute a multi-channel, multi-device strategy.

Next: what are some considerations for your API in supporting an ever-expanding number of devices?