The KuppingerCole IT Model and the API Economy19.04.2012 11:30-12:30 Moderator:
How the API Economy Leverages our Capabilities for Delivering Business Services
The KuppingerCole IT Model describes how IT can deliver the services business really needs, by managing, orchestrating, and securing services from different providers and deployment models. The API Economy is a key enabler for that model because this is what provides the granularity customers are requesting. It allows customers to use APIs for granular services when they need them instead of relying only on big, fat SaaS applications. The API Economy gives customers the choice – from relying on standard services to the customizations and integrations they might need for business processes that support their agile organizations best.
API Economy: The Consumer View
There are two sides of the API Economy: The Provider view which focus on delivering Cloud Services and exposing the APIs. And the Consumer view, which makes use of these services.
When looking at the consumers, there are two types: The one are the real consumers, e.g. the organizations building business services by orchestrating the exposed services – by making use of the API Economy. They pay for the ability to build better business services by using those APIs, paid or for free. But they will be increasingly willing to pay for that. And notably, they are using the API way instead of the sometimes big, fat on-premise SaaS applications because they thus can provide tailored business services – the services the business users really want.
On the other hand, there are the consumers which are providers. These are creating new services based on existing ones which again might expose their APIs. In fact, their approach isn’t really different, because their business service is something which sells better to the business users.
API Economy: The Provider View
The other side of the API Economy is about the providers. Why should providers support this concept? Why should they expose APIs and which ones? How to manage them? How to make money out of it? What does this mean for the business model in contrast to offering big fat SaaS applications? And is there a new, emerging market for small and specialized vendors of only a few services? How to deal with security and accounting? What about meeting service levels in heavily orchestrated environments using many different APIs?
There are many questions, there are some new tools supporting the API Economy – and you’ll learn in that session a lot of the "how to make use" of the API Economy.