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Bigger, Better Business with
OAuth
11.11.17 @ 11:05 PST
VOIP or Dial-in (see chat)

groups.google.com/group/api-craft

Sam Ramji        @sramji
Brian Mulloy     @landlessness
Your hosts
@landlessness   @sramji
groups.google.com/group/api-craft




                                    4
youtube.com/apigee




                     5
THE PLATFORM
IMPERATIVE
Every market in history has had intermediaries
Business   Intermediaries   Customers
These intermediaries connect buyers and
sellers by knowing what both want and
creating convenient ways to transact
Apps are the new intermediaries.
Business   Apps   Customers
They occupy many niches already and
continue to multiply
App Store Growth 2008-2011
            600                                            12

            500                                            10
                    Apps Available
Thousands



                    Total App Downloads
            400                                            8




                                                                Billions
            300                                            6

            200                                            4

            100                                            2

             0                                             0




                                          Data from Wikipedia
As do devices.
Mary Meeker
Kleiner Perkins
Companies cannot build for all these niches as
each one requires distinct expertise in design
and development, and there are too many
niches.
As Marc Andreessen observed recently
“   In short, software is eating the world.

    We are in the middle of a dramatic and broad
    technological and economic shift in which
    software companies are poised to take over
    large swathes of the economy.


                                  Marc Andreessen
Evans, Hagiu, and Schmalensee
explored this deeply in 2006
Bigger, Better Business With OAuth
And Annabelle Gawer
has formalized the solution
Bigger, Better Business With OAuth
The platform business model.
PLATFORMS
ARE
OPEN
As we’ve learned from digital natives like
Bigger, Better Business With OAuth
open platforms grow the fastest.
Visualization by Apigee
In the API era of competition, speed is crucial
because critical mass leads rapidly to market
dominance.
[Ecosystem Competition]




                 Kishore S. Swaminathan, Chief Scientist, Accenture
Open platforms mean that
apps can be built by developers quickly

without formal commitment to
joint research,
joint development, and
joint marketing.
Open platforms decouple partners from the
platform provider’s business cycles.
This reduces the cost of innovation,

enabling many more experiments to be made
more quickly,

increasing the chance of a major improvement
to the platform business, its customers, and its
intermediaries.
This is low-friction innovation.
OPEN
DOES NOT MEAN
SECURE
This takes us to the stakes required for a
digital business in the API era.
For an intermediary to connect a buyer and
seller, there must be trust.
The intermediary must be trustworthy,
and the transaction must be trustworthy.
In modern businesses, buyers (users)
have accounts with sellers (providers)

which are filled with data
as well as transaction privileges.
For the system to function well,
  buyers must be able to fire their intermediary

without breaking their relationship with the seller.
With apps as the intermediary, new dynamics
exist on top of the historical foundation.
Apps are new.

They are often short-lived.

Their business model depends on building a
high volume of users.

They must have some way to attain their first
transaction and be proven or else improved.
And this way must align with the
loose coupling philosophy at the heart
of an open platform

otherwise we’ve just secured our way back
into old-fashioned closed businesses

and killed our platform opportunity.
“   20th Century IT was about raising barriers to
    entry for competitors.

    21st Century IT is about lowering barriers to
    participation.

                                    James Governor
                                            Redmonk
So how do you build a trustworthy system
in an open world?
It takes an open security architecture.
INTRODUCING
OAUTH
Bigger, Better Business With OAuth
It’s a free and open protocol

  built on licenses from the
  Open Web Foundation

and it’s the right choice for securing open platforms.
The Valet Key Metaphor
Eran Hammer-Lahav compares
the OAuth model to a valet key.

This is an apt metaphor.
Bigger, Better Business With OAuth
Bigger, Better Business With OAuth
Bigger, Better Business With OAuth
A Valet Key for Open Platforms
The heart of OAuth
is an authorization token with limited rights

which the user can revoke at any time
should they become suspicious or dissatisfied
with the app they’re using
to access your business.
When the token is first granted

the business shows the user what rights the
app is asking for
Bigger, Better Business With OAuth
and this negotiation is invisible to the app.
A perfect design for bootstrapping trust.
Just Enough Permission
An app should have just enough permission
to do the things the user wants it to.
Bigger, Better Business With OAuth
OAuth allows for granular access to the user’s
account.

The current alternative is all or none

Give the app your username and password –
which gives the app access to everything
about you.
In OAuth, permissions can be gracefully
upgraded as well.

If the user tries to do something in an app and
they haven’t authorized the corresponding
permission, the business can give the users
the option to add that permission, using the
bootstrapping sequence used to grant the
token in the first place.
Just Enough Responsibility
App developers are not security experts.
A developer’s job is to make software that
does what it is supposed to do.

A security expert’s job is to make sure
software never does what it is not supposed
to do.
App developers DO NOT WANT the
responsibility of holding a user’s secret
information.

Usernames and passwords,
Credit card and banking information,
Lifetime history of everyone you’ve emailed

These are heavy secrets
and require heavy security.
The right place for these is within your own
business, secured by your own experts and
your own infrastructure investments.
Decoupling partners from these challenges

keeps security consistent

with the open platform potential for
low-friction innovation.
THE OAUTH
IMPERATIVE
The most popular intermediaries
are connecting buyers with several
complementary sellers at the same time
Bigger, Better Business With OAuth
Bigger, Better Business With OAuth
That increases their value to the buyer

but also multiplies the difficulty and
risk of security
If one app holds secrets for many businesses

that app becomes the highest-risk part of the
system.
As more businesses follow the platform
imperative and add APIs
there is an imperative for the healthy growth
of the market through the new intermediaries.
The imperative is to make it easy for
developers to build great apps
that can delight users
and grow businesses.
The imperative is for businesses
to standardize on OAuth.
“We have our own version of OAuth”
“We invented something that’s kind of like OAuth”
The imperative is to make it easy for
developers to build great apps
that can delight users
and grow businesses.
The imperative is for businesses
to standardize on OAuth.
No developers were harmed in the production of this
presentation.
A BRIEF HISTORY
OF OAUTH
3 B.O.

         89
App




      90
U CANT HAS
 PLZ?
            MAH PASWORDZ!




  App            App
Developer        User




                            91
App                 App
            Limited
Developer             User




                             92
93
94
95
PLZ?       NO MOAR 4 U!




  App            API
Developer       Team




                           96
App    App             App       World of          API   Internal
               App                          API
User   Store         Developer    APIs            Team   Systems




                                                            97
Big
           Company


  Big        Big         Big
Customer    Partner    Company




  App        App         API
  User     Developer    Team




                                 98
4 A.O.

         99
Big
           Company




             API
            Team




  Big                  Big
Customer              Partner




  App                  App
  User               Developer

                                 100
b




a

        101
b




security




           a



               capability




                                102
Questions?




             103
THANK YOU
Questions and ideas to:
@sramji
@landlessness

groups.google.com/group/api-craft
youtube.com/apigee

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Hinweis der Redaktion

  1. Creative Commons Attribution-Share Alike 3.0 United States License
  2. Invisible Engines
  3. For most people, their car is their first or second most valuable possession, valued in tens of thousands of dollars. They are convenient places to leave our other valuables like computers and clothing. Yet we are sometimes required to give them to young, low-paid workers  whom we’ve never met before.
  4. http://www.istockphoto.com/stock-photo-15802228-young-man-in-hoodie-smiling.php?st=6167408How can we trust them?
  5. In this situation we can give them a valet key – an authorization token with limited rights that can operate the vehicle but not grant access to the trunk, glovebox - or the rest of our keychain.