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How to Segment Developers for
your API Strategy
8.11.11 @ 11:05 PST
VOIP or Dial-in (see chat)

groups.google.com/group/api-craft

Sam Ramji        @sramji
Brian Mulloy     @landlessness
A moment of silence
He cared about the human experience.
Okay.
On with the rest of our lives.
How to Segment Developers for
your API Strategy
8.11.11 @ 11:05 PST
VOIP or Dial-in (see chat)


Sam Ramji        @sramji
Brian Mulloy     @landlessness
Your hosts
@landlessness   @sramji
API Workshop Webinar Series
(videos & slides at http://blog.apigee.com/taglist/webinar)

Mapping out your API Strategy
Pragmatic REST: API Design Fu
10 Patterns in Successful API Programs
What to Measure: API Analytics
Is your API Naked? API Tech & Operations
Does your API need PCI? (Compliance)
Developers Hate Marketing: Driving API Adoption
OAuth: The Big Picture
“Boss, we need an API”
Your API is not a website!
How to Segment Developers for your API Strategy
Topics


  why segmentation?
  how many developers are there?
  how can you classify them?
  how can you reach them?
  examples
why segmentation?




    Why do you care about developers?
why segmentation?




    Because they are your new channel
20th Century: Packaged Goods




Producer             Retail Store            Consumer



           21st Century: Internet Services




Provider     Developer              App       Consumer
why segmentation?




    Would you have sold to Nordstrom
    the same way you sold to Wal-Mart?
why segmentation?




    Of course not.

    They’re different.
why segmentation?




    So are developers.
why segmentation?




   “We’re targeting
     everybody”
why segmentation?




    You don’t have unlimited resources.
why segmentation?
how many developers are there?
how many developers are there?




    First, how do we define a developer?
de·vel·op·er noun (də-ve-lə-pər)
: one that develops: as a: a chemical used to develop
exposed photographic materials b: a person who develops
real estate c: a person or company that develops computer
software
Examples of DEVELOPER
<the developer of software that is used the world over>
First Known Use of DEVELOPER
1796
Related to DEVELOPER
Synonyms: contriver, designer, inventor, deviser,
formulator, innovator, introducer, originator
how many developers are there?
    Definitions I’ve heard:

       Enterprise software company
       Games company
       Device manufacturer
       Independent contractor
       News/media company
       Advertising agency
       Hobbyist
       Individual coder
       Startup software company
       Alpha geek
how many developers are there?




    Let’s start by calling an individual human a
    coder.
how many developers are there?




    A coder is located in a larger organizational context.


    Each exhibits similar behavior and technology
    adoption patterns.
how many developers are there?

   The term "long-tail" is inappropriately applied as a
   single group.


   What businesses should be thinking about is
   whether they're working with


   known companies
    or
   unknown coders
how many developers are there?




   In many cases building for the unknown coder will
   help you with your business efforts
   with known companies


   since unknown coders often work there
how many developers are there?

          Facebook
            Twitter
            Mobile
              Ruby
              Flash
            Python
               .NET
                 VB
           ASP.NET
               J2EE
                JSP
          Javascript
               PHP

                       0   10          20           30   40
                           Developers in 100,000s
how many developers are there?
how many developers are there?
how many developers are there?
how can you classify them?


                  Horizontal




                        Vertical


            Tribal                 Modal
how can you classify them?
how can you classify them?

 Horizontally
                 LARGE ECOSYSTEM PLAYERS

                   LARGE ENTERPRISES

                           ISV

                   SYSTEM INTEGRATORS

                 SMB | SMALL ENTERPRISE

                          SAAS

                   SOFTWARE STARTUPS

                 HOBBYIST |OPPORTUNIST
Vertically
   SOCIAL MEDIA

      MOBILE

       RETAIL

   DIGITAL MEDIA

    PUBLISHING
                                   how can you classify them?




 FINANCIAL SERVICES

    HOSPITALITY

     LOGISTICS

      AIRLINES

TELECOMMUNICATIONS
how can you classify them?

 Modally

                       Public




 Open                           Closed




                      Private
how can you classify them?

 Tribally
                                      C#.net
                       jQuery                CoffeeScript
         SproutCore
                        dojo
    Ruby                        JavaScript
Heroku      Rails
                    HTML5             backbone.js

                             Sencha              Node.js
   iOS                                  Android
              AWS
                        PHP
                                      Java     Scala
how can you reach them?
how can you reach them?

   No one size fits all, but…


   Open is smart because it accelerates innovation.


   Public should make it easy to "taste" the value
   creating demand from coders to jump through hoops
   in order to use the super-tasty Private functionality.
how can you reach them?




   Incentives that match the vertical and horizontal
   coordinates you’re targeting
how can you reach them?

 Horizontally
         LARGE ECOSYSTEM PLAYERS          PAY THEM

        MEDIUM & LARGE ENTERPRISE   SHOW THEM OPPORTUNITY

                   ISV              BUSINESS DEVELOPMENT

           SYSTEM INTEGRATORS       SHOW CUSTOMER DEMAND

          SMB | SMALL ENTERPRISE     MICROSOFT ECOSYSTEM

                  SAAS                    EFFICIENCY

           SOFTWARE STARTUPS            FREE AND COOL

          HOBBYIST |OPPORTUNIST             FREE
how can you reach them?

 Vertically




                                                                                                                                  TELECOMMUNICATIONS
                                                                        FINANCIAL SERVICES
                                           DIGITAL MEDIA
          SOCIAL MEDIA




                                                                                             HOSPITALITY
                                                           PUBLISHING




                                                                                                           LOGISTICS

                                                                                                                       AIRLINES
                         MOBILE

                                  RETAIL




          Be at meetups and conferences that coders in
          the vertical already go to. Have a relevant offer.
how can you reach them?

 Modally

                               Public

       PUBLISH YOUR API
                                         ESTABLISH A CONTEST
    ADVERTISE ON CODER SITES


 Open                                                          Closed

    EVANGELIZE WITHIN YOUR                ADVERTISE YOUR
 PARTNERS’ DEVELOPMENT TEAMS              BUSINESS MODEL


                               Private
how can you reach them?

   Tribally
                                   C#
                                        jQuery             CoffeeScript
              SproutCore
Formal




                                                    FORUMS
               INDUSTRY EVENTS
                                   dojo      EXISTING COMMUNITIES
           Ruby                                  JavaScript
                            HTML                     backbone.js
     Heroku       Rails     5
Informal




            MEETUPS, HACKATHONS            Sencha    TWITTER   Node.js
           iOS BEER AND COFFEE
            INSIDE YOUR COMPANY?
                                                 STACKOVERFLOW
                                                       Android
                                                   HACKERNEWS
                      AWS
                                         PHP
                                                    Java      Scala
                 Offline                             Online
Example: Netflix

  The Netflix (Medium Enterprise horizontal, Digital Media vertical)
  API (Public) gives access to any coder who wants to improve the Netflix
  movie browsing & recommendation experience (Open) to improve
  utilization and reduce churn… but Netflix restricts access to its
  Streaming Video API (Private) to known partners in order to enforce
  licensing and consumer experience quality standards. Once a partner
  has signed, any coder who works for that partner (Open) can access the
  Private API to build new cool prototypes and innovate on the
  experience. To gain business advantage, Netflix created a contest on the
  Open API, and to sustain it they enabled partners’ engineering teams to
  build and evangelize new applications of the API.
Example: Twitter

 The Twitter (Large Ecosystems horizontal, Social vertical)
 API (Public) gives access to any coder who wants to create apps that
 connect to the Twitter social network (Open) to increase engagement…
 but Twitter provides increased access (Private) to known partners in
 order to drive revenue. Once a partner has signed, any coder who works
 for that partner (Open) can access the Public API with increased access
 (higher rate limits) to build apps that have monetization potential. To
 gain adoption, Twitter encouraged a huge ecosystem of 3rd party apps ,
 and to sustain it they enabled partners’ engineering teams increased
 levels of access to meet their higher levels of demand.
final thought
THANK YOU
Questions and ideas to:
@sramji
@landlessness

groups.google.com/group/api-craft

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How to segment developers for your API strategy

  • 1. How to Segment Developers for your API Strategy 8.11.11 @ 11:05 PST VOIP or Dial-in (see chat) groups.google.com/group/api-craft Sam Ramji @sramji Brian Mulloy @landlessness
  • 2. A moment of silence
  • 3.
  • 4. He cared about the human experience.
  • 6. On with the rest of our lives.
  • 7. How to Segment Developers for your API Strategy 8.11.11 @ 11:05 PST VOIP or Dial-in (see chat) Sam Ramji @sramji Brian Mulloy @landlessness
  • 9. @landlessness @sramji
  • 10. API Workshop Webinar Series (videos & slides at http://blog.apigee.com/taglist/webinar) Mapping out your API Strategy Pragmatic REST: API Design Fu 10 Patterns in Successful API Programs What to Measure: API Analytics Is your API Naked? API Tech & Operations Does your API need PCI? (Compliance) Developers Hate Marketing: Driving API Adoption OAuth: The Big Picture “Boss, we need an API” Your API is not a website! How to Segment Developers for your API Strategy
  • 11. Topics why segmentation? how many developers are there? how can you classify them? how can you reach them? examples
  • 12. why segmentation? Why do you care about developers?
  • 13. why segmentation? Because they are your new channel
  • 14. 20th Century: Packaged Goods Producer Retail Store Consumer 21st Century: Internet Services Provider Developer App Consumer
  • 15. why segmentation? Would you have sold to Nordstrom the same way you sold to Wal-Mart?
  • 16. why segmentation? Of course not. They’re different.
  • 17. why segmentation? So are developers.
  • 18. why segmentation? “We’re targeting everybody”
  • 19.
  • 20. why segmentation? You don’t have unlimited resources.
  • 22. how many developers are there?
  • 23. how many developers are there? First, how do we define a developer?
  • 24. de·vel·op·er noun (də-ve-lə-pər) : one that develops: as a: a chemical used to develop exposed photographic materials b: a person who develops real estate c: a person or company that develops computer software Examples of DEVELOPER <the developer of software that is used the world over> First Known Use of DEVELOPER 1796 Related to DEVELOPER Synonyms: contriver, designer, inventor, deviser, formulator, innovator, introducer, originator
  • 25. how many developers are there? Definitions I’ve heard: Enterprise software company Games company Device manufacturer Independent contractor News/media company Advertising agency Hobbyist Individual coder Startup software company Alpha geek
  • 26. how many developers are there? Let’s start by calling an individual human a coder.
  • 27. how many developers are there? A coder is located in a larger organizational context. Each exhibits similar behavior and technology adoption patterns.
  • 28. how many developers are there? The term "long-tail" is inappropriately applied as a single group. What businesses should be thinking about is whether they're working with known companies or unknown coders
  • 29. how many developers are there? In many cases building for the unknown coder will help you with your business efforts with known companies since unknown coders often work there
  • 30. how many developers are there? Facebook Twitter Mobile Ruby Flash Python .NET VB ASP.NET J2EE JSP Javascript PHP 0 10 20 30 40 Developers in 100,000s
  • 31. how many developers are there?
  • 32. how many developers are there?
  • 33. how many developers are there?
  • 34. how can you classify them? Horizontal Vertical Tribal Modal
  • 35. how can you classify them?
  • 36. how can you classify them? Horizontally LARGE ECOSYSTEM PLAYERS LARGE ENTERPRISES ISV SYSTEM INTEGRATORS SMB | SMALL ENTERPRISE SAAS SOFTWARE STARTUPS HOBBYIST |OPPORTUNIST
  • 37. Vertically SOCIAL MEDIA MOBILE RETAIL DIGITAL MEDIA PUBLISHING how can you classify them? FINANCIAL SERVICES HOSPITALITY LOGISTICS AIRLINES TELECOMMUNICATIONS
  • 38. how can you classify them? Modally Public Open Closed Private
  • 39. how can you classify them? Tribally C#.net jQuery CoffeeScript SproutCore dojo Ruby JavaScript Heroku Rails HTML5 backbone.js Sencha Node.js iOS Android AWS PHP Java Scala
  • 40. how can you reach them?
  • 41. how can you reach them? No one size fits all, but… Open is smart because it accelerates innovation. Public should make it easy to "taste" the value creating demand from coders to jump through hoops in order to use the super-tasty Private functionality.
  • 42. how can you reach them? Incentives that match the vertical and horizontal coordinates you’re targeting
  • 43. how can you reach them? Horizontally LARGE ECOSYSTEM PLAYERS PAY THEM MEDIUM & LARGE ENTERPRISE SHOW THEM OPPORTUNITY ISV BUSINESS DEVELOPMENT SYSTEM INTEGRATORS SHOW CUSTOMER DEMAND SMB | SMALL ENTERPRISE MICROSOFT ECOSYSTEM SAAS EFFICIENCY SOFTWARE STARTUPS FREE AND COOL HOBBYIST |OPPORTUNIST FREE
  • 44. how can you reach them? Vertically TELECOMMUNICATIONS FINANCIAL SERVICES DIGITAL MEDIA SOCIAL MEDIA HOSPITALITY PUBLISHING LOGISTICS AIRLINES MOBILE RETAIL Be at meetups and conferences that coders in the vertical already go to. Have a relevant offer.
  • 45. how can you reach them? Modally Public PUBLISH YOUR API ESTABLISH A CONTEST ADVERTISE ON CODER SITES Open Closed EVANGELIZE WITHIN YOUR ADVERTISE YOUR PARTNERS’ DEVELOPMENT TEAMS BUSINESS MODEL Private
  • 46. how can you reach them? Tribally C# jQuery CoffeeScript SproutCore Formal FORUMS INDUSTRY EVENTS dojo EXISTING COMMUNITIES Ruby JavaScript HTML backbone.js Heroku Rails 5 Informal MEETUPS, HACKATHONS Sencha TWITTER Node.js iOS BEER AND COFFEE INSIDE YOUR COMPANY? STACKOVERFLOW Android HACKERNEWS AWS PHP Java Scala Offline Online
  • 47. Example: Netflix The Netflix (Medium Enterprise horizontal, Digital Media vertical) API (Public) gives access to any coder who wants to improve the Netflix movie browsing & recommendation experience (Open) to improve utilization and reduce churn… but Netflix restricts access to its Streaming Video API (Private) to known partners in order to enforce licensing and consumer experience quality standards. Once a partner has signed, any coder who works for that partner (Open) can access the Private API to build new cool prototypes and innovate on the experience. To gain business advantage, Netflix created a contest on the Open API, and to sustain it they enabled partners’ engineering teams to build and evangelize new applications of the API.
  • 48. Example: Twitter The Twitter (Large Ecosystems horizontal, Social vertical) API (Public) gives access to any coder who wants to create apps that connect to the Twitter social network (Open) to increase engagement… but Twitter provides increased access (Private) to known partners in order to drive revenue. Once a partner has signed, any coder who works for that partner (Open) can access the Public API with increased access (higher rate limits) to build apps that have monetization potential. To gain adoption, Twitter encouraged a huge ecosystem of 3rd party apps , and to sustain it they enabled partners’ engineering teams increased levels of access to meet their higher levels of demand.
  • 50. THANK YOU Questions and ideas to: @sramji @landlessness groups.google.com/group/api-craft

Editor's Notes

  1. Creative Commons Attribution-Share Alike 3.0 United States License
  2. Creative Commons Attribution-Share Alike 3.0 United States License
  3. SCOTT: Frequent question: how big are these segmentsEvans DataO’Reilly heat maps what languages are popularWeb research
  4. Aim for a specific target segment
  5. No clear winner over time. HTML5 not included on this chart.
  6. Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  7. Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  8.  (Analogous to &quot;freemium&quot; - give the user more value than they are paying for at every level of the pricing curve.)
  9.  (Analogous to &quot;freemium&quot; - give the user more value than they are paying for at every level of the pricing curve.)
  10.  (Analogous to &quot;freemium&quot; - give the user more value than they are paying for at every level of the pricing curve.)
  11. Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.
  12. Public - business model is usually to attract more usage of the existing paid service to improve utilization and/or reduce churn.  Target is any and all, especially unknown coders.Private - business model is usually to accelerate business development and innovation. Target is existing and new partners.Open - anyone can access after registering for an account.  Closed - only approved entities can access the API.