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Webinar: Business ROI for APIs

March 14th, 2013
Webinar Housekeeping
Questions
- Please use WebEx Chat any questions you have and we’ll answer
  them at the end of this webinar

Twitter: Event hashtag: #L7webinar

Follow us on Twitter:
• @Layer7
• @ATTDeveloper
• @TechCrunch
• @LSH
• @Alex_Donn
• @Intalex



                                                      Layer 7 Confidential
                                                   Layer 7 Confidential      2
Webinar Presenters: Business ROI for APIs

                     Leslie Hitchcock @LSH
                     Hackathon Events Manager
                     TechCrunch

                     Alex Donn @Alex_Donn
                     Head of Hackathons
                     AT&T

                     Alex Gaber @Intalex
                     API Evangelist
                     Layer 7

                                            Layer 7 Confidential   3
Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models

2.   Building an API Brand

3.   Hackathons for API Promotion and Success

4.   Hackathon ROI for APIs

5.   Developer API Challenges




                                                   Layer 7 Confidential
                                                Layer 7 Confidential      4
Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models
2.   Building an API Brand

3.   Hackathons for API Promotion and Success

4.   Hackathon ROI for APIs

5.   Developer API Challenges




                                                   Layer 7 Confidential
                                                Layer 7 Confidential      5
1. API Business Models

Various Business Models Exist for APIs

•   Per API Call
•   Per API Payload
•   Transactional Revenue
•   Firehose API
•   Platform API


                                            Layer 7 Confidential
                                         Layer 7 Confidential      6
1. API Business Models: Per API Call

Per API Call

Example:


Twilio
Text messages sent via
an API are billed at
$0.01 per message




                                          Layer 7 Confidential
                                       Layer 7 Confidential      7
1. API Business Models: Per API Payload

Per API Payload

Example:

AT&T Speech API
Voice transcriptions
via an API are billed
at $X.XX per word




                                             Layer 7 Confidential
                                          Layer 7 Confidential      8
1. API Business Models: Transactional Revenue API

Transactional Revenue API

Example:

Expedia EAN API
Hotel is booked via an
affiliate application,
earning the affiliate a
commission




                                              Layer 7 Confidential
                                           Layer 7 Confidential      9
1. API Business Models: Firehose API

Firehose API

Example:

Twitter API
                         Please email api at twitter.com with
Large scale access       your use case, a brief description of
to API for partners      your organization, and the requested
building significant     access level(s) you require. As a
integrations             general rule, firehose access is rarely
                         granted. You may want to investigate
                         using a service such as gnip or
                         datasift to access this data.


                                                     Layer 7 Confidential
                                                 Layer 7 Confidential       10
1. API Business Models: Platform API

Platform API

Example:

Salesforce.com
API Provided to
customers to build
integrations




                                           Layer 7 Confidential
                                       Layer 7 Confidential       11
Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models

2. Building an API Brand
3.   Hackathons for API Promotion and Success

4.   Hackathon ROI for APIs

5.   Developer API Challenges




                                                    Layer 7 Confidential
                                                Layer 7 Confidential       12
2. Building a Brand Around Your API

Promoting a brand around your API helps you get marketplace
traction and allows you to market your API as a business in and of
itself.

• Approach your API like a product
• What engages consumers or B2B customers may not be
  appropriate for a dev audience
• Analyze companies that are exclusively API businesses
  such as Twilio, Stripe and Singly
• Invest in your API and promote it accordingly



                                                         Layer 7 Confidential
                                                     Layer 7 Confidential       13
2. Building a Brand Around Your API

Providing Integration with Mobile App Developer Tools

  AT&T API
  Plugin for
 Appcelerator




                                                        Layer 7 Confidential
                                                    Layer 7 Confidential       14
2. Building a Brand Around Your API

Providing Integration with Mobile App Developer Tools

 SendGrid API
  Plugin for
    Tiggzi




                                                        Layer 7 Confidential
                                                    Layer 7 Confidential       15
Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models

2.   Building an API Brand

3. Hackathons for API Promotion and Success
4.   Hackathon ROI for APIs

5.   Developer API Challenges




                                       Layer 7 Confidential
                                   Layer 7 Confidential       16
3. Hackathons for API Promotion and Success
 opportunity cost ($ per developer)
 effort (enterprise vs social)
 do your APIs solve a problem?




                                          Layer 7 Confidential   17
Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models

2.   Building an API Brand

3.   Hackathons for API Promotion and Success

4. Hackathon ROI for APIs
5.   Developer API Challenges




                                                    Layer 7 Confidential
                                                Layer 7 Confidential       18
4. Hackathon ROI for APIs
 good general marketing
 good brand building
 good NPS
 excellent $/developer




                            Layer 7 Confidential   19
2012 Disrupt San Francisco Hackathon:
By the Numbers




     500+            1100+
                      Hack Presentation
                                             40+
                                          Hackathon     Sponsors
        Hackers          Attendees




                                                      Layer 7 Confidential   20
                                                                              20
TechCrunch Hackathon Partnerships




Most successful Hackathon
partnerships:

•   API Workshops
•   Custom Contests
•   Themed Mini Hacks
•   Hack Day “Table Area”




                                        Layer 7 Confidential   21
                                                                21
2012 Disrupt Hackathon:
Ford Partnership Use Study

Ford’s continued efforts in reaching
TechCrunch’s developer audience have paid
off, year over year.

What worked?
• Marketing efforts on TechCrunch Event
  Site, Hackathon Wiki and directly to
  Hackathon registrants drove participation in
  their mini Auto-themed hackathon
• Ford PR pitched API exclusively to
  TechCrunch writing team, independently of
  Disrupt sponsorship
• 70+ teams applied to participate in Ford’s
  mini-hackathon, up from approximately 30 in
  2011
• 6 teams were chosen and competed for Ford’s
  prize: Ford Sync partnership and a trip to CES
  2013
• Winner gained exposure through Ford in USA
  Today Money section


                                                   Layer 7 Confidential   22
                                                                           22
2012 Disrupt Hackathon:
 Locu Partnership Use Study

In first year out of incubation, seed-
funded Locu had largest overall
implementation of a sponsored API.

What worked?
• TechCrunch targeted Locu for an API
  Workshop (only 6 available)
• Marketing efforts on TechCrunch Event
  Site, Hackathon Wiki plus Locu social
  efforts made their API Workshop
  standing room only
• 150 hacks submitted, 20% used Locu
  API




                                          Layer 7 Confidential   23
                                                                  23
Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models

2.   Building an API Brand

3.   Hackathons for API Promotion and Success

4.   Hackathon ROI for APIs

5. Developer API Challenges


                                                    Layer 7 Confidential
                                                Layer 7 Confidential       24
5. Developer API Challenges
 On-site support
 Solid virtual technical systems
 Good documentation




                                    Layer 7 Confidential   25
Layer 7 Mobile App Single Sign On



            Contact us today!

        http://www.layer7.com

                    @Layer7

                                    Layer 7 Confidential   26
Upcoming Tech Talk

Enterprise Mobility and BYOD
  March 26, 9am PST
  Special Guests: VP Client Solutions Matt McLarty
  and Leif Bildoy Product Manager, Mobile
  Details: www.layer7.com/live
  Tweet Questions: #layer7live




                                       Layer 7 Confidential   27
Questions?




             Layer 7 Confidential   28

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ROI for APIs: Using Hackathons to Evaluate Your API Program

  • 1. Webinar: Business ROI for APIs March 14th, 2013
  • 2. Webinar Housekeeping Questions - Please use WebEx Chat any questions you have and we’ll answer them at the end of this webinar Twitter: Event hashtag: #L7webinar Follow us on Twitter: • @Layer7 • @ATTDeveloper • @TechCrunch • @LSH • @Alex_Donn • @Intalex Layer 7 Confidential Layer 7 Confidential 2
  • 3. Webinar Presenters: Business ROI for APIs Leslie Hitchcock @LSH Hackathon Events Manager TechCrunch Alex Donn @Alex_Donn Head of Hackathons AT&T Alex Gaber @Intalex API Evangelist Layer 7 Layer 7 Confidential 3
  • 4. Agenda for Today’s Webinar Topic: Business ROI for APIs 1. API Business Models 2. Building an API Brand 3. Hackathons for API Promotion and Success 4. Hackathon ROI for APIs 5. Developer API Challenges Layer 7 Confidential Layer 7 Confidential 4
  • 5. Agenda for Today’s Webinar Topic: Business ROI for APIs 1. API Business Models 2. Building an API Brand 3. Hackathons for API Promotion and Success 4. Hackathon ROI for APIs 5. Developer API Challenges Layer 7 Confidential Layer 7 Confidential 5
  • 6. 1. API Business Models Various Business Models Exist for APIs • Per API Call • Per API Payload • Transactional Revenue • Firehose API • Platform API Layer 7 Confidential Layer 7 Confidential 6
  • 7. 1. API Business Models: Per API Call Per API Call Example: Twilio Text messages sent via an API are billed at $0.01 per message Layer 7 Confidential Layer 7 Confidential 7
  • 8. 1. API Business Models: Per API Payload Per API Payload Example: AT&T Speech API Voice transcriptions via an API are billed at $X.XX per word Layer 7 Confidential Layer 7 Confidential 8
  • 9. 1. API Business Models: Transactional Revenue API Transactional Revenue API Example: Expedia EAN API Hotel is booked via an affiliate application, earning the affiliate a commission Layer 7 Confidential Layer 7 Confidential 9
  • 10. 1. API Business Models: Firehose API Firehose API Example: Twitter API Please email api at twitter.com with Large scale access your use case, a brief description of to API for partners your organization, and the requested building significant access level(s) you require. As a integrations general rule, firehose access is rarely granted. You may want to investigate using a service such as gnip or datasift to access this data. Layer 7 Confidential Layer 7 Confidential 10
  • 11. 1. API Business Models: Platform API Platform API Example: Salesforce.com API Provided to customers to build integrations Layer 7 Confidential Layer 7 Confidential 11
  • 12. Agenda for Today’s Webinar Topic: Business ROI for APIs 1. API Business Models 2. Building an API Brand 3. Hackathons for API Promotion and Success 4. Hackathon ROI for APIs 5. Developer API Challenges Layer 7 Confidential Layer 7 Confidential 12
  • 13. 2. Building a Brand Around Your API Promoting a brand around your API helps you get marketplace traction and allows you to market your API as a business in and of itself. • Approach your API like a product • What engages consumers or B2B customers may not be appropriate for a dev audience • Analyze companies that are exclusively API businesses such as Twilio, Stripe and Singly • Invest in your API and promote it accordingly Layer 7 Confidential Layer 7 Confidential 13
  • 14. 2. Building a Brand Around Your API Providing Integration with Mobile App Developer Tools AT&T API Plugin for Appcelerator Layer 7 Confidential Layer 7 Confidential 14
  • 15. 2. Building a Brand Around Your API Providing Integration with Mobile App Developer Tools SendGrid API Plugin for Tiggzi Layer 7 Confidential Layer 7 Confidential 15
  • 16. Agenda for Today’s Webinar Topic: Business ROI for APIs 1. API Business Models 2. Building an API Brand 3. Hackathons for API Promotion and Success 4. Hackathon ROI for APIs 5. Developer API Challenges Layer 7 Confidential Layer 7 Confidential 16
  • 17. 3. Hackathons for API Promotion and Success  opportunity cost ($ per developer)  effort (enterprise vs social)  do your APIs solve a problem? Layer 7 Confidential 17
  • 18. Agenda for Today’s Webinar Topic: Business ROI for APIs 1. API Business Models 2. Building an API Brand 3. Hackathons for API Promotion and Success 4. Hackathon ROI for APIs 5. Developer API Challenges Layer 7 Confidential Layer 7 Confidential 18
  • 19. 4. Hackathon ROI for APIs  good general marketing  good brand building  good NPS  excellent $/developer Layer 7 Confidential 19
  • 20. 2012 Disrupt San Francisco Hackathon: By the Numbers 500+ 1100+ Hack Presentation 40+ Hackathon Sponsors Hackers Attendees Layer 7 Confidential 20 20
  • 21. TechCrunch Hackathon Partnerships Most successful Hackathon partnerships: • API Workshops • Custom Contests • Themed Mini Hacks • Hack Day “Table Area” Layer 7 Confidential 21 21
  • 22. 2012 Disrupt Hackathon: Ford Partnership Use Study Ford’s continued efforts in reaching TechCrunch’s developer audience have paid off, year over year. What worked? • Marketing efforts on TechCrunch Event Site, Hackathon Wiki and directly to Hackathon registrants drove participation in their mini Auto-themed hackathon • Ford PR pitched API exclusively to TechCrunch writing team, independently of Disrupt sponsorship • 70+ teams applied to participate in Ford’s mini-hackathon, up from approximately 30 in 2011 • 6 teams were chosen and competed for Ford’s prize: Ford Sync partnership and a trip to CES 2013 • Winner gained exposure through Ford in USA Today Money section Layer 7 Confidential 22 22
  • 23. 2012 Disrupt Hackathon: Locu Partnership Use Study In first year out of incubation, seed- funded Locu had largest overall implementation of a sponsored API. What worked? • TechCrunch targeted Locu for an API Workshop (only 6 available) • Marketing efforts on TechCrunch Event Site, Hackathon Wiki plus Locu social efforts made their API Workshop standing room only • 150 hacks submitted, 20% used Locu API Layer 7 Confidential 23 23
  • 24. Agenda for Today’s Webinar Topic: Business ROI for APIs 1. API Business Models 2. Building an API Brand 3. Hackathons for API Promotion and Success 4. Hackathon ROI for APIs 5. Developer API Challenges Layer 7 Confidential Layer 7 Confidential 24
  • 25. 5. Developer API Challenges  On-site support  Solid virtual technical systems  Good documentation Layer 7 Confidential 25
  • 26. Layer 7 Mobile App Single Sign On Contact us today! http://www.layer7.com @Layer7 Layer 7 Confidential 26
  • 27. Upcoming Tech Talk Enterprise Mobility and BYOD March 26, 9am PST Special Guests: VP Client Solutions Matt McLarty and Leif Bildoy Product Manager, Mobile Details: www.layer7.com/live Tweet Questions: #layer7live Layer 7 Confidential 27
  • 28. Questions? Layer 7 Confidential 28