punctuated equilibrium, celestial navigation,and api strategy
DESCRIPTION
Web 2.0 2011 Talk on API strategy by Sam Ramji of Apigee, Dan Jacobson and Michael Hart of NetflixTRANSCRIPT
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Punctuated Equilibrium,Celestial Navigation,and APIs
Competing through dynamic adaptation#W2EAPI
Sam Ramji @sramjiDan Jacobson @daniel_jacobsonMichael Hart @michaelhart
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PUNCTUATEDEQUILIBRIUM
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Darwin formulated his theory of evolution about 150 years ago
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Based on observations he made in the Galapagos Islands 15 years earlier
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A wild diversity of creatures existed in a new environment
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Starting from an ancestor which looked like this
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Geospiza Fulginosa
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Finches evolved that looked like this
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Geospiza Fortis
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and this
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Camarhynchus Pallidus
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and this
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Camarhynchus Pauper
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and this
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Geospiza Conirostris
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and this
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Certhidea Olivacea
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and this
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Geospiza Scandens
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For many years the belief was that this change happened slowly and gradually.
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In 1972, Stephen Jay Gould and Niles Eldredge proposed a new idea
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that evolution is not slow and gradual
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but sudden and violent.
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Applying this view to the observations of finches
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Geospiza
C. Parvulus
C. Pauper
Camarhynchus
C. Psittacula
C. Heliobates
C. Pallidus
G. Fortis G. Fulginosa
G. Magnirostris G. Scandens
G. Conirostris
Certhidea
C. Olivacea
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“Thus, from the war of nature, from famine and death, the most exalted object of which we are capable of conceiving, namely the production of higher animals directly follows.”
Charles DarwinOn Origin of Species
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So while it may look slow and gradual in hindsight
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Evolution is experienced in punctuated bursts.
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If you’re living in a punctuated burst of evolution
it feels like a revolution
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CELESTIALNAVIGATION
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Exploration
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like evolutionary change
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only looks smooth in hindsight
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Living through it is usually chaotic
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Karen JamesThe Beagle Project Blog
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To navigate, you need a map and instruments
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Maps exist for transferring knowledge
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and they too have evolved over time.
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They started as oral traditionand were written down in a form called a periplus
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Periplus of HannoCourtesy of Heidelberg University
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Periplus of HannoCourtesy of Cornell University
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Far less efficient knowledge transfer than a modern map of the same journey
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Map of Hanno’s JourneyCourtesy of Bourrichon/Wikipedia
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Exploration was dramatically held back for want of a map
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In the two thousand years between Hanno’s journey on a Phoenician trireme
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And the Mediterranean caravel of the 15th century
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Maps had only evolved to be graphical descriptions of coastlines
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That was a map published a few years beforeColumbus crossed the Atlantic to find India
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After his crossing, his expedition shared their knowledgein a new map
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Still far from perfectbut much improved.
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The biggest challenge in this kind of explorationwas determining their location on the Earth
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Instruments for measuring latitude had beenused and improved for centuries
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Longitude was the hard problem.
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You needed to know not just the angle of the sun and stars
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you also needed to know the precise time.
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Regardless of your sailing technologywithout the proper measurementyou were lost
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We are not promising a perfect map of the new world
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But it should be more like this
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than this
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Periplus of HannoCourtesy of Heidelberg University
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and we will show you what we know how to measure.
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APIS
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There are more niches today than we’ve seen before, so we need to borrow from nature
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If we start with an API we can explore all the niches around our business
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Visualization by Apigee
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The leaders of today’s Internet
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clearly understand this mechanism.
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They understand that the distribution model for value has changed in the Internet era.
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ConsumerRetail StoreProducer
Packaged Goods
Internet Services
ConsumerDeveloperProvider App
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Developers took their APIs and explored the niches for them
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The providers and the developers both benefited from this adaptation
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Suddenly this seems obvious to everyone.
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Data from Programmable Web
2005 2006 2007 2008 2009 2010 20110
1000
2000
3000
4000
5000
6000
Open APIs from 2005-2011
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And developers are racing to pack the niches.
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Data from Wikipedia
0
100,000
200,000
300,000
400,000
500,000
600,000
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
App Store Growth 2008-2011
Apps AvailableTotal App Down-loads
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This is a sudden, material shift in competition.
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It only looks gradual if you’re losing.
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BUSINESS MODELS
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We’ve seen punctuated equilibrium in business models over the last hundred years
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Direct Sales
Specialty Store
Department Store
Indirect Sales
National Chain
Big Box Retailer
App Developer
Mobile App
Web Catalog
Device App
Web Retail
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What’s the environmental stress driving the current rapid change?
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The first wave of the Internet demonstrated the economic impact of web-based business models.
Previous eras of business showed a normal distribution for revenue, with most firms getting most of the revenue. In the later half of the 20th century, business model innovations focused revenue in the 2nd standard deviation above the mean. The “80:20” rule became conventional wisdom.
The HTML-driven Internet showed new business models that focused revenue in the 3rd standard deviation (examples: Amazon, EBay). Reality reflected a “95:5” rule where 5% of companies dominated the transactions and profits.
The API-driven Internet is demonstrating the next concentration of power and is reflecting a “99:1” distribution (examples: Twitter, Facebook) due to the high switching costs and effective lock-in through software.
80:20
95:5
99:1
The next wave of the Internet is demonstrating the economic impact of API-based business models.
Hardt’s Theorem: The Internet Power Law
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But you need to tackle it in a way that fits your business
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Platform Partner
1st Party
Open
Open Open
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These are complementary and distinct.Open is different for each one.
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1st Party Apps
Partner Apps
Platform Ecosystem
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1st party is about offering direct access to your core business via apps that you make or contract out
1st party
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Here open means all the business is accessible to internal developers and contract specialists
1st party
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Partner is about enabling directed development of apps that extend your business model towards your business partners
partner
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Here open means existing partners have access to your business via APIs and can innovate asynchronously
partner
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Platform is about enabling unknown developers to build brand new apps and businesses that will surprise and inform you
platform
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Here open means enabling business models and allowing developers to support each other at massive scale
platform
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Open is attractive
open
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Open is Biz Dev 2.0
open
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Platform Partner
1st Party
Open
Open Open
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Open lets you navigate across the possible business models when your first model doesn’t work as planned
open
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Platform Partner
1st Party
Open
Open Open
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To get your API strategy properly grounded
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John MusserProgrammable Web
“
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But how?
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Let’s break it down
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Establish Target Segments
Engage Developer Channel
Set Industry Goal
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An API should extend your core businessinto a new part of the market
target segments
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Your core business already has key performance indicators
target segments
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So apply your KPIs to the new market segment you’re targeting with your APIs
target segments
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What is the market impact you need to create in order to succeed as a business?
target segments
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What does the target segment need that it is not getting from you today?
target segments
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The answer will be the foundation of your API strategy.
target segments
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In most cases the channel for your API will be developers, but what do they need?
developer channel
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A profit motive.
developer channel
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Here are the leading profit models for developers today
developer channel
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App sales
developer channel
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In-app purchases
developer channel
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Affiliate royalty
developer channel
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Your advertising spend
developer channel
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Market awareness of their offering
developer channel
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If you don’t know where you’re going, you definitely won’t get there
industry goal
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Partnerships and platform businesses are very different things.
industry goal
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Partnerships are formed to serve a known set of entities
industry goal
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A partner API should be traceable to each partner’s relationship
industry goal
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And support end-to-end business processes
industry goal
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A platform exists to create massive and unpredictable opportunities
industry goal
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All your technology, support, and community decisions will be about surviving the scale of adoption
industry goal
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That’s the strategy dimension.
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The execution dimension is what you already know.
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Planning.
Management.
Organization.
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Putting all this in context gives us a map for our API strategy
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Planning Management Organization
Target Segment(s)
Define market segment in detail including size and
user persona; specify API profile needed to satisfy top use cases for each
target segment
Establish KPI targets, traceability and dashboard
Business-led
Segment-oriented workstreams
Engage Channel
Specify business model and marketing driver for
the channel that will reach each target segment
Establish developer adoption targets,
developer marketing and channel actions
(community site, events, and communication)
Channel-led
Community, developer, and business development
workstreams
Industry Goal
Specify roadmap of API deliverables, mechanics, integration, and business
process to meet target segment needs
Implement API roadmap, adjust and report on iteration cycle, and
establish alpha developer team
Engineering-led
API, infrastructure, and developer support
workstreams
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The instruments will be your KPIs and your core API metrics: performance and adoption
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ARCHITECTURE
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Computing
Mainframe
Minicomputer
Integrated
PersonalComputer
Smartphone
Connected Devices
Website
Client/Server
Web App
DCOM
Distributed
CORBA
N-tier
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Chris AndersonWired Magazine
“The Web is Dead. Long Live the Internet.
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The Web is Dead. Long Live APIs!
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Twitter Traffic in 2010
Twitter APITwitter.com
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Netflix traffic distribution is nearly the same
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The majority of traffic comes from API-driven connected devices.
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Like Columbus, Netflix started with a map of the coastline
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Build an open API as a platformand let a thousand flowers bloom
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But they had left the coastline far behind
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And the instruments indicated that there were fewer flowers than expected
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Netflix API Requests by Segment
Netflix DevicesOpen API De-velopers
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But partners started building apps for connected devices and the business took off
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XBox
PS3
Wii
LG TVs
Apple TV
iPad
iPhone
Roku
Samsung TVs
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Architecture should reflect the business model
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So Netflix has drawn the following map
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XBox
PS3
Wii
Google TV
Apple TV
iPad
iPhone
Roku
LG TVs Samsung TVs
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Instruments show that API traffic has grown tremendously in a short time
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Growth of Netflix API
Jan-10
Feb-10
Mar-1
0
Apr-10
May-1
0Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-110
5
10
15
20
25M
onth
ly R
eque
sts
in B
illio
ns
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20,000,000,000 API requests per month.
Is that a cause for celebration?
Or for concern?
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When you’re navigating uncharted waters,speed is not your friend.
Perhaps it’s time to slow down and avoid risking unknown reefs.
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Navigating this growth challenge means that the next API revision will focus on reducing overall traffic.
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Part of this redesign is reviewing conventions
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Punctuation: REST
ProgrammableWeb
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REST, as long as it makes sense for the business
Don’t be afraid to break convention
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Tiered architecture helps you navigate different problems with agility
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Recommendations
User Info
Similar Movies
Movie Metadata
Ratings
Viewing History
DataNormalization
&Resiliency
User Service
R12n Service
Similar Movie Service
USER API
iPhone Wrapper
Wii Wrapper
Xbox Wrapper
PS3 Wrapper
Roku Wrapper
Apple TV Wrapper
iPad Wrapper
PC / Mac Wrapper
TiVo Wrapper
Source Data Layer
API Repository Layer
API Layer Wrapper Layer
App LayerWeb Service Layer
SHARED
API INTERFACES
Shared Layer
Model Controller View
UN
IFIED
LIST/TITLE API
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Recommendations
User Info
Similar Movies
Movie Metadata
Ratings
Viewing History
DataNormalization
&Resiliency
User Service
R12n Service
Similar Movie Service
USER API
iPhone Wrapper
Wii Wrapper
Xbox Wrapper
PS3 Wrapper
Roku Wrapper
Apple TV Wrapper
iPad Wrapper
PC / Mac Wrapper
TiVo Wrapper
Source Data Layer
API Repository Layer
API Layer Wrapper Layer
App LayerWeb Service Layer
SHARED
API INTERFACES
Shared Layer
Flexible Stable Agile
UN
IFIED
LIST/TITLE API
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Server architecture should support both crests and troughs of the waves of demand
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Instance Architecture Based on Specialization
List CreationDependency
Service
API METADATA CACHING LAYER
METADATA SERVICE
MetaData
Dependency Service
ELASTIC INSTANCE LAYER
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Instance Architecture Based on Specialization
List CreationDependency
Service
API METADATA CACHING LAYER
METADATA SERVICE
MetaData
Dependency Service
ELASTIC INSTANCE LAYER
Handles Request/Response
Caches Dependency Data
Populates and Manages Cache
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Map out your usage patterns and cache your data accordingly
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Vertical Document-Based Caching
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Vertical Caching
Netf
lix Full Movie
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Horizontal Caching
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Horizontal Caching: Netflix Basic Data
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Combining horizontal and vertical caching may be the best approach when building for multiple geographies
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Two-Dimensional Caching
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Design for The Audience You Want
If your current audience is this size
Then design your system for an audience that is this size
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You don’t have to implement for the dream audience
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But you should design systems to scale to the dream audience
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Versioning APIs is the default approach
In many cases, it is appropriate
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Versioning means supporting multiple applications
All of which do the same thing, basically
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Version-less API?1.0
1.5
2.0
api.NEXT
Today
3.0?
4.0?
5.0?
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If possible, go versionless
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Extend your API by extending data types
Addition is not version-worthy
Better to be incomplete than inaccurate
Withhold implementation if you are unsure
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Don’t forget to support your API
With technology, people and management
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With APIs emerging, we need better tools help us navigate
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Service Level Agreements (SLA)
• Set reasonable SLAs– Will vary based on API– Communicate them to customers
• Set up monitors– Monitor average latencies at various percentiles– Monitor error rates and types– Trigger alerts when SLAs get broken
• Establish escalation and response policies– Who responds?– What is the escalation plan?
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Use metrics to guide your decisions
They provide better navigation than anything else
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Metrics / Business IntelligenceRequest-Based Metrics (default)
– What endpoints were called?– What parameters were passed in?
Response-Based Metrics– What was delivered?– If applicable, what was presented?– Was the response valid?
Request Trace– What underlying systems were called?– How did they respond?
System Health– Are the systems meeting uptime SLAs?– Are they performing with reasonable latencies?
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Metrics (continued)
They can affect the future design of the API
They can inform strategic business decisions
They can reveal rogue usage
They can reveal errors in the system
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DATA
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Data
Flat file
Mainframe
Silos
Caching DBs
Domain-specificData APIs
RDBMS
Data APIData
Warehousing
Shared
Private Cloud DBs
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Sharing your data, from silos to social
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Mainframe Databases Middleware APIs
evolution in data sharing
App Org Cross-org Cross-business
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loss of control (once it’s out there)
only recourse is legal
enforcement is expensive (time and reputation)
challenges in data sharing
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case study: opening up movie metadata
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optimize data delivery
enable larger downloads for fewer queries
more liberal retention policies fewer refreshes, less breakage
push incremental updates
limited access to richer queries
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Highest rated titles from the 80's and their awards:
http://odata.netflix.com/Catalog/Titles?$filter=ReleaseYear le 1989 and ReleaseYear ge 1980 and AverageRating gt 4&$expand=Awards
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[{ "id": null, "name": null, "type": "/dining/restaurant", "/business/business_location/address": [{ "street_address": [], "citytown": { "id": "/en/toronto" } }], "cuisine": [{ "/dining/cuisine/region_of_origin": [{ "!/film/film/featured_film_locations": [{ "id": "/en/the_italian_job" }] }]
Find Toronto restaurants with cuisine from a filming location of "The Italian Job"
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What data APIs should your business be using?
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In
CLOSING
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Periplus of HannoCourtesy of Heidelberg University
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THANK YOUQuestions and ideas to:
@michaelhart@daniel_jacobson@sramji