Api Managers Success Guide 2021
Api Managers Success Guide 2021
three developer The end consumers of your APIs can be expected to have at
least the requisite technical knowledge to make a call to your
audiences — API server and receive a text response. Though their total
internal, strategic technical knowledge will vary greatly and represent a spectrum
of different roles and experiences — from seasoned, dedicated
partner, and open engineers to amateur part-time dabblers — it’s easiest to
ecosystem — and think of them all as developers because they share several
requirements to get their jobs done:
creates a coherent
strategy that serves • An authentication token to access the system
Partners
Developers
An authentication
token to access the
system
Searchable
documentation
describing all possible
Open API calls and Internal
parameters
Ecosystem Knowledge about the
Developers
Developers data and rate limits
placed on them by the
API publishers
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Internal Developers
It’s likely the developers within your own organization are
using third-party web service APIs and code libraries to
rapidly develop your applications. Many API programs were
started solely for the purpose of serving data to native mobile
applications, which often require an abstracted interface to a
server. But many development teams still connect directly to
databases and other code bases with little or no abstraction,
leading to rigid coupling and code dependencies that hamper
adoption of new technologies and the ability to change the
underlying system to pursue new opportunities.
It used to be a hard sell to convince development teams to
expose their functionality as reusable web-service APIs. Jeff
Bezos’ famous 2003 memo demanding IT teams interact only
through services or lose their jobs, was written specifically to
end this debate within Amazon. As a result, Amazon’s own
internal infrastructure management system, Amazon Web
Services (AWS) was eventually opened to the public and today
generates several billion dollars in revenue per year.
Architectural styles, such as microservices and function-as-a-
service, have normalized the use of APIs as the sole interface
to a server-based application, and support the kinds of API
programs we discuss here.
When internal When internal APIs are as well-designed, well-documented,
and well-managed as those offered to third-party developers,
APIs are as well- internal developers are often happier and more productive.
designed, well- By consuming the same APIs as your customers who are also
developers, internal developers intimately understand the
documented, and customer experience and tend to advocate for improvements
well-managed in design, performance, and utility, which ultimately benefits all
as those offered of your API consumers.
These APIs can also lead to more rapid development as
to third-party functionality is built once and re-used many times in a
developers, internal consistent, secure way. This allows product teams to take less
developers are risky bets on new features and functionality, leading to better
innovation and increasing customer value.
often happier and
more productive. Strategic Partnerships and Integrations
In terms of earned revenue, API programs focused on
strategic partnerships traditionally have the best ROI. These
partnerships are often formed when a specific customer need
or market opportunity is uncovered.
As an example, an email marketing company with small-
business customers joined with an online event management
platform provider to run customer events. The email company
provided its API to its event management partner to allow
pulling invitees from email lists, generating online tickets, and
TIBCO Success Guide | 4
monitoring the
Charge for Add Value for Drive Revenue Leverage Improve
speed of data that Access Upsells Generating Strategic Operational
Activities Partnerships Efficiency
flows through the
Per call or “Silver level Affiliate programs Share data Quickly respond to
API endpoints, etc. subscription and above”
Marketing
and functionality
with partners
market changes
Works well for data Ideal for SaaS automation Adapt to new
service companies businesses Revenue share with technologies
Ideal for partners
Assumes customers e-commerce Improve time
want custom Increase exposure to market
integration to partner customer
base
Operational Efficiency
When open ecosystem APIs using RESTful web services first
hit the market, developers were thrilled by the amount of data,
functionality, and ease of access. These APIs did not lock them
into specific languages, frameworks, or environments, so they
could build applications with these APIs using the tools they
were most comfortable with.
An interesting side effect of this was that the developers who
produced those APIs often grew jealous of how easy their
developer customers had it. A third-party developer could
easily access JSON-formatted data through a simple RESTful
interface, while most internal development still required
proprietary or legacy standards and direct connection to
the code bases and systems they were accessing. This led to
dependencies that slowed development.
TIBCO Success Guide | 6
months to weeks. This is exactly how companies like Netflix are able to support
so many clients with so many different needs. APIs are
These improved layered at varying places in the technology stack to allow
efficiencies have communication between services running on countless
machines. The back-end for front-end (BFF) pattern
results that go consolidates API calls between clients and downstream back-
far beyond cost end processes to provide more efficient communication over
limited channels without sacrificing service reusability. In the
savings, though
modern architecture stack, it’s practically APIs all the way
savings can be down, with tremendous benefits from reducing technical debt,
significant. reducing time-to-market for new products, and improving
developer onboarding.
Strategic Partnerships
Strategic partnerships are an ideal way to expand your reach
and capabilities with minimal cost. These partnerships often
take the form of co-marketing and co-selling, especially
in the analog business space. In the online business space,
strategic partners can share data, better integrate each
other’s functionality, and form a more cohesive experience by
consuming each other’s APIs.
Examples include embedding partner functionality into
your application to make it available to your customers,
leveraging a user’s data with a partner to pass it into your
system for easy integration, or even co-marketing using a
shared database of customers carefully segmented using the
additional information provided by your partners. Most of these
partnerships will be structured to split revenue, as a vendor-
client relationship, or simply by expanding market exposure for
each company.
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Direct Monetization
If you choose to directly sell API access, you’ll need to consider
how you will structure your program and accept payment.
Most often, organizations start by figuring out how much they
should charge for access. This is the most popular approach to
monetization, but it’s often the most challenging.
To understand why, again consider your target audience, the
goals of your business, and the value of your APIs to the
audience. If the purpose of your API program is to provide data
and functionality that you would otherwise sell or provide in
other formats to the open market, you likely have a good case
for direct monetization. However, if your APIs are designed to
provide value through third-party integrations, you may want
to consider other models.
Sportradar built its business by supplying reliable, real-time
sports statistics to media companies, sports applications, and
other digital sports channels. It provides clear pricing tiers
targeting different customer needs on its website. In most
cases, a customer can sign up immediately, provide payment
information, and begin accessing data immediately. Sportradar
is a model example of successful direct monetization.
When selling to The next step is to understand what price your target market
will respond to. Review what similar API programs or other
developers, the two services charge and see how your cost-per-call plus profit
greatest values they margin expectations stack up. If your prices are higher than
average, promote the unique value your APIs offer. When
look for are ease selling to developers, the two greatest values they look for are
of use and breadth ease of use and breadth of functionality. If you can make their
of functionality. jobs easier and reduce their development time for a reasonable
cost, you’ll win their business every time.
If you can make But keep in mind that your end users are rarely the ones who
their jobs easier make the purchasing decision. Developers will make their
and reduce their recommendations to their management teams, who will find
money in the budget to make the necessary purchases. Arm
development time both your sales team and your developer customers with the
for a reasonable right messaging, knowledge, and value proposition to help
them convince their superiors that you’re worth the purchase.
cost, you’ll win their
business every time. Per-call Pricing vs. Subscription Tiers
How you charge for access has a lot of influence over your
actual pricing. In the direct monetization model, there are two
ways to charge for access: per-call or through recurring billed
subscription tiers.
Per-call Pricing
The benefit of per call pricing is that you can easily account for
revenue. If each call costs your team $0.005 and you charge
$0.01 per call, you can see where profit starts, which makes it
easy to forecast revenue based on traffic patterns.
But this ease can come at a significant cost for your customers.
It’s difficult to estimate how many calls any application will
have to make, which complicates cost forecasting. APIs that
require more calls for fairly simple functionality (aka “chatty”
APIs) cost more than those that are efficiently designed. The
cost-per-call figure is also not usually consistent across all
API calls — some require more data transfer or CPU power
than others, which leads to uneven expectations in revenue
reporting. Complicating all this are changes to API design best
practices. The GraphQL API format, which allows for greater
client control over the amount of data requested and returned
in a single call, breaks the per-call pricing model completely.
Per-data (per kilobyte, per megabyte) pricing models are
similarly complicated for many of the same reasons.
If you cannot help As you research your target market and its pricing sensitivity,
segment it into three to five distinguishable groups. These
developers get groups form the basis of your pricing tiers.
to market faster To help decide on exact pricing, ask your team:
or can’t provide • How many calls might we expect applications built by
unique data and customers in each tier to make per month?
functionality that • How valuable are our APIs to the success of each tier’s
applications?
would otherwise
• How much revenue do we expect their applications to make
require a lot of work for them?
on their part, you • What are the estimated costs associated with these tiers
using our cost per call number?
will not win them
• What is our estimated cost at the top of the range of each
as customers. tier vs. the bottom?
• What is our estimated cost across the entire spectrum of
each tier?
The answers to these questions will help you make better informed
pricing decisions to arrive at reasonable and affordable pricing for
customers while generating a steady profit for the business.
Developer Portals
If you are targeting a developer audience, provide them with
a portal for accessing all of the information they need to sign
up and start using your APIs. A dedicated developer portal
hosted on your company website or separate domain (e.g. http://
developer.example.com) is the best way to help developers
navigate through your documentation, register for API keys, and
get the support they need as they build their applications.
This is an example of what a developer portal could look like. This specific
one is for airline travel.
This Open API dashboard shows developers what data they can integrate
into their own applications.
Static Documentation
The vast majority of documentation you provide will likely be
static manuals, web pages, and tutorials intended to be read and
followed, without any “try it now” type features.
For static documentation, your best bet is to stick with HTML
pages that are divided into easy to scan categories. The best
static documentation provides narrative instructions rather than
lists of available functions, endpoints, and parameters. Cover the
basics on how to get started with your API — how to register for
a key, how to properly use and store that key, and how to make
a simple call. Then start focusing on the most common expected
use cases. For example, an e-commerce application would have
pages documenting how to get items from a store, how to put
an item into a customer’s shopping cart, and how to check out
and accept payment.
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Be liberal with Be liberal with your use of example code; it’s more effective to
see the calls in action to best understand the intent of the APIs.
your use of Provide sample code either as pure pseudocode, or better, as
example code; it’s actual code in the languages most popular with your developer
audiences. Many developers will try to save time by cutting and
more effective pasting your sample code directly into their projects, so be sure
to see the calls it is syntactically valid and compilable.
in action to best Avoid use of PDFs or any format that requires special programs
to browse and search. The web browser is usually the best tool
understand the for browsing and searching documentation. PDFs can be bloated,
intent of the APIs. difficult to search, and require a PDF reader to use adequately.
Provide sample Stick to straight CSS and HTML for your documentation, and
your developers will thank you.
code either as
pure pseudocode, Interactive Documentation
or better, as Thanks to the Open API Spec (OAS, aka Swagger), developers
consuming web services are often blessed with the ability to
actual code in try calls directly from their browser without writing a line of
the languages code. The OAS allows API providers to document every aspect
of their API — endpoints, request and response parameters,
most popular with URLs, common data objects, and more. Using a variety of tools,
your developer the spec can easily be converted into a set of web pages that
audiences. allows developers to make calls directly from their browser and
immediately see the results.
These pages are key for early stage development where a
programmer is merely figuring out what is possible with the API.
They act not only as documentation — a better form of detailed API
description than the traditional service dictionary — but also as a
prototyping tool. Some developers may even cut and paste the calls
directly from these pages to form the basis of their application.
As a web service provider, you should absolutely provide
interactive documentation for all of your developer audiences.
The OAS and many supporting applications are open source
and free to use and implement. There are several competitors —
Apiary Blueprint, RAML, and IO Docs to name a few — but the
acceptance of the OAS across the industry makes it the clear
winner and the one you should adopt for your program.
The OAS can be used for far more than just documentation.
API tooling providers, such as TIBCO with its TIBCO Cloud API
Management solution, often use OAS to configure how APIs are
served and managed. OAS is also starting to find its way as a
tool to help reduce developer time by dynamically creating SDKs
and support code to more easily access web services.
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The design of your The first line of support after your documentation should be
an email address or phone number monitored by someone on
API — how calls your staff who can address developer-specific support issues
are made, how and even walk through the code themselves. Be clear what your
support level agreements are and support them faithfully.
data is formatted,
Even with a support line, many developers will turn to the
how resources are communities they trust to find answers. You may provide
linked together — your own set of forums for developers, but if they are not well
monitored and well populated, most will skip them completely
has tremendous and go to sites like Stack Overflow. Stack Overflow gets a lot of
influence on love in the developer community because of how searchable it
whether developers is and how willing its members are to provide reliable help. In
most cases, the issue someone is searching for has already been
will use it. addressed, so it’s a matter of reading and applying the response.
Your support staff should be monitoring Stack Overflow and
any other similar sites that you know your audience uses. They
should actively and publicly answer any questions specific to
your APIs and applications while also trying to follow up with
more personal support if the situation warrants.
API Design
Designing your API is a topic better covered elsewhere, but there
are many basic considerations you should keep in mind as you
approach the design of your services.
REST is a popular design strategy largely because of its close
adherence to the HTTP protocol, which makes it fairly easy to
implement with many of the same infrastructure requirements as a
website. The best practices introduced by REST — specifically, the
use of decoupled, independent resources linked via URLs as the
central organizing principle — have influenced the designs of much
of the modern architectural stack, especially microservices and
functions as a service. Though REST can deliver its data in just about
any format supported by web standards, JSON has emerged as
the de facto standard for most REST implementations because it is
lightweight and relatively easy to analyze.
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The protocols you The protocols you adopt and data formats you choose should
always be based on your specific use cases and the needs of
adopt and data your developer audiences. Ignore the debates that definitively
formats you choose declare one better than the other; Instead, focus on building API
endpoints that:
should always be
based on your • Represent independent business objects in your system
• Interact with other objects within the system in a
specific use cases transparent way (for example, through their own API
and the needs of endpoints)
your developer • Are decoupled from any specific use cases
API Management
The first public APIs were simply put behind an authentication
layer, served through a load balancer, and loosed upon the world.
Early API teams quickly ran into the limitations of relying on
server logs for metrics, adding more load balancers to scale the
system for more developers, and ensuring their authentication
was secure and properly controlled access to the right endpoints.
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With your first set of APIs designed and managed and your portal in
place, your go-to-market plan should cover the following:
Developer Outreach
Your portal stands How you reach developers will largely depend on the types of
developer audiences you are targeting. However, there is quite
as the primary a bit of tactical crossover you can leverage to reach all types of
point of entry developers, saving you time, money, and effort without reducing
the effectiveness of your outreach.
with information
Your portal stands as the primary point of entry with information
for all developer for all developer audiences. A majority of your content and
audiences. A marketing efforts should be spent pointing developers to the
portal and guiding them down the paths that will lead them
majority of to success. As you structure your documentation and tutorials,
your content keep these audiences and their respective paths in mind.
and marketing Consider creating second level landing pages designed to serve
the needs of each developer audience, and use these links in
efforts should be your marketing and outreach materials rather than just your
spent pointing developer homepage.
developers to the It’s a myth that developers don’t like being marketed to. The
truth is that no one really likes being sold to, but the developer
portal and guiding audience tends to be more vocal and critical than the average
them down the customer. The same marketing campaigns that work well for
your average customer should also work for developers —
paths that will lead email newsletter campaigns, paid ad placements, conference
them to success. sponsorships, etc. The key difference is that all of your
messaging should very clearly demonstrate the value of your
services for developers. The two values that matter most are
saving time and reducing effort. Your marketing messaging
should not just pay lip service to these values; it should
demonstrate as clearly as possible how your services provide this
value with a call to action to try it for themselves.
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Developer Onboarding
Onboarding new developers starts with your developer portal.
Everything they should need to begin work using your tools and
services should be clearly documented there. The registration
flow may be the first step to onboarding, but it’s absolutely not
the last.
Pay attention to how many developers start and finish registration
versus those who only start and never complete the final steps. If
you’re seeing a large number of dropouts in the process, or even a
large number of successful registrations that never actually use your
APIs, this indicates a problem with your onboarding flow. Dropouts
often indicate that your registration process is too complicated
or that you’re asking for information they don’t want to provide.
At signup, only ask for the minimum information necessary to
provision a new account. You may fill in any additional demographic
information in subsequent interactions.
If you’re seeing a large number of signups but few of them
actually use your services, this may indicate that your
documentation is not closing the gap between knowledge and
execution. Review your documentation and tutorial content and
look for areas that may be causing confusion. Consider reaching
out to some of those who dropped out and asking them for
recommendations for improvement.
Developer time is After a developer has signed up, you should send them an email
confirming their signup. If your process requires additional
precious, so try to approval steps before a key is provisioned, be clear about what
keep the sign-up that process involves and how long it should take. In these
situations, the developer is often standing by and waiting for the
process as short as approval before they can continue with the work they’re doing.
possible and make Developer time is precious, so try to keep the process as short as
sure you stick to possible and make sure you stick to the advertised timelines.
If your APIs require approval for use, consider providing a
the advertised sandbox environment where the APIs match exactly with your
timelines. production endpoints, but provide fake data until your team
approves the developer account. This allows your customers to
begin programming against your API without delay. When you
have provisioned the production keys, the developer merely
needs to swap these out in their code to start using it with
production data.
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Software Try
development
kits (SDKs) are
another approach
that can help
get developers
Fix Break
up and running
quickly. SDKs are
essentially pre-
built libraries
for the most
common languages Learn
your developer
audiences use Some developers benefit from receiving regular updates from API
that allow them providers shortly after registration. These communications keep your
services top of mind as your customer explores other technologies.
to access your
Make sure these communications are more than just marketing fluff.
services directly Provide value for the developer at each point of communication.
from native code. One suggestion is to create drip-style tutorial campaigns, regular
communications via email or other channels that walk through
interesting use cases your services can support. If you can structure
these campaigns to address the specific needs of your target
audiences, you should see good results.
Software development kits (SDKs) are another approach that
can help get developers up and running quickly. SDKs are
essentially pre-built libraries for the most common languages
your developer audiences use that allow them to access your
services directly from native code. This can shortcut the process
for many developers who would otherwise need to spend time
writing the supporting code to consume your APIs.
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Developer Feedback
Your APIs should be treated as living products that will change
and improve to meet the demands of your customers and new
opportunities in the market. A majority of these improvements,
not only to the APIs, but to the entire developer experience,
should be driven by feedback from your developer audiences.
Create a feedback mechanism early on between your product,
engineering, developer support, and outreach teams to make
sure you’re tracking timely feedback and getting the higher
priority suggestions into your deployment cycles. It can be as
complex as an off-the-shelf issue tracker like JIRA, or as simple
as sending suggestions to an email address and compiling them
manually into a spreadsheet. The key is to track the number
and type of requests, group them together by category, related
codebase, and priority, and make sure you’re including that
feedback in your product development process.
As mentioned, hackathons and meetups are great ways to
expose your APIs to your target audiences and get real-time,
real-world feedback. Product managers should attend as many
of these events as their schedule allows to get a first hand
account of how their products are being received. Don’t be
afraid to hop on to a hackathon team and pitch in. Getting your
hands dirty is often the best way to earn trust and gain valuable
information that will only make your products better.
Your API management platform should come with a full set of
reporting tools built in. Product managers should review these
reports regularly. The number of calls and active developers are
often cited as success metrics for API programs. While they do
indicate how much usage your services are getting, it is nothing
when compared to KPIs that measure the revenue your APIs
are driving.
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However, these and other metrics can be used to help you focus
your efforts on improving the developer experience. Some
metrics to watch include:
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