6. more slides here
For the past 15 years, Google has been building
the world’s fastest, most powerful, highest quality
cloud infrastructure on the planet.
Google’s network
spans the globe
$27B in data
center investments
worldwide since 2014
Cloud Platform
is built on the same
infrastructure that powers
Google
10. Leadership
Hybrid cloud offering covers 20+ data centers
YoY growth in bookings
Increase in net customer count
Features shipped
API calls/day processed
YoY growth in Black Friday traffic
#1
36
%50
%90+
20+
1B+
58
%
24. APIs as Products
Developer Developer
API Consumers API Providers
API Product
Manager
Create solutions
using APIs
Create APIs
Build and run the
systems than run APIs
API
2016 was an amazing year- we reached over 350 enterprise customers.
We are proud to count a third of the Fortune 100 amongst our customers
Google Cloud Platform customers show up in many verticals including retail, financial services, and healthcare
Our telco, media, and retail accounts continued to mature and expand, and we saw enormous growth come out of the Financial Services and Healthcare verticals.
We are now part of Google Cloud
Google’s 7 cloud products boast more than one billion users
Google’s 7 cloud products boast more than one billion users
Google has made $27B in data center investments in just the last couple of years
Building our the fastest and most powerful cloud infrastructure on the planet.
And the best part: Cloud Platform is built on the same infrastructure that powers Google
Apigee serves thousands of enterprise developers, and hundreds of thousands of APIs, proxies and policies
We were proud to have landed in the Gartner API Lifecycle Management Magic Quadrant and the Forrester API Management Wave
We saw 36% YoY growth in bookings and revenue
We saw 50% Increase in our net customer count - now have 375+ customers
We shipped 90+ features in 35 public cloud and 3 private cloud releases.
Our hybrid cloud offering with GCP and AWS, covers 20+ data centers across 9 regions with 3000+ servers
Our cloud service processes over 1B API calls/day, with an uptime greater than 4 x 9’s.
we saw 58.4% growth in Black Friday traffic - an indication of the amazing growth in retail
In little more than a decade we’ve evolved from a
web first world to a
mobile first world and now
we are in an API first world
WHY APIs
Every business is now a software business! Regulation change, technology advancement, and consumer expectations are driving massive changes.
Take the finance industry -
Technology is disrupting all aspects of it and things are not slowing down.
- consumers expect that their financial providers deliver much better experiences, on par with what they get from the likes of Apple and Uber.
Or Retailers …
- Are growing their ecosystems and striving for deep integration of customer experience across channels and systems
- Devices and apps are changing retail - Burberry here in London delivers a personalized experience using its clienteling app .
Or Healthcare
- The focus on payment for outcomes instead of for services requires new business models.
- Requirements for health data interoperability are demanding infrastructure modernization
Software doesn't just sit in the datacenter, it doesn't just sit in the cloud either. It's on your phone, it's in your home, it's in your car. And it's all talking to each other.
Software doesn't just sit in the datacenter, it doesn't just sit in the cloud either. It's on your phone, it's in your home, it's in your car. And it's all talking to each other.
APIs are how software talks to each other
An API-first approach is how we give software a voice
APIs have come to serve very different roles in the way they are used.
We’ve helped businesses around the world with their API initiatives, and have seen people think about APIs in three distinct ways:
APIs as services
APIs as interactions
APIs as products
APIs as services
This is how we build software out of software. Web APIs have become part of the fundamental building blocks of software.
Historically, this has been done with service-oriented architecture.
Over the last two years, microservices have become one of the fastest growing areas of interest for developers. Developers have adopted micro services as the new service architecture for the cloud-native world.
Most enterprises today consider APIs as services, as part of their SOA or integration architectures. This enables the management and control of hardware, infrastructure resources, and application services via standard APIs through DevOps automation.
APIs as interactions
This is how the physical world --- your mobile phone, TV, even your car -- talks to the world of software.
Touch-oriented apps are how people interact with software. This is now being replaced by voice interactions -- think Google Home and Amazon Alexa.
Think about all the sensors and beacons that make location-based interactions possible.
All of these forms of digital interactions are made possible to the shift to APIs and as a consequence, developers no longer ask the question of “web-first” or “mobile-first”, but instead answer “API-first”
Enterprises now have to think about APIs as interactions for mobile, and their APIs are being built and managed by mobile and web-tier developers as part of their mobile and UX efforts.
APIs as products
Perhaps the most important way we think about APIs is as digital products.
This is how we package, distribute, and monetize software in the age of Cloud.
APIs are packaged, documented, and delivered to developers in the form of API products with specific terms of usage and service levels.
APIs as products is an entire new form of the software distribution.
Commerce APIs from eBay and Amazon were quickly followed by infrastructure APIs from AWS and others.
Today, we have a variety of API products in use, including the Google Maps API, the MapQuest API,, Twilio’s telephony APIs, Accuweather’s weather APIs, Stripe’s payment APIs ...and on and on
Each of these represents a digital product that is provided to developers as part of a software supply chain.
Companies that successfully operate the APIs as products model think about APIs in the same way as they do any product or service and impart responsibility for the success of their APIs and their API program to product managers.
All of these APIs live in API ecosystems, which are made possible through interoperability.
This interoperability is achieved
through APIs that adhere to standard contracts based on common protocols;
through APIs that are secure and easily discoverable and usable by developers.
The result of a robust API ecosystem is that new business models become possible by combining APIs from the API ecosystem to create new products, services, and experiences.
New ways for you to build software
when combined with new ways to interact with your customers
and with new ways for your business to partner with other businesses (product APIs, like Google Maps)
make new types of business models (like Uber) possible.
All of these APIs live in API ecosystems, which are made possible through interoperability.
This interoperability is achieved
through APIs that adhere to standard contracts based on common protocols;
through APIs that are secure and easily discoverable and usable by developers.
The result of a robust API ecosystem is that new business models become possible by combining APIs from the API ecosystem to create new products, services, and experiences.
New ways for you to build software (microservices)
when combined with new ways to interact with your customers (mobile experience APIs)
and with new ways for your business to partner with other businesses (product APIs, like Google Maps)
make new types of business models (like Uber) possible.
Ecosystems can be private, with participants limited to developers inside the walls of an enterprise, or open, with partner and external developers able to leverage APIs within their applications.
Part of overall strategy to align enterprise to support digital customer experiences, increase innovation and speed to market.
Core Capabilities treated as products /customer, /billing, /transaction, /lease, /activate,
Capability owners responsible for cost reduction/modernization of stack
All internal development shifting to API first based approach, with all APIs available on in an internal ecosystem.
With partner ecosystems and APIs enterprises can MOVE fast to grab opportunities in new markets without massive investment of time and resources.
What’s more, the same API can service ALL of your partners, regardless of size.
Nationwide Insurance is a great example of a growing partner ecosystem. Recently, the company (founded in 1925) partnered with a smaller startup insurance agency called SURE to offer a fast, automated, and secure mobile experience for renters insurance.
The great thing was that Nationwide was able to go from concept to launch of this partnership in just 3 weeks.
There are many great examples of partner ecosystems - Apigee customer and US drugstore giant Walgreens, has a growing ecosystem of partners around its Photo Print API
Stakeholders from across the healthcare IT ecosystem are beginning to use FHIR, or Fast Health Interoperability Resources - a set of APIs and an interoperability standard developed by a healthcare IT standards body known as HL7.
HL7 International is a not-for-profit organization dedicated to providing a framework and standards for the exchange, integration, sharing and retrieval of electronic health info.
- The acronym says it all: Fast Healthcare Interoperability Resources
- Ecosystems are all about interoperability.
In this case, Interoperability between providers, payers, device makers etc.
These companies are just a few of those growing a healthcare ecosystem around FHIR
Cleveland Clinic - Humana - McKesson - Walgreens
**Bit more info**
Ticket Master ‘the operating sys for live entertainment
Successful internal API supporting $1B in business - now they are working for their next $1B in API revenue
Built robust API developer program to create new partnerships that enable customers to buy tickets where ever they encounter the event - apps, promos, etc
They are immediately relevant for home assistants (Fire/Echo), Bots (slackbot), …. And whatever the next new wave is!
According to the Gartner 2017 CIO Agenda Report - The role of the digital ecosystem — and the role the enterprise assumes in an ecosystem — are becoming increasingly important
50% of Global CIOs say their companies are already part of an digital ecosystem….with an average (mean) of 40 digital partners
An important differentiator in more digitally mature enterprises was participation in digital ecosystems:
79% of the survey’s top performers indicate they participate in a digital ecosystem vs.
49% and 24% for typical and trailing performers, respectively.
The DVC can be managed with API Services, Developer Services, and Analytics Services.
API Services includes API Gateway, Policies and Programmability, Versioning and Governance, and OAuth & Security.
Developer Services enable a developer and community experience that accelerates API adoption and simplifies learning
Analytics Services enable end-to-end visibility across the digital value chain with developer analytics, operational and business metrics, App performance, and custom reports that are necessary to monitor, measure, and manage success.
Ask any analyst - this is the List of API mgmt features needed
Maybe just focus on the future
EASY
Q: What makes APIs easy to consume? A: When the are:
easy to discover, easy to register and buy, easy to support
So how can you tell if your APIs are easy to use and easy to succeed with ? Pretty easy :-)
SECUREQ: What makes your APIs secure? A: Allows the good guys in - keeps the bad guys out.
Ability to secure against unauthorized calls
Ability to secure against calls that directly or indirectly cause an undesired effect
Ability to allow legitimate traffic and disallow illegitimate traffic
So how can you tell if you are being successful keeping your APIs secure? A: Look at your traffic. The amount of blocked traffic will be high; the amount of illegitimate traffic low for secure APIs
INTELLIGENTAn Intelligent API makes the app smarter either
by explicitly delivering intelligence (e.g., /recommendation), or
implicitly changing its behavior based on intelligence (e.g., /productsearch changes its behavior based on recommendations).
An Intelligent API also makes the infrastructure smarter through
smart routing, bot and security pattern detection and enforcement, and intelligent caching.
So how can you measure if your APIs are intelligent?
A: You will see an increase in the number of API behaviors modified by machine learning
Winning in new markets, growing your business and staying ahead of your competition are age old problems. In the old days, the risks and obstacles were life threatening -
(fleets of ships wrecking/pirates etc)
While today we’re much less likely to be personally at risk, our companies survival is definitely at stake!
The lines of business (CEO) and the technologists (CIO) must be more aligned than ever.
They each know their own domains, but there are new obstacles in their path to alignment
how will you grow? How will you find the next opportunity? And how do you take risk, while protecting your most valuable assets...
Alignment of lines of business with IT is about more than technology. It’s also about
People and Process
Alignment of lines of business with IT is about more than technology. It’s also about
People and Process
Alignment of lines of business with IT is about more than technology. It’s also about
People and Process
We have a many years and many hundreds of customers’ experiences navigating digital transformation across every vertical.
We’ve distilled these lessons into a digital compass with which you can navigate your own digital transformation.
Keep in mind - digital transformation is not linear - no organization is starting from, or going to the same place, each has its own context, each it’s own goals, and own path.
Vision - Does your enterprise have a vision to create a digital platform? Is it publicly talked about by your Board and C-suite, like Nike, Burberry, GE?
or
Leadership - Is your company leadership pushing API-first and Cloud First down from the top?
or
Are you trying to transform in silos, or setting up innovation that are disconnected from the core activities of the business.
Do you have sufficient funding for a Digital Platform - and more importantly, are you able to deploy and reinvest that funding in a flexible agile manner?
or
are you still stuck in 5 yr plans and annual funding cycles?
Are your API and Cloud metrics aligned to your core business goals - Revenue, Profit, NPS?
or
are you chasing arbitrary metrics like number of apis or number of projects with no attention to the customer/business impact.
Does your company understand that APIs are strategic?
That they provide optionality in the face of uncertainty?
That they are products that drive business impact and growth?
or
do you people believe apis are only about integration or maybe just for a few external use cases.
Do your teams deliver agile/cloud native as standard operating procedure?
or
Are you delivering with waterscrumfall?
Is your enterprise loaded with Digital talent - so much so that ‘digital’ is meaningless?
or
is your digital talent limited to the mobile team and a few ux people and data scientists in the innovation center.
Can a developer access and begin using the services she wants with a <5min TTFHW?
Or
is getting access to key services and data take 4 weeks of approval and resourcing?
Is your enterprise actively cultivating ecosystems of developers, internally and externally? are you creating new businesses models in markets and with partners outside of your core business?
or
Are you closed up tight because everyone outside your organization is the enemy (and maybe even some of the folks inside too)
Are you constantly deploying new ways to create or interactively improve the customer’s experience by increasing value and removing friction?
or
Are you planning products based on when a service is projected to be stood up by the infrastructure team in 18 months?
Chet - they will do a new earnings release on monday. We should update then.
Leading Brazilian retailer is succeeding in a time of great political and economic upheaval.
Their results are phenomenal - they were recently named the BEST performing stock in the Brazilian Market
Their YoY growth in their commerce business was over 33% (when their competition is in the single digits)
Not only are they bringing in more revenue, their digital transformation is driving better margins and improved cash flow - resulting in nearly 30% increase in EBITDA
When we started our work, ML’s digital vision was in its infancy
There were only a few leaders and teams developing digital capabilities and POV
However their ability to really execute on digital was restricted to a small innovation team.
By 2015, the company’s leadership had coalesced around a publicly stated Digital Vision
This public commitment and associated planning drove a commitment to a new project roadmap, which caused ML to focus on Execution.
To execute better ML had to choose where and how to invest — this led to a more digital approach to funding and metrics.
By 2016,
The foundation laid at the executive/planning/strategy levels really began to take hold.
With strong digital vision and leadership, savvy api use, sufficient funding and metrics best practice around execution spread to more and more teams, the company’s digital talent reached a critical mass
With the launch of the MAGLU marketplace, the company opened up to new opportunities
In 2017
The focus will be on completing the transition to a fully digital company -
- backend systems modernized and moved to the cloud,
- Honing self service for both internal and external developers
- Digital talent ubiquitous throughout the organization.
Of course, the work is never done, but by the end of 2017, Magazine Luiza will be substantially transformed.
So wrapping it up
An API first approach gives voice to your software. AN API first approach is about
thinking of APIs in three distinct ways:
APIs as services
APIs as interactions
APIs as products
All APIs, whether for interaction, architecture, or as products, exist within ecosystems. These ecosystems can be private, with participants limited to developers inside the walls of an enterprise, or open, with partner and external developers able to leverage APIs within their applications.
A framework to Navigate the many dimensions of digital business
Let’s take a step back. Just a year ago we were saying how mobile and other technology advances have changed our personal lives but not our work lives, not our businesses”... It’s mindblowing how far we've come even in this past year.....
We’re seeing not just discrete advances in technology but all of it being interwoven in the fabric of work lives/enterprises -Imagine - the possibilities ...
Self driving cars change our personal lives for sure but image what it will do for moving things - for shipping and logistics companies. Imagine what it will do for city infrastructures and transportation systems
Clean energy tech - as the cost of wind energy has dropped to an all-time low, in the last decade it has represented about a third of newly installed US energy capacity. Forward thinking organizations are taking advantage of this. For example, the first airport in the world to go 100% solar is in India
Cryptocurrency and blockchain technologies are providing a new business model for internet protocols. This year alone, hundreds of millions of dollars were raised for a broad range of innovative blockchain-based protocols.
Artificial intelligence - maybe the most powerful of all. new algorithms and massive increases in data collection and computing power is transforming almost every field. Imagine the impact on businesses of every type. Google’s own AI system controls its datacenter power systems, saving hundreds of millions of dollars in energy costs.
Self driving cars change our personal lives for sure but image what it will do for moving things - for shipping and logistics companies. Imagine what it will do for city infrastructures and transportation systems
Artificial intelligence - maybe the most powerful of all. new algorithms and massive increases in data collection and computing power is transforming almost every field. Imagine the impact on businesses of every type.
Google’s own AI system controls its datacenter power systems, saving hundreds of millions of dollars in energy costs.