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Telco Innovation with APIs:
Need for Speed
David Andrzejek
@davidandrz

Bala Kasiviswanathan
@balak

Brian Pagano
                          Apigee
@brianpagano             @apigee
groups.google.com/group/api-craft
youtube.com/apigee
slideshare.net/apigee
David Andrzejek   Bala Kasiviswanathan   Brian Pagano

 @davidandrz            @BalaK           @brianpagano
What does today’s marketplace look like for
telcos and for consumers?
Changing Infrastructure

Shift from voice enabling networks to IP networks




                              http://www.greater-boston.com/images/voip1.gif
Consumers are finding a new way of
business and social interactions




Lot of disrupters in the marketplace
But . . .
Continued regulation
How has the playing field changed for telcos
based on business and technology
trends?
Booming mobile economy




Huge shift to mobile.

Mobile subscriptions are on upswing,
consumers moving to smartphones.

 More smartphones drives purchase
 of data plans.
Rise of the app Internet
Services will be consumed as apps
Consumers developing new habits

                      App Store Growth 2008-2011
                600                                12

                500                                10
                        Apps Available
    Thousands




                        Total App Downloads
                400                                8




                                                        Billions
                300                                6

                200                                4

                100                                2

                 0                                 0
Apps are fed by APIs
Apps get their functionality from APIs




Every service you ship needs to be an API and an app
Innovation happens outside
Innovation happens outside




 Make services easy & accessible via an API

 Support innovation

 Treat developers as channel partners
It’s a global marketplace
It’s a global marketplace

  Internet players compete globally - you should too
  Present largest addressable market - interoperate
  Build apps that can be used by anybody
     On any network
Competition is not other telecoms
Competition is not other telecoms


                                            Global
                                           Network
Execute like a technology company

Think like a Web company –
Facebook, Amazon, Twitter, Skype    Apps             Devices
Competition is not other telecoms



Small agile nuclear teams- 2 pizza box teams
  Mix skills hackers, developers, designers, operator
  infrastructure people

Employ a fail fast approach and Iterate, iterate, iterate
Marketplace disruptors have advantages. Do telcos?
Marketplace disruptors have advantages. Do telcos?




Retail Stores & Resellers
Billing relationship with Subscribers
Marketing and communication muscle
Telcos reach into large enterprises
A similar approach for consumer and enterprise business




 Enterprise customers and developers equally important

 Rethink the approach when selling into these enterprises
Measuring success
Measuring success

Have clarity around business goals & value
proposition of your API – new line of
business, innovation, revenue . . .

Have a scorecard – clarity around PRIMARY measure
of success
     adoption
     stickiness
     monetization
     distribution
     ...
Wrapping up
Wrapping up

Every product is an app built on an API

Be easy to work with

Your market is global

Adopt agile techniques of Internet companies

Leverage your strengths
THANK YOU
David Andrzejek
@davidandrz

Bala Kasiviswanathan
@balak

Brian Pagano
@brianpagano

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Telco Innovation with APIs - Need for speed (Webcast)

Editor's Notes

  1. Creative Commons Attribution-Share Alike 3.0 United States License
  2. Big, heavily used IP network- LTE, 4G etc.Breakthrough innovation around communication & sharing (over-the-top (OTT)) services Skype, Google Voice. Google Hangouts, Facetime, video chat (1:1/1:many), iMessage, Whatsapp etc.
  3. Image http://flowtv.org/2009/10/regulation-is-boringbecky-lentz-mcgill-university/Innovation happening on top – infrastructure especially for telcos continues to be regulated. Most telecom companies are government spin-outs e.g. Regulations on financial transactions
  4. Techtonic move like shift to web- netscape 1995 17yrs agoApple has transformed from a computer company to a mobile company~1B smartphone subs but >6B mobile phone usersMobile internet traffic has gone from 1% to 10%ATT earnings…. Revenue up 8.5%, smartphone penetration went from 50-62%, wireless data up 19% (1B), less than 1% churn
  5. every service that carriers offer is being ‘appized’. There areapps for voice calls (skype, vibber, Voxer), messaging (iMessage, Whatsapp, etc),navigation (google maps, etc). new growth areas that operators have made massiveinvestments in, like video, have apps like Netflix, boxie, youtube, etc).
  6. 1) Make your services easy & accessible via an API (0-60 experience)2) Support innovation (foundry, innovation programs, incubators, etc)3) Treat developers as channel partners to sell through
  7. Make your services easy & accessible via an API (0-60 experience)Think of API as a product for developers2) Support innovation (foundry, innovation programs, incubators, etc)3) Treat developers as channel partners to sell through
  8. Internet Competitors compete globally you should tooInteroperate with other carriersBuild apps that can have Leverage Telco reach and presence Real & physical presence, lots of countries, lots of stores, large number subscribersThink beyond captive subscriber baseLeverage existing commerce infrastructureCustomers have existing commercial interactions with telcos
  9. TU Me great exampleATT Speech Recognition great example Leverage Telco reach and presence Real & physical presence, lots of countries, lots of stores, large number subscribersThink beyond captive subscriber baseLeverage existing commerce infrastructureCustomers have existing commercial interactions with telcos
  10. Think like a Web company – Facebook, Amazon, Twitter, SkypeThink of your API as your product- product teams need to have API expertise address the needs of your customers – developersSmall agile nuclear teams- 2 pizza box teamsMix skills hackers, developers, designers, operatorinfrastructure peopleEmploy a fail fast approach and Iterate, iterate, iterate
  11. Think like a Web company – Facebook, Amazon, Twitter, SkypeSmall agile nuclear teams- 2 pizza box teamsMix skills hackers, developers, designers, operatorinfrastructure peopleEmploy a fail fast approach and Iterate, iterate, iterate
  12. Think like a Web company – Facebook, Amazon, Twitter, SkypeThink of your API as your product- product teams need to have API expertise address the needs of your customers – developersSmall agile nuclear teams- 2 pizza box teamsMix skills hackers, developers, designers, operatorinfrastructure peopleEmploy a fail fast approach and Iterate, iterate, iterate
  13. Strengths: Brick and mortar storesSubscriber base billing Print/ad campaigns
  14. Strengths: Brick and mortar storesSubscriber base billing Print/ad campaigns
  15. Disruptions in enterprise space – e.g. messaging biz with enterprises – Hosting cloud – amazon, azure, etcBetter cloud apis for exampletelcos as a cloudTrusted service provider for lots of enterprise customersof all sizesSignificant sales force reach and relationships with enterprise customersEnt getting faster and faster by leveraging their apis – should telcos apply same lessons
  16. Disruptions in enterprise space – e.g. messaging biz with enterprises – Hosting cloud – amazon, azure, etcBetter cloud apis for exampletelcos as a cloudTrusted service provider for lots of enterprise customersof all sizesSignificant sales force reach and relationships with enterprise customers
  17. Disruptions in enterprise space – e.g. messaging biz with enterprises – Hosting cloud – amazon, azure, etcBetter cloud apis for exampletelcos as a cloudTrusted service provider for lots of enterprise customersof all sizesSignificant sales force reach and relationships with enterprise customers