Exposing Telecoms APIs: Survey respondents

Report
Exposing Telecoms APIs
Camille Mendler
Dimitris Mavrakis
Informa Telecoms & Media
Survey results
December 2012
What is an API?
‘APIs are how people get to your business.’
Sam Ramji, Apigee
1.
An interface defining rules to interact
with software components
• Exposes specific functionality and/or data
• Allows communication with other apps
2.
Simplifies access to complex processes
• Improves customer experience
• Speeds up time to consumption
3.
Stimulates innovation
• Supports mashups: the combination of APIs
to create a new application
Picture: flickr/droetker0912
December 2012
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Informa’s Exposing Telecoms APIs survey
Exposing Telecoms APIs: Survey respondents
Goals
• Which telecoms APIs are valued?
• Is demand rising?
• Who is involved?
Results
• 369 respondents
• 72% already directly involved
in the API ecosystem
Method
• Online survey, November 2012
Content
producer /
vendor /
owner
Device / 3%
module /
chipset maker
4%
Cloud
services
provider
6%
Integrator /
consulting
firm
10%
Network
infrastructure
vendor
12%
API broker/
aggregator /
distributor
3%
Other*
6%
Telecom
operator
35%
Software
developer /
vendor
21%
n= 369
Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
*Broadcaster, regulator/government, academia/research
December 2012
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Survey respondents by geography
Exposing Telecoms APIs: Survey respondents
by geography
Latin
America
7%
Respondents from 60 countries
• Balanced between developed
and emerging economies
• Notable response from Africa
Middle East
5%
Eastern
Europe and
CIS
9%
Western
Europe
31%
Africa
13%
North
America
15%
Asia Pacific
20%
n= 369
Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
December 2012
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Highlights
• Two-thirds of operators already have an API initiative under way
• Emerging-market operators are rapidly getting involved.
• APIs for telco big data analytics are the No. 1 new requirement
• Developers want to dig into telco subscriber behavior.
• Three-quarters of (non-telco) API market stakeholders expect
telecoms API demand to multiply over the next two years
• Mobilization of the Web is the key driver of API demand.
• A fifth of API stakeholders don’t know of any telco API program
• Telco API fragmentation is the leading reason for developer discontent
and lack of awareness.
• More than half of API stakeholders want telcos to pool APIs
• Suggestions include an existing API aggregator or as a telco-only group,
despite the failure of the Wholesale Applications Community.
December 2012
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Exposing APIs is becoming the rule
Picture: flickr/ Horia Varlan
Telecoms operators: Are you developing your own APIs?
30% launched
35% under development
35% no plans
Base: Telecom operator respondents (n= 126)
Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
A flood of new telecoms APIs is set to happen in 2013.
December 2012
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It’s a truly global trend
Developed-market telcos are active
Lebanon
Kenya
Indonesia
So are many in emerging markets
Malaysia
December 2012
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Telecoms APIs: They’re not just for SMS
Telecom operators: APIs on offer
Messaging
66%
Billing
66%
Location/presence
52%
Device management
Security/identity mgmt
37%
34%
Social networking
30%
Unified communications
29%
Number portability
28%
Other
18%
% of respondents
• Account management/provisioning
• API for B2B2C operations (ex contact APIs)
• Behavior management
• Call control, Micropayment, credit transfer
• Call management
• Customer-service management
• Eligibility
• Interactive TV
• Inventory management
• Mobile payment
• M2M, digital commerce and advertising
• Predictive medicine
• Service activation
Base: Telecoms-operator respondents
already active in API ecosystem (n=83)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Although the top three are no surprise, operators’ API portfolios are diversifying.
December 2012
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Telecoms APIs are in demand
• A third of nontelco respondents
already use telecoms APIs
• 40% plan to use telecoms APIs
• But one-fifth aren’t aware of
telecoms API capabilities
Nontelcos: What’s your view of APIs
provided by telecoms operators?
They are critical for the
market
49%
They are valuable but can be
replaced
37%
They have become
irrelevant due to similar
offerings from nontelco…
Other
11%
3%
Base: Non-telco respondents involved in the API ecosystem (n=192)
Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
However, for telcos, being needed is not the same as being paid for their APIs.
December 2012
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Appetite for telecoms APIs will grow
Nontelcos: How will demand for telecoms APIs evolve over the next two years?
Demand will grow because of
ongoing mobilization of
Web/cloud
Demand levels will stay the
same
17%
Picture: flickr/ Horia Varlan
Demand will drop, APIs from
nontelco firms will dominate
75%
8%
Base: Non-telco respondents involved in the API ecosystem (n=192)
Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
APIs will need to adapt to hypermobile environments; economy in data
consumption and battery use will be important capabilities.
December 2012
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Today: Billing tops telecom API needs
Nontelcos: Which telecoms APIs
are most valuable?
61%
Billing/payments
46%
Identity/subscriber data management
Location
SMS/MMS
28%
26%
M2M
20%
UC and related call control
20%
Security
20%
Presence and IM
16%
Device capability discovery
13%
Other
• Airtime top-up
• Data roaming
• Device configuration
• Mobile money
• Number portability
• Prioritization
• QoS
• RCS service APIs
• SIM/UICC APIs
• Voice/video calling
25%
% of respondents
Base: Non-telco respondents involved in the API ecosystem (n=192)
Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012
Although priorities are broadly aligned, telecoms operators believe that their
billing and M2M APIs are more valuable than nontelcos give them credit for.
December 2012
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Future: Two-thirds want access to telco big data
Nontelcos: Which other telecoms APIs have high potential?
Exposing subscriber, device, app and network
analytics to preferred partners (e.g. Big Data)
70%
Access a global carrier’s worldwide reach for
wholesale billing, voice + messaging delivery
59%
Automating access to cloud-based storage and
compute resources (e.g. IaaS)
54%
Providing a virtual office-in-a-box to small businesses
(e.g. UC, virtual desktop, business apps)
43%
Managing prepaid data roaming and interstandard
roaming (e.g. LTE)
40%
Respondents
Base: Nontelco respondents involved in the API ecosystem (n=192)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Telco usage analytics lead the API shopping list, but avoiding data protection
and privacy pitfalls won’t be easy.
December 2012
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Perceptions of telcos’ biggest challenges vary
What challenges do telecom operators face
in monetizing APIs?
Nontelcos
Telcos
43%
Lack of clear business case
Unclear and complex value proposition
28%
Evolution of WebRTC can replace many APIs, telco
differentiation
35%
25%
25%
24%
Oversupply from alternative API suppliers
Other
40%
32%
Speed of API and service evolution is too fast
50%
2%
34%
9%
Respondents
Base: Respondents from telecoms operators (n=101), nontelcos involved in API ecosystem (n=192)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Telecoms operators are worrying more about their competition than about how they
can differentiate, but sustainable business models are unclear to all.
December 2012
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What are the biggest issues? Some out-takes
“Inconsistent APIs between carriers are off-putting
to developers, especially for enterprise applications.”
“It is mandatory that telcos expose
standardized APIs (e.g. Parlay X, or
extensions for billing).
API broker
“APIs are not telcos’ strong suit, and it’s really the
nimbleness and rapid evolution that makes it tough
for telcos to keep up.
“Fragmentation by creating various universal
coalitions/standards, but they never work.
“A developer needs to know that their messages
will get delivered regardless of the carrier the user
has.”
“It is a major missed opportunity that
Telcos did not agree on APIs to offer
features that OTTs cannot have (e.g. billing,
QoS).”
Integrator
“Make APIs as easy to use as possible.
Avoid making developers’ lives miserable
(e.g. keep an eye on what Twilio or Voxeo
have done on simplifying voice APIs ).”
Software developer
Cloud service provider
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
December 2012
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Awareness of telecoms API initiatives is poor
Telecoms operators: Telecoms API
initiatives recognized
Heard of it
Worked with it
44%
GSMA OneAPI
6%
37%
AT&T ACS
31%
DTAG Developer Garden
Telenor CPA
9%
43%
Orange Partner
Heard of it
20%
33%
Telefonica BlueVia
Worked with it
GSMA OneAPI
44%
21%
Telefonica BlueVia
46%
1%
Orange Partner
43%
DTAG Developer Garden
2%
3%
37%
AT&T ACS
3%
19% 3%
0%
Software firms: Telecom API
initiatives recognized
28%
3%
2%
Telenor CPA 16% 7%
50%
Respondents
100%
0%
50%
100%
Respondents
Base: Respondents from telecoms operators (n=126), software firms (n=77)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Note: Others cited include Alcatel-Lucent New Conversation APIs, Sprint Developer Program, Tropo, Twilio, Vodafone Betavine, WAC.
Telecom API initiatives are fragmented – and mostly inward-facing.
December 2012
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Telecoms operators don’t want to lose ‘control’
Are you seeking partners
to market your APIs?
Yes, looking for a
single partner to
manage APIs for
us globally, 6%
Yes, looking
for widest
possible
distribution
options, 28%
No, only selling
directly to our
developer
community and
enterprise
customers, 66%
Base: Telecoms-operator respondents
already active in API ecosystem (n=83)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
Telecoms operators want to manage their API ecosystem.
December 2012
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What should telcos do to be successful?
Non-telcos: What’s the No. 1 action that telcos should take
to be successful in the API ecosystem?
Ally with other operators to sell APIs globally
26%
Outsource API monetization to a trusted
partner
26%
Focus on developing their own Webstandard APIs to improve their own services
20%
Become trusted brokers of their own and
third-party APIs
They will never be successful, because of the
strength of existing competition
18%
5%
Base: Nontelco respondents involved in the API ecosystem (n=192)
Source: Informa Telecoms & Media, Exposing Telecoms APIs survey, 2012
To succeed, telcos must market APIs beyond their direct sphere of control.
December 2012
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8
For telcos, APIs are part of a wider transformation
Standardized
hardware
SDN
Base
stations
Telecoms
‘Cloud’
OSS
BSS
Policy
APIs
‘Big Data’
Verticalization
IT
Server
farms
Virtualization
Telcos must avoid putting APIs into another operational silo.
December 2012
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Final thoughts
• APIs are becoming the common currency
of the digital economy
• Telecoms operators must offer APIs
in order to trade
• Telecoms APIs have a strong and growing
role in the post-PC world
• Their subscribers remain their key asset
• Success lies in wide telecoms API
distribution
• Telecoms operators can’t do it alone
• Direct monetization of telecoms APIs
remains questionable
• Consequential benefits need further
validation
Picture: flickr/droetker0912
December 2012
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For more information:
Camille Mendler
Principal Analyst
[email protected]
Twitter: @cmendler
Dimitris Mavrakis
Principal Analyst
[email protected]
Twitter: @dmavrakis
20

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