Towards a model for resource allocation in API value networks

Abstract

REST APIs have brought the power of reuse within reach of individuals and enterprises at Internet-scale through extreme consumability. An effective API strategy must consider not just how the API will be built, but how it will be sold and offered in the Cloud environments. Traditional models of software marketing omit the complexity associated with the multiple parties involved in the API value chain. New models are needed to help platform providers allocate resources for optimum return. This paper extends traditional software marketing models to include this multi-party complexity, and contrasts optimal strategies over a variety of possible model parameters. Our results show that system models can be used to differentiate platform marketing strategies. We expect that there is a wide range of application once such models are parameterized with measured platform adoption and marketing data.