APIs and Openness contd
Traditionally APIs have been used to drive traffic to a service. They result in additional signups, more usage, and inbound links. HousingMaps is a great example. It drives traffic to both CraigsList and Google Maps. I want to use this example to illustrate a fundamental shift in the way APIs are being used. Services are now driving traffic to applications built using APIs. I’m not going to look for Facebook applications if I’m not already on Facebook. The same can be said about Twitter. Most of our favorite services can be used remotely. Twitter is a great example. You can fully use it without ever going to Twitter.com.
This shift will have a drastic effect on API economics. I’d like to discuss infrastructure, properties, and business models in several posts over the next month.