10.23-10.30 API Business Model

What is API?

API (Application programming interfaces) is a set of rules, protocols, and tools that allow different software applications to communicate and interact with each other. It defines the methods and data formats that applications can use to request and exchange information, services, or functionality.

API has become crucial for enabling seamless integration, data sharing, and collaboration between different software systems and platforms. It serves as the bridge that allows apps to communicate with each other, enabling developers to access and leverage functionalities and data from various sources.

Why are APIs important?

It plays a crucial role in driving innovation, fostering collaboration, and enabling seamless integration between software systems.

1. Facilitating Integration and Interoperability: API allows different software applications, platforms, or services to communicate and interact with each other effectively.
2. Enabling Innovation and Extensibility: it empowers developers to build upon existing software functionalities and create new applications, services, or products.
3. Expanding Reach and Driving Business Growth: it provides a mechanism for businesses to extend their reach and tap into new markets.
4. Enhancing User Experience: it enables developers to leverage the functionalities of external systems to enhance their own applications’ capabilities.
5. Driving Platform Adoption and Ecosystem Growth: it acts as a catalyst for platform adoption by providing a pathway for developers and businesses to integrate with and leverage a platform’s capabilities.
6. Enabling Multi-channel and Multi-platform Strategies: it allows businesses to deliver their services and data across multiple channels and platforms (web/mobile/IoT devices/voice assistants), etc.
7. Promoting Data Sharing and Collaboration: it enables controlled access to data, allowing businesses to share information with partners, developers, or customers securely.
8. Enabling Scalability and Performance: it allows businesses to scale their operations effectively. It abstracts away the complexities of underlying systems, allowing businesses to scale their services without disrupting existing integrations.

What is an API Business Model?

It refers to the strategy and framework adopted by a company to monetize its APIs or create value through API-related activities. It become a powerful asset that enables businesses to extend their reach, drive innovation, and create new revenue streams. Following are some key elements and considerations in an API business model:

1. API Monetization Strategies: Freemium/Subscription/Pay-as-you-go/Transaction-based model.
2. Developer Engagement & Support: building a strong developer community is crucial for the success of an API business model.
3. Developer Ecosystem Development: creating a thriving ecosystem around APIs can amplify their value and generate additional business opportunities.
4. API Security and Access Control: ensuring the security of APIs and protecting sensitive data is paramount.
5. API Analytics and Insights: tracking and analyzing API usage can provide valuable insights into customer behavior, identify usage patterns, and guide decision-making.
6. Partnerships and Integration Opportunities: collaborating with other companies, platforms, or services to create integrated solutions can enhance the value proposition of APIs.
7. API Governance and Versioning: managing API versions and ensuring backward compatibility are important considerations in an API business model.
8. API Marketplace and Revenue Channels: creating an API marketplace or a centralized platform where developers can discover, access and manage APIs can simplify API integration and foster business growth.
9. API Governance and Compliance: compliance with relevant regulations and industry standards is essential in an API business model

The Benefits of API Business Models

1. Revenue Generation: API can be monetized in various ways, such as charging subscription fees, transaction-based fees, or revenue-sharing models. In addition, API can drive indirect revenue by expanding market reach, increasing customer acquisition, or facilitating cross-selling opportunities.
2. Business Expansion and Market Reach: APIs enable businesses to extend their reach by exposing their services, functionalities, or data to external developers/partners/customers.
3. Driving Innovation and Differentiation: APIs encourage innovation by allowing developers to build upon existing functionalities and create new applications or services.
4. Enhanced User Experience: APIs empower developers to integrate and leverage external services or data, enhancing the user experience of their own applications or services.
5. Fostering Collaboration and Partnerships: APIs serve as a foundation for collaboration and partnerships between companies.
6. Accelerated Time-to-Market: APIs enable businesses to leverage existing functionalities, services, or data sources, reducing the time and effort required to develop new features/services from scratch.
7. Scalability and Flexibility: APIs provide a scalable and flexible approach to service delivery. In addition, APIs allow organizations to adapt and evolve their offerings by introducing new functionalities or retiring outdated features new functionalities or retiring outdated features while maintaining backward compatibility for existing integrations.
8. Data Insights and Analytics: APIs can generate value data insights that help organizations understand customer behavior, usage patterns, and market trends. By analyzing usage data, businesses can gain actionable insights into customer preferences, identify emerging market needs, and make informed business decisions.
9. Ecosystem Development and Developer Engagement: APIs foster the growth of developer communities and ecosystems around a business.
10. Agility and Adaptability: APIs enable businesses to adapt to changing market dynamics and technological advancements more effectively.

Different Types of API

Open APIs

It is also known as public APIs, interfaces provided by organizations that allow external developers to access and utilize their application’s or platform’s functionalities and data.

Characteristics: [Accessibilities: open APIs are accessible to developers, partners, and the general public] [Standardization: open APIs adhere to industry standards and protocols, making them compatible and interoperable with various apps/frameworks/platforms.] [Scalability: open APIs are designed to handle a large volume of requests and can scale effectively as the usage and demand increase] [Security: open APIs incorporate security measures such as authentication, authorization, and rate limiting to protect the underlying systems and data]

Benefits of Open APIs for Businesses: [Expansion of ecosystem: it enables businesses to create an ecosystem of developers, partners, and 3rd party services that can extend and enhance their offerings] [Innovation and Collaboration: businesses can tap into the creativity and expertise of external developers, fostering innovation and enabling collaboration on new ideas and solutions] [Increased Reach and Adoption: it facilitates integration with other platforms, enabling businesses to reach a broader audience and increase the adoption of their services] [Data Monetization: it provides businesses with opportunities to monetize their data, charging for access/usage, or enable data-driven partnership]

Examples of Open API Business Models: [SNS Platforms: it allows developers to integrate applications with social networking features, user authentication, and data-sharing capabilities] [Mapping and Geolocation Services: GG offers APIs that developers can use to embed maps, geolocation, and routing functionalities into their new applications] [Payment Gateways: PayPal & Strips offer open APIs that enable businesses to integrate online payment processing capabilities into their webs/apps.]

Partner APIs

It is also known as B2B APIs, they are interfaces provided by organizations specifically for their partners and collaborators. It enables seamless integration and data exchange between the organization’s platform/system of its partners. Partner APIs are designed to facilitate efficient business processes, enhance collaboration, and create value-added services.

Characteristics of Partner APIs: [Restricted Access: it is accessible only to authorized partners who have established a relationship with the organization. Access is typically granted through API keys or tokens.] [Customization and Tailoring: it is often tailored to meet the specific needs/requirements of partner organizations.] [Enhanced Collaboration: it enables seamless integration and data sharing between the organization and its partners, fostering collaboration and streamlining processes.] [Security and Privacy: it prioritizes security and data privacy, as they evolve the exchange of sensitive information between trusted entities. ]

Benefits of Partner APIs for Businesses: [Streamlined Operations: It enables automated and real-time data exchange between systems, eliminating manual processes, reducing errors, and increasing efficiency.] [Enhanced Value Proposition: integrating APIs can create unique value propositions for customers, it includes offering bundled services, personalized experiences, or seamless end-to-end solutions that span multiple organizations.] [Business Expansion: by integrating APIs in different industries or geographies, businesses can tap into new customer segments, reach a wider audience, and create mutually beneficial business relationships.] [Co-Innovation Opportunities: partner APIs facilitate collaboration and co-innovation between organizations.]

Examples of Partner API Business Models: [E-commerce Platforms: Shopify and Magento provide partner APIs that enable seamless integration between their platform and 3rd party logistics providers, payment gateway, or inventory management systems. ] [Travel Aggregators: Expedia and Booking offer APIs to hotels/airlines/travel service providers to connect their inventory and pricing systems, enabling real-time availability and pricing info for seamless booking experiences.] [Financial Institutions: banks provide APIs to facilitate integration with fintech startups or other tech partners, which allow for secure access to banking functionalities/account info/payment processing/financial data exchange.]

Internal APIs

Also known as private/enterprise APIs, these are interfaces that organizations develop and use internally to enable communication and data exchange between different components, services, or systems within their own infrastructure.

Characteristics of Internal APIs: [Limited Access: they are accessible only within the organization’s network or infrastructure] [Granular Control: it provides organizations with fine-grained control over the functionalities and data exposed within their own infrastructure] [Integration Facilitation: it acts as integration points, enabling different components, services, or systems within the organization to communicate and share data seamlessly] [Performance and Efficiency: they are designed to optimize performance and efficiency within the organization’s infrastructure]

Benefits of Internal APIs for Businesses: [System Integration: it plays a vital role in integrating disparate systems and applications within the organization’s infrastructure] [Modularity and Scalability: it facilitates the development of modular and scalable architectures within organizations.] [Reusability and Efficiency: it promotes code reuse and efficiency by encapsulating complex functionalities and data access into reusable components] [Data Consistency and Governance: it provides a controlled and standardized approach to data access and manipulation within the organization]

Examples of Internal APIs Cases: [Microservices Architecture: commonly used in microservices architectures, where different services communicate with each other through APIs] [ERP Systems: it employ internal APIs to facilitate integration between modules such as finance, HR, inventory management, and CRM.] [Legacy System Modernization: they are instrumental in modernizing legacy systems within organizations]

Composite APIs

Also known as aggregated/mashup APIs, which combine multiple underlying APIs and services into a single unified API. It provides a higher-level abstraction, and developers to access and interact with multiple functionalities or data sources through a single API call.

Characteristics of Composite APIs: [Aggregation of Services: it provides a unified interface that abstracts the complexity of interacting with each individual API] [Abstraction of Complexity: by providing a higher-level abstraction, developers can work with a single composite API and reducing complexity and development effort] [Customization and Transformation: it performs data transformation/customization by combining and manipulating data from different sources] [Scalability and Performance: optimizing performance by reducing the number of API calls required for a given functionality]

Benefits of Composite APIs for Businesses: [Simplified Integration: by providing a single entry point for accessing multiple functionalities or data sources] [Streamlined User Experience: it provides a seamless user experience by consolidating data from multiple sources into a single response] [Flexibility and Customization: it offer flexibility in terms of customization and tailoring the API responses according to specific business needs] [Rapid Application Development: by simplifying access to multiple functionalities]

Examples of Composite APIs Cases: [SNS Aggregators: combine data from multiple social media platforms into a single unified feed] [Financial Data Platforms: developers can access a consolidated set of financial data through a composite API, eliminating the need to integrate with multiple financial data providers individually] [Travel and Booking Platforms: it allows developers to provide a unified search and booking experiences to users, accessing availability, pricing, and other travel-related information through a single API call]

Web APIs

Also known as HPPT/RESTFUL APIs, specifically designed to be accessed over the internet using HTTP protocol. It enables communication and data exchange between different applications or systems, allowing them to interact and share information seamlessly. They are widely used for building web apps, mobile apps, and other distributed systems.

Characteristics of Web APIs: [Based on HTTP: they leverage HTTP methods such as GET/POST/PUT and DELETE to perform actions and retrieve or modify data] [Representational State Transfer (REST) Architecture: by adhering to REST principles, which emphasize a stateless, resource-based approach to API design] [Data Formats: web APIs support various data formats such as JSON ‘JavaScript Object Notation’/XML ‘eXtensible Markup Language’ or representing data exchanged between client & server] [Stateless Nature: web APIs are stateless, meaning that each request from the client contains all the necessary in for the server to process it]

Benefits of Web APIs for Businesses: [Platform & Device Agnostic: it enables interoperability across different platforms, operating systems, and devices] [Scalability and Performance: by leveraging HTTP caching mechanisms, optimized data formats, and scalable infrastructure, businesses can ensure the high performance and responsiveness of their APIs even under heavy loads] [Ecosystem Expansion: it facilitate the creation of ecosystems around an organization’s services] [Developer Community and Innovation: it foster collaboration and innovation by enabling external developers leads to the creation of new apps, integrations, and solutions that enhance the overall ecosystem and provide additional value to end-users]

Examples of Web API Cases: [Social Media APIs: it enables developers to integrate social media functionalities ‘user authentication/posts/user data/interacting with social graphs’] [Payment Gateways: PayPal/Stripe allows businesses to integrate secure online payment processing capabilities into their apps or platforms] [Content Management Systems: WordPress/Drupal expose APIs enables developers to create/read/update/delete content programmatically, empowering integrations with other systems or custom front-end applications]

Mobile APIs

They are specifically designed to facilitate the integration of mobile applications with backend services, platforms, or external functionalities. Those APIs enable developers to access device-specific features, data, and services to create rich and interactive mobile experiences.

Characteristics of Mobile APIs: [Device Integration: provides developers with access to device-specific features and capabilities, such as cameras/GPS/accelerometers/contacts/notifications] [Platform-Specific Implementations: they are tailored to specific mobile platforms and provided by platform vendors ‘Apple/Google who offers unique features and capabilities’] [SDKs and Development Tools: they are often bundled as part of software development kits ‘SDKs’ provided by platform vendors] [App Store Guidelines: compliance with these guidelines ensures app security, performance, and adherence to user privacy standards]

Benefits of Mobile APIs for Businesses: [Access to Device Feature: enabling businesses to create engaging and feature-rich mobile apps] [Enhanced User Experience: it allows businesses to deliver a seamless and intuitive user experience by leveraging native device capabilities] [Integration with Backend Services: the integration allows businesses to provide personalized experiences, access user data securely, and leverage cloud-based resources] [App Monetization: by integrating payment gateways/ad networks through mobile APIs, businesses can generate revenue from mobile applications]

Examples of Mobile API Cases: [Location-based Services: mobile apps like GPS services enable developers to build location-aware apps, providing users with directions, local recommendations, or location-based notifications] [Camera and Media Integration: allowing developers to build apps with photo capture/video recording/image manipulation functionalities] [Push Notifications: enables businesses to send push notifications to users’ devices, keeping them engaged, informed, and allowing for real-time communication] [Social Media Integration: FB/Twitter/INS enables developers to integrate social sharing, authentication, or user data retrieval into mobile applications]

SOAP APIs

Simple Object Access Protocol is a type of web service that uses the SOAP protocol for communication between applications over a network. It is an XML-based messaging protocol that allows applications to run on different platforms and use different technologies to communicate and exchange data.

Characteristics of SOAP APIs: [XML-Based Messaging: it uses XML to structure and format messages exchanged between applications] [Protocol-Independent: it can be used over various protocols, including HTTP/SMTP/TCP] [Strict Message Structure: it defines a strict message structure, including a SOAP envelope, which contains the header and body of the message] [WSDL for API Definition: it often use Web Services Description Language to describe interface and operations]

Benefits of SOAP APIs for Businesses: [Robustness and Reliability: with built-in mechanisms for error handling, message integrity, and fault tolerance, ensuring that messages are delivered securely and reliably] [Interoperability: by enabling communication between applications written in different programming languages and running on different platforms] [Extensibility and Flexibility: it offers extensibility through the use of XML namespaces, which allow for the inclusion of custom data structures and additional functionality] [WS-Security for Secure Communication: support WS Security, a set of security specifications, to ensure secure communication over the network]

Examples of SOAP API Cases: [Enterprise Application Integration: it has been widely used for integrating enterprise systems, including CRM/ERP/SCM] [Financial and Banking Systems: it has been utilized by financial institutions to enable secure communication and data exchange between systems] [Government Services Integration: employed by government agencies to integrate different departments’ systems and provide access to services like tax filling/permit applications or public records] [Legacy System Integration: it is used to integrate legacy system that might not have native support for modern web protocols]

GraphQL APIs

It provides a flexible and efficient approach to querying and manipulating data, it is a more flexible alternative to traditional REST APIs by enabling clients to define their data requirements and receive a response tailored to those requirements.

Characteristics of GraphQL APIs: [Declarative Query Language: it uses a declarative query language that allows clients to specify the data they need in a single request] [Single Endpoint: enabling clients to retrieve different types of data in a single request, which improves efficiency and reducing network overhead] [Strongly Typed Schema: it allows clients to discover API’s capabilities and provide a contract for communication between the client and server] [Efficient Data Transfer: it allows clients to retrieve only the data they need, minimizing the amount of data transferred over the network]

Benefits of GraphQL APIs for businesses: [Flexible Data Fetching: it empowers clients to fetch data in a flexible and efficient manner] [Reduced Network Overhead: clients can retrieve multiple resources in a single request, eliminating the need for multiple round trips to different endpoints] [Developer Experience: the introspection capabilities allow clients to explore the API schema and understand the available data and relationships, the system provides validation and documentation, improving developer productivity and reducing errors] [Evolutionary API Development: it offers flexibility in evolving the API schema without impacting existing clients]

Examples of GraphQL API Cases: [Content Aggregation: clients can fetch data from various background backend systems and combine them into a unified response] [Mobile Applications: by allowing clients to request only the required data, it minimizes the payload size and reduces the number of network requests, resulting in improved mobile app performance] [Data-Intensive Applications: it excels in apps that deal with complex data relationships and require querying nested/related data relationships]

Different Types of API Business Models

Freemium API Model

It combines elements of both free and premium offerings, providing developers with a tiered pricing structure that includes both free and paid options.

Benefits of Freemium model: [User Acquisition & Adoption: businesses can attract a wider audience of developers to try out their API] [Product Awareness & Exposure: it acts as a marketing tool, creating awareness and generating exposure for the API] [Upselling Opportunities: it provides an opportunity for businesses to convert free users into paying customers] [Competitive Advantage: it gives businesses an edge over their rivals] [Feedback & Iteration: with a larger use base from the free tier, businesses gain valuable feedback and insights from developers] [Ecosystem Expansion: it fosters the growth of an ecosystem around the API. As more developers join the community and build integrations and apps using the API, the system becomes more robust] [Flexibility & Scalability: if offers flexibility in terms of pricing and scalability]

Drawbacks of the Freemium API model: [Revenue Generation Challenges: it’s hard to find the right balance between the free & paid tiers to ensure revenue generation] [Cost Considerations: as the user base grows, the cost of infrastructure/support/maintenance will be increased significantly] [Conversion Rate & Churn: the success of the freemium model relies on converting free users into paying customers. But the conversion rate from the free tier to the paid tier may not always be as high as desired] [User Support & Documentation: with a large user base, providing adequate support and documentation can be demanding] [Misalignment of Expectations: it may create misaligned expectations among users] [Complexity in Pricing & Packaging: designing pricing tiers and plans to cater different user segments can be complex] [Evaluation & Integration Efforts: a free tier can result in a large number of users trying the API, but it does not guarantee active adoption/integration into real-world applications]

Transaction-Based API Model

It is a business model where the usage of an API is charged based on the number of transactions or interactions between developers or end-users. In this model, businesses set a price per transaction, and developers are billed according to the volume of API calls or requests they make.

Benefits of the Transaction-Based API Model: [Revenue Generation: the model provides a direct correlation between API usage and revenue generation] [Scalability: the model is highly scalable, making it suitable for APIs that experience varying usage volumes] [Cost-Effective for Developers: for the developers, it can be cost-effective, especially for those with sporadic/unpredictable usage patterns] [Incentive for Efficient Usage: it encourages developers to optimize their API usage and minimize unnecessary transactions] [Granular Pricing: it enables businesses to offer granular pricing based on transaction volumes] [Transparent and Trackable Usage: the API usage is transparent & trackable based on transaction-based model] [Aligns with Value-added Services: the model aligns well with APIs that provide specific value-added services] [Low Entry Barrier: it has a low entry barrier for developers, as they can start using the API without significant upfront costs]

Drawbacks of the Transaction-based API Model: [Uncertain Revenue Stability: it introduces revenue instability compared to other API business models] [Complex Pricing Structures: striking the right balance between competitive pricing and revenue generation requires market research and continuous evaluation to ensure that the pricing remains attractive to developers while still profitable for the business] [Potential for Overhead Costs: the costs associated with maintaining and scaling the infrastructure to handle transaction spikes or sudden usage increases should be considered] [Developer Usage Patterns: the model relies on developer usage to generate value, accurately predicting and managing developer usage patterns can be challenging] [Developer Cost Management: the model requires careful cost management and monitoring of API usage] [Limited Revenue Upside: it may have limitations in terms of revenue growth potential, the revenue is directly tied to the number of transactions, and there is a limit to the number of transactions developers can make] [Increased Support and Documentation Demands: as transaction volume increases, businesses must ensure timely & effective support to address any issues or inquiries from developers. In addition, maintaining comprehensive and up-to-date documents becomes crucial to assist developers in understanding the transaction process]

Pay-As-You-Go API Model

It is a model where developers are charged based on the actual usage of the API, businesses offer a pricing structure that aligns with the volume or intensity of API usage, allowing developers to pay only for the resources they consume.

Benefits of the Pay-As-You-Go API Model: [Cost-Effectiveness: this is beneficial for developers with unpredictable or variable usage patterns, it can scale their API usage up or down based on demand without being tied to subscription fees] [Scalability: it offers seamless scalability for developers, it easily scale their API usage based on the needs and the growth of their applications or services] [Fair Pricing: it provides fair pricing structure that aligns costs with actual usage] [Low Entry Barrier: it provides a low entry barrier for developers, who can start using the API without significant upfront costs or financial commitments] [Resource Optimization: it incentivizes developers to optimize their resource usage since they only need to for the resources they consume] [Flexibility and Agility: the model has the freedom to adjust their API usage based on changing requirements, market conditions, or business needs. Developers can respond quickly to market dynamics without being locked into fixed plans/pricing tiers] [Real-time Usage Monitoring: developers have access to detailed usage metrics, allowing them to track their resource consumption, analyze trends, and make informed decisions about resource allocation and optimization]

Drawbacks of the pay-as-you-go API model: [Cost Uncertainty: since the pricing is based on actual resource usage, developers may find it challenging to estimate costs accurately] [Cost Management Complexity: developers need to continuously track their API usage and associated costs to avoid unexpected billing surprises] [Potential for Unexpected Costs: this may happen when developers inadvertently trigger a large number of API calls or exceed predefined usage thresholds without proper monitoring or mitigation measuares] [Complexity in Pricing Structure: multiple services or varying price tiers based on resource usage may result in complexity in pricing structures. Determining the optimal structure that balances competitiveness, simplicity, and profitability can be challenging for businesses] [Lack of Predictable Revenue: the model relies on variable usage and transaction volumes, which make it challenging for businesses to forecast revenue accurately and plan for long-term growth & investment] [Resource Allocation and Scalability Challenges: it requires robust infrastructure, real-time monitoring systems, and the ability to scale resources dynamically based on usage patterns] [Potential for Over Optimization: in an attempt to minimize costs, it may leads to compromises in the quality of services or user experiences]

Subscription-Based API Model

It is a model where developers pay a recurring fee to access and use an API, developers typically sign up for a subscription plan that grants them ongoing access to the API’s features/services for a specified period, usually monthly or annually.

Benefits of the Subscription-Based API Model: [Predictable Revenue: subscribers paying regular subscription fees, providers can forecast revenue streams and plan their business operations accordingly] [Simplified Budgeting: it plays a fixed subscription fee at regular intervals, typically monthly or annually. It enables developers to allocate resources/plan expenses/manage the budget effectively] [Access to Premium Features: it offers tiered subscription plans, providing developers with different levels of access and additional benefits based on the chosen plans] [Ongoing Support and Updates: subscribers to the subscription plans typically receive ongoing support and regular updates from the API provider] [Community and Networking Opportunities: it fosters a community of developers who subscribe to the API, where provides networking opportunities, where developers can share experiences, best practices, and insights] [Scalability and Flexibility: providers can scale their infrastructure, services, and support capabilities to accommodate growing subscriber bases] [Customer Loyalty and Retention: the loyalty benefits API providers by reducing churn and ensuring a stable customer base]

Drawbacks of the subscription-based API model: [Cost Commitment: the model requires developers to commit to recurring subscription fees over a specified period. But it is challenging to justify the cost of a subscription if their API usage is sporadic or if they only require limited functionality] [Overpaying for Unused Resources: under this model, developers pay a fixed fee regardless of actual API usage. It means that developers may end up paying for resources they do not fully utilize] [Limited Flexibility in Pricing: the model follows a tiered pricing structure, with different subscription levels offering varying features and benefits] [Inertia and Suboptimal Usage: once developers subscribe to an API, they become less motivated to explore alternative options or switch to competing APIs] [Customer Support Limitations: the model may offer limited customer support, especially for lower-tier subscription plans] [Revenue Dependency on Subscription Renewals: if a number of subscribers choose not to renew their subscriptions, the providers may face revenue challenges] [Diffculty in Converting Free Users to Subscribers: encouraging users to upgrade to a paid subscription requires a compelling value proposition and effective marketing strategies, the challenge lies in converting free users into paying subscribers]

Advertising-Based API Model

It is a model in which API providers generate revenue by incorporating ads into their APIs. In this model, developers have access to the API for free.

Advantages: [Developers: it allows them to access and use the API for free, removing financial barriers to entry. It encourages wider adoption and usage of the API, attracting a larger user base and driving potential network effects] [API Providers: the model enables providers to monetize the API with/without charging developers directly. They can generate revenue based on the volume of API usage and ads, it is particularly suitable for APIs that attract a significant user base or have high usage volume. Besides, the model provides a source of continuous revenue for API providers and allows them to build relationships with advertisers and explore partnerships]

Considerations: [The integration of ads within the API must be carefully executed to avoid negatively impacting the user experience. Intrusive/excessive ads can lead to user dissatisfaction, reduced API usage, or even abandonment by developers] [The revenue potential of the ad-based model also depends on factors such as the size/engagement of the user base, the relevance and effectiveness of the ads, and the overall market demand for advertising in the context of the API]

Partner-Based API Model

It is a model in which API providers form strategic partnerships with other companies or developers to offer value-added services/functionalities. The provider collaborates with partners to extend the reach and capabilities of the API, enabling them to create mutually beneficial relationships and generate revenue through partnerships.

Benefits: [Expanded Reach and Customer Base: the ability to tap into the partner’s existing customer base] [Enhanced Value Proposition: partnering with companies/developers who have complementary products/services can greatly enhance the value proposition of both the API provider/partner] [Access to Expertise and Resources: collaborating with partners allows API providers to leverage their partner’s expertise and resources] [Revenue Generation: the model opens up revenue opportunities through partnerships. The providers can establish revenue-sharing agreements, licensing fees, or other monetization arrangements with their partners] [Ecosystem Building and Network Effect: the model fosters the development of a thriving ecosystem around the API] [Market Penetration & Differentiation: collaborating with partners can help API providers penetrate new markets or verticals more effectively, it can accelerate market entry, reduce barriers to adoption, and differentiate the API in a crowded market] [Flexibility and Scalability: the providers can focus on developing & maintaining the core infrastructure while relying on partners to build innovative applications/services around it]

Drawbacks of the partner-based API model: [Integration Challenges: it is complex and time-consuming, which requires technical expertise, development resources, and coordination between the provider and the partner’s development team] [Dependence on Partner Relationships: the success of the model heavily relies on the quality of partnerships and the strength of relationships] [Limited Control over User Experience: integrating an API into a partner’s product/service, the provider has limited control over the overall user experience] [Increased Complexity in Governance and Support: managing partnerships in this model can introduce complexities in terms of governance/support/documentation. The providers must establish clear agreements, policies, and guidelines for their partners to ensure consistent and compliant use of the API] [Revenue Sharing and Monetization Challenges: providers and partners need to establish clear and mutually beneficial arrangements to ensure that revenue is distributed appropriately based on the value provided by each party] [Competing Partner Interests: partners integrating the same API may have competing interests/business objectives, which can create conflicts or challenges when it comes to marketing/differentiation/feature development] [Potential Security and Data Privacy Risks: integrating an external API into a partner’s product/service introduces potential security and data privacy risks] [Partner Onboarding and Training: API providers must invest time and effort into providing comprehensive documentation, developer support, and training materials to enable partners into integrate the API successfully]

Affiliate and Referral-Based API Model

It is a model where API providers incentivize partners/developers to promote and refer users to their content through their API. In this model, the provider establishes an affiliate program or referral system, offering financial rewards to partners who drive new users to the API or generate conversions.

Benefits: [Increased User Acquisition: by leveraging the network and marketing efforts of affiliates, the API provider can reach a wider audience and acquire new users more effectively] [Cost-Effective Marketing: the model provides a cost-effective marketing approach for the API provider] [Access to Niche Markets and Audiences: by partnering with affiliates who cater to these niche markets, the API provider can tap into their specialized knowledge and reach audiences that may be difficult to target through traditional marketing channels][Mutual Growth and Collaboration: the collaboration between the provider and affiliates can lead to continuous improvement, innovation and mutual growth] [Performance Based Incentives: by rewarding affiliates for successful referrals or conversions, the API provider aligns the interests of affiliates with their own, creating a win-win situation]

How to Monetize Your APIs

Setting API Prices

1. Value-Based Pricing: consider the problems your API solves, the efficiency gains it offers, and the revenue it helps to generate for your customers, then align the price with the value.
2. Market Research: conducting thorough market research is essential for understanding your target market and its willingness to pay for API services.
3. Pricing Tiers and Packaging: it allows you to provide options that align with various customer needs and budget constraints. It helps attract a wide range of customers and maximize revenue potential.
4. Usage-Based Pricing: you can set different pricing tiers based on the number of API calls, storage, bandwidth, or other relevant metrics. It allows customers to scale their API usage according to their needs while ensuring a fair pricing structure.
5. Freemium Model: this approach helps attract a large user base and provides an opportunity to upsell paid features or higher usage limits to customers who require more capabilities. It allows the customers to experience the value before a paid plan, lowering the barriers to adoption.
6. Developer Ecosystem and Pricing: it encourages developers to explore and integrate your API into their applications, potentially leading to increased adoption and revenue generation in the long run.
7. Competitive Positioning: balancing your pricing approach with the value you provide, and consider periodically reviewing and adjusting your prices based on market dynamics.

Creating API Packages

1. Segmentation and Targeting: understanding the target audience will help you design packages that resonate with their specific requirements. By tailoring your packages to different segments, you can better address their unique needs and maximize customer satisfaction.
2. Feature Differentiation: the feature-based differentiation gives customers a clear understanding of the value they can expect at each price point, and encourages them to upgrade to higher tiers to access more advanced features.
3. Usage Limits and Scaling Options: it helps to manage resource allocation and prevent abuse of your API services while scaling options allow customers to accommodate their increasing usage demands.
4. SLAs (Support and Service Level Agreements): these can significantly impact the value perceived by customers, higher-tier packages should come with more robust support and stronger SLAs to attract customers who require additional assistance or have stringent uptime requirements.
5. Pricing Structure: it aligns with your target market and customer preferences, and ensures it is clear and transparent, making it easy for customers to understand and compare packages.
6. Free and Trial Package: the free or trial packages act as a marketing tool to drive customer acquisition and create opportunities for upselling.
7. Customization and Enterprise Options: this can be a lucrative monetization strategy. The premium packages allow you to capture a higher value from enterprise customers who are willing to pay for tailored solutions and extended support.

Offering API Support

1. Comprehensive Documentation: this is essential for enabling developers to understand and integrate your API effectively, interactive examples/sandbox environment to facilitate learning and experimentation is also important.
2. Developer Resources: a range of developer resources can significantly enhance the support you provide. Those resources not only save developers time and effort but also demonstrate your commitment to their success, fostering a positive relationship with your users.
3. Community Engagement: this can be invaluable for support and knowledge sharing, and creates a sense of belonging and loyalty among developers.
4. Technical Support Channels: it is crucial for addressing complex or specific issues that developers may encounter, to ensure that your support team is knowledgeable, responsive, and equipped to handle technical inquiries promptly. Providing timely and effective support builds trust and confidence in your API, encouraging developers to continue using and recommending your service.
5. Self-Service Tools: this enhances developers’ experience and alleviates the need for direct support, which enables developers to troubleshoot common issues, access relevant information, and manage their API integration independently. It also reduces the burden on your team, allowing them to focus on more complex and specialized support requests.
6. Server Level Agreements (SLAs): it is a crucial aspect of your support offering, it defines the level of service and performance guarantees you provide, including uptime commitments, response times, and resolution times for support tickets. Clear and well-defined SLAs instill confidence in customers, particularly those with mission-critical applications, and can justify higher-tier pricing or enterprise-level packages.
7. Continuous Improvement and Feedback: API support should be a continuous improvement process, with regular feedback from developers about your service. Conduct surveys, gather feedback through support interactions, or even organize developer meetups or conferences to engage with your user base directly. The feedback is used for improvement, optimize your support processes, and enhance the overall developer experience.
8. Premium Support Options: premium support offerings provide an opportunity to upsell and generate additional revenue while providing an elevated level of service to customers who prioritize enhanced support.

Promoting Your APIs

1. Developer Outreach: reach out to developers and engage with the developer community, share info about your APIs, provide tech support, and gather feedback. Building relationships with developers can lead to valuable partnerships and advocacy for your APIs.
2. Documentation: it is essential for promoting your APIs, with clear instructions, code samples, and use cases to help developers know your APIs easily. The doc should cover both tech aspects and business benefits of using your APIs.
3. Developer Portals: it serves as a central hub for your APIs, it provide access to documentation, code samples, SDKs, and other resources.
4. Sample Applications: they serve as practical examples for developers and help them understand how to leverage your APIs effectively. Make sure they are easily available for the developer portal.
5. Developer Support: This includes email support, community forums, chatbots, or dedicated developer support teams. Timely assistance and prompt resolution of issues will instill confidence in developers and encourage them to use and promote your APIs.
6. Developer Incentives: these can be rewards, discounts, or revenue-sharing programs. Incentives can motivate developers to promote your APIs actively, contribute to their improvement, and drive adoption among their peers.
7. Marketing & Communication: develop a marketing strategy to create awareness and generate interest in your APIs, utilize various channels like social media/blogs/newsletters, share updates, success stories, and new features. Highlight the value propositions and show how your APIs solve specific problems or address challenges.
8. Partnerships and Integrations: collaborate with other companies/platforms/developers to create integrations or joint solutions, partnerships can expand your reach, tap into new markets, and increase the visibility of your APIs.
9. Publicize Success Stories: share the stories, and highlight the positive outcomes, such as improved efficiency, cost savings, or innovative applications. These serve as social proof and inspire others to adopt your APIs.
10. Developer Evangelism: hire developer evangelists who can champion your APIs within the developer community. They can speak at events, conduct webinars, write tech blog posts, and engage in online discussions.
11. Continuous Improvement: actively listen to developer feedback and iterate on your APIs based on their needs. Regularly release updates, bug fixes, and new features to keep developers engaged and excited about your APIs.

Measuring API Usage

1. API Analytics: implement a robust system to track various metrics related to API usage, which includes the number of API calls, data transfer, error rates, response times, and user demographics. It provides valuable insights into how your APIs are being consumed and helps identify trends, usage patterns, and potential bottlenecks.
2. Usage Metrics: those metrics (number of API calls per day/month/specific periods, the number of unique users or applications accessing the API, data transfer volume, and API performance metrics like latency and response times) provide a quantitative understanding of the usage and performance of your APIs.
3. Developer Dashboard: it provides developers with access to their API usage statistics, allows developers to monitor API usage, set usage limits, and understand consumption patterns. The dashboards foster transparency and trust between you and your developer community.
4. API Key Management: implement a secure API key management system to track and control access to your APIs, it enables you to identify abusive or excessive API consumption, manage access levels, and enforce usage limits as part of your monetization strategy.
5. Rate Limiting and Throttling: it allows you to restrict the number of API calls per unit of time while throttling limits the rate at which requests are processed. The mechanism helps prevent abuse, ensure fair usage, and protect the stability and performance of your APIs.
6. Customer Usage Plans: This allows you to cater to the needs of different types of users/businesses. Monitoring API usage helps enforce these usage plans and ensure accurate billing.
7. Billing and Invoicing: use API usage data to generate accurate bills and invoices for your customers. Based on the measured usage, you can apply different pricing models such as pay-as-you-go, tiered pricing, or flat-rate pricing.
8. Trend Analysis: analyze API usage data over time to identify usage trends, peak periods, and seasonal variations. The info can help you optimize resource allocation, scale your infrastructure to handle peak loads, and plan for future capacity needs. Trend analysis enables you to anticipate changes in usage patterns and adapt your pricing and monetization strategies accordingly.
9. Performance Optimization: by optimizing your API performance, you can enhance user experience, reduce costs, and attract more users to your platform.
10. Customer Insights: the usage data provides valuable insights into your customers’ behavior and preferences, by analyzing usage patterns, you can understand which features or functionalities of your APIs are most popular or underutilized. The info helps you make data-driven decisions for product enhancements, prioritize development efforts, and identify opportunities for upselling or cross-selling.
11. Security and Compliance Monitoring: monitor usage patterns to detect potential security threats, anomalies, or suspicious activities. It helps safeguard your APIs and protect sensitive info.

Choosing the Right API Business Model

Factors to Consider

1. Business Goals and Strategy: these are the most crucial factors to consider, different API business models align with different objectives. It is crucial to align the API business model with the broader business strategy to ensure consistency and maximize success.
2. Target Audience: the needs and preferences of developers, partners, or end-users can significantly influence the choice of business model. The model can be partner-centric (for developers who require customization) or self-service (for end-users who require ease of integration).
3. Value Proposition: the API should offer clear benefits and value to the users, whether it is by enabling cost savings, improving efficiency, enhancing functionality, or providing access to unique data. And align the pricing structure and packaging with the perceived value.
4. Competitive Landscape: understanding how other players in the market structure their offerings and monetize their APIs can provide insights and help in making informed decisions. Analyzing pricing models, licensing terms, and value-added services of competitors can help differentiate the API and identify gaps or opportunities in the market.
5. Technical Complexity: it can impact the choice of business model. If the API is complex, a pricing model such as pay-per-use or tiered pricing is more suitable to recoup the costs. If the API is simple, a freemium or usage-limited model can be considered to encourage broader adoption and minimize barriers to entry.
6. Legal and Regulatory Considerations: ensuring compliance with relevant regulations and safeguarding user data should be a top priority when designing the business model.
7. Scalability and Long-term Viability: evaluating the potential revenue streams, pricing flexibility, and adaptability of the business model can help ensure its sustainability and long-term success.
8. Feedback and Iteration: it can improve adoption rates, increase customer satisfaction, and drive revenue growth.

Cases of API Business Models

Google Maps API

Key Factors for Success

1. Reliability and Quality: Google has invested heavily in building a robust mapping infrastructure, constantly updating and improving the data to ensure accuracy. The reliability and performance of GG maps play a crucial role in its success.
2. Developer-Friendly Approach: Google has adopted a developer-friendly approach in designing and managing its API. The documentation is comprehensive and well-maintained, making it easy for developers to understand and integrate the API into their applications. Google provides a variety of resources, which enables developers to quickly get up to speed and overcome any challenges.
3. Flexible Pricing Models: this approach provides scalability and ensures that developers only pay for the resources they consume, making it cost-effective for both small-scale startups and enterprises.
4. Extensive Feature Set: it offers a rich set of features and functionalities that cater to diverse user cases. The availability of extensive features and capabilities has contributed to the widespread adoption of the API across various industries.
5. Integration Ecosystems: it has fostered an extensive integration ecosystem, allowing developers to combine mapping services with other APIs and technologies seamlessly. The integration has opened up numerous possibilities for creating innovative applications that leverage mapping data in conjunction with other services,. The versatility and compatibility have been instrumental in driving its success.

Business Model

Google Maps API operates on a freemium business model, offering both free and paid tiers. Initially, Google provided free access to the API without any usage limits, encouraging developers to integrate mapping functionalities into their applications. This approach fueled rapid adoption and allowed developers to experiment and innovate without financial barriers.

In 2018, Google introduced significant changes to its pricing model for the Google Maps API with usage limits and began charging for usage beyond those limits. The pricing structure offers flexibility and scalability for developers. The free tier allows developers to make a limited number of requests per month, making it suitable for low-volume or non-commercial applications. For applications with higher traffic or specific requirements, developers can choose from various paid plans that offer increased usage limits, priority support, and advanced features. The pricing enables developers to estimate costs and scale their usage accordingly.

The free tier encourages widespread and fosters innovation, while the paid plans generate revenue and support the continued development and maintenance of the API.

Facebook Graph API

It is an API that provides programmatic access to various aspects of the Facebook platform. It allows developers to retrieve user data, post content, manage pages, and perform other actions related to Facebook’s social network.

Key Factors for Success

1. Vast User Base and Data: FB boasts an enormous user base, with billions of active users worldwide. The massive user base has made the FB graph an attractive platform for developers. It offers access to a wealth of user-generated data, such as profile info/posts/photos/connections. The data opens up countless possibilities for developers to create engaging experiences for users.
2. Social Graph and Network Effects: the API leverages the concept of the social graph, which represents the interconnected relationship between users on the platform. By providing access to this social graph, the API enables developers to tap into the network effects of FB. Developers can build applications that leverage social connections, facilitate social interaction, and enable viral growth through sharing and recommendations.
3. Rich Feature Set: the API provides access to user profiles/posts/photos/events/groups, and more. In addition, it allows developers to implement social plugins, which enhance user engagement and simplify the integration process.
4. Developer Support and Resources: FB provides extensive documentation, SDKs, and a dedicated developer portal to support developers using the API, which makes the developers understand and utilize the API effectively. FB also fosters a vibrant developer community, offering forums and resources for developers to connect, share, and seek assistance when needed.
5. Monetization Opportunities: one notable revenue is the integration of FB Ads into applications. In addition, developers can indirectly benefit from increased user activity and potential monetization channels, such as in-app purchases or subscriptions.

Business Model

FB Graph API operates on a freemium model, offering free access to developers with certain limits and additional paid options for advanced features and higher usage levels. FB also offers paid options, such as the marketing API, which provides advanced ad capabilities for businesses and advertisers.

The combination of a free tier with usage limitations and paid options for advanced features and ad capabilities allows FB to strike a balance between encouraging innovation and generating revenue, It also aligns with FB’s overarching business model of monetizing its massive user base and ads platform.

Twilio API

It is a cloud communications platform that enables developers to integrate voice, messaging, and video capabilities into their applications. It provides a suite of APIs that simplify the process of building and scaling communication solutions.

The API offers developers a set of RESTful APIs that facilitate real-time communication functionalities. Developers can leverage the Twilio API to send the receive text messages, make/receive phone calls, implement video conferences. Twilio abstracts the complexities of telephony infrastructure and provides a reliable and scalable platform for developers to build communication solutions.

Key Factors for Success

1. Developer-Focused Approach: the API is designed to be developer-friendly, with clear documentation, well-organized resources, and easy-to-use SDKs and libraries. Twilio offers support for multiple programming languages, making it accessible to a wide range of developers. This developer-centric approach has attracted a large and loyal developer community, fostering innovation and driving the adoption of the Twilio API.
2. Communication Infrastructure: T has invested heavily in building a robust and scalable communication infrastructure. The API integrates with global telephony carriers, enabling developers to leverage T’s extensive network and reach users worldwide. It handles the complexities of call routing, message delivery, and media processing, ensuring reliable and high-quality communication experiences for developers and end-users.
3. Feature-Rich Capabilities: Twilio provides developers with a versatile toolkit to build innovative applications, the feature-rich nature has made it a go-to choice for developers looking to incorporate communication capabilities into their products.
4. Scalability and Reliability: the API’s scalability allows developers to seamlessly scale their applications as their user demand grows, without the need for significant infrastructure investments or complex setup procedures. T’s commitment to uptime and reliability has instilled trust in developers and established the platform as a reliable communication solution.
5. Flexible Pricing Model: T offers a flexible pricing model that aligns with the needs of developers. The API follows a usage-based pricing approach, where developers only pay for the services they consume.

Business Model

Twilio API operates on a pay-as-you-go business model, developers pay for the usage of services. It offers different pricing tiers based on the type of service and usage volume.

T’s pricing model is flexible and transparent, enabling developers to manage costs effectively. This model eliminates the need for upfront investments in infrastructure and licenses, making Twilio’s communication capabilities accessible to businesses of all sizes.

In addition, T offers various add-ons and premium services, such as number provisioning, recording storage, and advanced messaging features, which provide additional revenue streams for the company.

The Future of API Business Models

The Rise of the API Economy

API economy represents a new paradigm in which businesses are built and thrive by leveraging the power of APIs to create innovative products, streamline operations, and drive revenue growth. It refers to the set of business models, strategies, and ecosystems that revolve around the development, distribution, and consumption of APIs. API acts as a bridge between different software applications, allowing them to communicate and share data seamlessly.

Key Drivers of the API Economy

1. Digital Transformation: API provides the means to connect and unify disparate software apps, enabling businesses to streamline their operations and deliver enhanced user experiences.
2. Platform Economy: API plays a crucial role in opening up platforms to external developers, enabling them to build complementary applications and services, thus fueling growth and expanding reach.
3. Mobile and Cloud Computing: API enables mobile apps to leverage backend functionalities, access data, and provide a consistent user experience across multiple devices and platforms.
4. Digital Disruption: API allows these disruptors to build innovative solutions by integrating with existing systems, thus challenging established players and reshaping industries.

Benefits of the API Economy

1. Business Innovation: by exposing functionality and data through APIs, companies can tap into the collective creativity and expertise of external developers, leading to faster and more diverse innovation.
2. Collaboration and Partnerships: API allows different organizations to share resources, integrate systems, and create joint value propositions. By partnering with external developers, businesses can expand their reach, enter new markets, and access new customer segments.
3. Monetization Opportunities: monetization models include usage fees/revenue sharing and freemium offerings. By providing valuable APIs, businesses can create new revenue streams, attract developers to their ecosystem, and drive customer loyalty.
4. Enhanced User Experience: by leveraging APIs, businesses can deliver value-added services, cross-platform functionality, and tailored experiences to their customers.

Challenges and Considerations

1. Security and Privacy: exposing APIs to external developers increases the attack surface and raises concerns about data security and privacy.
2. Governance and Quality Assurance: as API becomes integral to business operations, organizations need to establish governance frameworks to manage API design, documentation, versioning, and lifecycle. Quality assurance should be in place to ensure the reliability, performance, and backward compatibility of APIs.
3. Business Model Alignment: a successful API model requires careful consideration of pricing, developer engagement, and ecosystem development. Businesses should align API strategy with their overall business objectives.
4. Ecosystem Building: it is crucial for long-term success. Businesses should invest in developer relations, provide comprehensive documentation, offer developer support, and foster a vibrant community to attract and retain developers.

The Impact of APIs on Businesses

1. Accelerated Innovation: API plays a pivotal role in fostering innovation by enabling businesses to leverage external developers’ creativity and expertise. The collaboration between developers and companies accelerates the pace of innovation, allowing businesses to deliver new features and services more efficiently. In addition, it facilitates rapid prototyping and experimentation.
2. Expanded Market Reach: by exposing APIs to external developers and partners, companies can leverage their expertise, resources, and customer base to reach new markets and customer segments. The collaboration allows businesses to extend their products/services beyond traditional boundaries, tapping into the networks and user base of their partners.
3. Enhanced Customer Experience: by leveraging APIs, businesses can provide personalized, integrated, and consistent experiences to customers across multiple touchpoints and channels. API also facilitates the development of customer-facing applications and interfaces. This improved customer experience fosters loyalty and satisfaction, leading to increased customer retention and advocacy.
4. Streamlined Operations and Efficiency: API acts as connectors that bridge disparate software solutions, enabling them to communicate and share data seamlessly. API also facilitates data exchange and interoperability, enabling businesses to access and leverage valuable insights from multiple sources. The data-driven approach improves decision-making, enables predictive analytics, and enhances operational efficiency.
5. Monetization Opportunities: companies can monetize their APIs directly by charging for access or usage, providing premium tiers, or implementing revenue-sharing models with developers & partners. In addition, API acts as a catalyst for indirect revenue generation.
6. Collaboration and Partnerships: by exposing APIs, companies can establish strategic partnerships with external organizations, leveraging their expertise and resources to create value-added solutions. In addition, APIs enable businesses to collaborate internally by breaking down silos and promoting cross-functional integration.

The Opportunities of the API Economy

1. New Revenue Streams: API allows businesses to generate additional revenue streams beyond core products or services. By exposing valuable functionalities/data/services through APIs, companies can monetize API access by charging developers or partners for API usage, offering premium API tiers, or implementing revenue-sharing models.
2. Platform Expansion and Ecosystem Development: by opening up APIs to external developers, companies can encourage innovation, attract developers to their platform, and foster an ecosystem of applications and services that enhance the value of their offerings.
3. Collaboration and Partnerships: by exposing APIs, companies can establish strategic alliances and partnerships with external organizations, leveraging their expertise and resources to create value-added solutions.
4. Enhanced Customer Experience: by leveraging APIs, businesses can provide personalized, integrated, and consistent experiences to their customers across multiple touchpoints & channels. In addition, it empowers businesses to develop customer-facing applications and interfaces that are tailored to their customers’ needs and preferences. It results in higher customer satisfaction, increased loyalty, and improved customer retention.
5. Innovation and Agility: by exposing APIs to external developers, businesses can tap into a vast ecosystem of talent and creativity, accelerating the pace of innovation. External developers can build on top of the company’s APIs, creating new applications, services, or features that enhance the value of the core offerings. It also enables businesses to leverage emerging techs and leverage new capabilities without reinventing the wheel. Businesses can stay at the forefront of innovation and deliver cutting-edge solutions to their customers.
6. Data-Driven Insights: by integrating various data sources through APIs, companies can gain a holistic view of customers, operations, and market trends. It enables businesses to collect data from external applications/devices/platforms, enriching their own data sets and enabling advanced analytics and machine learning algorithms. Those data-driven insights can fuel informed decision-making, drive personalized customer experiences, and uncover new opportunities.