CommodityAPIContract

From MashupCamp

Up: ProposedSessions

This page could also be called StandardizedContract.

Unfortunately, I missed the MonetizationBizModels session, but my understanding of the primary issue is:

• API providers have underlying costs (MIPS, Mbps, Mbs)
• These costs are different than the license of content
• Underlying datacommodities are volitile in price
• Mashups creators are at risk, some APIs have no SLA, and most are free today with the risk they will not be tomorrow.

If you assume the volume of API transactions will increase significantly as everything becomes a service, you have conditions where a commodity market will form. This begins with a standard contract that defines:

• Price
• Quantity (per call? blocks of calls?)
• Quality (SLA)

Don't be scared about the word commodity. Don't think Enron. Over time this will happen, always does.

The process begins with defining a base level of quality. A standard contract attracts liquidity (volume) and reduces risk for market participants.

Is this the right time for the industry to start talking about it?

Notes

Discussed eBay as an example of a large API provider that enables commercial use. 45% of eBay listings go through the API. Commercial use is otherwise under developed with relationships.

AdamTrachtenberg: "Calls that are writes are where there is money to be made."

Issue of multiple dependencies. You are only as good as your one SLA. At a point of maturation in the industry.

A developer expressed the need for human-readable definition of terms.

Key terms could [http://www.mashupcamp.com/* *]

• Change of format
• SLA
  • Uptime
  • Response time and it's variability (e.g. graceful degredation under load)
  • Scheduled downtime/maintainence and notification
• IP: Creative Commons, or
• Commercial Use
  • Limited # of Calls?
  • Commercial terms: price and quantity
  • Acceptable Use (e.g. Data Caching)
• Legal Juristictions
• Security policy
• Privacy policy

Next step, refine these terms, consider including as fields in the APIDocumentationProject. One small step towards a standard contract.