Every week the Opus team picks a news story or topic or idea that is relevant to the entrepreneurs and businesses we partner with.

RSS Feed

Archives

API Management is Hot!

Ajit Deshpande - - 0 Comments

Last week, Intel announced its acquisition of API enablement and management services player Mashery for $180 million. Since its establishment in 2006, Mashery has raised approximately $35 million in funding, and is one of multiple players in the space along with IPO bound MuleSoft (raised more than $80 million so far), Apigee, Layer 7 Technologies and others.

Mashery has a network of more than 160,000 developers and powers more than 50,000 APIs, representing significant YoY growth on both fronts. Intel’s Software and Services Group itself works with more than 20,000 independent software vendors, and has been increasingly focused on mobility, security, datacenter-related applications and so on. It just makes sense that one of the most horizontal technology players in history would acquire a business partner that can further its ambitions around mobility and inter-application data sharing. Incidentally, Layer 7 Technologies was acquired on 4/22 for an undisclosed sum by CA Technologies, which means there have been two significant exits in this space in less than a week.

Large players like Intel and CA can now better enable enterprises to bubble up proprietary features and data for third party developers. In doing so, they might also help the ‘app-store effect’ finally take off in the enterprise, which is great in the grand scheme of things. At the same time, this does ‘unbundle’ products and solutions, with the gain to the two companies’ service businesses coming at the cost of lower margins on their product and technology revenues, and so the long-term bet is that there will be disproportionately greater growth in services revenues. If this trend plays out, could the largest companies of today eventually just morph into one of just two types of players – either as mostly B2B service businesses (IBM, CA, Accenture, and maybe Intel), or as conglomerates offering loosely connected, customer-facing products and solutions (Apple, Google, Microsoft, Facebook and so on)? This might just happen, and in that case entrepreneurs even further become the flag-bearers for cutting-edge innovation. And knowing the Silicon Valley, surely the entrepreneurs won’t mind!

« Back to Blog
Also on the Opus Blog

Apple vs. Samsung Lawsuit

August 26, 2012
Ajit Deshpande - Last week, a nine-member San Jose jury ruled in favor of Apple in the company’s patent infringement lawsuit against Android-based smartphone and tablet manufacturer Samsung. The...

Identity Management from Salesforce

October 23, 2013
Ajit Deshpande - Last week, Salesforce announced the launch of Salesforce Identity, the company’s new cloud-based identity and access management platform that will simplify for IT administrators...

Dropbox gets Mailbox

March 19, 2013
Ajit Deshpande - Last week, cloud-based file storage leader Dropbox announced its acquisition of Mailbox, an iOS email management app created by a 14-person startup named Orchestra. Orchestra was...

Shopify extends its reach!

September 5, 2013
Ajit Deshpande - Shopify, one of the leading providers of online storefronts and payment processing solutions for retailers, last week introduced its own iPad-based  point-of-sale (POS) system for...