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More API Movements - Apigee Buys

Jan 8 2014, 12:31pm CST | by

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More API Movements - Apigee Buys
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More API Movements - Apigee Buys

I wrote just the other day about how the API management world is fundamentally changing – as large vendors acquire small companies doing API management (witness title="Intel">Intel’s acquisition of Mashery and CA Technologies buying Layer 7 ), the pure API management tools get added into broader offerings – I opined that identity management and application integration where two areas that would, over time, join with API management as a logical platform.

One of the largest independent API vendors still in existence, Apigee , is speaking to the broader API opportunity by announcing today that they’ve acquired predictive analytics startup InsightsOne . InsightsOne is a three year old real-time analytics offering that uses a live (API enabled) feed of customer data to deliver insights – for example fine-grained ad targeting to end consumers. Essentially InsightsOne takes data, and derives value for organizations from it by showing them possible monetization opportunities that exist.

So what is an API management vendor doing acquiring an analytics company? Increasingly the technology landscape is becoming polarized. The largest technology shops know exactly what they want to achieve and are in the position to acquire component parts and glue them together themselves. For the vast majority of organizations however, a more integrated approach is needed – they’re not satisfied with what is essentially a plumbing merchant offering them the raw API tools, they want help using those APIs to generate something of value. This is where the InsightsOne acquisition comes in. It’s also not the first acquisition that Apigee has made, previously they’ve acquired Usergrid , InstaOps ad technology from the Wholesale Applications Community (WAC).

Apigee’s CEO Mitch Kapoor was pretty honest about the need for API management vendors to move up the value chain when he said that:

It’s not just good enough to process or transact with that data, which APIs, by the way, do a great job of. You need to get predictive based on what is happening, what will happen, or what could happen

Apigee plans to announce software that includes the InsightsOne technology in the near future. The company has already had some initial forays into analytics – last year Apigee introduced Apigee Insights, an offering that delivers insights from API data. This move towards analytics is, in part, fueled by the massive attention that the Internet of Things I getting. As more and more devices are connected to the internet, organizations want to invest in a platform that both helps connect the various devices (core plumbing) and also add incremental value on top of the data that these integrations create – that’s where the future of API management vendors live and it’s interesting to see Apigee start to deliver upon that.

Connect with Ben on Twitter @benkepes  | LinkedIn  AngelList

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