WSO2Con Insights – How APIs are Driving StubHub’s Business

Transforming a business to an API-centric architecture is a major undertaking, but it’s one that yields many benefits, most notably the ability to grow the business by extending processes to partners. In his keynote presentation at WSO2Con US 2013, Sastry Malladi, chief architect for StubHub, explained how the company has implemented an API-centric architecture to capitalize on this opportunity.

According to Malladi, adopting an API-centric architecture was driveStubhubn by two factors. First, the company wants to expand from an online marketplace for tickets to become an end-to-destination for fans, including sharing their event experiences and getting information about things to do in event locales. Second, StubHub, which currently has a presence in three countries, plans to expand worldwide.

He observed that to achieve this goal, StubHub needed to build a developer community and enable partners to bring their content and services to the StubHub audience.

For example, Malladi noted, “If you’re at a hotel, and say you want to do something this evening to a concierge—how do we integrate those? You need to go to places where people are instead of expecting them to come to your site.”

Reusable Components Are Key to API Architecture

Sastry-at-WSO2ConUS-2013-2Before StubHub could extend APIs to partners, Malladi told attendees, the company first had to break down StubHub’s monolithic, hardwired application into shared, usable components, or services. This was necessary, he explained, because an API is an externally exposed “service,” which includes a developer program and typically has a “functional” contact as well as a “non-functional” contract, such as a service-level agreement (SLA). Moreover, the API potentially maybe orchestrated across multiple services, he said.

As part of this effort, Malladi explained, StubHub has established a domain meta model in which each domain is separate and independent and has one or more functions; each of these functions can have one or more APIs, but there is a one-to-one relationship between an API and an endpoint. Additionally, he said, the StubHub team does dependency modeling, so when someone is developing a function or API, the dependency is understood. Finally, he explained that domains are done in such a way that the entities belonging to a domain are owned by that domain, and the only way to access those entities is by going through the domain.

“Bottom line,” Malladi noted, “These APIs are giving us the business agility that we need and the operational excellence.”

API Architecture Opportunities Vs. Challenges

Malladi observed that an API-centric architecture offers several benefits for StubHub in addition to business agility:

  • Sellers have the flexibility to build their own customized solutions, and systems scale well to inventory and traffic.
  • Buyer experiences are enhanced, since it allows the developer community to extend the StubHub fan experience.
  • API brands serve to drive revenue and increase visibility.
  • Developers are encouraged to explore the APIs and see what they can accomplish with them.

However, becoming an API-centric organization presents challenges as well.

Malladi noted that while a new business could start from scratch, an established company, Sastry-at-WSO2ConUS-2013such as StubHub needed to balance the re-architecture with meeting other commitments to the business and customers.

A second challenge according to Malladi is that consumption patterns are not fully “baked” at the time of building an API; you won’t know fully who is going to consume them and what their patterns will be. Similarly, chargeback models and SLAs will not be clearly baked at first.

 That is why it is important to build the API in such a way that it is flexible and can adapt to changes, he said. Moreover, exposing APIs to a lot of partners is not free, so architects and developers need to incorporate capacity planning and accountability into their models, he added.

At the same time, fraudsters are looking to make money off of Internet business sites. For this reason, companies need to be able to detect and prevent them from leveraging the API, and impersonating and collecting confidential data, Malladi advised.

The Role of WSO2 API Manager

For its own API architecture, StubHub is using the Store and Publisher in WSO2 API Manager, WSO2-api-manager-logoAPI Gateway based on WSO2 Enterprise Service Bus, and WSO2 Identity Server, Malladi said. The Publisher is where internal team members publish their APIs and manage the lifecycle of the APIs, he explained.

The Store is where an API is exposed both to the external and internal consumers, so they can create their applications. Malladi noted that the Store works the same way both internally and externally on both the website and mobile apps. He also invited attendees to visit StubHub’s implementation of the Store, the Developer Portal, at https://developer.StubHub.com.

WSO2 Identity Server manages user authentication, key management, JSON Web Token (JWT) assertion, Malladi said. Meanwhile, the WSO2 ESB-based API Gateway routes all incoming requests and works with WSO2 Identity Server to authenticate them.

Malladi noted that the combination of WSO2 API Manager and WSO2 ESB has enabled StubHub to address the need to manage APIs across Web and mobile domains. This is an important feature, since mobile is where StubHub sees the biggest growth, he explained.

Big Data Insights into APIs

To support StubHub and its expanded business model, the company is creating a big data platform to answer key questions, Malladi said. For example: How does the API manage social data and business analytics? How do StubHub APIs use these data sources, process the data, and bring it back in real time?

“It’s not just about creating an API but how it works on the backend,” Malladi observed. ““It’s so important to understand who your customer is and what they are doing.”

As Malladi then closed his session, he noted that building an API-centric architecture is a key driver for business growth, but as with any initiative there are challenges as well.

“The good news is you aren’t alone,” Malladi said. “And there are solutions.”

For more information about StubHub’s process for creating APIs, you can view Malladi’s WSO2Con US 2013 keynote address.

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