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Apigee Acquisition Brings Analytics to APIs

Sarah Thomas
1/8/2014

The application programming interface (API) management guru Apigee announced Wednesday that it is moving deeper into the network by acquiring the predictive analytics vendor InsightsOne.

The acquisition will help Apigee Corp. customers wrap a layer of predictive analytics around all the data they have traversing the network at the API level. The vendor has dabbled in this combination before. In February, it introduced its Apigee Insights, which layers in user interaction and contextual feedback. But acquiring InsightsOne takes its capabilities to the next level by adding predictive, real-time analytics. (See: Apigee Offers Mobile App Analytics.)

"We won't only give you context on what happened, but on what could or will happen," Apigee CEO Chet Kapoor told us. "This has been a phenomenal experience in working through this with our customers. Predictive is clearly the killer app of big data."

In the enterprise, Kapoor cited Gartner Inc. numbers that predictive performance metrics can increase profitability by 20% by 2017. As for network operators, they can use it to predict and prevent churn, tailor marketing promotions, or fix network problems in advance.

InsightsOne predominantly serves the healthcare and financial services industries, but it plans to make operator inroads under Apigee. InsightsOne CEO Waqar Hasan said his company can predict a customer problem a month before it happens, alerting the enterprise to fix it before it becomes an issue. For example, Blue Cross has been using the software to predict unhappy customers by their claims information, demographics, and other accessible data and then reach out to those who might be unhappy but haven't called in.

Apigee, which has raised $107 million in venture capital funding, supports customers from big operators like AT&T Inc. (NYSE: T) to enterprises like Walgreens and GM. Apigee and InsightsOne expect the merged company's platform to be especially appealing for enterprise APIs, which operators like AT&T are aggressively targeting. (See: Apigee Adds $35M for APIs.)

"You are not sowing a thousand seeds and waiting for a couple to grow" in the enterprise, Kapoor said. "You already have a predictive business relationship with a customer. Now we're just figuring out different way to approach it."

The price was not announced. The companies said they will continue to offer InsightsOne as a standalone product, with plans to integrate it into Apigee's products in mid-2014. Hasan will join Apigee's executive team.

— Sarah Reedy, Senior Editor, Light Reading

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Sarah Thomas
Sarah Thomas
1/8/2014 | 11:51:59 AM
Apigee's future
The API space is a competitive one. I think Apigee is one of the biggest, oldest management companies on the block, but some of its competitors like Mashery and Layer 7 have been snatched up. Think APigee is the next acquisition target? Or, given its size, perhaps an IPO is in its future.
Sarah Thomas
Sarah Thomas
1/8/2014 | 11:50:53 AM
APIs everywhere
Data from APIs is just one of many forms of data a network operator can collect to get a full customer picture, but I think it's a valuable one. It's not just from smartphone apps either, but ALL connected devices. As we've seen at CES, that list is growing.
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