Mixed Returns on Voice APIs

Can you attract customers and make a buck by providing an applications programming interface (API) for your telephony platform? Providing an API is necessary, says GigaOm, but it's not a ringer for financial success.

APIs provide the tools for voice mashups, making it easy for service providers and independent developers to combine voice with data and applications across multiple systems.  Voice mashups can save money and help enforce business process quality and consistency, but an API isn't a solution and doesn't necessarily make money.

Lots of voice API-based companies are in business, but they're not generating a ton of minutes or money. For example, Jakuda and parent company NetworkIP make about $150 million in total; API Jakuda may only contribute a paltry $1.2 million to the bottom line.

APIs have a lot of potential, but telephony companies need to focus on broader business plans that take into account what customers want and how to solve their problems rather than see the release of an API as a simple check box on the list to financial profitability.

For more:
- GigaOm asks if there is money in Voice APIs [1]

Related articles:
AOL opens up [2], Yahoo outsources PSTN interfaces
Introducing Telco 2.0 - A Business Primer [3]