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Maybe I'm overreacting to this but this seems like a real disappointment for Twilio customers. We, the developers that use Twilio, are the people who have made

Maybe I'm overreacting to this but this seems like a real disappointment for Twilio customers. We, the developers that use Twilio, are the people who have made Twilio a success, by building businesses that do things like "...survey tools, ad-hoc workgroup messaging and calling, appointment reminder services..." How is this good for me as a customer of Twilio if they've decided to now compete with me? Why should I scale up my business with Twilio if they're just going to partner with a huge company to offer their own version? I have loved you for a long time, Twilio, and this really sours me.

untog 14y ago
I have a theory, but I'm willing to have it be completely torn apart: never base your product around one single API. If that's all you're doing, then you are often performing a core function of the API provider, whether they provide it yet or not. API stuff should really be ancillary to what you're really doing. Unless you want to get bought out by said API provider.
- hntester123 14y ago
  That's an interesting theory. I suspect it is likely to be applicable in many, if not most cases. Related anecdote: a person contacted me a year ago and asked if I'd be interested in being a co-founder of his startup that would be using $(major_social_networking_service)'s API (as it's main source of information, for doing something that piggybacked on that service's user profiles). After thinking about for a while, I said I didn't want to get into that, and also cautioned him about the risks of relying on another company's API as the basis of the startup, as they could change the rules at any time and that might break his business model. Interestingly, we've seen events (in the tech news) since then that showed the risks of that approach. Your theory seems like a more generalized version of my thoughts, and I like it.
sologoub 14y ago
Twilio, and other companies like it, have drastically reduced the barrier to entry into these markets. The direct result of that is much greater competition. 20 years ago, having a call routing engine could be a company's "secret sauce" all by itself because it was relatively difficult to route calls. Today, call routing is a commodity. If you sell a commodity service, you either hope to differentiate by branding (think Apple) or compete on price (typically on lower total cost of ownership, which includes price, ease of use, support, etc.). Twilio partnering with AT&T only ensures that your commodity features will be that much more reliable, because there is a greater revenue stream backing them. The product you build either has to be differentiated (unique in some way), or cheaper (remember, AT&T is not in the business of giving away things and has specific guidelines on margins acceptable to them).
patio11 14y ago
How is this good for me as a customer of Twilio if they've decided to now compete with me? A competitor to Appointment Reminder? There were plenty to start with, one more doesn't worry me. That competitor is AT&T? Crikey, that's actually good news. It's like someone designed an enormously scalable, ridiculously efficient machine for sending pissed people with money to Google to search for me. If Twilio bizdev guys are listening, the only other thing on my Christmas list is convincing the Department of Education to award a contract to SAIC to develop free bingo card creation software and put it on the desktop of every teacher in America. (That would 10x my sales overnight.)
- wikwocket 14y ago
  Good reminder that small warm-blooded mammals shouldn't necessarily fear gigantic dinosaurs. And that competition can be a good thing, if only for market validation. I can totally see how a large company providing a general/basic service could be a big help to someone who provides a specialized, customized service in that space. It's free advertising for the space as a whole... you could almost view it as stage 1 of your funnel. But be careful what you wish for with the bingo card software... I have a friend at SAIC, and if that contract came through, we might have to take up your challenge. ;)
  - rmc 14y ago
    Not only the "general/basic" vs. "specialized customized", but I presume patio11 is betting on the software coming out of a megacorp to be rubbish and hard to use, and rarely able to adapt to changes from customers.
RobSpectre 14y ago
Thanks for the note - I think your concern is coming from a completely appropriate place. We strongly feel this partnership is great news for you as an existing Twilio developer and something you should be excited about. Important that we be clear about what this means for you. AT&T's Advanced Communication Suite includes a web portal of applications that do some very basic services for SMB customers and were built by a third party as part of this initial offering. The apps in this web portal will grow, which we absolutely believe will be a promising opportunity for our existing community of developers. We'll have more details on this opportunity at Twiliocon (http://www.twilio.com/conference http://www.twilio.com/conference) in a few weeks time. Most importantly though, ACS customers use the same Twilio API you know and love. The code you have right now will work on AT&T's Advanced Communication Suite, which we hope you'll agree opens up a lot of potential. We are not in the apps business; we are in the platform business. This and any partnership we engage is about extending the reach of addressable customers you can reach as a developer. Competing with you is not how we win - getting you in front of more and more customers is how we win.

untog 14y ago

I have a theory, but I'm willing to have it be completely torn apart: never base your product around one single API. If that's all you're doing, then you are often performing a core function of the API provider, whether they provide it yet or not. API stuff should really be ancillary to what you're really doing. Unless you want to get bought out by said API provider.

hntester123 14y ago
That's an interesting theory. I suspect it is likely to be applicable in many, if not most cases. Related anecdote: a person contacted me a year ago and asked if I'd be interested in being a co-founder of his startup that would be using $(major_social_networking_service)'s API (as it's main source of information, for doing something that piggybacked on that service's user profiles). After thinking about for a while, I said I didn't want to get into that, and also cautioned him about the risks of relying on another company's API as the basis of the startup, as they could change the rules at any time and that might break his business model. Interestingly, we've seen events (in the tech news) since then that showed the risks of that approach. Your theory seems like a more generalized version of my thoughts, and I like it.

sologoub 14y ago

Twilio, and other companies like it, have drastically reduced the barrier to entry into these markets. The direct result of that is much greater competition. 20 years ago, having a call routing engine could be a company's "secret sauce" all by itself because it was relatively difficult to route calls. Today, call routing is a commodity. If you sell a commodity service, you either hope to differentiate by branding (think Apple) or compete on price (typically on lower total cost of ownership, which includes price, ease of use, support, etc.). Twilio partnering with AT&T only ensures that your commodity features will be that much more reliable, because there is a greater revenue stream backing them. The product you build either has to be differentiated (unique in some way), or cheaper (remember, AT&T is not in the business of giving away things and has specific guidelines on margins acceptable to them).

patio11 14y ago

How is this good for me as a customer of Twilio if they've decided to now compete with me? A competitor to Appointment Reminder? There were plenty to start with, one more doesn't worry me. That competitor is AT&T? Crikey, that's actually good news. It's like someone designed an enormously scalable, ridiculously efficient machine for sending pissed people with money to Google to search for me. If Twilio bizdev guys are listening, the only other thing on my Christmas list is convincing the Department of Education to award a contract to SAIC to develop free bingo card creation software and put it on the desktop of every teacher in America. (That would 10x my sales overnight.)

wikwocket 14y ago
Good reminder that small warm-blooded mammals shouldn't necessarily fear gigantic dinosaurs. And that competition can be a good thing, if only for market validation. I can totally see how a large company providing a general/basic service could be a big help to someone who provides a specialized, customized service in that space. It's free advertising for the space as a whole... you could almost view it as stage 1 of your funnel. But be careful what you wish for with the bingo card software... I have a friend at SAIC, and if that contract came through, we might have to take up your challenge. ;)
- rmc 14y ago
  Not only the "general/basic" vs. "specialized customized", but I presume patio11 is betting on the software coming out of a megacorp to be rubbish and hard to use, and rarely able to adapt to changes from customers.

RobSpectre 14y ago

Thanks for the note - I think your concern is coming from a completely appropriate place. We strongly feel this partnership is great news for you as an existing Twilio developer and something you should be excited about. Important that we be clear about what this means for you. AT&T's Advanced Communication Suite includes a web portal of applications that do some very basic services for SMB customers and were built by a third party as part of this initial offering. The apps in this web portal will grow, which we absolutely believe will be a promising opportunity for our existing community of developers. We'll have more details on this opportunity at Twiliocon (http://www.twilio.com/conference http://www.twilio.com/conference) in a few weeks time. Most importantly though, ACS customers use the same Twilio API you know and love. The code you have right now will work on AT&T's Advanced Communication Suite, which we hope you'll agree opens up a lot of potential. We are not in the apps business; we are in the platform business. This and any partnership we engage is about extending the reach of addressable customers you can reach as a developer. Competing with you is not how we win - getting you in front of more and more customers is how we win.