web development
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Okta launches a new free developer plan
At its Oktane21 conference, Okta, the popular authentication and identity platform, today announced a new — and free — developer edition that features fewer limitations and support for significantly more monthly active users than its current free plan.
The new ‘Okta Starter Developer Edition,’ as it’s called, allows developers to scale up to 15,000 monthly active users — up from only 1,000 on its existing free plan. In addition, the company is also launching enhanced documentation, a set of sample apps and new SDKs, which now cover languages and frameworks like Go, Java, JavaScript, Python, Vue.js, React Native and Spring Boot.
“Our overall philosophy isn’t, ‘we want to just provide […] a set of authentication and authorization services.’ The way we’re looking at this is, ‘hey, app developer, how do we provide you the foundation you need to get up and running quickly with authorization and authentication as one part of it,’ ” Diya Jolly, Okta’s chief product officer, told me. And she believes that Okta is in a unique position to do so, because it doesn’t only offer tools to manage authorization and access, but also systems for securing microservices and providing applications with access to privileged resources.
Image Credits: Okta
It’s also worth noting that, while the deal hasn’t closed yet, Okta’s intent to acquire Auth0 significantly extends its developer strategy, given Auth0’s developer-first approach.
As for the expanded free account, Jolly noted that the company found that developers wanted to be able to access more of the service’s features during their prototyping phases. That means the new free Developer Edition comes with support for multi-factor authentication, machine-to-machine tokens and B2B integrations, for example, in addition to expanded support for integrations into toolchains. As is so often the case with enterprise tools, the free edition doesn’t come with the usual enterprise support options and has lower rate limits than the paid plans.
Still, and Jolly acknowledged this, a small to medium-sized business may be able to build applications and take them into production based on this new free plan.
“15K [monthly active users] is is a lot, but if you look at our customer base, it’s about the right amount for the smaller business applications, the real SMBs, and that was the goal. In a developer motion, you want people to try out things and then upgrade. I think that’s the key. No developer is going to come and build with you if you don’t have a free offering that they can tinker around and play with.”
Image Credits: Okta
She noted that the company has spent a lot of time thinking about how to support developers through the application development lifecycle overall. That includes better CLI tools for developers who would rather bypass Okta’s web-based console, for example, and additional integrations with tools like Terraform, Kong and Heroku. “Today, [developers] have to stitch together identity and Okta into those experiences — or they use some other identity — we’ve pre-stitched all of this for them,” Jolly said.
The new Okta Starter Developer Edition, as well as the new documentation, sample applications and integrations, are now available at developer.okta.com.
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Hasura raises $25 million Series B and adds MySQL support to its GraphQL service
Hasura, a service that provides developers with an open-source engine that provides them a GraphQL API to access their databases, today announced that it has raised a $25 million Series B round led by Lightspeed Venture Partners. Previous investors Vertex Ventures US, Nexus Venture Partners, Strive VC and SAP.iO Fund also participated in this round.
The new round, which the team raised after the COVID-19 pandemic had already started, comes only six months after the company announced its $9.9 million Series A round. In total, Hasura has now raised $36.5 million.
“We’ve been seeing rapid enterprise traction in 2020. We’ve wanted to accelerate our efforts investing in the Hasura community and our cloud product that we recently launched and to ensure the success of our enterprise customers. Given the VC inbound interest, a fundraise made sense to help us step on the gas pedal and give us room to grow comfortably,” Hasura co-founder and CEO Tanmai Gopal told me.
In addition to the new funding, Hasura also today announced that it has added support for MySQL databases. Until now, the company’s service only worked with PostgreSQL databases.
Rajoshi Ghosh, co-founder and COO (left) and Tanmai Gopal, co-founder and CEO (right). Image Credits: Hasura
As the company’s CEO and co-founder Tanmai Gopal told me, MySQL support has long been at the top of the most requested features by the service’s users. Many of these users — who are often in the healthcare and financial services industry — are also working with legacy systems they are trying to connect to modern applications and MySQL plays an important role there, given how long it has been around.
In addition to adding MySQL support, Hasura is also adding support for SQL Server to its lineup, but for now, that’s in early access.
“For MySQL and SQL Server, we’ve seen a lot of demand from our healthcare and financial services / fin-tech users,” Gopal said. “They have a lot of existing online data, especially in these two databases, that they want to activate to build new capabilities and use while modernizing their applications.
Today’s announcement also comes only a few months after the company launched a fully managed cloud service for its service, which complements its existing paid Pro service for enterprises.
“We’re very impressed by how developers have taken to Hasura and embraced the GraphQL approach to building applications,” said Gaurav Gupta, partner at Lightspeed Venture Partners and Hasura board member. “Particularly for front-end developers using technologies like React, Hasura makes it easy to connect applications to existing databases where all the data is without compromising on security and performance. Hasura provides a lovely bridge for re-platforming applications to cloud-native approaches, so we see this approach being embraced by enterprise developers as well as front-end developers more and more.”
The company plans to use the new funding to add support for more databases and to tackle some of the harder technical challenges around cross-database joins and the company’s application-level data caching system. “We’re also investing deeply in company building so that we can grow our GTM and engineering in tandem and making some senior hires across these functions,” said Gopal.
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Hasura launches managed cloud service for its open-source GraphQL API platform
Hasura is an open-source engine that can connect to PostgreSQL databases and microservices across hybrid- and multi-cloud environments and then automatically build a GraphQL API backend for them, making it easier for developers to then build their own data-driven applications on top of this unified API . For a while now, the San Francisco-based startup has offered a paid version (Hasura Pro) with enterprise-ready reliability and security tools, in addition to its free open-source version. Today, the company launched Hasura Cloud, which takes the existing Pro version, adds a number of cloud-specific features like dynamic caching, auto-scaling and consumption-based pricing, and brings those together in a fully managed service.
Image Credits: Hasura
At its core, Hasura’s service promises businesses the ability to bring together data from their various siloed databases and allow their developers to extract value from them through its GraphQL APIs. While GraphQL is still relatively new, the Facebook-incubated technology has quickly become extremely popular among many development teams.
Before founding the company and launching it in 2018, Hasura CEO and co-founder Tanmai Gopal worked for a consulting firm — and like with so many founders, that’s where he got the inspiration for the service.
“One of the key things that we noticed was that in the entire landscape, computing is becoming better, there are better frameworks, it is easier to deploy code, databases are becoming better and they kind of work everywhere,” he said. “But this kind of piece in the middle that is still a bottleneck and that there isn’t really a good solution for is this data access piece.” Almost by default, most companies host data in various SaaS services and databases — and now they were trying to figure out how to develop apps based on this for both internal and external consumers, noted Gopal. “This data distribution problem was this bottleneck where everybody would just spend massive amounts of time and money. And we invented a way of kind of automating that,” he explained.
The choice of GraphQL was also pretty straightforward, especially because GraphQL services are an easy way for developers to consume data (even though, as Gopal noted, it’s not always fun to build the GraphQL service itself). One thing that’s unusual and worth noting about the core Hasura engine itself is that it is written in Haskell, which is a rather unusual choice.
Image Credits: Hasura
The team tells me that Hasura is now nearing 50 million downloads for its free version and the company is seeing large and small users from across various industries relying on its products, which is probably no surprise, given that the company is trying to solve a pretty universal problem around data access and consumption.
Over the last few quarters, the team worked on launching its cloud service. “We’ve been thinking of the cloud in a very different way,” Gopal said. “It’s not your usual, take the open-source solution and host it, like a MongoDB Atlas or Confluent. What we’ve done is we’ve said, we’re going to re-engineer the open-source solution to be entirely multi-tenant and be completely pay-per pricing.”
Given this philosophy, it’s no surprise that Hasura’s pricing is purely based on how much data a user moves through the service. “It’s much closer to our value proposition,” Hasura co-founder and COO Rajoshi Ghosh said. “The value proposition is about data access. The big part of it is the fact that you’re getting this data from your databases. But the very interesting part is that this data can actually come from anywhere. This data could be in your third-party services, part of your data could be living in Stripe and it could be living in Salesforce, and it could be living in other services. […] We’re the data access infrastructure in that sense. And this pricing also — from a mental model perspective — makes it much clearer that that’s the value that we’re adding.”
Now, there are obviously plenty of other data-centric API services on the market, but Gopal argues that Hasura has an advantage because of its advanced caching for dynamic data, for example.
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Netlify nabs $53M Series C as microservices approach to web development grows
Netlify, the startup that wants to kill the web server and change the way developers build websites, announced a $53 million Series C today.
EQT Ventures Fund led the round with contributions from existing investors Andreessen Horowitz and Kleiner Perkins and newcomer Preston-Werner Ventures. Under the terms of the deal Laura Yao, deal partner and investment advisor at EQT Ventures will be joining the Netlify board. The startup has now raised $97 million, according to the company.
Like many startups recently, Netlify’s co-founder Chris Bach says they weren’t looking for new funding, but felt with the company growing rapidly, it would be prudent to take the money to help continue that growth.
While Bach and CEO Matt Biilmann didn’t want to discuss valuation, they said it was “very generous” and in line with how they see their business. Neither did they want to disclose specific revenue figures, but did say that the company has tripled revenue three years running.
One thing fueling that growth is the sheer number of developers joining the platform. When we spoke to the company for its Series B in 2018, it had 300,000 sign-ups. Today that number has ballooned to 800,000.
As we wrote about the company in a 2018 article, it wants to change the way people develop web sites:
“Netlify has abstracted away the concept of a web server, which it says is slow to deploy and hard to secure and scale. By shifting from a monolithic website to a static front end with back-end microservices, it believes it can solve security and scaling issues and deliver the site much faster.”
While developer popularity is a good starting point, getting larger customers on board is the ultimate goal that will drive more revenue, and the company wants to use its new injection of capital to build the enterprise side of the business. Current enterprise customers include Google, Facebook, Citrix and Unilever.
Netlify has grown from 38 to 97 employees since the beginning of last year and hopes to reach 180 by year’s end.
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Kong acquires Insomnia, launches Kong Studio for API development
API and microservices platform Kong today announced that it has acquired Insomnia, a popular open-source tool for debugging APIs. The company, which also recently announced that it had raised a $43 million Series C round, has already put this acquisition to work by using it to build Kong Studio, a tool for designing, building and maintaining APIs for both REST and GraphQL endpoints.
As Kong CEO and co-founder Augusto Marietti told me, the company wants to expand its platform to cover the full service life cycle. So far, it has mostly focused on the runtime, but now it wants to enable developers to also design and test their services. “We looked at the space and Insomnia is the number one open source API testing platform,” he told me. “And we thought that by having Insomnia in our portfolio, we will get the pre-production part of things and on top of that, we’ll be able to build Kong Studio, which is kind of the other side of Insomnia that allows you to design APIs.”
Insomnia launched in 2015, as a side project of its sole developer, Greg Schier. Schier quit his job in 2016 to focus on Insomnia full-time and then open-sourced it in 2017. Today, the project has 100 contributors and the tool is used by “hundreds of thousands of developers,” according to Schier.
Marietti says both the open-source project and the paid Insomnia Plus service will continue to operate as before.
In addition to Kong Studio and the Insomnia acquisition, the company also today launched the latest version of its Enterprise service, the aptly named Kong Enterprise 2020. New features here include support for REST, Kafka Streams and GraphQL. Kong also launched Kong Gateway 2.0 with additional GraphQL support and the ability to write plugins in Go.
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APIs are the next big SaaS wave
Daniel Levine is a partner at Accel. He joined the firm in 2010 and focuses on product-first startups aimed at consumers, developers, and bottoms-up business users.
While the software revolution started out slowly, over the past few years it’s exploded and the fastest-growing segment to-date has been the shift towards software as a service or SaaS.
SaaS has dramatically lowered the intrinsic total cost of ownership for adopting software, solved scaling challenges and taken away the burden of issues with local hardware. In short, it has allowed a business to focus primarily on just that — its business — while simultaneously reducing the burden of IT operations.
Today, SaaS adoption is increasingly ubiquitous. According to IDG’s 2018 Cloud Computing Survey, 73% of organizations have at least one application or a portion of their computing infrastructure already in the cloud. While this software explosion has created a whole range of downstream impacts, it has also caused software developers to become more and more valuable.
The increasing value of developers has meant that, like traditional SaaS buyers before them, they also better intuit the value of their time and increasingly prefer businesses that can help alleviate the hassles of procurement, integration, management, and operations. Developer needs to address those hassles are specialized.
They are looking to deeply integrate products into their own applications and to do so, they need access to an Application Programming Interface, or API. Best practices for API onboarding include technical documentation, examples, and sandbox environments to test.
APIs tend to also offer metered billing upfront. For these and other reasons, APIs are a distinct subset of SaaS.
For fast-moving developers building on a global-scale, APIs are no longer a stop-gap to the future—they’re a critical part of their strategy. Why would you dedicate precious resources to recreating something in-house that’s done better elsewhere when you can instead focus your efforts on creating a differentiated product?
Thanks to this mindset shift, APIs are on track to create another SaaS-sized impact across all industries and at a much faster pace. By exposing often complex services as simplified code, API-first products are far more extensible, easier for customers to integrate into, and have the ability to foster a greater community around potential use cases.
Graphics courtesy of Accel
Billion-dollar businesses building APIs
Whether you realize it or not, chances are that your favorite consumer and enterprise apps—Uber, Airbnb, PayPal, and countless more—have a number of third-party APIs and developer services running in the background. Just like most modern enterprises have invested in SaaS technologies for all the above reasons, many of today’s multi-billion dollar companies have built their businesses on the backs of these scalable developer services that let them abstract everything from SMS and email to payments, location-based data, search and more.
Simultaneously, the entrepreneurs behind these API-first companies like Twilio, Segment, Scale and many others are building sustainable, independent—and big—businesses.
Valued today at over $22 billion, Stripe is the biggest independent API-first company. Stripe took off because of its initial laser-focus on the developer experience setting up and taking payments. It was even initially known as /dev/payments!
Stripe spent extra time building the right, idiomatic SDKs for each language platform and beautiful documentation. But it wasn’t just those things, they rebuilt an entire business process around being API-first.
Companies using Stripe didn’t need to fill out a PDF and set up a separate merchant account before getting started. Once sign-up was complete, users could immediately test the API with a sandbox and integrate it directly into their application. Even pricing was different.
Stripe chose to simplify pricing dramatically by starting with a single, simple price for all cards and not breaking out cards by type even though the costs for AmEx cards versus Visa can differ. Stripe also did away with a monthly minimum fee that competitors had.
Many competitors used the monthly minimum to offset the high cost of support for new customers who weren’t necessarily processing payments yet. Stripe flipped that on its head. Developers integrate Stripe earlier than they integrated payments before, and while it costs Stripe a lot in setup and support costs, it pays off in brand and loyalty.
Checkr is another excellent example of an API-first company vastly simplifying a massive yet slow-moving industry. Very little had changed over the last few decades in how businesses ran background checks on their employees and contractors, involving manual paperwork and the help of 3rd party services that spent days verifying an individual.
Checkr’s API gives companies immediate access to a variety of disparate verification sources and allows these companies to plug Checkr into their existing on-boarding and HR workflows. It’s used today by more than 10,000 businesses including Uber, Instacart, Zenefits and more.
Like Checkr and Stripe, Plaid provides a similar value prop to applications in need of banking data and connections, abstracting away banking relationships and complexities brought upon by a lack of tech in a category dominated by hundred-year-old banks. Plaid has shown an incredible ramp these past three years, from closing a $12 million Series A in 2015 to reaching a valuation over $2.5 billion this year.
Today the company is fueling an entire generation of financial applications, all on the back of their well-built API.
Graphics courtesy of Accel
Then and now
Accel’s first API investment was in Braintree, a mobile and web payment systems for e-commerce companies, in 2011. Braintree eventually sold to, and became an integral part of, PayPal as it spun out from eBay and grew to be worth more than $100 billion. Unsurprisingly, it was shortly thereafter that our team decided to it was time to go big on the category. By the end of 2014 we had led the Series As in Segment and Checkr and followed those investments with our first APX conference in 2015.
Plaid, Segment, Auth0, and Checkr had only raised Seed or Series A financings! And we are even more excited and bullish on the space. To convey just how much API-first businesses have grown in such a short period of time, we thought it would be useful perspective to share some metrics over the past five years, which we’ve broken out in the two visuals included above in this article.
While SaaS may have pioneered the idea that the best way to do business isn’t to actually build everything in-house, today we’re seeing APIs amplify this theme. At Accel, we firmly believe that APIs are the next big SaaS wave — having as much if not more impact as its predecessor thanks to developers at today’s fastest-growing startups and their preference for API-first products. We’ve actively continued to invest in the space (in companies like, Scale, mentioned above).
And much like how a robust ecosystem developed around SaaS, we believe that one will continue to develop around APIs. Given the amount of progress that has happened in just a few short years, Accel is hosting our second APX conference to once again bring together this remarkable community and continue to facilitate discussion and innovation.
Graphics courtesy of Accel
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Remote workers and nomads represent the next tech hub
Amid calls for a dozen different global cities to replace Silicon Valley — Austin, Beijing, London, New York — nobody has yet nominated “nowhere.” But it’s now a possibility.
There are two trends to unpack here. The first is startups that are fully, or almost fully, remote, with employees distributed around the world. There’s a growing list of significant companies in this category: Automattic, Buffer, GitLab, Invision, Toptal and Zapier all have from 100 to nearly 1,000 remote employees.
The second trend is nomadic founders with no fixed location. For a generation of founders, moving to Silicon Valley was de rigueur. Later, the emergence of accelerators and investors worldwide allowed a wider range of potential home bases. But now there’s a third wave: a culture of traveling with its own, growing support networks and best practices.
You don’t have to look far to find startup gurus and VCs who strongly advise against being remote, much less a nomad. The basic reasoning is simple: Not having a location doesn’t add anything, so why do it? Startups are fragile, so it’s best to avoid any work practice that could disrupt delicate growth cycles.
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Netlify just got $30 million to change the way developers build websites
Netlify wants to revolutionize the way developers build websites, abstracting away the web server and breaking web sites into microservices, making the process more like building a mobile application than a traditional website. Today, the company announced a $30M Series B investment to help continue to build on that vision.
Kleiner Perkins led the round. Andreessen Horowitz and the founders of Slack (Stewart Butterfield), Yelp (Jeremy Stoppelman) and Figma (Dylan Field) all participated. Today’s investment brings the total raised to over $44 million, according to Crunchbase data.
Chris Bach, co-founder and president and Matt Biilmann, co-founder and CEO see the change they are trying to make as part of the larger shift to an API economy. They want to take the same ease of development APIs have given programmers in a mobile context and bring that to web development.
As I wrote earlier this year when they announced support for AWS Lambda, they want to reduce the complexity around web development:
“Netlify has abstracted away the concept of a web server, which it says is slow to deploy and hard to secure and scale. By shifting from a monolithic website to a static front end with back-end microservices, it believes it can solve security and scaling issues and deliver the site much faster.”
The founders have a grand vision, “We are basically out to replace all web servers with a with a global application delivery network,” Bach explained.
Mamoon Hamid, general partner at investor Kleiner Perkins says that while the website backend has evolved over recent years, the front end has remained static, and that’s what Netlify is addressing with their microservices-based approach to web development. “Netlify smack dab hits our view of where we need to go for the web to flourish,” Hamid told TechCrunch.
He believes the last shift of this magnitude in web development at the presentation layer was the advent of the CMS 15 years ago, and we are starting to see developers attracted to the Netlify approach in a big way. “We really believe that with this 300,000 strong developer force that’s already behind Netlify that they’re showing early signs of tapping into what could be the platform from which a significant portion of the web content is served from [in the future],” Hamid said.
Netlify is working to increase the number of websites running on their approach in the coming years and see this as a mission to change the web. “For us, it’s very important to keep being a place where developers want to go and very easily can get something up and running. And then you can scale from there,” Bach said.
The company wants to build out a more organized sales and marketing team to sell the Netlify approach to larger organizations, while continuing to build out the product and developer outreach. All of this takes money and that’s why they went for such a large round today.
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Salesforce Communities update shoots for simplification and personalization
As companies try to move to more of a self-service approach to customer service, online forums become more important than ever to help users find the right answers quickly, whether troubleshooting a problem or making a buying decision. Today, Salesforce released an update to its Community Cloud service that makes it easier for community managers to update pages and put the right information… Read More
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