Open data will be a competitive advantage

In technology terms, a ‘mashup’ is a web application that combines data from more than one source into a single integrated tool. An example is the use of cartographic data from Google Maps to add location information to real-estate data, thereby creating a new and distinct web service that was not originally provided by either source.

Mashup originally referred to the practice in pop music (notably hip-hop), of producing a new song by mixing two or more existing pieces together.

The architecture of mashup web applications is always composed of three parts:

1. The content provider: The source of the original data which is then made available using an API and different web-protocols such as RSS
2. The Mashup site: The web application which provides the new service using different data sources that are not owned by it
3. The client web browser: The user interface, or web-application, of the mashup where the content is brought together by the web browser

Mashups should be differentiated from the simple embedding of data from another site to form compound documents. A site that allows a user to embed a YouTube video for instance, is not a mashup site. A mashup site should itself access 3rd party data using an API, and process that data in some way to increase its value to the sites users.

Today's Web has billions and billions of information available to humans, but hidden from computers. It is a paradox that all this information is stuck inside HTML pages, formatted in ways that are difficult for computers to process. The evolution of the so called ‘semantic web’, from Web 2.0 to Web 3.0, is changing this. What we mean by 'Web 3.0' is that major websites are going to be transformed into web services – and will effectively expose their information to the world.

This transformation will happen in one of two ways. Some websites will follow the example of Amazon, del.icio.us and Flickr, and will offer their information via APIs. Others will try to keep their information proprietary, but it will be opened via mashups created using services like Dapper and Yahoo! Pipes. The net effect will be that unstructured information will give way to structured information, and pave the road to more intelligent computing.

There are several reasons why websites (online retailers in particular), should think about offering an API, or become a Web Service. The most important reason is control. Having an API will make scrapers unnecessary, but it will also allow the tracking of who is using the data, as well as how and why. Like Amazon, with their Web Services, sites can do this in a way that fosters affiliates and drives the traffic back to their own sites. Amazon Web Services provides developers with direct access to Amazon's technology platform, and to build on Amazon's suite of web services enabling the enhancement of anyone’s applications.

The old perception is that closed data is a competitive advantage. The new reality is that open data is a competitive advantage. By stopping worrying about protecting information, and instead starting to charge for it, by offering an API with a small fee per API call, is likely to be acceptable in the future, since the cost for any given subscriber of the service is not going to be high, but there is a big opportunity to make money on volume. This is what Amazon is betting on with their Web Services strategy.