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From APM to API Economy: How Moesif Created a New Category in Developer Tools

The hallmark of successful category creation isn’t just identifying white space in the market – it’s having the courage to pivot when you realize you’re in the wrong space entirely. In a recent episode of Category Visionaries, Moesif founder Derric Gilling shared how his company transformed from a distributed tracing solution to pioneering the API analytics and monetization category.

The Pivot That Changed Everything

In 2017, Moesif started as a distributed tracing platform, aiming to solve the complexities of debugging microservices. But by 2019, they recognized a crucial shift in the market. “We quickly recognized that everyone from Datadog and New Relic to the cloud vendors are going to go after this space,” Derric explains. “We realized around 2019 that we wanted to go after more of a blue ocean, a market that we could grow into and become a new category.”

This wasn’t just another pivot story – it was a strategic response to a fundamental change in how businesses viewed APIs. “These API products are no longer just something that a developer is talking about in the background,” Derric notes. “When we talk about microservices now, you hear about founders and C suite and executives talking about an API based product strategy.”

The Art of Strategic Focus

Rather than trying to build everything at once, Moesif took a methodical approach to product development. “Don’t boil an ocean,” Derric emphasizes. While they always had a vision for monetization features, they deliberately held back. “We purposely delayed this because we want to ensure our analytics has robust that integrity and governance features before it’s used for billing purposes.”

This patience paid off. By focusing first on perfecting their analytics capabilities, they built a strong foundation before expanding into complementary areas. Recent integrations with Stripe and Chargebee have allowed them to layer in monetization features, but only after establishing their core value proposition.

Creating a New Category Through Education

Category creation requires more than just building a product – it demands educating the market about a new way of thinking. “When you’re creating a new category, it’s really important to really hone in on your customer persona, because you need to explain your solution really well and educate them,” Derric shares.

Moesif’s approach to education extends beyond traditional marketing. They’ve positioned themselves strategically between existing categories, creating partnerships that amplify their value proposition. “We almost sit between two different worlds,” Derric explains. “On one side we see traditional web and mobile analytics players… On the other side of the business, we see a lot of API Gateway or Management players.”

This positioning has enabled them to create what Derric calls “one plus one equals three” relationships through partnerships with API gateway vendors and analytics platforms, creating a network effect that strengthens their category position.

The Product-Led Land and Expand

What’s particularly interesting about Moesif’s GTM strategy is their approach to expansion within organizations. “We might start with the product, but then we can expand into the engineering use case, into success and support use cases, to sales, to marketing and so on,” Derric reveals. This product-led growth strategy allows them to demonstrate value in one department before expanding across the organization.

Looking ahead, Moesif’s vision extends beyond just creating a category – they aim to define the future of API businesses. “We definitely want to be the number one growth and experience platform for any API business out there,” Derric shares, drawing parallels to HubSpot’s successful modular growth model.

The story of Moesif isn’t just about building a successful company – it’s about recognizing when to pivot, having the patience to build methodically, and the vision to create an entirely new category. For founders navigating their own category creation journeys, it’s a masterclass in strategic focus and market education.