John's Music Blog

For the 3rd time this month, Mark Leslie was mentioned in a conversation or presentation. The most recent was at TiE Boston’s Annual VC Outlook Dinner. Actually, mentioned, is way too soft. He was cited, praised, quoted, and otherwise venerated. Mark has a remarkable story. He took VERITAS from 12 employees and $95,000 in annual revenue to over 6,000 employees and $1.5B in revenue, before the company merged with Symantec on July 5, 2005.

I first met Mark, when I hosted IDC’s StorageVision conference in San Jose in May 2000, a year in which we recruited Steve Luczo, then CEO, and now Chairman of Seagate, and Joe Tucci, then the newly appointed President and COO  of EMC.  Mark wasn’t the best dressed (that was Joe) or most poised (that was Steve), but he gave, by far, the best talk. The talk that was discussed three times this month wasn’t, however, his StorageVision speech. That honor goes to this talk: “It Always Takes Longer and Costs More.” On Page 15 of the presentation, Mark begins a discussion of the Sales Learn Curve (SLC), which is the sales equivalent of the Manufacturing Learning Curve (MLC). The SLC is critical, Mark argues, to knowing when to step on the gas with sales.

Almost every company I’ve talked to measures the cost of sales. But where organizations differ is in the costs that are included in the cost of sales. Mark includes:

• Marketing
• Product management
• Product marketing
• Product  support
• Sales engineering
• Sales

Some of these costs are more fixed than variable. Marketing, product management and product marketing don’t need to grow linearly with sales. Support, sales engineering, and sales costs are, however, more directly proportional to revenue.

Since more sales means that the fixed costs in the cost of sales calculation decline as a percent of sales, many startups are tempted to hit the gas early on deploying sales and sales engineering resources. But until they have gone through the iterative process of perfecting the sales process, this approach just burns cash.  Instead, he stresses the importance of  investing for learning in the early stages, making iterative improvements in the sales process. When the sales process is perfected, then, and only then, should a company put the “Pedal to the Metal,” making significant investments in sales and sales engineering.

I met a few weeks ago with a friend who is the CEO of a startup company based in the Boston area. He’s not a first time CEO, and he’s had at least one successful exit, selling his company to a major system company. How good was the exit? Lets just say that he didn’t have trouble raising money, when he was ready to do his next venture. When he did his last round, it was significant and at a very nice valuation, by IT infrastructure standards.

I think data is important, and I like to know what corporate executives care about, so, now, every time I meet with a startup company, I ask the CEO what they measure. Typically on the finance side, I’ll get answers like revenue, cash flow, burn rate. On the sales side, they tell me they track new customers, number of deals, repeat sales or renewals, and average deal size.  And on the development side, they will track the total number of bugs, sometimes by criticality, and the bug retirement rate. These are all good things to measure, so, if you are measuring these things, good for you.  And if you’re not measuring them, time to break out a yardstick and some monitoring tools.

My very successful friend gave me one more number to track before all others. Given his track record, I paid attention. The most important number for him is the percentage of customers that say they would recommend the  solution to a colleague. He actually has someone call every single customer and ask only one question:

Would you recommend our solution to a colleague?

This is not the same question as “Would you be a press reference or allow us to do a case study on your installation?” That brings with it the usual baggage of legal and PR approval processes. No, for an early stage company, this question, “Would you recommend our solution to a colleague?” encapsulates the only truly important metric into it. It answers the question, “Am I building the right product?”

Last summer I spent an enormous amount of money when I purchased the Torque game engine, so that my oldest son could try his hand at game development. In order to maximize my son’s success and seeing that there were many in-depth books available to learn how to use Torque, I offered to buy him a book as well.  But my son assured me that it was unnecessary, since he already knew how to program in Torque. That seemed odd to me, given that he had never had the software before, but turns out, he learned how to program in Torque by reading websites and watching videos on line. Increasingly, that’s how the latest generation learns. And thanks to a growing library of videos stored at sites such as YouTube, and contributors such as Khan Academy, you can learn how to do almost anything, including most of the math you will need to graduate high school and pass the first year of college.

Videos are also becoming an important medium for companies to get the word out, to explain, and clarify. So as an example, after a 2-day planning meeting with one of my clients, StorMagic, where I serve as a member of the board, I asked my son to record five short videos of StorMagic’s CEO, Hans O’Sullivan, answering simple, direct questions. Each video is less than a minute long and answers one or two questions on topics such as the background of the management team, the strategic focus of the company, the impact of recent announcements, and the company’s relationship with one of its partners.

Videos seem to be all the rage.  I don’t know what will come after videos, but it seems to me that for the next few years, at least, video will be of strategic importance in getting the word out about your company.

Hope you enjoy these.

StorMagic’s CEO Discusses Multi-Site Installations of SvSAN for VMware

StorMagic CEO Discusses the StorMagic Team and Recent Growth

More videos regarding StorMagic can be found on YouTube by searching StorMagic. You can even learn how to install and manage an SvSAN just by watching a video.

I just finished reading an unedited, advance review copy of Paul Gillin’s latest book, “Secrets of Social Media Marketing.” If Paul is reading this post, he may remember that I told him I would read the book last month, but then, I also planned for the stock market to be up slightly. Things change, and you adapt.

In the book, Paul relates that he dictated much of the book into his computer and used speech recognition software to scribe his thoughts.  Since this was an unedited advance review copy, I gained some insight into the state of speech recognition software, which has advanced enormously over the past 20 years, but still makes amusing mistakes.

Paul acknowledges that at the current pace of change, some of the social media marketing tools he describes and the strategies he espouses will become relics and interesting historical perspective in 10 years’ time.   But, as we find ourselves in an economic downturn that appears deeper than anyone younger than 80 remembers, Paul offers some sage commentary on social media marketing that applies equally well to general business strategy.  Paul writes:

There are only two unpardonable sins in the current environment. One is fear…That leads to the other unpardonable sin, which is inaction.

Read Paul’s book and by the time you’re done, you will be gathering at Gather, twittering at Twitter, joining Facebook groups, and spreading link-love from your blog.  One thing’s for sure, budgets are tightening, and you and your companies will have to find innovative and less expensive ways to validate product concepts, find prospects, demonstrate to them what you can do, prove to them that you are alive, well, and can deliver something they want. 

I recently had the pleasure of reading a draft of Dave Hitz’ new book (title intentionally withheld, so as not to play the spoiler).  Dave is one of the co-founders of NetApp (nee’ Network Appliance), and he wrote the book, at least in part, to give current NetApp employees a view into the early days of the company.  At recent growth rates, I suspect that substantially more than half of the employees have been with the company fewer than five years and missed not only the startup days, but the turnaround days, post-2001. (more…)

I spent an hour today with an Onaro customer and through the conversation learned a little bit about how different companies handle the separation of duties in IT processing.  I met with the customer to better understand the critical decision criteria that were behind his choice of Onaro, what features were most valued and what alternatives were considered.  Turns out, at the time of his decision several years ago, he didn’t see many alternatives.  Onaro, which was an independent software supplier at the time, was recently acquired by NetApp, a storage systems company.

This customer originally licensed Onaro’s SANscreen offering to ensure that the company’s IT change-control process was being followed in the storage network.  SANscreen maps the entire data path from the host bus adapter (HBA) in the server, through the cables and switches, ultimately to the storage array.  Anytime someone makes a change to the configuration of his fibre channel storage area network (FC-SAN), he gets a notification.  If the change hasn’t been authorized through the change-control process, he investigates.  As we were talking he showed me several alerts, that he had just received on his Blackberry, regarding changes that had not been authorized. (more…)

I’ve spent a good part of this past week getting ready for Storage Networking World, co-sponsored by SNIA and ComputerWorld, and the I’m-Not-Going-to-Storage-Networking-World event hosted entirely at his own expense by Jon Toigo at a nearby, but semi-secret, location.  In honor of the two events, I felt compelled to write about storage.  But first, I’ll start with a one-question qualifying quiz.

Small and Medium Business (SMB) Storage Administrator Qualifying Exam

Question: Your “storage system” consists of 25 disk drives that are housed in 8 separate database and file servers.  Some of your applications are growing rapidly and require a lot more storage.  Others are not growing. In total, you have plenty of available storage capacity, but it sits inside servers that aren’t accessible to the applications that need extra capacity.  You want to move to a storage area network, because you’ve heard that all of the storage will then be available to all of the applications and can be managed as a shared pool. You must accomplish the migration of data from the internal drives to a new, blazingly-fast, infinitely-scalable storage area network without interrupting application availability or data access, and without screwing up volume names.  From the following,  select the answer that most closely describes the correct approach: (more…)

While I am constantly immersed in some aspect of technology, on a personal level, I’m a bit of a technology laggard.  If something is working, I don’t have a driving need to replace it with the latest technology. I still own one black-and-white television and two of my televisions have rabbit ears, though I won’t keep them past February 17, 2009, when a  digital converter will be necessary to allow them to continue to work.

However, having just returned from the U.K., where I spent $0.99 per minute to make calls back to the U.S. on my AT&T Blackberry (that’s with the International Calling Plan discount), I decided I need to join the more-technically-current crowd.  Turns out that for many situations, a Logitech camera and microphone together with a Skype account provided the perfect remedy to the pain of expensive international calls.

I was in New York in 1964, to see the 1964 New York World’s Fair.  I don’t think that Skype and Logitech are what AT&T had in mind, when they showed their Picturephone at the Fair.  It’s rather impressive what 44 years of additional innovation can bring.

(more…)

It’s been just over a year, since I left IDC to form Walden Technology Partners, Inc. with David Burmon.  While I didn’t expect to continue spending so much time in the storage and data management industry, that is how things have worked out initially.  All of our current clients are involved, at least in part, in some aspect of information protection, storage, or management.  And with the continued growth in information and content, a growth that is relatively immune to the effects of economic conditions, it should not have been a surprise to me. 

Note that I said that the growth of content is relatively immune to economic conditions.  The market for storage hardware and information management software has been proven many times to be highly affected by economic conditions.

Problems in information management have been around forever, and will persist far into the future, as this YouTube video documents.  You’ve got to watch it.  Really.  And it’s not a product pitch.  (more…)

When I was growing up, my family would occasionally take what we called “Penny Walks.”  We lived in western Colorado, where the towns were mostly laid out on a North-South, East-West grid.  A penny walk involved taking a walk, penny in hand, and every time you got to a corner, you flipped the coin. Heads you go right. Tails you go left.  You never knew where you were going to go, but you knew you weren’t going to get caught in a familiar routine.  With penny walks, you ran into different people or different things. You had variety. Penny walks don’t work as well in Massachusetts, where I live now, because the streets are laid out in the rough equivalent of a meandering cow.

My random walks these days are as likely to occur on the World Wide Web, as they are to occur in my town.  Did I mention we have almost no sidewalks? So here on the internet, thanks to a link from Jason Rakowski, I was lead on a random walk through his blog, to another blog by someone named Dejra to a service called Pingomatic.  The service helps writers/bloggers raise the visibility of their sites by updating search engines.  I’m trying it out today.  I’ll let you know how it goes. 

Given Dejra’s focus on affiliate marketing, I’m wondering if she knows my brother, Ken?

Dejra? Ken?