EnjoyTech

This is the third and the last post in the three-post series on challenges associated with sales of disruptive platforms such as Big Data and how you can effectively work with your prospects and others to mitigate them. If you missed the previous posts the first post was about “why buy anything” and the second post was about “why buy mine." This post is about “why buy now." Platform sales is often times perceived as a solution looking for a problem a.k.a hammer looking for a nail. In most cases your prospects don’t have a real urgency to buy your platform making it difficult for you to make them commit on an opportunity. There are a few things that you could do to deal with this situation: Specific business case It’s typical for vendors to create a business case positioning their solutions to their prospects. These business cases include details such as solution summary, pricing, ROI etc. If you’re a platform vendor not only you have to create this basic business case but y...

Recently Google slashed price for their cloud offering . Amazon, as expected, also announced their 42nd price reduction on their cloud offerings since its inception. Today, Microsoft also announced price reduction for their Azure offerings . Unlike many other people I don't necessarily see the price reduction by Amazon as waging a price war against the competition. Infrastructure as true commodity: IaaS is a very well understood category and Amazon, as a vendor, has strong desires to move up in the value chain. This can only happen if storage and computing become true commodity and customers value vendors based on what they can do on top of this commodity storage and computing. They become means to an end and not an end itself. Amazon is introducing many PaaS like services on top of EC2. For example, RedShift is the fastest growing service on EC2. These services create stickiness for customers to come back and try out and perhaps buy other services. These services also create a b...

As more and more on-premise software vendors begin their journey to become SaaS vendors they are going to face some obvious challenges. Here's my view on what they might be. The street is mean but you can educate investors Sharp contrast between Amazon and Apple is quite clear. Even though Amazon has been in business for a long time with soaring revenue in mature categories the street sees it as a high growth company and tolerates near zero margin and surprises that Jeff Bezos brings in every quarter. Bezos has managed to convince the street that Amazon is still in heavy growth mode and hasn't yet arrived. On the other hand despite of Apple's significant revenue growth—in mature as well as in new disruptive categories—investors treat Apple very differently and have crazy revenue and margin expectations. Similarly, traditional pure SaaS companies such as Salesforce is considered a high growth company where investors are focused on growth and not margins. But, if you're ...

Growing up as an engineer and as a programmer I was reminded every step along the way that resources—computing as well as memory—are scarce. The programs were designed on these constraints. Then the cloud revolution happened and we told people not to worry about scarce computing. We saw rise of MapReduce, Hadoop, and countless other NoSQL technology. Software was the new hardware. We owe it to all the software development, especially computing frameworks, that allowed developers to leverage the cloud—computational elasticity—without having to understand the complexity underneath it. What has changed in the last two to three years is a) the underlying file systems and computational frameworks have matured b) adoption of Big Data is driving the demand for scale out and responsive I/Os in the cloud. Three years back, I wrote a post, The Future Of The BI In Cloud  where I had highlighted two challenges of using cloud as a natural platform for Big Data. The first one was to create a lar...

Two years back I wrote that the primary challenge with NoSQL is that it's not SQL . SQL has played a huge rule in making relational databases popular for the last forty years or so. Whenever the developers wanted to design an(y) application they put an RDBMS underneath and used SQL from all possible layers. Over a period of time, the RDBMS grew in functions and features such as binary storage, faster access, clusters, sophisticated access control etc. and the applications reaped these benefits. The traditional RDBMS became a non-fit for cloud-scale applications that fundamentally required scale at whole different level. Traditional RDBMS could not support this scale and even if they could it became prohibitively expensive for the developers to use it. Traditional RDBMS also became too restrictive due to their strict upfront schema requirements that are not suitable for modern large scale consumer web and mobile applications. Due to these two primary reasons and a lot more other rea...

While I ponder on 2012 and plan for 2013, I always keep the regret minimization framework (watch the short video clip above) in back of my mind. Of course luck plays a huge part in people's success, but we owe it a lot to Jeff Bezos. We probably wouldn't have seen Amazon.com and we most certainly would not have seen EC2. No one predicted anything about Amazon being a key cloud player. A few years back Twitter didn't exist and Facebook was limited to college kids. I do make plans but I have stopped predicting since I will most certainly get it wrong . "Plans are useless, but planning is indispensable." - Dwight Eisenhower I use regret minimization framework not only as a long-term thinking tool but also to make decisions in short-term. It helps me assess, prioritize, and focus on right opportunities. While long-term thinking is a good thing, I strongly believe in setting short term goals, meeting them, and more importantly cherishing them. If you're not minimiz...

While in Brazil, describing his country, one of my friends said, "We have all the natural resources that we need to be a self-sufficient country and we have had no natural disasters such as earthquakes and hurricanes. The only disaster that we had: we lost the worldcup." This pretty much summarizes Brazil. A helipad in front of my hotel in São Paulo. On one side, São Paulo, the seventh largest city in the world, has one the largest per capita helipads in the world where the rich people don't like to drive around in traffic in cheap cars to avoid getting kidnapped at stop lights. On the other side, it is one hell of a city, just like Mumbai - large, organized chaos, and money. It is growing and it's growing fast. While income inequality has been on a steep rise in emerging economies as well as in the western world, it is declining in the Latin American countries, especially in Brazil . If you're thinking of building or expanding enterprise software business in Braz...

Confirming what we already knew, today Microsoft announced they are acquiring Yammer for $1.2 billion in cold cash. Here's a blog post by David Sacks , the CEO of Yammer. Microsoft doesn't report a revenue breakdown for their individual products but SharePoint is believed to be one of the fastest growing products with annual revenue of more than $1 billion. Regardless of how Microsoft markets and positions SharePoint, it has always been collaboration software and not really social software. Microsoft does seem to understand the challenges it faces in moving their portfolio of products to the cloud, including SharePoint. Microsoft also understands value of having end users on their side even though SharePoint is sold as enterprise software. Microsoft's challenges in transitioning to the cloud are similar to the ones faced by other on-premise enterprise software vendors. But, I really admire Microsoft's commitment by not giving up on any of these things. Skype's acq...

Netflix Similarity Map In 2006 Netflix offered to pay a million dollar, popularly known as the Netflix Prize , to whoever could help Netflix improve their recommendation system by at least 10%. A year later Korbel team won the Progress Prize by improving Netflix's recommendation system by 8.43%. They also gave the source code to Netflix of their 107 algorithms and 2000 hours of work. Netflix looked at these algorithms and decided to implement two main algorithms out of it to improve their recommendation system. Netflix did face some challenges but they managed to deploy these algorithms into their production system. Two years later Netflix awarded the grand prize of $1 million to the work that involved hundreds of predictive models and algorithms. They evaluated these new methods and decided not to implement them . This is what they had to say: "We evaluated some of the new methods offline but the additional accuracy gains that we measured did not seem to justify the engineer...

This is the second and the last part of this two-post series blog post on Big Data myths. If you haven't read the first part, check it out here . Myth # 2: Big Data is an old wine in new bottle I hear people say, "Oh, that Big Data, we used to call it BI." One of the main challenges with legacy BI has been that you pretty much have to know what you're looking for based on a limited set of data sources that are available to you. The so called "intelligence" is people going around gathering, cleaning, staging, and analyzing data to create pre-canned "reports and dashboards" to answer a few very specific narrow questions. By the time the question is answered its value has been diluted. These restrictions manifested from the fact that the computational power was still scarce and the industry lacked sophisticated frameworks and algorithms to actually make sense out of data. Traditional BI introduced redundancies at many levels such as staging, cubes etc...

It was cloud then and it's Big Data now. Every time there's a new disruptive category it creates a lot of confusion. These categories are not well-defined. They just catch on. What hurts the most is the myths. This is the first part of my two-part series to debunk Big Data myths. Myth # 4: Big Data is about big data It's a clear misnomer. "Big Data" is a name that sticks but it's not just about big data. Defining a category just based on size of data appears to be quite primitive and rather silly. And, you could argue all day about what size of data qualifies as "big." But, the name sticks, and that counts. The insights could come from a very small dataset or a very large data set. Big Data is finally a promise not to discriminate any data, small or large. It has been prohibitively expensive and almost technologically impossible to analyze large volumes of data. Not any more. Today, technology — commodity hardware and sophisticated software to levera...

Elevators suck. They are not smart enough to know which floor you might want to go. They aren't designed to avoid crowding in single elevator. And they make people press buttons twice, once to call an elevator and then to let it know which floor you want to go to. This all changed during my recent trip to Brazil when I saw the newer kind of elevators. These elevators have a common button panel outside in the lobby area of a high rise building. All people are required to enter their respective floor numbers and the machine will display a specific elevator number that they should get into. Once you enter into an elevator you don't press any numbers. In fact the elevators have no buttons at all. The elevator would highlight the floor numbers that it would stop at. That's it! I love this redesigned experience of elevators. It solves a numbers of problems. The old style elevators could not predict the demand. Now the system exactly knows how many people are waiting at what floor...

Yesterday, Amazon announced a new orchestration service called Simple Workflow Service . I would encourage you to read the announcement on Werner's blog  where he explains the need, rationale, and architecture. The people I spoke to had mixed reactions. One set of people described this as a great idea and were excited that the developers can now focus on writing domain-specific code as opposed to writing plumbing code to orchestrate their actual code. The other set of people felt that this service creates a new cloud lock-in making it difficult for the developers to switch from one cloud to another as well as being able to interoperate at the orchestration level. I believe this is a brilliant idea for a variety of reasons. Orchestration has always been painful. Ask the developers who have been involved in managing task execution across a cluster that required them to code for load balancing, handling exceptions, restarting hung processes, tracking progress etc. This is not a core c...

I find it ridiculous that people are blaming Apple for job creation in China  as opposed to in the US. People are also debating how US might in-source some of these manufacturing jobs to compete with China who has sophisticated manufacturing abilities and large skilled labor force supporting these operations. They are all missing the point. This is a wrong debate. The US lost manufacturing jobs to other countries a long time ago. I find it amusing that people expect the high-tech companies such as Apple to create manufacturing jobs in the US. If Apple were to even consider this option we would not have seen the tremendous success of Apple as a company and its products. What Apple created is an ecosystem of people and companies that are doing amazing things with their platform and their devices. It's a different kind of ecosystem and America should focus on that innovation as opposed to bringing those manufacturing jobs back. On one side we are whining about the loss of manufacturin...

A few months back, I was helping a very large customer of ours to help simplify as well as automate their process of trading financial instruments. During one of my many visits to their office, I met a person who was trying to explain to me his job in supporting the people that are involved in this super complex process. I always ask a lot of questions — until they're totally annoyed and ready to kick me out of the room — to get a complete understanding of the business rationale behind whatever they're thriving for and their personal motivation behind it. Something unusual happened at this meeting. Instead of getting into the gory technical details of how they get things done, he chose to tell me a short and simple story. "You know, um.. there's this early morning meeting everyday that Peter goes to with a bunch of other people. They all gather around a large table in a dimly lit conference room with a bunch of printed spreadsheets, a laptop, and a large calculator. Pe...

Today, Cloudera announced a new $40m funding round to scale their sales and marketing efforts and a partnership with NetApp where NetApp will resell Cloudera's Hadoop as part of their solution portfolio. These both announcements are critical to where the cloud and Big Data are headed. Big Data going mainstream: Hadoop and MapReduce are not only meant for Google, Yahoo, and fancy Silicon Valley start-ups. People have recognized that there's a wider market for Hadoop for consumer as well as enterprise software applications. As I have argued before Hadoop and Cloud is a match made in heaven. I blogged about Cloudera and the rising demand of data-centric massive parallel processing almost 2.5 years back, Obviously, we have come a long way. The latest Hadoop conference is completely sold out. It's good to see the early signs of Hadoop going mainstream. I am expecting to see similar success for companies such as Datastax (previously Riptano) which is a "Cloudera for Cass...

I spent a few days in Bangalore this month. This place amazes me every single time I visit it. Many people ask me whether I think Bangalore has potential to be the next Silicon Valley. I believe, it's a wrong question. There's some seriously awesome talent in India, especially in Bangalore. Don't copy the Silicon Valley. There are so many intangibles that Bangalore won't get it right. And there's no need to copy. Create a new Silicon Valley that is the best of both worlds. If you want some good reading on what makes silicon valley the Silicon Valley, read the essay " How to be Silicon Valley " by Paul Graham. Bangalore does have some of these elements - diversity, clusters, a large number of expats etc. It's quickly becoming a true cosmopolitan city in India. You don't need to know the local language (Kannada) to live there. It does have a few good colleges such as IIM and IISC, but no IIT. The real  estate boom in Bangalore is a clear indicator of...

Recently, Netflix separated their streaming and DVD subscription plans. As per Netflix's forecast, they will lose about 1 million subscribers by the end of this quarter. The customers did not like what Netflix did. A few days back, Netflix's CEO, Reed Hastings, wrote a blog post explaining why Netflix separated their plans . He also announced their new brand, Qwikster, which will be a separate DVD service from Netflix's streaming website. These two services won't share the queues and movie recommendations even if you subscribe to both of them. A lot has been said and discussed about how poorly Netlflix communicated the overall situation and made wrong decisions. I have no insider information about these decisions. They might seem wrong in short term but I am on Netflix's side and agree with the co-founder Marc Randolph that Netflix didn't screw up . I believe it was the right thing to do, but they could have executed it a little better. Not only I am on their si...

It is estimated that approximately 41% of revenue, close to $53 billion, is "lost" in software piracy . This number is totally misleading since it assumes that all the people who knowingly or unknowingly pirated software would have bought the software at the published price had they not pirated it. RIAA also applies the same nonsense logic to blow the music piracy number way out of proportion. The most people who pirate software are similar to the people who pirate music. They may not necessarily buy software at all. If they can't pirate your software, they will pirate something else. If they can't do that, they will find some other alternative to get the job done. Fortunately, some software companies understand this very well and they have a two-pronged approach to deal with this situation: prevent large scale piracy and leverage piracy when you can't prevent it. If an individual has access to free (pirated) software, as a vendor, you're essentially encouragi...