The rants and raves of a technogeek
Posts tagged Business
Astricon 2009 – Glendale, AZ – Part II
Oct 15th
Ok, it’s day 1 (or actually day 2) for AstriCon 2009 – and here’s my report for the day.
Yesterday was kind’a of a hectic day for me, as I was teaching a full day track of Asterisk and Cloud Computing, specifically, implementing Asterisk systems with Amazon EC2. I started the day with a class filled with 20+ people, and ended the day with a similar number – so in general I’m very happy. Not many people tend to attend the pre-conference days, so having that number of people and their positive reactions through out the day were very reassuring to me.
If there is one thing I’ve learned from this experience, it is the following: If you give a full day track, don’t arrive at the hotel 24 hours prior to it – you need at least 48 hours! People didn’t really notice (I hope), but through out the day I was suffering from a splitting headache – one that would usually send me right into bed with a couple of Advil’s. But hey, that didn’t stop me and I powered through it, I’m fairly proud of myself for doing so – as at the end of the day I regained back my strength and was livelier.
Today was the first official day of the conference – I gave the opening talk for the Cloud Computing track of the day. My talk was about how to build “IP Centrex” like services, without building an “IP Centrex”. I guess that I didn’t really introduce a brand new concept, but actually talked about something that many are thinking about, but are not inclined to try it on their own and burn some cash on. I guess my talk helped them out saying: “Hey, we’re not talking out of our asses here, this guy makes some sense and what we thought of isn’t that far fetched”.
Previous to that, Digium announced the 2009 Digium innovation award winners, where my company won an award in the pioneer category. This is the second year in a row my company had won the award, and I’m really happy with being acknowledged for this specific work. Having being a part of the community for over 7 years now, this award, at least to me personally, says a lot – it’s basically saying: “Look, you’ve done good, you’ve done some work that really helps out the project and the community in general – here’s a beer and a toast to you – hip hip” – well, that’s kind’a of a mouth full, but you get what I mean. I think that this is actually the place to mention that the award was for developing a high-powered Dialer/IVR platform, used in the Israeli elections and the work was contracted for a company called Shtrudel.
The all conference party is tonight – so I better rest up and be ready for it – should be fun. I guess beer and food are always a good mix when a bunch geeks are getting together 
Why will proprietary software will eventually die?
Mar 25th
Last night I met with a friend of mine, Mr. Doron Ofek. For those of you not familiar with the Open Source market in Israel, Doron is the one person most affiliated with RedHat in Israel, as Doron championed the adaptation of RedHat Linux servers in various enterprises and government offices in Israel. Doron is currently heavily involved in the OpenMoko project and its adaptation and promotion in Israel.
We spent a great deal of time last night, talking about the various aspects of Open Source training in Israel – as both us provide various training services to this market sector. While I’m mostly focused on Asterisk Training, Doron is focused on Linux and XEN training. Both of us have some our training routes knee deep in Israel’s computer/IT training companies, namely Matrix, Hi-Tech College and John Bryce. We both talked about our discontent with their inability to promote and market Open Source training courses, simply because they have no idea what these are.
For example, while Hi-Tech college were incapable of signing up a single person for an Asterisk Bootcamp course, I had signed up 10 people to a my first bootcamp – without any marketing or sales budget, simply by putting out the word in the right places. Now, Hi-Tech college has a list of over 5000 people who studied Linux and other Open Source and networking subjects in their college – should have they been able to gather up at least 10 people as well (less then 0.5% of their entire customer base)? the answer is a definite yes, why were they unable to do so? simply because they have no idea what Asterisk is, how it can be marketed, how it can sold and how the customer should be approached.
Doron had indicated a similar issue with both John Bryce and Matrix – however, due to other reasons. However, Doron had managed to sell quite a few training courses for Linux on his own – without any help from the big boys – how did that happen? how is it possible that Doron and I succeeded where the other colleges had failed? how can that be? – then we both realized why eventually, proprietary software will die and the Open Source movement, over the course of time, will simply negate the presence of proprietary software – simply because Open Source people provide for better marketing strategies and methodologies.
Did we learn how to do marketing on school? are we marketing people by nature? the answer is NO – we learned how to market our belief in the Open Source initiative over the course of time. We championed Open Source in various enterprises, events, public speakings and other places. We were the “soap box” speaker at Hide Park’s Speakers Corner, we were that crazy man on the street screaming: “The world is coming to an end, repent!” (well, you know what I mean) – but all in all, as time progressed we learned how to market the Open Source initiative and our belief – the large enterprises are stuck in their own belief and stagnant marketing strategies and plans. As time progressed, the various “champions” left the large enterprises, simply because they got fed up with the wrongful methodology of these and followed their own path – and doing so with moderate success.
In my belief, as time will progress, the large enterprises will surely migrate to the Open Source, and I won’t be surprised if within a period of 5-6 years Microsoft will be shipping out a version of Windows that is based on the Linux Kernel – or another Open Source distibution methodology. Call me crazy, call me chaotic, call me a dreamer – but mark my words – this will happen.
Creative ideas for start-ups… maybe…
Nov 5th
Michael Eisenberg is a well known VC partner (Benchmark Capital) and an avid blogger. In one of his recent posts, Michael refers to 8 different approaches to raising a start-up company, in the midst of an economic crisis. The full blog entry can be found at his blog, however, after reading it myself, I would like to comment on it. The below section will also be commented to Michael’s blog for reference:
“Everyone in the company is a salesman – Your R&D team should be selling too”
This is an interesting approach, however, R&D people are R&D people because usually they don’t do sales well. Actually, most of the R&D people I know are the worst sales people I’ve ever met. To be honest, in my previous position, our R&D Manager basically screwed a 500,000$ deal that we worked on for 6 months, because I said something in the form of: “It’s possible to do, however, I can’t really say what would be required to do so.” – R&D people can easily sell products that are closed, not products that are under development. As start-ups are constantly in the development phase – this is a BAD idea.
“Hire sales people on commission only”
YES! This is a great idea, although, it means that you’ll need a hell of a lot more sales people to manage. When a sales person works on commissions only, it means that while he’s selling your stuff, he’s selling other stuff too. It requires a certain degree of finesse and agility to be able to manage such a team, but the general idea is good, actually it’s GREAT!
“Virtual company”
Michael’s idea of a virtual company isn’t new, dozens of companies around the world utilize this methodology. However, this methodology sometimes requires quite some resources. For example, according to Michael, the utilization of sites like oDesk and rent-a-coder may assist in your quest to lower general spending. That is true, however, it automatically poses a problem. Let us imagine that I develop a service that is made of 3 distinct areas of expertise. I hire all coders from oDesk, now, I need to remotely co-ordinate them all, so that the code I’ll get is manageable and well documented. If not, the end result will a running service that becomes stagnant, as no one can go into the code and continue its development (seen it happen to 2 of my customers, both start-ups).
“Choose Self-PR over paid search”
Hmmm… I can’t really comment on that, as I practice it – and can honestly say, it’s very hard.
“Focus on product”
Killer applications in the web are a must, if it’s not a killer – your service is dead in the water. Killer services like PokeTalk have a great potential to become the next big thing, but they highly rely on the company’s ability to market the product correctly within the available channels.
“New distribution channels”
Michael talks about the creation of affiliate programs – that’s not as simple as it sounds. Many companies made a shitload of money out of building distribution channels and affiliate program management systems – affiliates are a wonderful idea as long as you are capable of managing these in a proper manner (See my comment about commission only sales people).
All in all, Michael surely has some valid points, however, these require delicate work and proper management in order to work right – if executed improperly, will not only end in failure, may also send you down debt country.
We are to blame…
Jul 9th
Lately I’ve come to the realization, that we are to blame for our own inability to promote Open Source and the adaptation of Open Source proficiency. Being an Open Source evangelist and consultant, this is very weird to be said by one like myself, however, this is my realization – and I will explain.
In the early days of Open Source adaptations (late 90′s, early 2000), Open Source software was a somewhat magical solution that meant: pay nothing, get more. Software packages like Linux, Apache, mySQL, PostgreSQL and programming languages like PERL and PHP had lowered the bar on the adaptation of new technologies, and enabled a prolific number of solutions and services.
I still remember the early days, when a Windows based Mail Relay would cost anything between 800$ to 1200$, and I would come in with a Linux based solution that would do the same thing for FREE – amazing. As time progressed, so did the technology and the penetration of Open Source into new fields. CRM, ERP, Telecoms, management – all of these now enjoy a diverse number of Open Source solutions. However, the original concept of ‘Open Source = Magical FREE Solution’ had still remained in the minds of managers and business people.
Today we are confronted with ‘would-be’ Open Source solution experts, which adopt and develop upon Open Source products and project various applications. In example, let’s take a look at Asterisk. Asterisk has a multitude of Open Source solutions, ranging from PBX system, Prepaid calling cards, Wholesale routing platforms, Attendance system, Presence systems – and even a plant watering solution. The problem with this ever growing number of solutions is that Asterisk is immediately considered to be: “A magical solution” capable of solving any problem – when it’s not even remotely related to Asterisk. For example, a friend of mine had been asked to develop an Asterisk based solution, that would support a total of 250 concurrent call initiations and up-to 3000 concurrent calls on the system. Any Asterisk developer would take a look at this, and would immediately say: “Hmmm…. this requires several servers, but hey, what about the application itself? that would also have an impact”. Now, the customer of the project has a ‘would-be’ Asterisk tech in his company which said: “I was able to initiate 200 concurrent SIP invites to Asterisk via SIPP, no problem’ – HELLO! STUPID! where’s the application? where’s the database? where’s the user information flow? comm’on, are you listening to yourself speak? or simply are filled with the gasses coming out of your ass that are affecting your brain?
Now, once the customer learns that Asterisk is most probably not the right solution for the problem, he becomes angry. Why? because he now learns that he needs to spend about 10 times more money than he anticipated for the creation of this tool – well, that’s life when you have no idea what you are doing/saying, and you believe in magical solutions. However, we – “The Open Source Community – is the one to blame for this scenario, because we got the world accustomed to the idea that Open Source is like magic – flip the Linux magic wand, and the rest will solve itself.
I’d like to open the floor for discussion on this, as I believe most of you will have something to say about this.
Open Source business sustainability
Jun 1st
While Open Source projects around the world gather up the troops and become recognized for what they are: highly polished, highly effective, extremely economical products – the situation in Israel is fairly different. We’ve all heard about companies like Zimbra (recently acquired by Yahoo), MySQL (recently acquired by SUN) and others, which had struck BIG TIME. However, the situation in Israel differs immensely.
I’ve been invited to participate in a panel at the Garage Geeks, to discuss the various aspects of Open Source sustainability. I’ve made it my business to build a business completely surrounded by Open Source, devoted to the promotion and adaptation of Open Source – and when possible, the promotion of Open Source licensing models and the understanding of what they mean.
In one of my previous posts, I’ve indicated that Open Source projects are highly exploited in an illegal manner in Israel, thus, making Open Source business in Israel a high target for Open Crooks. The question immediately arises, how can an Open Source project become successful? In addition to that, what are the factors that make a good Open Source project a grand Open Source project.
Step 1: Features
For an Open Source project to become popular and frequently used, it should have an extensive range of features, which is constantly being upgraded and enhanced. Taking from my own personal favorite, let’s take a look at Asterisk – the Open Source PBX. Over the course of the past 5 years, Asterisk had evolved to include hundreds of features. Each new feature in an Open Source product expose it to a new market. With Asterisk, the introduction of an Answering machine detection tool had introduced it to the automatic dialer and contact center market. The introduction of LumenVox speech recognition had introduced it to the ASR market, and so on.
While features are important, it is also very important to make sure the features included are features that the community and users require. While it is really cool to have a mod_kitchensink for the Apache web server, no one really uses it.
Step 2: Community
In order for an Open Source product to become successful, it MUST have a vibrant and active community – better yet, more than one. While an active developer community is important for the advancement of the project, a set of auxiliary communities is required. A users community is a must, rendering support and usage ideas to its members. No less important is a business oriented community, one that speaks to the manager level people, those making the decisions in organizations. Tap into that level, and the Open Source project is now gaining followers from other side of the border.
Managers tend to be highly traditional in thinking, not inclined to utilize Open Source at first try. A vibrant business community of the Open Source project can do wonders to the project, especially with its promotion and adaptation into existing and new business structures.
Step 3: Funding and Sustainability
Funding an Open Source project doesn’t entirely mean – MONEY! Well, eventually it does mean money, but not in the normal way we think or work with money. Open Source developers don’t work primarily for the money, the driving force behind Open Source developers is different. Question be: “If Open Source developers aren’t motivated by money, why would you need funding?” – the reason is simple, the surroundings of an Open Source project require funding.
The surroundings of an Open Source project mainly include the following: public events, developer meetings, servers, hosting, travel fares, participating in trade shows and others. All of the above are generally associated with Marketing, however, marketing an Open Source project is sometimes as important as the project itself. If we are to examine the growth of the Linux community and user base in the world, we are mainly thankful to RedHat in its early days (1996-2001), closely followed by Debian with its recent off spring Ubuntu (2006-2008). Imagine, you can now go into an IBM dealer and ask to buy your notebook with Linux, how cool is that? how did that happen? did the world suddenly realise Linux is better than Windows? – the answer is NO! The marketing efforts of these companies had proven worth while, as the concept of using Linux as a desktop became common in recent years.
Step 4: Training and Certification
If your Open Source project is UberGeek targeted only, than you have a very slim chance of making it big. Lowering the bar on the requirements for the adaptation of an Open Source project is highly important and can be mostly achieved by training and certification. The training makes it possible for people to learn more about an Open Source project, while the certification makes the project seem more desirable and exclusive.
Why do people seek M$ and Ci$co certifications? simple, because they know these certifications mean something to manager level people and decision makers. The certification is a written (actually printed) proof that you know what you are talking about and that you are truly a professional working in the field of that Open Source project.
Conclusion:
If all of the above are met, you are surely on your way to create the next big Open Source project – and you are on your way to world fame and rock-star feeling.
Picasa
Twitter
Facebook
LinkedIn
wikipedia
Youtube
RSS