Thoughts on the Google acquisition of Postini

News of this acquisition is not really a major surprise as Google had been utilizing Postini’s hosted anti-spam solution for some time as part of their Gmail offering.  Postini built a great business over the years and was contemplating an IPO.  Here’s a good deal summary from alarm:clock and one from Ryan McIntyre of Postini investor Mobius Venture Capital.  Even Fred Wilson has his wish list of new features (note how they all deal with managing the queue of filtered inbound email as you read below).

What is a bit of a surprise is the rationale and positioning around the deal.  Here is what Dave Girouard, head of the Enterprise business, had to say:

"Larger enterprises, however, face a challenge: though they want to deliver simple, useful hosted applications to their employees, they’re also required to support complex business rules, information security mandates, and an array of legal and corporate compliance issues. In effect, many businesses use legacy systems not because they are the best for their users, but because they are able to support complex business rules. This isn’t a tradeoff that any business should have to make."

"Business rules, information security mandates, and compliance issues" are a whole different world than search, adwords, and ad revenue business models.  Google is certainly a force to be reckoned with and with their enterprise business being only 2% or so of their total business they have growth on the mind.  Dave goes on:

"We realized that we needed a more complete way to address these information security and compliance issues in order to better support the enterprise community."

Postini provides a great hosted anti-spam/anti-virus service.  Turn it on and bad stuff stops arriving in your inbox.  However, larger enterprises are reluctant to trust their outbound messaging stream and, in many cases, their archiving to hosted solutions.  Zantaz, a hosted provider and recently acquired by Autonomy, acquired EAS some time ago in order to have a deployable software in addition to their hosted service.  Will the enterprise embrace Google for information security and compliance?  If at all, I would say more probable for the small/mid-market than larger enterprises but time will tell.

We have examined hosted/SaaS offerings in the past and find pretty consistent feedback that there is comfort on the inbound side with trusting a 3rd party service to filter mail, but reluctance on the outbound side, technical/behind the firewall challenges associated with doing it for internal mail, and varying levels of concern about hosting email archiving.  Again, smaller companies may have a different take but this represents the enterprise mindset from my perspective.  Here’s some additional thoughts on it from Roger Matus who runs another company in this space.

Updated:

Michael Osterman does a good job of touching on the privacy and security dimensions of the deal.

Cedar plank salmon

There are a lot of great things about living in the Northwest and salmon is one of them.  Almost a cliche to point that out, but had to share.  Tonight Marel and I cooked cedar plank salmon and it was great.  If you are looking to get great fresh seafood and great service outside of downtown Seattle, try Tim’s Seafood here in Kirkland.  I can’t say enough about this place and Tim is quite possibly the happiest guy I know.  They set us up with fresh wild copper river sockeye tonight.  Thanks Mom & Dad for the cedar planks.  As you can see, we are putting them to good use.

Cedarplank_2

Update:  This posts gets quite a few hits (who knew?) so thought I would share what is on this piece of fish.  It is a rub of brown sugar, fresh thyme, and a bit of cayenne pepper mixed with some olive oil.  Also did one with a maple sugar/bourbon glaze that was pretty tasty.  Keep water handy to put the flames out as the saying where there is smoke there is fire holds true with this cooking method.

Start a company in a weekend?

That’s what a crew of folks are attempting to do this weekend in Boulder at Startup WeekendDavid Cohen is providing the play by play and at this point it looks like "Vosnap" is taking shape.  Reminds me of something I did back in business school at UT.  We participated in the Wake Forest MBA Marketing Case Competition in Winston-Salem, NC.  Same kind of pressure cooker although the team was much smaller (5) and the scope was a marketing strategy for Sara Lee/Hanes if memory serves me.  We came in second behind UNC in 1994 although our core theme of the increasing casualness of attire in the workplace was spot on.

Getting a grip on who can access information

I recently had a really great conversation with the CTO of a large money center bank about information access and control.  During our meeting, we discussed his priorities and the things that keep him up at night which were mostly centered on personally identifiable information (PII) and ensuring the proper safeguards were in place to protect it.  My agenda was mostly around messaging and he agreed that it is important to have proper safeguards and controls in place to take appropriate action (log, encrypt, intercept, etc.) once information takes flight either in or as an attachment to an email.  That said, his approach was more inclusive starting with where the information resides and who can access it. 

He explained their approach as follows:

  • Only the right people have access to this type of information – Access Control
  • If those people or access rights change, there is a process in place to manage it – Change Control
  • Create transparency when one of these authorized users breaches a rule (ie, alert them that their message has been flagged for further review due to the possible inclusion of PII) – Information Control

Policy-based controls for messaging work well in this situation because they are building on the policy-based controls limiting who can access what information.  This makes the problem much easier to solve and ensures that the bank’s most valuable asset to protect- your information – remains safe.

Full ‘Reshaping Information Security’ report available here

The full text of MessageGate’s recently released MarketInsight is now available through the links below.  If you’d like the formatted .pdf version, let me know.

New study identifies 5 trends in information security

Organizational dynamics and their influence on information security

Take a practical approach to information safeguards for email

What to do about email archiving – a universal question

You can’t take the user out of the equation – Part 1

You can’t take the user out of the equation – Part 2

Navigating the legal & regulatory aspects of corporate messaging

Understanding messaging use

An enterprise view of messaging technologies

All email is not created equally

"Here’s where e-mail’s socialism turns from strength to weakness: It doesn’t matter if the message comes from a spammer hawking Viagra, your wife asking you to pick up some wine, your boss telling the company that Monday is a holiday, or a client asking for a meeting at his office at 11 a.m. In today’s inboxes, all e-mail messages are equal."

Once you get under the hood of corporate email, you see something that is both amazing and at the same time terrifying.  Email is used (and misused) for just about everything and the technologies that power it and policies that govern it are barely keeping up if at all.  There is no shortage of email bashing out there including this recent NY Times piece.  I don’t disagree that email is both our best friend and worst enemy in the workplace – and can even be a source of stress (via Freakonomics Blog), but the question remains of what to do about it.

Om Malik put an article out entitled "Why we hate e-mail" that gets at the core of the matter and provides some suggestions for how to fix it.  The quotes in this post are from that article.  Some of his observations are consistent with our focus on understanding the difference between high-value correspondence and low-value correspondence.  Regardless of why you need to separate it – for better Inbox management, for archiving efficiency, for improved supervision, etc. being able to segment communications based on their importance or relevance to you is essential as volumes grow and methods evolve beyond email.  Om’s article offers up a chart by the Radicati Group on average emails sent/received per day putting the number around 130 in 2007 and growing from there.

I think these are a bit high as our own research and customer work has shown this number to be closer to 50 per employee per day.  Here’s the breakdown based on MessageGate analysis:

Inbound:    13.5      
Outbound:    9      
Internal:    30      
Total email per day per employee:    52.5    

Volume is certainly growing and there are no signs of the corporate dependency on email subsiding anytime soon.  The best approach?  Embrace it and put technologies in place to control/improve/manage it including the ability to differentiate between email that matters and email noise.  Listen to an interview with me on this topic here.

"E-mail ought to be reinvented to meet the needs of our always-connected lives."

Email is workflow

This is a great article from CNET on enterprise software and how email fits into workflow.  It never ceases to amaze me how dependent companies are on email to support and execute core business processes and also how this seems to come as a surprise when they take a hard look at messaging activity and patterns (we do this for customers with our MAPs).  Enterprise software companies have automated core business processes through ERP, CRM, SFA, etc. type applications and end-users use email to serve as the de facto integration broker among them. 

It struck both of us that the problem with enterprise software is that it tends to forget how people actually work. Things like CRM, ECM, etc., tend to require users to change their normal behavior to fit the application. As a result, they tend to not get used, or at least not unless someone threatens to withhold compensation.

These enterprise systems take a backseat to email.  Want to find the most recent account status?  Check email, not the sales force automation system.  Want to know where goods are in a supply chain?  Check the Excel spreadsheet attached to an email from your supplier, not the supply chain management system.

E-mail becomes the easiest route to group participation, because few have to be goaded into creating and sending email, and because it should be possible to capture the information contained within that email to inform CRM, ERP, etc. systems.

The article discusses the need to make the mail client the primary point of interface as that is where people spend most of their day anyway.  Reminded me of the feedback from the compliance folks at the securities firms where in order to conduct NASD 3010 mandated surveillance they wanted the interface to "look like Outlook."

Product Managers with security backgrounds wanted

nuBridges, Inc. (www.nubridges.com) is looking for two product managers – a strong director-level role and senior product manager both with security backgrounds.  They are Atlanta based so odds are you will need to be.  I was fortunate enough to be part of the founding team there in 2001 and they have been on a tear since.  If you are interested, send a resume to the VP of Product Management, Gary Palgon (gpalgon at nubridges dot com).

Mobile phones point the way to congestion

Mobiledensity
Interesting story via the BBC on using mobile phone signals as a way to identify congestion and population concentrations. 

This article talks about an MIT project in Rome where mobile signals are being used to understand how and when people use different parts of the city. 

This takes data used for network capacity planning and puts it to work in a different way.  Pretty interesting…