Another great Intel Capital portfolio company day

This time the folks at McGraw-Hill invited a handful of Intel's portfolio companies to New York City to brief their senior leadership on what we do and how we could help their various lines of business and initiatives.

I can't say enough about the great questions and interactivity the folks from McGraw-Hill demonstrated and really appreciate them inviting Hubspan to be part of the day.  I saw a few folks from the previous event I was part of in Orlando and learned about a few new cool companies like Mixercast, Workshare, & JackBe

It was also great to see fellow Seattle company Delve Networks there and I enjoyed meeting CEO Alex Castro. They take video and make it searchable.  With such a massive amount of video content floating around these days, relevance and the ability to quickly extract things meaningful to you is a major opportunity.

Interesting interview with Brad Burnham of Union Square Ventures

Some interesting points here including the desire to find "web meets world" businesses where a broad set of people use web-based applications as part of their daily lives versus an early adopter crew for sport or curiosity.  Not an earth shattering point but one to pay attention to coming from a group that has funded a lot of clever "web 2.0" applications in recent years.

http://blip.tv/play/AciTa4ecGQ

Software vs. service delivery

I had breakfast with a good friend the other day and we covered a wide range of topics including this one – the difference between software product companies and service delivery companies. 

Service delivery companies use technology (their own or 3rd party) combined with some type of service or expertise (supply chain, brokerage, billing, payroll, ediscovery, etc.) to deliver value to their customers.  Those customers appreciate the technology being used because it enables the service but the technology "product" itself is not the star of the show.  Sort of like an iceberg in that what you see above the surface is a fraction of what is really there. 

Making the change from service delivery to product company can be dicey because all those customers that love you for your service and expertise may not be the same ones ready to embrace your product platform and roll their own as they may lack the resources, in-house expertise, or desire to do it themselves.  The path the other direction is not as perilous but still means rethinking your target customers and distribution channels as well as the impact on valuation.

Also interesting was a discussion of market dynamics and how winners are different in service delivery vs. product markets.  Product markets end up with 800lb gorillas who dominate.  The goal of any product company is to get that momentum and "win" the category.  Service delivery markets are defined by kings vs. 800lb gorillas.  These are definitely dominate players but there is still plenty of room for others as the expertise and service of the company can serve to differentiate them from even the largest player.

Software-as-a-service (SaaS) is the intersection of service delivery and software product where, in some cases, products alone work while in others it is the combination of software plus services that will define the future winners.

Covey Run this weekend

I ran the Covey Run 10k this past Saturday out in Woodinville.  Sponsored by Covey Run Winery, the race starts and finishes out at the Red Hook Brewery and benefits Seattle's Children's Hospital.  I ran the 5k last year for the inaugural event pushing a jog stroller.  This year I was solo and having my own personal version of the Olympics.

Covey10k

That's me crossing the finish line in a blazing 50 minutes (8-ish minute miles).  I'm just to the right of the time clock and appear to be focused on the large beer holding tanks in front of me.  A great event and a great way to spend a beautiful Saturday morning.

Update:  I was reminded by my lovely wife that it was she and not I who pushed the jog stroller last year.  Apologies my dear.

Obstacles ahead for SaaS ERP

Enough acronyms for you?  Here's an interesting article from InfoWorld discussing a new Gartner report on the challenges and promise of software as a service delivery models for ERP. 

Some interesting points in here but mostly stuff that you could predict.  It still must be integrated.  Just because it is "on-demand" does not mean it is of instant value.  Even more interesting is a discussion of the total cost of ownership of SaaS ERP vs. on-premise and how on-premise might actually be more favorable.  Interesting.

Thoughts on Xobni

Apologies for the extended delay in posting my thoughts on Xobni.  I have been using it since the first cycle of an exceptionally well run beta program started and have been collecting some thoughts over time.  I appreciate being given some early beta invites and dutifully distributed them making some new friends along the way.  I still have some if you’d like to take it for a spin.  Just shoot me an email – robertcpease at gmail dot com.

Recently the company has had some departures from the early executive team.  Not uncommon, but this is pretty early in the lifecycle of a company with momentum and is curious to say the least.  What I mean by momentum is that having Bill Gates demo your product as a brand new and unknown company is not a common occurrence.  The turnover could be the result of a new CEO and a company trying to move from being "clever" to being real, but is worth noting nonetheless.

First off, I am a huge believer in both how bad the email problem is for the enterprise as well as the potential that awaits those companies that come up with a way to improve it.  The challenge is to significantly improve it, not focus on replacing it or just rethinking the construct of the inbox. 

Email is way too pervasive and ingrained in all major workflows from selling to support and it will be many moons until the Facebook generation eradicates it from the workplace.  Also, for full disclosure, I spend time and energy on this topic thinking about the business opportunities that could be pursued.

Here's what I like:

  • Great initial marketing and buzz
  • Locating attachments
  • Usable placement on the Outlook UI (expand/collapse)
  • Conversation threading
  • Search that is interesting and faster than Outlook search (even though it essentially the same searching)

Not so wild about:

  • A quick key to draft an email that asks for a phone number that drops a bit of promotional text below the signature block that is not really appropriate in business setting.           

                 Build your address book with less effort – http://www.xobni.com/GetTheDigits

  • The "Schedule time" quick key sends a clever email with time slots for the next few days with the same cheesy promotional text at the bottom but the available times are not tied into my actual calendar or reflecting true availability requiring me to still switch between my calendar and the email I am sending to get accurate availability.
  • Single channel/single platform – email only and MS Outlook only (Yahoo Is apparently in the works)
  • Analytics that are interesting but not meaningful.  Time of day by contact not meaningful and the graphic in the side bar seems like filler.

At this point and after using it for many months, I have not integrated it directly into my daily workflow.  I still use the calendar tab to schedule a meeting and I still use "new" to start a new email.  I did use it the other day to quickly find a phone number for someone not in my contacts.  Xobni extracted it and made it easier for me to find – definitely a time savings but I still could have found it without the tool after a bit of digging. 

A quick word about Outlook latency:  there are lots of things going on when starting, using, and closing Outlook even without a plug-in and that goes for any plug-in.  When I first loaded the beta version, I had some issues that they quickly resolved with subsequent releases and an uninstall/install on my part.   This is why you conduct a beta program – to see what will happen when it is used on a larger scale than your dev/QA environment. 

Their plug-in is not the only application (beta or otherwise) now fighting for control of Outlook as it starts on my desktop as I have Salesforce.com, LinkedIn, and a handful of other alpha/beta products vying for processor time.

On the analytics front, I learned about needing to make email data really meaningful doing email analysis at both Orchestria and MessageGate.  The data on its own is interesting but even more interesting when taken in context – a new recipient, an email without text and an attachment, concentrations of traffic of certain file types, etc.  Granted, my previous efforts focused on compliance issues but the need for relevance is the same if you are talking about supervisory review or personal use. 

All said, I like Xobni and look forward to seeing it evolve but don't think I'd pay for it assuming that is a milestone in their business plan.  If it becomes part of MS Outlook then I guess that is not an issue as that will open a huge distribution channel.

My view is not as harsh as Mark Logic CEO Dave Kellogg but I still think focusing solely on making the inbox better doesn’t solve the problem.

Kirkland Criterium tonight

Another great event downtown tonight with the Kirkland Criterium.  I was pretty excited to see Kirkland sponsor an event like this.  I have fond memories of the Twilight Criterium in Athens, GA as a college student.  It was always a great excuse to stand on the streets of downtown and enjoy a few cold beverages. 

Tonight wasn't quite that scale but a good turnout and exciting race for a first event.  Here's a bit of video I captured:

Meanwhile, back at the ranch

Here's a self-serving post about recent Hubspan news and awards.  We have been very busy with some great customer wins and recognition and there is much more to come so stay tuned.

One of the more significant accomplishments was being named a "visionary" by Gartner Group in their all important latest magic quadrant for integration service providers.  This was no small exercise from a very thorough survey document to lining up customer reference calls.  Our placement reinforces our innovative approach to helping companies connect and collaborate as well as the value our customers derive from working with us.

Here's some additional recent news and coverage:

Recession + Productivity = Profits

On-demand data integration ties HD Supply to customers

Collaboration brings value to VAN clouds

Hubspan Awarded 2008 Supply & Demand Chain Executive 100

Hubspan Eases Integration Pain for HD Supply Facilities Maintenance

THINKstrategies Identifies Hubspan’s Data Integration Capabilities as a Critical Component for Successful SaaS Deployments