…t dramatically increases the teams agility and ability to respond to external events and realities. It also forces a much more honest ongoing appraisal of how much real progress is being made. It is probably worth a separate post to describe how Office made this transition but for this story suffice to say Windows was nowhere near this process during this timeframe.
…e the use of cloud to deliver technology is moving defensibility to different parts of the product. Companies that focus too much on technology without putting it in context of a customer problem will be caught between a rock and a hard place — or as I like to say, “between open source and a cloud place.” For example, incumbent technologies like Oracle’s proprietary database are being attacked from open…
For the vendor it eliminated the high-risk, lumpy quarterly license challenge (and with it the temptation to cheat by holding the books open for the license sale that would make the quarter). But, while the SaaS model made it radically easier to sell software and to forecast reported revenues as contractual payments were made over time, it came with a cost. Salesforce.com was the first enterprise software company characterized by sound operating execution to consume more than $100 million of funding to reach positive cash flow. Now the poor start-up was in the role of financing the rich customer. Funding from launch to positive cash flow for a SaaS enterprise software company runs from that $100 million to twice as much or more, some five times the $20–30 million of risk equity once required to get a perpetual license enterprise software company to positive cash flow.
opportun…minimum threshold. You add a few squeezies, some bananas and a few artisan cheeses to hit the mark. You realize you haven’t stepped into a grocery store for months — but don’t worry — your opportunity cost of time is way too high at the moment. Especially if you factor in those stock options.
…ought a house in the Noe. You speculate as to how rich they must be after their exit from LinkedIn. Even though they were only employee #500 they must have done well. You briefly try to do the math in your head. Maybe that can be you at your current startup. It’s only a matter of time.