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SaaS is an Ancient Model

Lots of talk today about how the SaaS market will ‘collapse’ in two years.  I don’t get it: if it survived 40 years, why would it collapse now?  Yes, that’s right, SaaS has been a successful model for 4 decades now. Need proof?   Check out Technorati linking to my post on the NetSuite IPO 11119 days ago.  That’s 38 and a half years, give and take a few weeks. smile_nerd

Oh, well, that was the fun part, for real analysis check out my fellow Enterprise Irregulars:

Jason Corsello, Anshu Sharma, Vinnie Mirchandani, Bob Warfield, Josh Greenbaum.

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Project Management 2.0 – What’s Wrong With 1.0?

Let me quickly state that I don’t really know what the consensus definition of PM 2.0 is, but I do have a feeling based on my very 1.0-style experience.

In the 90’s I worked on a number of fairly large scale SAP Projects in a variety of roles, including Project Manager, and supervisor of several other projects.  The standard tool was Microsoft Project.  It was used for:

  • Planning a Project (initial Scoping)
  • Selling it
  • Periodic reporting to Steering Committee during the actual projects

What’s missing from the above?   Well, how about using it to help the actual daily work of project team members?

Project  team members did not even have access to MS Project, it only existed in a few copies on the PM and Team Lead’s computers.  Information-flow was one-way: feed the beast to be able to occasionally print charts that look impressive (scary) enough that Steering Committee members won’t question it.

Ok, I am admittedly sarcastic, but the point is:  PM 1.0 was all about planning, reporting and it served Management but did not help actual Project Execution.

My expectation of PM 2.0 would be that it helps all team members involved who can share information, collaborate on it and actually get clues from the system on where they are, where they should be, what their next step is, instead of just feeding the beast.

Is this the real promise of Project Management 2.0?   I hope to find out from an excellent set of panelists that I have the honor of moderating at the Office 2.0 Conference next week:

  • Andrew Filev (Wrike)
  • Bruce Henry (LiquidPlanner)
  • Mark Mader (Smartsheet.com)
  • Guy Shani (Clarizen)
  • Dean Carlson (Viewpath)

Of course this is just one of many exciting sessions – if you haven’t registered yet, you can grab a $100 discount by registering here.   Oh, and don’t forget to visit us at the Zoho Party – the address is #1 Cloud Avenue. smile_regular

(This article is cross-posted at the Office 2.0 Conference Blog)

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Office 2.0, a Most Irregular Conference – Get Your Discount Here

Nothing about the Office 2.0 Conference is even remotely ordinary.

Start with the organizer, Ismael Ghalimi, CEO of a VC-funded startup, Intalio.  That’s normally a full-time job – not when it comes to Ismael: he is also a scuba-diving instructor, a pilot, launched Monolab|Workspace, (is that Incubator 2.0?), launched the Extreme Productivity Seminar series, oh, and have I mentioned the annual Office 2.0 Conference?  ( I actually know his secret, he has two body doubles, I just haven’t been able to prove it yetsmile_wink)

Pressed for time he is turning a necessity into a virtue: year by year the Conference is a showcase of creating a successful event out of nothing in only two months. I remember the first event in 2006, when a couple of us Enterprise Irregulars were helping him plan the sessions only weeks away from the start.  A few days and a few blog posts later Ismael got flooded with request for sponsor and speaking slots.  This year history repeats itself: just a month ago the conference site was a placeholder and one could only wonder if … then a new site was born overnight, based on Jive Software’s excellent ClearSpace platform, and now it’s alive with user participation, sponsors, registration..etc.

What’s a Web-focused Conference without wi-fi?   It’s a joke that in 2008 conferences, including brands like Web 2.0, Gnomedex …etc.  still fail to provide sufficient connection.  Ismael’s solution includes laser beams to the top of the building, another one down to a terrace, then inside – making it happen with Swisscom was quite a project in itself.  Office 2.0 set the standard once and for all, anything less at major conferences is a failure.

Then there’s the issue of The Gadget.  I believe the iPod at the first conference was just more-then-generous swag.  The iPhones handed out at the second conference had an integral part at the event: several applications released specifically for Office 2.0 allowed participants to interact with each other, navigate the schedule and find sessions.  This time all paid participants will receive a the HP 2133 Mini-Note PC.

Yes, the conference swag is not pens, stickers or t-shirts: it’s a mini-computer, which cost about half the registration fee.  It will clearly raise eyebrows, and many would prefer to skip the gadget and pay reduced fees.  I think handing out such an expensive gadget will have an interesting effect on the conference demographic: we’ll likely see an increase of corporate employees, who can expense the entire conference and are less price-sensitive than startups and freelancers – the original Office 2.0 crowd.

But that may very well be what the conference needs.   There’s a reason why this year’s theme is Enterprise Adoption.  The Office 2.0 movement wouldn’t go very far with only the early pioneers, evangelists talking to themselves, dissmissing enterprise requirements.  For the principles to become practice in business, we need a more balanced mix, and in a twisted way the gadget may just help achieve that.

Those who can’t afford the full registration are not entirely locked out: Socialtext CEO and top evangelist Ross Mayfield will facilitate Un-Conference 2.0 the day before the official conference, at a cost of $50.

Finally, startups have a chance to present the attending VCs, media, bloggers at  LaunchPad – Ismael announced this event over the weekend, and already has 10 particpants – get in there while you can.  Note to my (numerous) VC readers: I hope you will be there, too.

If you’re still hesitating, check out the Agenda, the list of SpeakersMedia representatives,  and if you haven’t done so, register now.

I’ve saved the best for last: don’t use the standard registration, save $100 by registering here.

Update: while I was typing here, fellow Enterprise Irregular Dennis Howlett explained why this is an Irregular (pun intended) Conference in more than one way.  Update to the update: see Susan’s excellent summary.

(cross-posted on the Conference Blog)

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Benchmarking the Benchmarkers

I’ve repeatedly praised Web-based Invoicing service FreshBooks for being innovators, unveiling the hidden business model enabled by SaaS: benchmarking.   But who’s benchmarking the benchmarkers?

Competitor Xero has just issued a call looking for benchmarking partners comparing metrics like:

  • Customer acquisition rates
  • Teaming model and allocation of spend
  • Sales and marketing spend
  • Sales quotas
  • Google spend
  • Pipeline conversion

CEO Rod Drury is looking for 5-10 partners, communicating either directly, or through a trusted third party.  Either way, its quite a challenge, as unlike the aggregate anonymous data Freshbooks provides to their customers, this level of sharing requires quite a level of trust.

Interestingly I contemplated similar ideas just a few days ago when Zoho CEO Sridhar Vembu published his margin analysis of Google, SAP, Oracle, Microsoft and a few others.  He drew a conclusion that since Google’s current revenue and profit per employee metrics were much higher than even the best players in the application space, Google has little incentive to move into this space forcefully. (He then followed up with a What’s in it for Zoho? post)

Specific conclusions aside, I thought it would really be interesting to expand this spreadsheet buy including Zoho and comparable companies as well as additional metrics.  Needless to say I ran into a similar dilemma that Xero is facing now: these are private companies that don’t typically publish their financial results, to get them participate we would need a relatively larger sample and it would still require a leap of faith.

Rest assured I’ll be watching Xero’s experiment with great interest.

Related posts:

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FeedBurner Loses Half Your Subscribers

Check your FeedBurner stats, but don’t worry too much: no, there was no mass exodus, you did not lose more than half your subscribers overnight.

There’s a simple explanation: FeedBurner is missing Google FeedFetcher stats- that’s the number of users who read your blog in Google Reader.  Last time I reported the same, Google Reader represented about 40% of my readership- apparently now it’s about 60%. 

Ironically it happens on the day when FeedBurner is in the news for launching  AdSense for feeds.

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Macros For Dummies

I’ve never made a secret of the fact that my spreadsheet skills are somewhere at the level of what I learned using Lotus 1-2-3🙂  so the recent addition of Macros and Pivot tables to Zoho Sheet was really not my piece of cake.  Not that I would not recognize the techological feat when both Google and Editgrid said they couldn’t / wouldn’t do it…

Now I have to admit I occasionally tinkered around with Excel macros: not that I know Visual Basic, all I ever did was record the sequence I needed, then tinker with the resulting VB code.  That’s the capability Zoho just announced today: with a few clicks record, edit, re-run your macros, in the original Zoho Sheet or in any others you have access to.  Finally, Macros For Dummies like me 🙂 Here’s a summary video:

To the best of my knowledge no other spreadsheet can do it (other than GrandDaddy Excel)

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What Are a Million Users Worth? Zoho Thinks a Lot.

The first time I wrote about Zoho – the “Safer Office” they had less than 50 thousand users – not a lot for a web service. Today they announced having a million users – and that’s just direct Zoho users, not including those served by Baihui in China, or any other white label providers.  Back then they had 3 products: Writer, Sheet and CRM – today the list includes 17 Applications, 5 Add-ons and 4 Utilities.

The chart below shows steady growth in monthly new registrations – the sudden spike in May is the effect of opening Zoho Apps to users with Google and Yahoo accounts.

Now, you may ask, what are a million users worth in the world of freebies?   Web startups do go out of business not being able to monetize their popularity.  Zoho’s story has been that Adventnet, the parent company with “boring” but reliable, cash-cow network management products is financing the “Zoho experience”.  Well, here’s an update to that story: the Zoho brand itself has been self-sustaining for a while now.

While Zoho does not disclose numbers – it’s their prerogative, being a closely held private company – they apparently have paying users.  The number one revenue generator is Zoho CRM, that they were asked to abandon in order to be allowed to join Salesforce.com’s  Appexchange.  Apparently they made the right decision, and instead of being relegated to providing an Office Suite only, they keep on adding business applications like Projects, Invoice, People, Meeting..etc.  Incidentally, these apps are where Zoho makes their money.

The free Office and other apps with the million-or-so users are Zoho’s main marketing vehicle.  As we often discussed here, they don’t have a Sales force, in fact they don’t “sell” as such: the products sell themselves.  This trend will likely increase as Zoho now increasingly focuses on integrating existing services rather then just pumping out new ones.

That is not to say that the Office Suite can’t became a source of significant revenue, but perhaps from a less expected source: while Zoho strives to become the outsourced IT department for small businesses (SMB) they have seen a flurry of large enterprise inquiries recently.  I am aware of ongoing projects with customers that even enterprise software giants SAP or Oracle would consider strategic, key accounts – let alone Microsoft. smile_wink

As for the one millionth user: Zoho CRM user Dean Detton of Prestige Automation Inc has been invited to celebrate at the Zoho Party during the Office 2.0 Conference on September 4th.

The address for the party is: 1 Cloud Avenue.  See you there! martini

(Disclaimer: I am an Advisor to Zoho)

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Life After Outlook: Gmail. But is it Becoming Oopsmail?

Bernard’s title @ ReadWriteWeb, Breaking Free of Outlook perfectly matches my own sentiment: in fact I called the MS Client Outlook-prison repeatedly.

Unlike Bernard, I escaped from prison in stages:

I’ve never looked back, and am definitely more productive than in my desktop-bound life.  I could see first-hand a lot of people move in the same direction: my How to Import All Your Archive Email Into Gmail guide become an all-time classic, probably approaching 100,000 hits by now.  Gmail’s IMAP support changed everything, so I issued a  Simplified Guide to Importing All Your Archive Email Into Gmail.  A while later Google woke up, and started to offer a migration tool to subscribers of the paid Google Apps version. (Oh, and they are being sued by LimitNone, who claims Google basically stole their gMove product).

But the love-affair with Gmail was not without trouble: I first documented some glitches last spring: Gmail, I Love You – Don’t Let Me Down, then real trouble started a month ort so ago.

Formerly rock-solid Gmail has been ill a lot lately.  The “Oops…the system encountered a problem (#500) – Retrying in 1:30” error message has became a daily occurance… in fact several times a day.

I somewhat jokingly called “retry now” Gmail’s Penalty Button, when I noticed every time I hit it the wait counter increased by a minute.

Now I have an update: you don’t need the penalty button, the counter increases by itself.  Every time, “reliably”. Basically as soon as you see the Oops error, you might as well close the browser tab (or browser itself), as it won’t recover on its own.  This annoying  error has become the most frequent “feature” of Gmail, to the extent that it really undermines productivity.

I hope Google will fix it.  They MUST.  It’s the crown jewel of Google Apps. In fact without Gmail and Calendar there wouldn’t be Google Apps at all.

Update:  Oops: apparently there’s a real service by the name of Oopsmail.  Obviously I am not referrring to them in the title. (Although… ? 🙂 )

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LA Earthquake: Twitter Reports First – Again. Fake Video Caught.

Google thinks I am an earthquake expert simply because I pointed out Twitter was the first to report the recent earthquakes in Japan and China.

Today the same happened: Twitter was on fire with user reports of the Los Angeles earthquake 9 minutes before the first AP wire came out.

It’s an undeniable trend – but is it important?

I received some flak in comments to the previous two posts, for neglecting to mention that I was comparing apples to oranges.  New agencies have the responsibility to verify information and it takes time. Reliability over Speed.   Fair enough.  ReadWriteWeb asked the question: Did Twitter Really ‘Outshine’ the Mainstream Press?

The only thing Twitter does better than the traditional news is speed. It doesn’t do depth, it doesn’t do fact-checking, it doesn’t do real reporting. It does breaking news, and it does that very well — in many cases these days better than the mainstream press (in terms of how fast it breaks news).

Very well said, and I think we need both: speed and depth.   Ironically, MG Siegler’s post @ VentureBeat describing twitter’s power in such situations provided an example for the opposite by including what appeared to be the very first video footage of the LA quake.

I watched it without sound first, but was immediately suspicious:

I wonder what this video shows. It’s NOT the building shaking. The movement is too fast, and it’s inside the room, relative to the window frames  we see. It looks more like a camera quickly moved left and right.
If this was an indication of how the building moved, we’d see a lot less movement behind the window (inside) and a lot more outside.

It did not take long to get confirmation on Venturebeat:

Update 2: The 12seconds vid was fake, posted after the fact, a co-founder of 12seconds confirmed.

So there you have it.  People do take advantage of the relative naivete of social media and don’t hesitate to post fake news to gain 5 minutes of fame.   But that doesn’t undermine the importance of speed, which in some cases can provide early alerts and potentially save lives.  We need both.

Related posts: CNET News.com, Twitter Blog, Valleywag, Brij’s One More Idea , RexBlog.com, LA Times blog, Live Digitally.

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CherryPal: Green Cloud-Computer (Almost)

CherryPal™ is trying to change the world one computer at a time. We’ve created the most affordable, easiest to use and greenest desktop computer available.

That’s the statement from the company’s website. I buy the the greenest argument, not so sure about the others.  These are the specs of the new $249 tiny PC announced today:

  • Freescale’s MPC5121e mobileGT processor, 800 MIPS (400 MHz) of processing
  • 256 MB of DDR2 DRAM
  • 4GB NAND Flash-based solid state drive
  • WiFi 802.11b/g Wi-Fi
  • Two USB 2.0 ports
  • One 10/100 Ethernet with RJ-45 jack
  • One VGA DB-15 display out jack
  • Headphone level stereo audio out 3.5mm jack
  • 9vDC 2.5mm 10 watt AC-DC adapter power supply
  • Weighs 10 ounces
  • 1.3” high, 5.8” x 4.2” wide

It is indeed very small, the size of an average paperback, and the power consumption is an amazing 2W only.  That is, until you start using it – presumably you’d like to see what you’re doing and will need to attach a monitor.  Which brings us to the issue of price. It’s really hard to find an LCD display for $150 or less, even if you go down to the 15″ range – add a keyboard and mouse, and you’re likely in the $450 range, which puts the Cherry in the range of several low end desktops, even sub-notebooks.   Of course none will be as green and few as silent as the CherryPal.

CherryPal is positioned as a Cloud-PC, and it comes with 50G of free online storage, dubbed the CherryPal Cloud. Does this sound like a familiar combo?  Zonbu, the $99 Green PC that Cost You $249 is quite comparable, although they charge a subscription fee, while the Cherry-Cloud is free. How can they afford it?   The company says they will play ads when you start the applications.

Now, let’s go back to why I think it’s *almost* a Cloud Computer: it still has heavyweight desktop software. OpenOffice is a popular MS Office alternative, and is free, but is known as a resource hog. It’s not going to be fun on a 256MB computer.  If the Cheery Pal is a Cloud PC, why not go all the way: forget desktop software, just bring up the browser and make Zoho or Google Apps the homepage.

Update: CherryPal is alive, on Twitter and lives on Jelly Bellies🙂

Update# 2: TechCrunch wants to build a $200 Web Tablet. Is this real or a joke? 🙂

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