Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

Tag: business models (Page 1 of 2)

DEMO ’08 Is Coming – And I’m Pumped

Fellow innovation junkies, your day is fast approaching: it’s almost DEMO time again, and I can’t wait!  You’ve heard me say before that this is simply the best tech conference there is, which is why I cover every single one of them. Demo08reignite
The anticipation for this event is like no other, not to speak of the surprises — with up to 70 new companies or products launching at each of the twice yearly conferences. This is where you see the new stuff. How does 2,380 company launches over 17 years of experience sound?  It’s an amazing record. Through it all, as the DEMO folks say, their focus "remains on one thing: the future." Read more on the DEMO About page.

Jwmarriott1So, yes, January 28-30, I’ll be in Palm Desert, CA, attending the DEMO ’08 conference as a member of the press corps again. And, as part of this prestigious group, I’ve been given the opportunity to offer Tech~Surf~Blog readers a special discount to attend.
You can get more than $600 off if you register through this special, whiz-bang link. Demo07poolsceneClick here for more DEMO information and conference details, and here’s a great FAQ page, too. (Just be aware that this discount cannot be combined with other offers or promotions, or applied to registrations that have already been processed.) 
I really hope you can make it, because I love to meet my readers in person!  And I know you will find it a valuable experience.Jwmarriott2_2

The thing about DEMO is that it’s so much fun, too. Here are some of the events. There’s nothing that beats partyin’ with your fellow innovation junkies (between blog posts, of course).

And the venue?  Oh, baby, this place is awesome: the JW Marriott Desert Springs Resort, as you can see from a few pix I’ve included here. Click here as well for more about the hotel and travel details.

Here’s how the DEMO folks recently talked about their record over the years in picking winners. They do have an uncanny ability to uncover new trends:

"DEMO was there when the seeds of Web 2.0 were planted… exploring some
of the first Web services before we even had buzz words to describe
them. We have stayed true to our mission: to find great innovation
wherever it occurs, identify market trends through the lens of the
products coming to market, and expose you to new ideas and
opportunities.

"DEMO does not follow trends – we invent them.
Never has this been more apparent when the NBC Today Show segment on
January 1st featured Top Tech Trends for 2008 and highlighted two DEMO
Alumni who launched at previous DEMO events – Ugobe and Dash. It was
great to see companies making an impact on the market with technologies
identified by DEMO two years earlier."

Want to read some more good stuff about their predictions and trends for 2008?  The DEMOblog is a great resource, written by the show’s executive producer, Chris Shipley, and edited by Keith Shaw. It’s one of the best kept secrets out there in blog-land, and is actually an online version of the venerable DEMOletter.

So, net-net — you really want to know what’s coming?  Attend DEMO — simple as that.  See you there if you can make it!  And watch for my next post on the event, which will include a listing and links to all the presenting companies, just as soon as they’re announced to us press folk (the weekend before).

Made It to Web2.0 Expo – Wow!

It’s a gorgeous day in San Francisco, and I arrived at Moscone West about 11:00 am to find it one crowded place. Still trying to get my bearings, and starting to run into people I know… Web2expo_2 But I was able to bop right into one session before lunch: “Open Source Business Models for Web2.0.” John Roberts, CEO and cofounder of SugarCRM, told us about the non-traditional way his company started: really as a project, then it wasn’t incorporated for almost two years. Funding came even later. “Companies are starting differently these days,” he said. Now, SugarCRM has 100+ employees, 1200 customers in 30 countries, 100,000 users, and 7000 registered developers. How are they 2.0? “We sell subscriptions, not licenses,” he said. “And, as Tim O’Reilly would define it, we trust our users as co-developers.”

Sharing this session with Roberts was Marten Mickos of MySQL. The Web2.0 motto, he said, should be “Fail fast, scale fast” — alluding to how software iterations and testing can be so much faster today. He said MySQL is now up to 50,000 downloads per day. He guesses there are about 30 million developers on the ‘Net today. “That’s 100x my estimate of the number of developers it took to get us this far in the current information society.” He noted that his closed-source competitor has 56,000 paid employees “who go to work each day whether they like it or not.” Whereas MySQL has “50,000 new, passionate amateurs volunteering to help make our product better every day.” Mickos then gave us a rundown of the Web2.0 business models he sees today: (1) do it as a hobby and have fun, (2) get acquired, (3) build traffic and sell ads, (4) build a virtual world and sell premium goods, or (5) build a service and sell subscriptions.

An audience question at the end was interesting, addressed to both speakers: “What’s your revenue per employee?” To which Mickos had this to say: “Neither of us is operating at scale yet. We’re both very popular, but we’re still not at potential as a business model.” Roberts of SugarCRM added: “We’re building our brand.”

PC Forum: Business Models at the Edges

A great mix of panelists for this one: Marc Benioff of Salesforce.com, Jeremy Allaire of Brightcove, Leonard Liu of Augmentum, and Eric Rudder of Microsoft. Did Benioff face resistance to his business model? Yes, the enterprise market has a lot of resistance to change, he said. But finding the right app (not just a platform) was the key for Salesforce.com. “Build it, let people use it, then pop the top and let them build on it. Our AppExchange service now has 200 apps, and we’re adding 5 to 10 more per week.” Jeremy Allaire’s startup is based on “a direct model for multimedia content.” (Note he didn’t just say video.) “The distribution models of old are quickly eroding.” he said. “We’re actually allowing 031406busmodels individual websites to do global broadcasting.” What’s interesting now, Jeremy said, is that his firm is encountering an incredible willingness to experiment” (presumably by the traditional video distribution businesses, and by video producers). Why? “Out of fear, to pursue new revenue opportunities, just to stay out in front.” Esther asks what friction he’s seeing…. “It’s similar to the early days of e-commerce,” he said, “where manufacturers worried about going direct, then ended up discovering that blended distribution worked best. It’s the same now.” When asked what challenges he sees, Leonard Liu of Augmentum, whose firm is providing software development services for U.S. firms via a staff of 450 in China, says the challenges are many, including language. “But China is the next big player” in this space, he said. “We’ve seen in India what can happen. But it takes a true understanding of China — for example, the young people are different than the old — as far as how the cultures work together.” Liu said 60% of what his firm does is total product development, “from beginning to end.” Intel is one big customer. And how does Microsoft react, now that it isn’t such a target, Esther asked of the fourth panelist. “How can we marry all this friction-free software to the Windows environment,” was his obvious first answer. “But we see many opportunities — advertising, subscription models, Office Live. This is an exciting time, now that we’re unleashed to an extent. We think we’re responding well to what people want and don’t want.”

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Screw AdSense – Bloggers Deserve a Buck a Word!

That’s the new mantra for bloggers seeking decent ad revenue according to online marketing guru Mike May, writing for MediaPost’s “Online Publishing Insider”. In his rabble-rousing piece, which went online today — “Compensate Citizen Publishers Like People, Not Web Sites” — he makes an interesting case. How did he arrive at a buck a word? That’s the going rate for freeelancer writers. And Mike’s proposal is based on this key notion: “The value of citizen publisher content to advertisers or sponsors should be no less than the value of freelance writing contributions to publishers.” Hey, I like it, Mikey likes it…what’s not to like?

Esther Speaks: An Inside Look at PC Forum

As a follow-on to my earlier post today, I asked Esther Dyson some questions about her upcoming event in Carlsbad, CA, March 12-14. She was kind enough to take out some time to give me her perspectives. Here’s the interview:

What should attendees expect at this year’s PC Forum?
Esther Dyson: The people they sit next to at lunch and dinner will be interesting — either prospects or competitors or potential partners or both, with challenging ideas and opinions. [Ed: and that doesn’t even include breakfast, my personal favorite!] Aside from that, the content will be thought-provoking. The subtheme — “Users in Charge” — sounds like a mindlessly cheery, rarely-delivered-on slogan. But it’s preceded by the provocative reality of “Erosion of Power.” New business models, when they’re delivered on, often destroy old ones. Users in charge is no mere slogan; it’s a threat to the people who were in charge. Pcforumlogo_2 Businesses have a choice whether to lead the changes or resist them. But just deciding to respond isn’t that easy. You have to figure out how: how to put users in charge, how to listen, how to mediate among users who disagree, how to collect revenue (and for what)….and most important, how to change a culture. So, in many ways, things are easier for startups — except they lack resources and have to prove their new business models. So, the discussions will be fun. I have spent the last two months interviewing all the speakers — but I know I’ll still be surprised with what they say, especially once they start talking to one another and engaging with the other participants.

How might it compare with previous years’ events?
Esther Dyson: In character, it will be the same, but we have new material — everything from recent developments around Google to a gaggle of startups ranging from Spot Runner to invisibleCRM.

How is PC Forum different from other conferences?
Esther Dyson: The content tends to be more provocative because we don’t have any outside sponsors. By and large, we don’t let speakers “present.” We ask them questions. And they really talk among themselves, rather than presenting serially. There’s a dramatic tension that gets people paying attention. Beyond that, we really cater to all the attendees, not just to the speakers. It extends to the details: The badges are large and readable and don’t flip over, so it’s easy to find people you want to meet. [Ed: And they have a great attendee networking site, with features better than any I’ve seen.] We keep the lights up in the auditorium so you can see the other attendees as well as the speakers. We encourage people to bring their families, and that makes the atmosphere more relaxed and friendlier than at most conferences I attend. Also, we hold it in a slightly out of the way place, so people (even speakers) come and stay, instead of dropping in.

Please tell us about the types of attendees you attract, and the quality of networking attendees can expect.
Esther Dyson: They include entrepreneurs, investors, industry veterans, big company execs, analysts, press. We’re proud of what we do and we charge for it, so we get high-level attendees. On the other hand, we work hard to bring in new people and especially startups, so many of these high-level people are ones you haven’t heard of — yet. And things start happening at PC Forum: for example, Eric Schmidt met Larry Page at PC Forum, IBM met Lotus, and AOL met ICQ/Mirabilis.

How do you select the categories for companies you debut, and the companies themselves?
Esther Dyson: We select the companies first, by and large, and then we design the categories to fit them. We’re looking for companies that will be successful, of course, but we’re also looking for new ideas. We want attendees to walk out saying, “Now that’s a neat idea!” Over the years, our debutantes have included Flickr, Brightcove, IronPort, Technorati, Emode (Tickle), Groxis, Junglee, Mirabilis (ICQ), Eurekster, and JotSpot, to name several.

What are your conference themes this year, and which of these are getting the most buzz so far?
Esther Dyson: Well, in addition to what I said in answer to the first two questions, “Users in Charge” is getting lots of buzz. But it’s my contention that many people who think they resonate with it don’t quite get all the implications.

What are the three outcomes you most hope will result from this year’s PC Forum?
Esther Dyson: I’ll give you four, actually: that 400 people will walk away with new ideas and new friends and business partners…that the 70-odd family members who came will feel appreciated and closer to the world of the attendees who brought them…that the ideas that were floating around PC Forum will get crisper….and that the companies embodying those ideas will learn from one another and will compete more effectively, giving their management better tools and goals, and end up serving their customers better.

My thanks to Esther for these great insights into PC Forum, especially for those of us who’ve never attended. I look forward to seeing any and all of you who can make it. And I of course plan to do many more blog posts on this one…

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