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  • 07Aug

    Tonight on my drive home, I heard an interesting radio program on my local NPR station (KQED).  They were airing part of the Asia Society’s U.S.-China Green Energy Conference, a segment about Fueling a Clean Energy Future.  The introduction was from one of the partners (I think he was a partner) from NEA.  Most of the discussion that I heard (recording wasn’t posted at the time I am writing this) was about the energy needs of the world and the possible energy generation alternatives.

    NEA is a venture capital firm.  So the types of investments that they are looking at are the ones that will score huge payback.  If the opportunity won’t turn into at least a $100M+ business, they usually aren’t interested.  So it makes sense that they would be investing huge in the power generation side of the planetary energy coin.

    However, on the drive home, it struck me…what about the flip side of that coin?  If the estimated future power consumption for the planet is measured in the 10’s of Terawatts of power and if the power needs are increasing as developing nations raise their standard of living to match the developed nations standards, why isn’t there as much attention given to saving power?

    Are we focused to much on addressing the symptoms and not enough on the cuase?

    I remember years ago hearing about a company that was working on a power transformer that would allow devices to go into standby mode and consume fractions of a watt of power instead of 10’s of watts of power that is the norm now (see my previous post about Results from Monitoring the Meter).  About a year ago I tried to find that company, doesn’t exist any more.  Transmeta was another company that was focused on the power savings, but dropped off the radar and is a IP management shell employing more lawyers than engineers right now. The only company that I can think of immediately that is both above the radar and impacting huge power savings directly from their technology is VMware.

    There are huge areas of waste that we can still address. Image how much of a dent we could put in the future consumption if our focus on how not to use as much electricity expanded beyond CFLs?  I hope there are more companies out there than I know of working on conservation technologies, but I guess I find myself a bit annoyed by the lack of focus that seems to be applied to them.

    (Disclosure:  as of this writing I am employed at VMware as a Solutions Consultant.)

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  • 30Apr

    Earlier this week I got together with a group of entrepreneurs I know and I was surprised to learn that one of them is starting to instrument his online application to provide Business Activity Monitoring (BAM) capabilities. Granted, he didn’t realize that what he was doing was BAM, but that just shows that as a business person he intuitively knew he needed to instrument and monitor his business.

    This is a very smart move on his part. Early on in a startup’s life cycle all the focus can be on the business of the end users and forget about the business of running the business. With limited engineering resources, where do you invest them? Most startups will invest all of those resources into their product offering. Only later, when the product complexity has grown and they are out talking to investors do they realize the mistake they made.

    This particular entrepreneur is the founder of Amahi, which offers a linux home server. You sign up for the Amahi service, which is currently free, and then download the Linux based software needed to run your home server. Amahi has highly automated the process of getting everything installed and up and running, in the end you have your old PC re-provisioned as a home server for your “family intranet”. You can then monitor your home server from the Amahi website.

    With their new instrumentation, Amahi can now monitor how many people have signed up and where each one is in the installation process. If a customer stalls out somewhere in the installation, Amahi now knows about it and can proactively reach out to provide assistance. Beyond that, as the person running the Amahi business, the Founder now knows what his conversion rates and time frames are for customers for each stage of their installation. If Amahi ever needs to go talk to investors for funding, this information is invaluable as it shows how their business works and provides the investors a sense of comfort that the business is being professionally managed.

    As a long time statistics hound, I worked in the early day of the web providing application instrumentation for running explosive web businesses. We were always focused on the technical instrumentation of the servers, but I also got interested in the business possibilities instrumentation provided. BAM has been a decade long initiative to move that instrumentation up to the business level, an initiative which was highly successful. However, BAM typically focuses on larger companies. The principals of BAM can just as easily be applied to Startups with just as much value. The startups just need to invest the time to build it into their system from the start.

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  • 28Mar

    One of my personal pet peeves is bad presentation skill. Considering the technology industry is so focused on information and knowledge, it’s amazing how bad we are at communicating it. I see this almost on a daily basis in Sales. It’s either an over loaded presentation on technology from marketing, a badly organized presentation from Sales people, or — worst of all — a presentation that is just a printed record of what the presenter said. Blah!

    So I was giddy with excitement (honestly, just ask my wife…she was there) when I came across a wonderful book by Garr Reynolds called presentation zen. I have relying on this book lately as I develop a couple of presentations, specifically funding presentations where it is most important to be able to tell a story about what your working on and why it’s the most important thing since sliced bread (at least to your potential customers). That is one of the key points that presentation zen makes: your presentation should be telling a story, and it shouldn’t be a novel…think more picture story book.  (for a great example, see Larry Lessig’s TED presentation on How creativity is being strangled by the law.)

    The best part of presentation zen is that it can be used as a quick reference guide as your working on a presentation. It helps to reinforce the lessons you know. Such as start planning your presentation without your computer. You need to know your story line and flow, and having the computer in front of you when you do this only distracts you into things that don’t matter (like large bullet lists). I forgot this lesson when I started working on my latest presentation and the book, along with some peers with whom I reviewed an early draft, reminded me of my errors.

    If you do presentations, do your audience (and yourself) a favor and buy a copy of this book!

    I would also check out a Guy Kawasaki’s The 10/20/30 Rule of PowerPoint, he brings up a great set of points on creating a presentation as well as a wonderful template to start with if your building a funding presentation (and he happens to have written the forward to presentation zen). A huge thanks goes out to Val for pointing me to this posting!

    Since I’m on the topic of funding, if you interested in the world venture capital, I recently came across an interesting opinion piece on the Software VC Outlook for 2008.

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  • 28Mar
    “I’m happy about the fact that I’ve retired more people than I’ve fired.”

    That quote is from a friend of mine and wins my Business Philosophy of the Year award.  In a period of time when you hear stories in the news about how the rich keep getting richer, you see wall street firms imploding under their own house of cards that they built, and you hear stories from friend after friend of how mis-managed the companies that they work for are that hearing someone who is building a business make a statement like that is down right impressive.  (Even more so when you know them well enough that it comes from the person’s heart and they mean it.)

    I guess it’s the fact that true sentiment like that is so hard to find when you work in the get rich quick world of high technology and vulture capitalists that I felt it was worth sharing…

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  • 12Feb

    I recently become aware of two great coup happening in Starbuck’s land. Both of which will have a ripple effect through the business community…but probably not how you think.

    The first one being some inside information from my local Starbucks manager I heard this week. Starbucks will be discontinuing their breakfast sandwiches starting this fall. I think this is a huge mistake on their part and I bet is being made by some recently hired corporate executive from the fast food chain industry. Sit in a Starbucks on any morning and see how many people order those sandwiches. How many of them are business people or regulars who probably double their spending at Starbucks because of that sandwich? A lot (I have done this field research).

    I only go to Starbucks now because of those sandwiches (personally, I lost the taste for Starbucks coffee after an extended trip to Italy two years ago). The reason is rooted in the fact that now that McDonalds is serving premium coffee they don’t want to be seen as competing with them. I find this thinking ridiculous; unless those sandwiches are adding less to their bottom line than my back of the napkin field calculations have come up with, this decision will hurt Starbucks more than it will help them.

    The second one I read about this morning, Starbucks Switches to Free AT&T Wifi , or will be starting this spring. As all road warriors will know, Starbucks is the go to location for getting on line while on the road. There have been times that I have spent more time at starbucks in a day that I did at my hotel. As they break away form their 6 year relationship with T-Mobile, this changes will have multiple economic ripple effects:

    1. T-Mobile will be taking a huge hit to their bottom line. The majority of their 8900 wifi locations in the US were at Starbucks’ 6800 company operated stored (from Starbucks PDF Fact Sheet). T-Mobile’s wifi business will just about starve if they don’t strike a deal with some other retail outlet. Not to mention that most T-Mobile customers I know that have a T-Mobile phone have it primarily for the discount on the wifi access, which they use mostly at Starbucks.
    2. AT&T will gets a huge boost to their Wifi business (their bottom line is so large, I’m not sure how much of an immediate impact this will have.). With costs much lower for the service than T-Mobile, and Starbucks debit card holders getting 2 hours of free access per day, and with all 100,000 US Starbucks employees getting free wifi access, and with the service eventually being expanded to AT&T wireless customers, let’s hope that the AT&T infrastructure is able to handle this better than it has been handeling their Uverse roll out (which isn’t going smoothly, I hear).
    3. Starbucks should see a boost to their debit card transactions since holders of those cards get free wifi. This has trickle through to the credit card companies as they process the transactions for these cards, and of course take a percentage fee. (I believe Visa is the processor behind these cards, so this boost in revenue will help with their upcoming IPO).

    It’s amazing how interconnected the business decisions at this scale can become.  One just has to be able to look past the headline and connect the dots.

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