Aug 02

Between attending OSCON in Portland last week, doing the TechCrunch demo pod at the party on Friday in SF and doing our production release and launching sales for JumpBox, it’s been a whirlwind the past few weeks. Here’s a recap some of the highlights:

1.0 Launch Madness

It was a crazy scramble right up until we left for Portland. Not only were we changing our corporate identity, building the online store and payment gateway, porting our site over from WordPress to Drupal, revving the applications to their latest versions, and putting the finishing polish on the JumpBox platform itself but we were also prepping for our presence at the conference and TechCrunch party getting new shirts/biz cards/DVD’s made. It was a stressful week leading up to OSCON but we launched sales officially last Tuesday and saw a record day for downloads. Sales velocity has been improving slowly and we’re putting better and better metrics in place as we go to confirm/refute hypotheses about what is working well and where the bottlenecks are. One of the sessions at OSCON was titled “How to change your tires at 100mph” and I feel to some extent that’s us right now- we’re now finally on the racetrack and we’re converting our yugo into a formula one as we drive. True to 37 signals form of “it’s not a problem until it’s a problem“, we deferred the aspects of the system that didn’t need to work immediately. All in all, we’re happy with the progress of things and as we anticipated, the pace of learning has accelerated greatly now that we have customers and a better idea of our conversions.

Portland and mass transit

We were in Portland for OSCON last week and that was my first time in that city. The weather was a treat after our 117deg days here in Phoenix. The feature that stood out most about their city is that they have mass transit absolutely nailed. Trains and buses are everywhere and come frequently and a good number of people seemed to ride them. Phoenix has been torn up the past year as they build our light rail. I hate to be pessimistic but frankly, I don’t see it working in Phx. Waiting in the heat would be enough to deter most travelers from using it, but they also traverse the first and last mile to the train stops somehow. Rail is a transportation medium that is hugely subject to network effects (ie. the first train is marginally valuable, the second makes it significantly more valuable and a grid of trains running makes it extremely valuable)- one rail stretched across the city is only mildly useful unless it integrates well with the bus system. If it’s going to see adoption at all in Phoenix, they’ll need to solve the cooling issue at the stop and last mile issue. The fact they chose to route it around Sky Harbor airport so they could continue to bill $20/day for parking makes the program pretty irritating. Provided they can fix the cooling issue at the stops and make it work, we’ll see an industry of smart car rentals (or an equivalent short-hop transportation option) spring up around the light rall stations and that should be an interesting opportunity for someone.

OSCON

The open source conference was well-attended. I heard the figure of 2500 attendees and that seemed about right. I didn’t know what to expect about what the audience make up would be like- it was heavily slanted towards developers. We did informal counts of Mac v. PC laptops at the couches and meeting areas and noticed that Mac has clearly overtaken PC in the developer community. I attended sessions on foundations of OSS, law as it relates to OSS, jabber, subversion, Trac, how Youtube scaled to meet their insane growth, the Art of Community, promoting an open source project, myths of innovation and lessons in usability. The innovation seminar was probably the most interesting- the guy was author of this book and was a great speaker. I realize the developer-level stuff is now officially way over my head and I’m relegated to the ranks of normal end user. We met with some cool people at the conference and saw an awesome duo guitar performance at the Intel booth on the last day. I’m actually happy we didn’t end up doing a booth there, however. It’s just the wrong venue to promote JumpBox.

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The intel booth was impressive.

TechCrunch

We did a product level sponsorship at the now-famous TechCrunch annual party hosted by August Capital. There was apparently all kinds of drama surrounding this girl and she was certainly quick to hop in our photo (check the Sandra Bullock resemblance):

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It was good seeing our friend Shanti Braford (red checkered shirt) who recently left Phoenix to be in the tech mix up in SF. And big thanks to Josh Strebel (left) for saving our ass and running errands for us while we were stuck in Portland after Alaskan Airlines canceled our flight. The other guy in the picture above is our AZ friend Josh Knowles (blue shirt) who also came to party with us.

Books

I’ve had a chance to finally read a bit now that we’ve launched. I’ll try and writeup individual posts with the takeaways for each book but here’s the gist:

  • Anatomy of Buzz – nothing earth-shattering here if you’ve read Seth Godin and Malcolm Gladwell stuff but it’s decent as an overview of the mechanics of how buzz travels. There’s a 20pg assessment at the end that makes a nice summary and gives you a checklist to assess your company’s marketing efforts.
  • Freakonomics – I’m way behind the times with this one but it was a carpet ride through the underbelly of different industries exploring why strange anomalies occur. Understanding corruption in sumo wrestling, learning why so many teachers in the Chicago public school system were cheating to enhance their students’ test scores, and a windfall study on the accounting books from the largest documented drug ring. This author took a subject as dry as Econ and made it intensely interesting by distilling it down to one thing: incentives.
  • Startup – Great read for anyone doing a startup of their own. This makes me feel like ours is peanuts in the face of the high stakes with GO corporation and Penpoint. Lots of lessons with regards to raising money and deal negotiations- I’ll write this one up soon.
  • Movies

  • Last King of Scotland – Forest Whittaker gave a killer performance in this movie and looks eerily like Idi Amin. Go rent this one.
  • The Guardian – I know, I know. Ashton Kutcher… dude where’s my car? This movie was great though- it was Top Gun for the Coast Guard. I haven’t teared up from a movie in a long time but this one did it (btw my brother sent me this and cast Top Gun in a whole new light- we had been reciting Top Gun dialogue at a pool party the other week and this clip makes it considerably less-badass).
  • 10 mph – shortly after I quit my corporate grind job 2yrs ago, my roommates at the time who worked in the same company quit and rode a segway scooter across the US and filmed a documentary. This is worth it for the photography alone and Hunter and Josh are hilarious. It’s cool to see that they’ve won a few awards with it. They’re now working on the next one that has something to do with fantasy football.
  • Bella – we’re going to a screening of this indie film on Aug 13th and the trailer looks awesome. If you’re in Phx and would like to attend, lemmeknow and I can probably get you in.
  • Bands

    Between catching some random shows, Last.FM and friend recommendations, there’s a ton of great music I’ve discovered recently.

  • Spoon – good european sound with tinges of Jet and Wolfmother.
  • Ben Lee – incredible young songwriter. Reminds me of the singer from Small 23.
  • Brand New– we saw these guys perform in Phoenix a few months ago and I’ve never seen so many fans singing along at a show. Their sound was infectious had huge crowd energy. We ended up covering “The Quiet Things” at our last show.
  • Joe Purdy – solid acoustic songwriter.
  • Bright Eyes – singer sounds like a lamb sometimes but their lyrics and songs get stuck in your head for days. Their Poison Oak track is powerful.
  • Kevin Devine – Find of the month. Happened to see these guys open up for Brand New and they blew me away. Get either one of their albums.
  • Donovan Frankenreiter – Jack Johnson-esque chill sound.
  • JVA – unfortunately their CD is way over-produced and doesn’t do them justice. We saw them perform live at the Intel booth at OSCON and they were terrific musicians.
  • Menomena – caught them randomly at the Mozilla party at OSCON. They have a strange and beautiful sound as if TV on the Radio crashed into Pinback while learning music theory from Phish and taking singing lessons from Bare Naked Ladies. Actually, I change my mind- these guys are the find of the month. If you buy one album this month, get their Friend and Foe release.
  • Podcasts

  • Jehane Noujaim – an amazing proposed idea for bridging cultural gaps through a day of shared cinema around the globe.
  • TalkCrunch – I’ve listened to a bunch of TalkCrunch interviews and they’re good. Arrington presses guests for information to the point of it being uncomfortable but he does get a lot of answers. The Zimbra one was very interesting.
  • Venture Voice – the interview with the DoubleClick and Shopwiki CEO was solid.
  • Grid7 – not to toot our own horn here but we’ve had some good guests on the Grid7 podcast lately. I really enjoyed talking with Adam of Inkling Markets. We should have two very interesting guests coming on soon… stay tuned for that.
  • So Close

    Lastly, I placed 2nd in the last Ideawarz tournament on Cambrian House. I should be happy with that standing given that there were 50 entrants but I’m bummed about the idea that won. It was essentially a rehash of the CH concept itself and though it’s a noble cause that I support, it’s not nearly as interesting (or feasible) as the AdSqueeze concept. I’m realizing more and more that the ideas that consistently do well on there are something like “Solve world hunger via crowdsourcing.” They propose vague, honorable goals but no realistic means to achieve them; tacking on the crowdsourcing adjective almost invariably secures you a slot in the top three. I’m concerned about the future of CH and that they’re encountering the same fatal flaw that killed Grid7 labs: people who are paid solely in equity who are not truly on the hook to deliver in the end will fail to do so. I feel like they’re getting spun out on their engine/processes instead of ensuring they produce a few successes. I do have a recommendation for them on what they need to change at this point and I’ll write that up soon. I know they’ve had some cuts lately and are down to around 25 people – I genuinely like this company though and I really want to see the co-op concept made to work. They basically need to incorporate the concept of microfinance into their model to infuse real cash into the system (however small) and get the accountability hook of real money changing hands to work for each project. Make it a place where anyone with disposable income can go to back risky ideas that can be tested quickly with minute amounts of cash.

    Anyways, that’s the haps on the craps and bring you up to speed on what’s been happening here this summer. We’re hiring for a QA position, a contract graphic designer position and a Ruby on Rails rockstar for JumpBox. Contact me if you fit the bill or know anyone who does.

    May 24

    In every good sense of the word that is: he’s quit all the right things. I had the opportunity to see him speak in front of a group of about 300 this morning at the Tempe Improv in Arizona. His talk was themed around his latest book the dip and dealt with the subject of when it makes sense to quit. My friend Francine wrote up a great summary of the content of his talk this morning and Guy Kawasaki covered the book well in his interview with Seth. So rather than rehash either of those, in “purple cow” style, I’m going to cover what I believe was remarkable about both.

    I finished reading the dip just now. At 75pgs and big print it took less time read it than to hear the talk he gave this morning. His talk was essentially a multimedia version of the book with a focus on anecdotes that make the message more memorable. Seth is a marketing wizard and everything he does draws upon the basic marketing pillars he espouses in Purple Cow. The $50 price tag for this morning’s talk was actually positioned as a mandatory 5-book buy and a free pep talk, which is genius because he knows people will give away the books and “sneeze” his message to others. The books themselves contain a “guest book” registry at the back and encourage the reader to pass it along once finished.

    Screw the long tail

    Seth takes the heretical position that we don’t quit enough. That’s right. We stick it out too often in a mediocre situation content with average performance in an average arena rather than achieving “rockstar status” in a smaller, more-differentiated arena. His argument is that in a society where we are flooded with choices and different options along with the ability to quickly research and connect with the winner, why would anyone choose 2nd (let alone 15th) place? While the “long tail” produces huge profits for companies like Amazon and Netflix across many selections, individuals represents only one of those selections and therefore should strive to be the juicy #1 in a long-tail-type situation. The relationship between #1, #2, #3, etc is non-linear because the “winners win big because markets love a winner” effect.

    Everything you learned in school is wrong

    This was a powerful and jarring statement but he is right: the academic system (in America at least) encourages the wrong thing: mediocrity. Which report card do parents and teachers reward more, the kid with an A-, B+, B+, B, B or the kid with an A+ and all C’s? And yet how as a consumer do you choose your physician or auto mechanic or decorator- do you care what grades they got in the other classes? I asked him the question “assuming that you can’t effect policy changes in the broken school system, what can a teacher do now to improve things and impress the dip thinking on kids?” He responded with a personal story about seeing a 6th grader sing “somewhere over the rainbow” for the first time in front of an audience of 400 parents and how that one experience galvanized that child to become a different individual growing up from that point, to seek out that “rockstar” level of heightened experience in everything she did thereafter.

    Be the best in the world

    The critical thing is how you define “the world.” He advocates being the best in your customers’ world. Depending on what you’re doing, the parameters of that world may mean “the best organic supermarket in a five block radius of Manhattan.” Whatever that world is, identify a territory that is tenable and worth occupying and then dominate it. The second half of his book is titled “If you’re not going to get to #1, you might as well quit now.” This is a message you would never hear in school or from your parents but given the premise of the new economy, I believe he’s right. Obviously this doesn’t apply to hobbies and leisure activities- it’s only for the areas that involve pain and sacrifice for the pursuit of a goal.

    Applicability to JumpBox

    So I’m always looking through the lens of how this applies to our own startup and the things that resonate:

  • The fear of competition of other companies besting us in our space is a healthy thing as it keeps us sharp and slamming forward, but the fear of being stamped out by a goliath like a Microsoft is irrational- their world is by necessity not ours right now and it’s all in how you define “the world.” Our strategy to cordon off a very small world initially of IT admins having pain with Open Source is validated. Conquer that world first and then move up the food chain.
  • His point that “selling is about a transference of emotion, not a presentation of facts” is spot on. It’s the whole “sell the sizzle not the steak” idea. We are sometimes guilty of promoting all the logical reasons why one would choose to run their applications as virtual appliances but the reality is that until you appeal to that deep visceral gut emotion, all the figures and advantages are shallow “head-reaching” facts as opposed to “heart-reaching” feelings. This thinking has inspired me to make two critical initiatives for our online stuff which will become apparent shortly.
  • “The only reason the Space Shuttle still exists is because no one has the guts to cancel it.” So true. Why the hell are we still sending the Shuttle up in the sky? There has got to be a better use of that energy and those people- are people afraid that we won’t be able to come up with something as cool as the Shuttle program if we were to cancel it? No politician wants to be known as the person that nixed the great mission of space exploration, but that’s a lame reason for continuing to spend billions of dollars on it. This thinking has got me examining what I can and should quit that I’m doing now and how this could free up energy to focus on the dips worth tackling.
  • So to summarize: These seminars are great but it’s not what you learn or don’t learn but how it ultimately alters your behavior going forward. Dips are good because they screen the rest of the jokesters from being able to have rockstar status- scarcity creates value and the Dip is to be embraced. Failure is different than quitting. Quitting strategically when you’re in a cul-de-sac instead of a Dip is smart because it frees you up to pursue the avenues worth pursuing. I highly recommend you see Seth speak if you get the chance, he is an inspirational presenter. It was an honor to meet him and get a personalized “moo” shout out from the Purple Cow himself!
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    Mar 07

    Robert Scoble, author of the popular blog Scobleizer, was in town last week to keynote the Revolution in Marketing Conference. Chris Heuer from the Social Media Club also flew out from NYC to present. We captured all the audio sessions and made them available here in streaming format as well as downloadable MP3’s. Thanks to Francine Hardaway for organizing the conference all the sponsors and facilitators that made it possible.

    Dec 13

    We held the first ever Barcamp Phoenix event on Saturday at the UAT and drew a crowd of about 40 at it’s highest peak of attendance. It was an unstructured, participatory event in which we collected a bunch of potential tech topics, triaged them and then assigned a moderator. We chunked them into 15min quick sessions and flashed through them- any people wishing to delve deeper after the time limit were free to wander off and form a break-away session. All in all, a very positive event and proof that useful conferences don’t require massive preparation and strict schedules and agendas to be useful. Here’s the whiteboard of topics we came up with – the checked ones are the ones that we covered:

    BarcampPhxWhiteboard.jpg

    Chris Tingom posted a rundown on his blog, a couple others have posted flickr photos. and Erica Lucci posted extensive notes on the day. You can bet there will be another one of these events again. As far as what we learned about logistics in running things- it’s decentralized so there’s no set tracks or authoritative figure but at the same time, somebody needs to take charge and move things forward when a topic is exhausted. Doing 15min fly over sessions and allowing people to break off and dive deeper is a good approach- our group whittled down to about 25 so we all stayed in the big auditorium as one unit but factioning into smaller breakouts would be sensible at the next one when there’s a larger crowd.

    Keep your name on the wiki page if you intend to come to the next one. There was a company there that was capturing the video and projector demos by intercepting the VGA feed. They promise to post the sessions they captured once they’re produced and make them available via the Barcamp wiki. Thanks for everyone that attended. See you at the next one.

    Nov 17

    We just posted the audio from all the sessions at the first ever Arizona Entrepreneurship Conference last Wednesday. There’s a total of 800MB and 14hrs of information. It was mostly panels and interactive discussions facilitated by entrepreneurs and venture capitalists from Arizona who have first-hand experience of what works and what doesn’t in business. We released this audio via the Grid7 Venturecast podcast consistent with our goal of advancing entrepreneurship in AZ. In spite of a few technical glitches that diminished the quality it came out surprisingly decent given the situation. Big thanks to Francine Hardaway and her crew for making it happen.

    Oct 12

    office20Conference.gifThe conference here in San Francisco is winding down and I wanted to share a random collection of thoughts in no particular order.

    The Good

    As always it’s the hallway conversations at these events that are by far the most valuable bits. There were a good number of companies here (~20?) and I was able to meet the principles of just about all of them and talk with them about what challenges they have in delivering their products. There seems to be an energy in the air perhaps due to the YouTube acquisition earlier this week that indicates tech investments are once again where it’s at. So this is an exciting time to be in this field. There were a few demos that caught our interest for apps like SystemOne, Vyew and SmartSheets that look really interesting. And meeting the guys who built WordPress and Tech Dirt was very cool.

    The Not-so-good

    I hated the term “Web 2.0” but I realize I hate the term “Office 2.0” even more. If I’d have charged the conference sponsors a nickel for each mention of this term throughout the panels, I’d have recouped my entrance fee and have our second round of funding for JumpBox. Far too many of the demos given here showed off these me-too MS-copycat products ported to the web with a bunch of slick AJAX features. While this might have turned me on a couple years ago for the implementation details of how they pulled it off technically, it now feels like “features for features’ sake” and smells “bubblish” in this sort of silly exuberance over things that really aren’t that cool. To me the real productivity gains to be made in an office come from not having to think about software at all, getting rid of the lame problems that plague IT departments and, if done right, getting rid of the IT department itself. Gains will be made as we learn to unearth the underground insight of the organization that locked away in the form of unapplied knowledge. I’m way more excited about apps like InklingMarkets and the proposition of bringing the power of internal prediction markets to the office than I am about authoring a word doc within the browser. I just feel like most of the companies hawking their wares here are missing the boat.

    That being said, I don’t discount the value of better tools for collaboration. I just think that if I were running a larger company and had $10k to invest towards the goal of improving our productivity, I would spend zero on software apps and instead train all my employees on how to use David Allens GTD program, give them an incentive bonus for whoever comes up with the most innovative/effective improvement and then turn them all loose with an in-house instance of Trac/SVN to use in collaborating. The apps that did catch my eye here:

    • Vyew – a slick way to do a shared whiteboard synchronously as well as asynchronously
    • Koral – painless knowledge management
    • SystemOne – an intelligent self-building wiki
    • SmartSheets – a better method for excel/email-based project management
    • oDesk – be Big Brother for your outsourced development efforts

    Beyond those, the other apps I looked at really appeared to be just minor enhancements to existing ideas with little innovation. The new Tech Insight Commnity thing is interesting- essentially a way to disrupt expensive research from analysts like Forresters, Gartner’s and Cahner’s InStat by drawing upon cheap, qualified labor of bloggers around the world.

    Eighty percent of the demos were sub-par unfortunately. I’m thinking there really might be a market for pitching yourself as a hired gun who can effectively demo a company’s product and grab the audience, because apparently most CEO’s are inherently bad at it. Most of the speakers were so immersed in the features of their own product, they dove into this highly-technical tutorial of the guts of how their products work rather than establishing that emotional connection with the audience members for why they should even be listening in the first place. That coupled with some connectivity issues due to sharing wireless with the conference attendees and a rare server outage for google mail (which everyone seemed to be using as the example email service) made some of the demos really painful.

    To summarize though- some great people in attendance, a bit of a confused message (please please please let’s drop the 2.0 suffix on terms), good energy and vibe in general. Let’s just remember that the best technology are the ones we never notice (the refrigerators, the air conditioners, the airbags, the backup generators). Office 2.0 should be about simplifying not complicating the role of tech in the workplace.

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