Turning the Guns Towards Redmond - #df10 #e20

Media_httpwwwthortrai_nwafe

It takes stones the size of King Kong to point your guns in the direction of Microsoft, but I believe that is exactly what Salesforce did yesterday when they announced Chatter Freemium.

Of course, Marc Benioff has some big stones.  He took on Siebel and kicked their ass pretty good and they, at one point, were the big ape on the block.

A lot of people immediately quipped how this was going to be devestating for Yammer (here, here, here), but really, the real enemy for Salesforce is SharePoint, not Yammer. 

First of all, when you choose a competitor, you don't pick the smallest, newest kid on the block, which is what Yammer is.  You pick the biggest, baddest mo-fo around, and in the case of collaboration software, it is SharePoint (see Behind the Cloud on how SFDC picks competitors).  Not only is SharePoint the biggest and baddest (worst?), but it is also the antithesis of what Salesforce is all about. SharePoint is big, clunky software that is hard to install, expensive to manage, impossible to keep current and no one likes it.

Media_http1bpblogspot_htxzq

Get it?

Here is the real issue - everyone bitches about adoption of SharePoint.  Everyone knows that no one uses it because it is a nightmare.  CIO magazine writes:

80 percent of respondents with SharePoint access continue e-mailing documents back and forth, even though SharePoint software was designed to prevent this clunky process.

That is embarassing, but MSFT doesn't care because they either give a huge discount because their customers are on an enterprise license or they promise the world and that it will all be fixed in the next point release.

You know what doesn't have an adoption problem?  Salesforce.  Most companies say "hey, if you want to get paid, you have to use Salesforce".  They say it to the sales team, the marketing team & the support team.  It is an easy way to encourage adoption.  If your opportunity isn't in Salesforce, you won't get paid on it.  If your working a case and you want to get paid, make sure it is in Salesforce.  Try that with SharePoint and you'll have a mutiny on your hands.

Added bonus - once you get those teams on board, teams like Finance, who need to see that the deals are there and Product, who need to help with support all fall in line and use the system too.

No adoption problems there.  Where you do have a problem is in things like finding people, having a quick conversation, editing a proposal or building a team to work on an RFI.  These are all business processes that would have historically happened in SharePoint, but along comes Chatter, which does, per TechCrunch:

  • Profiles
  • Status Updates
  • Real-Time Feeds
  • File Sharing
  • Groups
  • Filters
  • Invitations
  • Chatter Mobile
  • Chatter Desktop

To me, that sounds an awful lot like what SharePoint has done in the past with more social functionality than SP2010 has to offer, plus faster development cycles and a more supportive development channel.

While I'm not predicting the immenent demise of SharePoint, I do believe that SFDC has a great opportunity to strike a massive blow to an important piece of the MSFT picture.

 

Am I crazy? Is this right on?  Let me know your thoughts in the comments and tell me what you think.

Is the Future of Enterprise 2.0, Enterprise Mechanical Turk?

Over the past week or so, I've had some fascinating conversations about the future of Enterprise 2.0.  Where is the market going, what will be the major trends two or three years out, the usual coffee conversation.

What has come up a couple of times is the idea of using Mechanical Turk in an enterprise environment to help accomplish all of the work that a company needs to complete to be successful.  Yesterday at breakfast, my friend JJ Chacon asked, why a whole company couldn't run in a Turk like environment?

While I think that we are still a few years from it happening, the way that companies, especially small companies are outsourcing, I could see some companies launching over the next 10-years that try to build and manage their internal processes via the Mechanical Turk (or similar) engine.

This is something that would be really simple to accomplish, too.  What is Turk but a job board and payment engine?  Why couldn't it be set up behind the firewall, for security sake, and list all of the tasks that need to get done to launch a product, run a sales team, build a marketing plan, etc.

There is beauty in the autonomy of MT.  I look for jobs that I'd be interested in, I do them, I get paid.  It is the way free markets should work.

In fact, I'd say that sales teams are already using the general principle.  My comp plan dictates how I get paid.  I get paid different rates for closing business of different types based on the importance of it to the company (new, upsell, renewal, self-generated, lead, etc - typical SaaS sales comp plan stuff).  You could put the company comp plan in to Enterprise Turk and make everyone a sales rep.

For example, let's say, as a company, you really want to do a deal with ABC Company, simply list that you'll pay a premium of $5,000 (or whatever it is worth) to get a signed contract with ABC and see what happens.  If I'm the receptionist, but my brother works for ABC and I see a 10% or more kicker for doing a deal with them, I'm going to hustle a bit to get that done. 

Got a marketing plan you want to build, but need some type of guidance on the effectiveness of each medium?  List it on Enterprise Turk (ET).  As VP of Marketing, I'll pay $10 for advertising kits from each of the top 100 publications in 'X' industry.  I'll pay another $500 for someone to take all that data and sort it in something manageable.  I'll pay $1,000 for detailed competitive research for a new product launch.

You could even set it up for employees so that when they have a task that they don't want to do (I'm looking at you expense reports), they can list it on Enterprise Turk - $25 to take a pile of receipts and enter them in to the expense system.

Do I believe that ET is going to be the future of the enterprise?  It already kind of is.  We are paying people for behavior in their own department.  We do it in bonuses, MBO's and commissions every month, quarter & year.  Why not expand it out to the tired, huddled masses of the rest of your company to get stuff done.

During one of these conversations, a friend told me that the demographic for MT is bored, white collar workers.  They aren't doing the HIT for the money, they are doing it because it takes away from the day-to-day tedious nature of their jobs.  This study by Panos Ipeirotis seems to back that up.  Bored Gen-Y'ers trying to get more out of their day in the corporate world.

Companies are outsourcing more and more for specific functions.  It is only a matter of time before all of these outsourced services are insourced to people that want to do these jobs at a competitive rate, but have the advantage of knowing the space better and will ideally hold corporate secrets, secret.

What do you think?  Is Enterprise Turk the future of the workspace?  Will our kids be piece mealing marketing jobs?  Leave me a comment and let me know what you think.

5 Reasons That Google ChromeOS Should Focus on SMB, not the Enterprise (at first)

As always, Sameer Patel has a great post on Enterprise 2.0 and the impact that Google's announced, but still vaporous, operating system.  He even paints a fantastic picture of what having Google Chrome OS would / could look like in the enterprise:
Google packages up a Netbook  with ChromeOS, Google Apps, Umbrella Analytics, Google Gears and and Wave-enabled Enterprise 2.0 capabilities. The full enchilada along with a developer platform to enable customization for specific use cases in the enterprise. Now that’s a software distribution model that in theory can give SharePoint bundled with Exchange, a serious run for its money. And that also speeds up commoditization of Enterprise 2.0 solutions.
Which would be awesome! But again, Google is talking about 2010.  We know that Google apps stay in beta for about a millennium, so assume that Chrome OS is actually ready for prime-time in mid-2011. Sprinkle some Google Wave on that, which also won't be ready until 2010ish, and all of a sudden we are talking about stuff that is 2 years out.  Cool stuff, but so are flying cars.  No enterprise is investing in Google Chrome OS or Wave until late 2011. Flip the equation on it's head though and rather than focus on enterprises, focus on absolutely owning SMB.  If you have less than 50 employees, Chrome OS, with the apps package that Sameer laid out, is a no-brainer.
  1. With self-service, SMB is a much easier market to penetrate. Small businesses don't have large IT departments if they have any IT department at all. Really small businesses are just a few folks trying to deliver a service that they are good at and don't want to have to deal with hiring some guy at $100 an hour to ensure that the drivers on their XP system work with the new color printer that they just got.  Small businesses don't care if a service is in the endless Google beta cycle.  They want to know if it works? Is it always available? Is it relatively secure? Can I afford it?
  2. Google Checkout and Payment Systems are already there. Google has the payment system figured out. Buying this stuff will be insanely easy.  While at the same time being able to provide Checkout to a wide number of small businesses to help modify their payment system out of the box. This could be a huge thorn in the side of PayPal.
  3. Open Source will create an abundance of apps. While it will take forever for the enterprise to bring ChromeOS on board, because it is open source, there will be a ton of applications for SMB right out the gate. Think about Google Forms, Google SFM, Google Finance, Google Tax, the list goes on and on.  Companies like DreamFactory will make a bunch of easily ported applications and development tools.  Think of iPhone apps, but with more power.  Go into the Chrome Store (like Force.com), find your apps, order them and pay via Google Checkout and they are already running.  Again, keep it simple for the small business owner.
  4. SMB doesn't care about beta - I mentioned it above, but most people recognize that Google beta and other beta aren't the same thing.  SMB owners want their machines to boot up, they want to be able to access their apps, they want their data to be there.  If GMail's beta period is any indication to the performance of ChromeOS in beta, there won't be any issues at all.
  5. Google can connect SMB's together via Wave or Orkut. It's been amazing that MSFT hasn't figured it out yet.  If you own the OS, you should own the social network.  Xobni recognizes that the best social network is in your inbox, but imagine being able to easily connect to other like businesses.  How powerful would it be if auto body repair shops were able to connect to other auto body repair shops to share ideas, trade parts, develop joint marketing plans or make referrals?
It's a long way out, but it was a big announcement this morning.  I don't know if it was a nuclear bomb, as TechCrunch called it, is quite right, but it certainly was big and will be a thorn in Redmond's side for the next 18 months.

Socialtext - Emerging Tech Winner

Coming off of a great Q4, my CEO, Eugene Lee, asked everyone on the sales team to write a quick blog post about what they were most proud of that the team accomplished in the quarter.  I'm probably going to keep that as an internal blog post, but at the beginning of December, Silicon Valley Business Journal named Socialtext as the winner of the Emerging Tech award for 2008.  So that is definitely something to boast about a bit. I was especially happy to see that Socialtext beat Zimbra in the category.  Don't get me wrong, I love Zimbra.  Think that it is a great product, but Zimbra was the last Yahoo! property that I worked on prior to leaving to come to Socialtext.  In fact, I was even having some conversations about transferring over to that business unit permanently.  Not that I needed my decison to join Socialtext validated, but beating Zimbra is pretty sweet.
About 70 percent of searches on a companywide intranet are people searches, Mayfield said. But invariably those searches are futile, according to the IBM Global Human Capital Study 2008. Of 400 human resource executives surveyed at 40 companies worldwide, only 13 percent said they are “very capable” of locating an individual with a particular area of expertise within their company. “Without a system to capture and catalog specific backgrounds and skills, matching employees to positions can be a hit-or-miss affair dependent on anecdote and who-knows-whom,” the study said. Enter Socialtext’s products. Employing social networking and wiki technologies as means of collaboration and knowledge-sharing provides an avenue to discover expertise within your company by increasing the transparency of what people know, how they apply it to their work and how they can apply it to yours.
Over time with continued collaboration, employees can create a knowledge repository to browse and search through.
So that is nice. I was also really happy to see that my friend David Thompson over at Genius also won the award for best internet technology.
Tags