Business Posts

October 24, 2013

Why Hybrid? Why Now?

As off-premise cloud computing adoption continues to grow in a non-linear fashion, a growing number of businesses running in-house IT environments are debating whether they should get on board as well. If you've been part of any of those conversations, you've tried to balance the hype with the most significant questions for your business: "How do we know if our company is ready to try cloud resources? And if we're ready, how do we actually get started?"

Your company is cloud-ready as soon as you understand and accept the ramifications of remote resources and scaling in the cloud model, and it doesn't have to be an "all-in" decision. If you need certain pieces of your infrastructure to reside in-house, you can start evaluating the cloud with workloads that don't have to be hosted internally. The traditional IT term for this approach is "hybrid," but that term might cause confusion these days.

In the simplest sense, a hybrid model is one in which a workload is handled by one or more non-heterogeneous elements. In the traditional IT sense, those non-heterogeneous elements are two distinct operating environments (on-prem and off-prem). In SoftLayer's world, a hybrid environment leverages different heterogeneous elements: Bare metal and virtual server instances, delivered in the cloud.

Figure 1: Traditional Hybrid - On-Premise to Cloud (Through VPN, SSL or Open Communications)

Traditional Hybrid

Figure 2: SoftLayer's Hybrid - Dedicated + Virtual

SoftLayer Hybrid

Because SoftLayer's "hybrid" and traditional IT's "hybrid" are so different, it's easy to understand the confusion in the marketplace: If a hybrid environment is generally understood to involve the connection of on-premise infrastructure to cloud resources, SoftLayer's definition seems contrarian. Actually, the use of the term is a lot more similar than I expected. In a traditional hosting environment, most businesses think in terms of bare metal (dedicated) servers, and when those businesses move "to the cloud," they're generally thinking in terms of virtualized server instances. So SoftLayer's definition of a hybrid environment is very consistent with the market definition ... It's just all hosted off-premise.

The ability to have dedicated resources intermixed with virtual resources means that workloads from on-premise hypervisors that require native or near-native performance can be moved immediately. And because those workloads don't have to be powered by in-house servers, a company's IT infrastructure moves a CapEx to an OpEx model. In the past, adopting infrastructure as a service (IaaS) involved shoehorning workloads into whichever virtual resource closest matched an existing environment, but those days are gone. Now, on-premise resources can be replicated (and upgraded) on demand in a single off-premise environment, leveraging a mix of virtual and dedicated resources.

SoftLayer's environment simplifies the process for businesses looking to move IT infrastructure off-premise. Those businesses can start by leveraging virtual server instances in a cloud environment while maintaining the in-house resources for certain workloads, and when those in-house resources reach the end of their usable life (or need an upgrade), the businesses can shift those workloads onto bare metal servers in the same cloud environment as their virtual server instances.

The real-world applications are pretty obvious: Your company is considering moving part of a workload to cloud in order to handle peak season loads at the end of the year. You've contemplated transitioning parts of your environment to the cloud, but you've convinced yourself that shared resource pools are too inefficient and full of noisy neighbor problems, so you'd never be able to move your core infrastructure to the same environment. Furthering the dilemma, you have to capitalize on the assets you already have that are still of use to the company.

You finally have the flexibility to slowly transition your environment to a scalable, flexible cloud environment without sacrificing. While the initial setup phases for a hybrid environment may seem arduous, Rome wasn't built in a day, so you shouldn't feel pressure to rush the construction of your IT environment. Here are a few key points to consider when adopting a hybrid model that will make life easier:

  • Keep it simple. Don't overcomplicate your environment. Keep networks, topologies and methodologies simple, and they'll be much more manageable and scalable.
  • Keep it secure. Simple, robust security principles will reduce your deployment timeframe and reduce attack points.
  • Keep it sane. Hybrid mixes the best of both worlds, so chose the best assets to move over. "Best" does not necessarily mean "easiest" or "cheapest" workload, but it doesn't exclude those workloads either.

With this in mind, you're ready to take on a hybrid approach for your infrastructure. There's no certification for when your company finally becomes a "cloud company." The moment you start leveraging off-premise resources, you've got a hybrid environment, and you can adjust your mix of on-premise, off-premise, virtual and bare metal resources as your business needs change and evolve.

-Jeff Klink

Jeff Klink is a senior technical staff member (STSM) with IBM Canada.

September 30, 2013

The Economics of Cloud Computing: If It Seems Too Good to Be True, It Probably Is

One of the hosts of a popular Sirius XM radio talk show was recently in the market to lease a car, and a few weeks ago, he shared an interesting story. In his research, he came across an offer he came across that seemed "too good to be true": Lease a new Nissan Sentra with no money due at signing on a 24-month lease for $59 per month. The car would as "base" as a base model could be, but a reliable car that can be driven safely from Point A to Point B doesn't need fancy "upgrades" like power windows or an automatic transmission. Is it possible to lease new car for zero down and $59 per month? What's the catch?

After sifting through all of the paperwork, the host admitted the offer was technically legitimate: He could lease a new Nissan Sentra for $0 down and $59 per month for two years. Unfortunately, he also found that "lease" is just about the extent of what he could do with it for $59 per month. The fine print revealed that the yearly mileage allowance was 0 (zero) — he'd pay a significant per-mile rate for every mile he drove the car.

Let's say the mileage on the Sentra was charged at $0.15 per mile and that the car would be driven a very-conservative 5,000 miles per year. At the end of the two-year lease, the 10,000 miles on the car would amount to a $1,500 mileage charge. Breaking that cost out across the 24 months of the lease, the effective monthly payment would be around $121, twice the $59/mo advertised lease price. Even for a car that would be used sparingly, the numbers didn't add up, so the host wound up leasing a nicer car (that included a non-zero mileage allowance) for the same monthly cost.

The "zero-down, $59/mo" Sentra lease would be a fantastic deal for a person who wants the peace of mind of having a car available for emergency situations only, but for drivers who put the national average of 15,000 miles per year, the economic benefit of such a low lease rate is completely nullified by the mileage cost. If you were in the market to lease a new car, would you choose that Sentra deal?

At this point, you might be wondering why this story found its way onto the SoftLayer Blog, and if that's the case, you don't see the connection: Most cloud computing providers sell cloud servers like that car lease.

The "on demand" and "pay for what you use" aspects of cloud computing make it easy for providers to offer cloud servers exclusively as short-term utilities: "Use this cloud server for a couple of days (or hours) and return it to us. We'll just charge you for what you use." From a buyer's perspective, this approach is easy to justify because it limits the possibility of excess capacity — paying for something you're not using. While that structure is effective (and inexpensive) for customers who sporadically spin up virtual server instances and turn them down quickly, for the average customer looking to host a website or application that won't be turned off in a given month, it's a different story.

Instead of discussing the costs in theoretical terms, let's look at a real world example: One of our competitors offers an entry-level Linux cloud server for just over $15 per month (based on a 730-hour month). When you compare that offer to SoftLayer's least expensive monthly virtual server instance (@ $50/mo), you might think, "OMG! SoftLayer is more than three times as expensive!"

But then you remember that you actually want to use your server.

You see, like the "zero down, $59/mo" car lease that doesn't include any mileage, the $15/mo cloud server doesn't include any bandwidth. As soon as you "drive your server off the lot" and start using it, that "fantastic" rate starts becoming less and less fantastic. In this case, outbound bandwidth for this competitor's cloud server starts at $0.12/GB and is applied to the server's first outbound gigabyte (and every subsequent gigabyte in that month). If your server sends 300GB of data outbound every month, you pay $36 in bandwidth charges (for a combined monthly total of $51). If your server uses 1TB of outbound bandwidth in a given month, you end up paying $135 for that "$15/mo" server.

Cloud servers at SoftLayer are designed to be "driven." Every monthly virtual server instance from SoftLayer includes 1TB of outbound bandwidth at no additional cost, so if your cloud server sends 1TB of outbound bandwidth, your total charge for the month is $50. The "$15/mo v. $50/mo" comparison becomes "$135/mo v. $50/mo" when we realize that these cloud servers don't just sit in the garage. This illustration shows how the costs compare between the two offerings with monthly bandwidth usage up to 1.3TB*:

Cloud Cost v Bandwidth

*The graphic extends to 1.3TB to show how SoftLayer's $0.10/GB charge for bandwidth over the initial 1TB allotment compares with the competitor's $0.12/GB charge.

Most cloud hosting providers sell these "zero down, $59/mo car leases" and encourage you to window-shop for the lowest monthly price based on number of cores, RAM and disk space. You find the lowest price and mentally justify the cost-per-GB bandwidth charge you receive at the end of the month because you know that you're getting value from the traffic that used that bandwidth. But you'd be better off getting a more powerful server that includes a bandwidth allotment.

As a buyer, it's important that you make your buying decisions based on your specific use case. Are you going to spin up and spin down instances throughout the month or are you looking for a cloud server that is going to stay online the entire month? From there, you should estimate your bandwidth usage to get an idea of the actual monthly cost you can expect for a given cloud server. If you don't expect to use 300GB of outbound bandwidth in a given month, your usage might be best suited for that competitor's offering. But then again, it's probably worth mentioning that that SoftLayer's base virtual server instance has twice the RAM, more disk space and higher-throughput network connections than the competitor's offering we compared against. Oh yeah, and all those other cloud differentiators.

-@khazard

September 12, 2013

"Cloud First" or "Mobile First" - Which Development Strategy Comes First?

Company XYZ knows that the majority of its revenue will come from recurring subscriptions to its new SaaS service. To generate visibility and awareness of the SaaS offering, XYZ needs to develop a mobile presence to reach the offering's potential audience. Should XYZ focus on building a mobile presence first (since its timing is most critical), or should it prioritize the completion of the cloud service first (since its importance is most critical)? Do both have to be delivered simultaneously?

It's the theoretical equivalent of the "Which came first: The chicken or the egg?" causality dilemma for many technology companies today.

Several IBM customers have asked me recently about whether the implementation of a "cloud first" strategy or a "mobile first" strategy is most important, and it's a fantastic question. They know that cloud and mobile are not mutually exclusive, but their limited development resources demand that some sort of prioritization be in place. However, should this prioritization be done based on importance or urgency?

IBM MobileFirst

The answer is what you'd expect: It depends! If a company's cloud offering consists solely of back-end services (i.e. no requirement or desire to execute natively on a mobile device), then a cloud-first strategy is clearly needed, right? A mobile presence would only be effective in drawing customers to the back-end services if they are in place and work well. However, what if the cloud offering is targeting only mobile users? Not focusing on the mobile-first user experience could sabotage a great set of back-end services.

As this simple example illustrated, prioritizing one development strategy at the expense of the other strategy can have devastating consequences. In this "Is there an app for that?" generation, a lack of predictable responsiveness for improved quality of service and/or quality of experience can drive your customers to your competitors who are only a click away. Continuous delivery is an essential element of both "cloud first and "mobile first" development. The ability to get feedback quickly from users for new services (and more importantly incorporate that feedback quickly) allows a company to re-shape a service to turn existing users into advocates for the service as well as other adjacent or tiered services. "Cloud first" developers need a cloud service provider that can provide continuous delivery of predictable and superior compute, storage and network services that can be optimized for the type of workload and can adapt to changes in scale requirements. "Mobile first" developers need a mobile application development platform that can ensure the quality of the application's mobile user experience while allowing the mobile application to also leverage back-end services. To accommodate both types of developers, IBM established two "centers of gravity" to allow our customers to strike the right balance between their "cloud first" and "mobile first" development.

It should come as no surprise that the cornerstone of IBM's cloud first offering is SoftLayer. SoftLayer's APIs to its infrastructure services allow companies to optimize their application services based on the needs of application, and the SoftLayer network also optimizes delivery of the application services to the consumer of the service regardless of the location or the type of client access.

For developers looking to prioritize the delivery of services on mobile devices, we centered our MobileFirst initiative on Worklight. Worklight balances the native mobile application experience and integration with back-end services to streamline the development process for "mobile first" companies.

We are actively working on the convergence of our IBM Cloud First and Mobile First strategies via optimized integration of SoftLayer and Worklight services. IBM customers from small businesses through large enterprises will then be able to view "cloud first and "mobile first" as two sides of the same development strategy coin.

-Mac

Mac Devine is an IBM distinguished engineer, director of cloud innovation and CTO, IBM Cloud Services Division. Follow him on Twitter: @mac_devine.

July 19, 2013

Innovation and Entrepreneurship: Transcending Borders

At Cloud World Forum in London, I did an interview with Rachel Downie of CloudMovesTV, and she asked some fantastic questions (full interview embedded a the bottom of this post). One that particularly jumped out to me was, "Does North America have a technology and talent advantage over Europe?" I've posted some thoughts on this topic on the SoftLayer Blog in the past, but I thought I'd reflect on the topic again after six months of traveling across Europe and the Middle East talking with customers, partners and prospects.

I was born just north of Silicon Valley in a little bohemian village called San Francisco. I earned a couple of trophies (and even more battle scars) during the original dot-com boom, so much of my early career was spent in an environment bursting at the seams with entrepreneurs and big ideas. The Valley tends to get most of the press (and all of the movie contracts), so it's easy to assume that the majority of the world's innovation is happening around there. I have first-hand experience that proves that assumption wrong. The talent level, motivation, innovation, technology and desire to make a difference is just as strong, if not stronger, in Europe and the Middle East as it is in the high-profile startup scenes in New York City or San Francisco. And given the level of complexity due to the cultural and language differences, I would argue the innovation that happens in the Middle East and Europe tends to incorporate more flexibility and global scalability earlier than its North American counterparts.

A perfect example of this type of innovation is the ad personalization platform that London-based Struq created. Earlier this year, I presented with Struq CTO Aaron McKee during the TFM&A (Technology For Marketing and Advertising) show in London about how cloud computing helps their product improve online customer dialogue, and I was stunned by how uniquely and efficiently they were able to leverage the cloud to deliver meaningful, accurate results to their customers. Their technology profiles customers, matches them to desired brands, checks media relevance and submits an ad unit target price to auction. If there is a match, Struq then serves a hyper-relevant message to that customer. And all of that in about 25 milliseconds and is happening at scale (over two billion transactions per day). Add in the fact that they serve several different cultures and languages, and you start to understand the work that went into creating this kind of platform. Watch out Valley Boyz and Girlz, they're expanding into the US.

One data point of innovation and success doesn't mean a whole lot, but Struq's success isn't unique. I just got back from Istanbul where I spent some time with Peak Games to learn more about how they became the 3rd largest social gaming company in the world and what SoftLayer could to to help support their growth moving forward. Peak Games, headquartered in Turkey, is on an enviable growth trajectory, and much of their success has come from their lean, focused operations model and clear goals. With more than 30 million customers, it's clear that the team at Peak Games built a phenomenal platform (and some really fun games). Ten years ago, a development team from Turkey may have had to move into a cramped, expensive house in Palo Alto to get the resources and exposure they needed to reach a broader audience, but with the global nature of cloud computing, the need to relocate to succeed is antiquated.

I met a wild-eyed entrepreneur at another meeting in Istanbul who sees exactly what I saw. The region is full of brilliant developers and creative entrepreneurs, so he's on a mission to build out a more robust startup ecosystem to help foster the innovation potential of the region. I've met several people in different countries doing the same thing, but one thing that struck me as unusual about this vision was that he did not say anything about being like Silicon Valley. He almost laughed at me when I asked him about that, and he explained that he wanted his region to be better than Silicon Valley and that his market has unique needs and challenges that being "like Silicon Valley" wouldn't answer. North America is a big market, but it's one of many!

The startups and gaming companies I mentioned get a lot of the attention because they're fun and visible, but the unsung heroes of innovation, the intraprenuers (people who behave like entrepreneurs within large organizations), are the clear and powerful heartbeat of the talent in markets outside of North America. These people are not driven by fame and fortune ... They just want to build innovative products because they can. A mad scientist from one of the largest consumer products firms in the world, based in the EU, just deployed a couple of servers to build an imaging ecosystem that is pushing the limits of technology to improve human health. Another entrepreneur at a large global media company is taking a Mobile First methodology to develop a new way to distribute and consume media in the emerging cross-platform marketplace. These intrapreneurs might not live in Palo Alto or Santa Clara, but they're just as capable to change the world.

Silicon Valley still produces inspiring products and groundbreaking technology, but the skills and expertise that went into those developments aren't confined by borders. To all you innovators across the globe building the future, respect. Working with you is my favorite part of the job.

-@jpwisler

The full interview that inspired this blog post:

July 10, 2013

The Importance of Providing Startups a Sandbox

With the global economy in its current state, it's more important than ever to help inspired value-creators acquire the tools needed to realize their ideas, effect change in the world, and create impact — now. I've had the privilege of working with hundreds of young, innovative companies through Catalyst and our relationships with startup accelerators, incubators and competitions, and I've noticed that the best way for entrepreneurs to create change is to simply let them play! Stick them in a sandbox with a wide variety of free products and services that they can use however they want so that they may find the best method of transitioning from idea to action.

Any attention that entrepreneurs divert from their core business ideas is wasted attention, so the most successful startup accelerators build a bridge for entrepreneurs to the resources they need — from access to hosting service, investors, mentors, and corporate partners to recommendations about summer interns and patent attorneys. That all sounds good in theory, and while it's extremely difficult to bring to reality, startup-focused organizations like MassChallenge make it look easy.

During a recent trip to Boston, I was chatting with Kara Shurmantine and Jibran Malek about what goes on behind the scenes to truly empower startups and entrepreneurs, and they gave me some insight. Startups' needs are constantly shifting, changing and evolving, so MassChallenge prioritizes providing a sandbox chock-full of the best tools and toys to help make life easier for their participants ... and that's where SoftLayer helps. With Kara and Jibran, I got in touch with a few MassChallenge winners to get some insight into their experience from the startup side.

Tish Scolnik, the CEO of Global Research Innovation & Technology (GRIT), described the MassChallenge experience perfectly: "You walk in and you have all these amazing opportunities in front of you, and then in a pretty low pressure environment you can decide what you need at a specific moment." Tish calls it a "buffet table" — an array of delectable opportunities, some combination of which will be the building blocks of a startup's growth curve. Getting SoftLayer products and services for free (along with a plethora of other valuable resources) has helped GRIT create a cutting-edge wheelchair for disabled people in developing countries.

The team from Neumitra, a Silver Winner of MassChallenge 2012, chose to use SoftLayer as an infrastructure partner, and we asked co-founder Rob Goldberg about his experience. He explained that his team valued the ability to choose tools that fit their ever-changing and evolving needs. Neumitra set out to battle stress — the stress you feel every day — and they've garnered significant attention while doing so. With a wearable watch, Neumitra's app tells you when your stress levels are too high and you need to take a break.

Jordan Fliegal, the founder and CEO of CoachUp, another MassChallenge winner, also benefited from playing around in the sandbox. This environment, he says, is constantly "giving to you and giving to you and giving to you without asking for anything in return other than that you work hard and create a company that makes a difference." The result? CoachUp employs 20 people, has recruited thousands of judges, and has raised millions in funding — and is growing at breakneck speed.

If you give inspired individuals a chance and then give them not only the resources that they need, but also a diverse range of resources that they could need, you are guaranteed to help create global impact.

In short: Provide a sandbox. Change the world.

-@KelleyHilborn

June 4, 2013

IBM to Acquire SoftLayer

As most have seen by now, this morning we announced IBM's intent to acquire SoftLayer. It's not just big news, it's great news for SoftLayer and our customers. I'd like to take a moment and share a little background on the deal and pass along a few resources to answer questions you may have.

We founded SoftLayer in 2005 with the vision of becoming the de facto platform for the Internet. We committed ourselves to automation and innovation. We could have taken shortcuts to make a quick buck by creating manual processes or providing one-off services, but we invested in processes that would enable us to build the strongest, most scalable, most controllable foundation on which customers can build whatever they want. We created a network-within-a-network topology of three physical networks to every SoftLayer server, and all of our services live within a unified API. "Can it be automated?" was not the easiest question to ask, but it's the question that enabled us to grow at Internet scale.

As part of the newly created IBM Cloud Services division, customers and clients from both companies will benefit from a higher level of choice and a higher level of service from a single partner. More important, the real significance will come as we merge technology that we developed within the SoftLayer platform with the power and vision that drives SmartCloud and pioneer next-generation cloud services. It might seem like everyone is "in the cloud" now, but the reality is that we're still in the early days in this technology revolution. What the cloud looks like and what businesses are doing with it will change even more in the next two years than it has in the last five.

You might have questions in the midst of the buzz around this acquisition, and I want you to get answers. A great place to learn more about the deal is the SoftLayer page on IBM.com. From there, you can access a FAQ with more information, and you'll also learn more about the IBM SmartCloud portfolio that SoftLayer will compliment.

A few questions that may be top of mind for the customers reading this blog:

How does this affect my SoftLayer services?
Between now and when the deal closes (expected in the third quarter of this year), SoftLayer will continue to operate as an independent company with no changes to SoftLayer services or delivery. Nothing will change for you in the foreseeable future.

Your SoftLayer account relationships and support infrastructure will remain unchanged, and your existing sales and technical representatives will continue to provide the support you need. At any time, please don't hesitate to reach out to your SoftLayer team members.

Over time as any changes occur, information will be communicated to customers and partners with ample time to allow for planning and a smooth transition. Our customers will benefit from the combined technologies and skills of both companies, including increased investment, global reach, industry expertise and support available from IBM, along with IBM and SoftLayer's joint commitment to innovation.

Once the acquisition has been completed, we will be able to provide more details.

What does it mean for me?
We entered this agreement because it will enable us to continue doing what we've done since 2005, but on an even bigger scale and with greater opportunities. We believe in its success and the opportunity it brings customers.

It's going to be a smooth integration. The executive leadership of both IBM and SoftLayer are committed to the long-term success of this acquisition. The SoftLayer management team will remain part of the integrated leadership team to drive the broader IBM SmartCloud strategy into the marketplace. And IBM is best-in-class at integration and has a significant track record of 26 successful acquisitions over the past three years.

IBM will continue to support and enhance SoftLayer's technologies while enabling clients to take advantage of the broader IBM portfolio, including SmartCloud Foundation, SmartCloud Services and SmartCloud Solutions.

-@lavosby

UPDATE: On July 8, 2013, IBM completed its acquisition of SoftLayer: http://sftlyr.com/30z

May 27, 2013

Tech Wildcatters Pitch Day (From a Unique Perspective)

In a classic scene from Duck Soup, Groucho Marx (as Rufus T. Firefly) is given a report, and he responds, "Why a four-year-old child could understand this report. Run out and find me a four-year-old child. I can't make head or tail out of it." That deadpan line may have come from a movie that was released in 1933, but it alludes to an idea that's relevant to this day: Younger generations have a unique perspective, and their insights can be extremely valuable. James, my nine-year-old son, has a seemingly innate understanding of technology, and after watching TechStars Cloud graduates deliver their demo day pitches last year, he became very interested in startups. I can say this authoritatively because he's been bugging me for month to let him go to another session.

With his school year winding down, I decided I'd make a deal with him: He could join me at the Tech Wildcatters Pitch Day, but he'd have to write a blog about what he learned about each of the companies. When I saw the post he wrote, I realized that having a nine-year-old listen to elevator pitches from startups provides a great barometer for how well a presenter expressed the company's value proposition. I'll turn the floor over to James and let him share what he learned about the eleven companies that presented at #TWPitchDay2013:

Tech Wildcatters Demo Day

Today I went to the Granada Theater in Dallas with my dad to meet start up companies. They were doing presentations to investors to raise money.

My dad did the introduction for HedgeChatter. I really did not understand what the do, but my dad said they did "DID": They turn Data into Information so people can make better Decisions. Not sure what that really means but he seems to like their business.

Here is a quick summary of each of the companies and what they do:

Tech Wildcatters Demo DayVonciergeVoncierge.com@LittleDressBook
Voncierge is a virtual wedding website that lets brides find the time and day for appointments in a short time.

 

Tech Wildcatters Demo DayKlick PushKlickPush.com@KlickPush
Klick Push is redefining online advertising by intersecting it with digital music.

 

Tech Wildcatters Demo DayGroupRaiseGroupRaise.com@GroupRaise
GroupRaise is a platform for charitable organizers to set up fundraisers online at local restaurants.

 

Tech Wildcatters Demo DayScribeSenseScribeSense.com@ScribeSense
ScribeSense is a better way to track and improve student learning. Their online platform grades.

 

Tech Wildcatters Demo DayCrowdFeedCrowdFeed.co@CrowdFeed
CrowdFeed is an app that has a huge market, making music and merchandise available on the spot.

 

Tech Wildcatters Demo DaySmokePhoneSmokePhone.com@SmokePhone
Smokephone is a site that lets you save your ten precious digits from strangers, and then you can delete them at any time.

 

Tech Wildcatters Demo DayHedgeChatterHedgeChatter.com@HedgeChatter
HedgeChatter is a social analytics tool for the stock market. It helps investors make more money in less time (from 12 hours to 6).

 

Tech Wildcatters Demo DaySocialGlimpzSocialGlimpz.com@SocialGlimpz
SocialGlimpz is a market insight tool to glean insights from users and build consumer strategy. It is an alternative to slow, expensive tools in the market.

 

Tech Wildcatters Demo DayTalentizeTalentize.com@Talentize
Talentize is a website that lets DJs, actor, singers, artist, and models showcase themselves for jobs.

 

Tech Wildcatters Demo Day501Fund501Fund.com@501Fund
501Fund is a company that helps with fundraising and saving money.

 

Tech Wildcatters Demo DaySecure PressIDSecurePressID.com@SecurePressID
SecurepressID is a security company that lets your hand be the username and login to protect from hackers.

 

My favorite of all companies was GroupRaise. I like it because I like helping people, and that is what they do too! Klick Push was great too. They give you prizes like free music for getting to new levels in games. Maybe they can do that for Minecraft.

This is the second time I went to an event like this. Last year I met a lot of cool companies that came to Dallas from San Antonio. My dad said they were part of something called TechStars Cloud. I even presented to them about Steve Jobs. That made me nervous, but it was worth it.

I am already excited about going to my next demo day. And maybe someday I will be on the stage with a new idea.

-James Karidis

Tech Wildcatters Demo Day

May 22, 2013

Catalyst at SXSW 2013: Startup Community Partners

Much of the buzz you've heard about Catalyst has to do with our relationships with the entrepreneurs and startups we support around the world. That buzz is understandable since the hosting, mentorship and networking perks of the program are the most visible aspects of the program, but to truly understand why Catalyst has been so successful, we have to shine the spotlight on our partner organizations in the startup community. Without close ties to the most powerful and successful startup-focused organizations, my team would have a much tougher time meeting and introducing the best and brightest startups to SoftLayer's platform.

When the folks on the Community Development team are not working directly with the companies in the Catalyst, they're looking for opportunities to help and serve our huge network of business incubators, accelerators, co-working spaces and startup events. As a result, we stay pretty busy. To give you an idea of what a given month looks like for us, Catalyst is supporting seventeen different startup-related events in six different countries over the course of the next thirty days. We're lucky that we love what we do so much ... Otherwise, that schedule might seem pretty daunting.

If you've been an avid SoftLayer Blog reader (as you should be), you know that we work closely with organizations like TechStars and 500 Startups, but you haven't heard much about the other types of partnerships we build in the startup community. We want to provide Catalyst companies with resources outside of hosting that can make their lives easier, and that means we have to find killer partners that focus specifically on the needs and wants of startup companies. To give you an idea of what those partners look like, I'd like to introduce you to a few of them via their video interviews from SoftLayer's Catalyst Startup Lounge at SXSW:

As we've done with the Startups Speak interviews, we'll be adding videos from our partners to the YouTube playlist above so that you can meet them and learn more about the value they uniquely provide to the startup community.

I'd love to take more time to explain how we incorporate services from these partners in the Catalyst program, but I think I'm late for a plane to Vancouver ... or Chicago ... or New York ... or San Francisco. In any case, I should probably head to the airport.

-@PaulFord

April 22, 2013

Going Global: How to Approach Expansion into Asia

Asia is an amazing place for business, but companies from outside the region often consider it mysterious and prohibitive. I find myself discussing Asian business customs and practices with business owners from other regions on an almost daily basis, so I feel like I've become an informal resource when it comes to helping SoftLayer customers better understand and enter the Asian markets. As the general manager for SoftLayer's APAC operations, I thought I'd share a few thoughts about what companies outside of Asia should consider when approaching new business in the region.

Before we get too far into the weeds, it's important to take a step back and understand the Asian culture and how it differs from the business cultures in the West. The Asian market is much more relational than the market in the United States or Europe; significant value is placed on the time you spend in the region building new networks and interacting with other your prospective customers and suppliers. Even for small purchases, businesses in Asia are much more comfortable with face-to-face agreements than they are with phone calls or emails. Many of the executives I speak to about entering Asia argue they don't have time to spend weeks and months in the region, and they make whistle-stop trips in various countries to get a snapshot of what they need to know to make informed decisions. Their businesses often fail at breaching the market because they don't invest the time and resources they need to create the relationships required to succeed. Books, blogs (even this one), consultants and occasional visits aren't nearly as important to your success as investing yourself in the culture. Even if you can't physically travel to your target market for some reason, find ways to plug into the community online and become a resource.

Asia is not homogenous. There are 20 distinct countries and cultures, dozens of languages and hundreds of dialects. There are distinct legal systems, currencies, regulatory frameworks and cultural norms. From a business perspective, that means that what you do to appeal to an audience in Singapore won't be as effective for an audience in Japan ... This is not the United States of Asia nor is there an Asian Union. Having partners in Hong Kong does not get you into China; if you want to access markets in China, you need to build relationships with partners and customers in China. One of the biggest reasons for this in-country presence to understand and avoid a "death by a thousand cuts" situation where minor, seemingly insignificant questions and problems cumulatively prevent a business from successfully entering the market. Take these questions from customers as an example:

  • When I buy from your office in Bangkok, where is the contract jurisdiction?
  • I'm in Hong Kong. Can I pay in Hong Kong Dollars? Who takes the currency risk?
  • Corporate credit cards aren't common in Vietnam. Can I pay for my online purchase in cash?
  • If I sign up for a webinar, is it at a time convenient for me (i.e. repeated for other time zones), or do I have to be at my PC at 3am?
  • If you invite me to a meeting on 12/4, is that April 12th, or December 4th?
  • When I print whitepapers from your website, do I need to resize to a different paper size?

The way you handle currencies, time zones and how you present information are barometers of how approachable your business is for users and businesses in a particular market. Most users won't reach out to you to ask those kinds of questions; they'll just move on to a competitor who answers their questions without them asking. You learn about these sticking points by having people on the ground and talking to potential customers and partners. Since globalization is "flattening" the World Wide Web, the mechanics of hosting a site, application or game in a data center in Singapore are identical to hosting the same content in Dallas. It's easy to make your data locally available and have infrastructure available in your target market, but that's only a start. You need to approach Asian countries as unique opportunities to redefine your business in a way that fits the culture of your potential customers and partners.

In my next blog, I plan to share a few best practices about management, responsiveness and responsibility, positioning, operations and marketing in Asia. These posts are intended to get you thinking about how your business can approach expanding into Asia smartly, and if you have any questions or want any advice about your business in particular, please feel free to email me directly: dwebb@softlayer.com.

-@darylwebb

March 26, 2013

Should My Startup Join an Accelerator/Incubator Program?

As part of my role at SoftLayer, I have the opportunity and privilege to mentor numerous entrepreneurs and startup teams when they partner with us through our Catalyst program. One question I hear often is, "Should I join an accelerator?" My answer: "That all depends." Let's look at the five lessons entrepreneurs should learn before they decide to join a startup accelerator or incubator program.

Lesson 1: The founders must be committed to the success of their venture.
Joining an accelerator or incubator comes with some strings attached — startups give up between 6 to 10 percent of their equity in exchange for some cash and structured program that usually lasts around three months. Obviously, this kind of commitment should not be taken lightly.

Too often, startups join accelerator programs before they are ready or mature enough as a team. Sometimes, a company's idea isn't fully baked, so they end up spending as much time "creating" their business as they do "accelerating" it. As a result, that company isn't able to leverage an accelerator's resources efficiently throughout the entire program ... The founders need to establish a vision for the business, begin laying the groundwork for the company's products and services, and be 100% committed to the accelerator program before joining. If you can't say with confidence that your startup meets all three of those requirements, don't do it. Take care of those three points and proceed to the next lesson.

Lesson 2: Be prepared to leverage what you are given.
Many startups join accelerator and incubator programs with unrealistic expectations. Participation in these programs — even the most exclusive and well-known ones — by no means guarantees that you'll raise additional money or have a successful exit. These programs provide startups with office space, free cloud services, and access to mentors, investors, recruiters and media ... Those outstanding services provide participating startups with a distinct competitive advantage, but they don't serve up success on a silver platter. If you aren't ready work tirelessly to leverage the benefits of a startup program, don't bother.

Lesson 3: Take advice and criticism well; mentors are trying to help.
"Mentorship" is very tough to qualify, and criticism is difficult to take ... Especially if you're 100% committed to your business and you don't want to be told that you've done something wrong. Mentors in these startup programs have "been there and done that," and they wouldn't be in a mentorship position if they weren't looking out for your best interest and the ultimate success of your company.

Look programs that take mentorship seriously and can provide a broad range of expertise from strategy to marketing and business development to software architecture to building and scaling IT infrastructure. Then be intentional about listening to the people around you.

Lesson 4: Do your research and make an informed decision.
With the proliferation of startups globally, we're also seeing an evolution in the accelerator ecosystem. There are a number accelerators being positioned to help support founders with ideas on a global, regional and local basis, but it's important to evaluate a program's vision with its execution of that vision. Not all startup programs are created equal, and some might not offer the right set of resources and opportunities for your team. When you're giving up equity in your company, you should have complete confidence that the accelerator or incubator you join will deliver on its side of the deal.

Lesson 5: Leverage the network and community you will meet.
When you've done your homework, applied and been accepted to the perfect startup program, meet everyone you can and learn from them. One of the most tangible benefits of joining an accelerator is the way you can fast track a business idea while boosting network contacts. Much in the way someone chooses a prestigious college or joins a fraternity, some of the most valuable resources you'll come across in these programs are the people you meet. In this way, accelerators and incubators are becoming a proxy for undergrad and graduate school ... The appeal for promising entrepreneurs is simple: Why wait to make a dent in the universe? Today, more people are going to college and fewer are landing well-paying jobs after graduation, so some of the world's best and brightest are turning to these communities and foregoing the more structured "higher education" process.

Even if your startup is plugging along smoothly, a startup accelerator or incubator program might be worth a look. Venture capitalists often trust programs like TechStars and 500 Startups to filter or vet early stage companies. If your business has the stamp of approval from one of these organizations, it's decidedly less risky than a business idea pitched by a random entrepreneur.

If you understand each of these lessons and you take advantage of the resources and opportunities provided by startup accelerators and incubators, the sky is the limit for your business. Now get to work.

Class dismissed.

-@gkdog

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