Posts Tagged 'Revenue'

November 22, 2011

Semper Fi + Innovate or Die

How can I emphasize how cool my job is and how much I like it? I can't believe SoftLayer pays me to do what I love. I should really be paying tuition for the experience I'm gaining here (Note to the CFO: Let's forget the "I should be paying to work here" part when we go through my next annual review).

My name is Beau Carpenter and I'm writing my first blog for SoftLayer to introduce myself and share some of my background and experience to give you an idea of what life is like for someone in finance at a hosting company. In a nutshell, my mission with is to understand, organize and report every dollar that comes into and goes out of the company. These financial reports are reviewed internally, shared with our investors and used when we have a trigger event like the merger with The Planet last year.

To give you a little background about who I am, the most notable thing about me is that I'm a third generation Marine. My grandfather served in WWII, my father served in Vietnam, and I joined during the Gulf War, serving from 1991–1995. After completing my tour and receiving an honorable discharge, I returned home to Texas to get my education and start working ... while growing a family of four.

After I earned my bachelor's degree, I went to work at Rice University for Nobel Laureate Richard Smalley, winner of the 1996 Nobel Prize for discovering nanotechnology. Rick was a fantastic mentor, and when he recommend that I join Rice's MBA program, I thought it was a pretty good idea. It didn't hurt that his glowing recommendation gave me a great foot in the door to the program. I earned my MBA from Rice in May of 2005, and headed out into the corporate world ... If you can call SoftLayer, "corporate."

The majority of my coworkers probably have no idea what I do because I spend a lot time tucked away in my office running numbers. As you probably could have guessed, in financial analysis/reporting, strong numbers are a lot easier to report than bad ones, and SoftLayer's numbers have been so good that they keep me up at night. I know that sounds strange, but I'm up every Sunday night and month-end at midnight so I can communicate our company's progress for the past week or month as soon as it is over. Some may not find that late night work appealing, but being numbers jockey, I can't help but be excited about sharing the latest information ... even if it could technically wait until the next morning.

I've been in denial for a few years, but after rereading that last paragraph, I have to admit I'm officially a nerd now.

I've done financial and nonfinancial metrics analysis for a couple of companies before I landed at SoftLayer, and the difference between this company and others I've worked for is night and day. The culture here is healthy and positive, everyone's focused on their work, and the company provides a lot of perks to keep everyone going. Energy drinks, super-cool coffee machines, endless snacks ... but the most important perk is the general sense of camaraderie you get from being around a team of professionals who are passionate about their work.

Kevin asked me how I'd compare my experience at SoftLayer to my experience in the Marines, and I think the most resonating similarities are the shared sense of purpose and the close ties I have with my team.

Semper Fi + Innovate or Die.

-Beau

November 17, 2011

#Winning - Celebrating SoftLayer's Awards

To quote Marva Collins, "Success doesn't come to you, you go to it." Since 2005, SoftLayer has consistently grown from $0 annual revenue to $350 million annual revenue, and that success hasn't gone unnoticed. This year, we've been honored to win several awards based on our revenue growth percentage, how great the company is to work for, and the success of our cloud offerings, so I thought I'd share a few of those recognitions with our customers – who have fueled our success.

Trophy Case

Company Growth
Let's start with the awards that recognize SoftLayer for its tremendous financial success in the midst of a tough economic environment. This year, SoftLayer was recognized as one of the fastest growing companies as members of Tech Titan Fast Tech, Inc. 500/5000, Dallas 100, and Deloitte Technology 500.

Tech Titan Fast Tech recognizes the fastest growing technology, media, telecommunications, life sciences and clean technology companies in Dallas-Fort Worth Metroplex. Fast Tech recipients are determined based on percentage fiscal year revenue growth from 2008 to 2010. SoftLayer holds the #2 rank with a revenue growth percentage of 305%, calculated using the following formula [(FY'2010 Revenue- FY'2008)/ FY'2008 revenue] X 100%. SoftLayer won this award in 2008 and 2009 as well ... And based on the way 2011 is looking, we'll get another one next year.

Inc. 500/5000 ranks privately held, for-profit companies based on their revenue growth for the past 3 years. In 2010, SoftLayer ranked #155, and this year, we were #277 with a three-year revenue growth of 1,178%. The Inc 500/5000 list is also broken into industry categories and regions: SoftLayer ranked #21 in the IT Services category and #5 in Dallas.

Deloitte Technology Fast 500 lists North American companies each year based on percentage fiscal year revenue growth over a five-year period. This is the first year for SoftLayer to be on the list, and we couldn't be more excited about it. We're proud to hold #32 in this year's rankings, and we have our sights set on climbing higher.

Dallas 100 winners are selected by the SMU Cox School of Business to recognize privately held companies that headquartered in Dallas Metroplex. Similar to the Inc. 500/5000, the rankings are based on revenue growth over the past three years. In 2010, we ranked #5, and this year, we moved up all the way to #1! (Where we're supposed to be.)

Dallas 100

SoftLayer Culture
The financial success of the company is only one metric of our overall success as a business. We wouldn't be able to reach those amazing numbers without a great team, so when we get recognized for how amazing SoftLayer is to work for, I know we're doing things right. SoftLayer has been recognized twice this year for being one of the Best Places to Work. Not only are we part of the Dallas Morning News "Top 100 Places to Work in DFW," but we are among the "Best Places to Work in Texas." That's the kind of environment we wanted when we started the company a few short years ago. We hold the #10 spot for Mid-Size Companies on the DMN Top 100 Places to Work in DFW, and the "Best Places to Work in Texas" list will be released in February 2012.

Product Recognition
Oh, and as it turns out, amazing employees in a fantastic environment also create some of the most innovative products, so it should come as no surprise that SoftLayer was recognized earlier this year for our cloud offering: We are among the Top 100 Cloud Providers chosen by Alsbridge.

And when it comes to our dedicated hosting platform, you don't have to look very far to see that SoftLayer is "The Best Web Hosting Company" in the industry. If you agree, you can show a little love for us by nominating and voting for us in HostReview's 6th Annual Reader's Choice Awards.

While we want to celebrate our achievements, we also want to use them as fuel to continue the Challenging But Not Overwhelming (CBNO) work that got us to this point. We want to take the #1 spot on all of these lists in the near future, so keep an eye out ... And we'll start looking for a bigger trophy case.

Taking over the world one data center at a time!

-@lavosby

November 29, 2010

Fun with Lists!

Back when I was doing research for my interview with SoftLayer, one of the things I looked for was financial data. Since SoftLayer isn’t a public company, I couldn’t get financial statements. However, I did find some nice round numbers in a press releases that said they did about $110 million in annual revenue. I thought, hey that’s not bad… Then I kept reading and when I saw that there were 170 employees I became impressed. For those without a calculator handy, at these numbers SoftLayer does about $647,000 in revenue a year per employee.

Because people loves lists, I looked up a few other company’s revenue / employee. These are in no particular industry and have nothing specific in common other than that they were the first to come to my mind.

CompanyRevenue Per Employee
Exxon $3,235,638
Amazon $1,266,667
Google $1,180,832
Toyota $764,216
Microsoft $702,022
SoftLayer $647,059
Nike $563,663
Intel $523,133
AT&T $463,656
American Express $416,295
Dreamworks $335,052
Anheuser-Busch $315,172
New York Times $314,416
Oracle $283,048
IBM $238,541
Rackspace $232,512
Whole Foods $203,256
Walmart $198,410

Does anyone else think gas prices could be lower?

Note: The data for revenue and number of employees was either pulled for public press releases or by looking at the Company Profile (# employees) and Key Statistics (Revenue) on Yahoo! Finance.

-Bradley

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August 6, 2009

Punishing Success

Let’s say you worked for years to become a world class athlete. As a kid, you were in the gym while other athletes were at the movies. You were in the weight room on Saturday nights when no one else was there. You shunned pizza and soda in favor of grilled fish and fresh fruit. By the time Letterman hit the evening airwaves, you were well into restorative sleep. You were out the door for your morning runs while other athletes snoozed. As a result of all this, now you perform at an elite level and are very successful at your sport. Suddenly, you find that there are people who have a vested interest in helping you maximize your athletic potential. Your coaches, your managers, and companies who pay you to endorse their products all want to see you do your best. Why? Because doing your best helps them be more successful.

So, they provide you with all the things you need to maximize your potential. You get the best training gear and training regimens. You get the best nutrition. You get the right amount of rest. All these things help you maximize your potential. Thus the relationship is a nice symbiotic cycle – the more success you experience, the more success your coaches, managers, and endorsement companies experience. Win-win. Makes sense, right?

So, imagine the silliness if your coaches, managers, etc., made the decision that because you were so fortunate in your success that you had to “give back” almost half your resources to train the athletes who loafed, stayed out late, partied and gorged on pizza. Because you’re such a hard-working and smart athlete, you don’t need all those resources to participate adequately in your sport, they rationalize. Consequently, you don’t hit your potential, your coaches and managers don’t distinguish themselves, and endorsing companies don’t call you. You then feel that you’ve been punished for your hard work and success.

Sadly, much of our government policy falls under this flawed logic. The IRS just released their latest income tax stats for the year 2007. For that year the top 1% of earners paid 40.4% of all income taxes collected. We all know that right now we’re coming out of a recession and we really folks to invest in businesses and hire people to get the economy moving. So how do the 2007 numbers compare to, say, the 1980’s? During the ‘80’s, we managed to shake off the “stagflation” of the ‘70’s and get the economy rolling again. It was during this time that many technology juggernaut companies were spawned – Microsoft being a good example. So, how much of the income taxes in the ‘80’s were paid by the top 1% of earners? The average for the 10 years from 1980-1989 was 22.2%.

Let’s do some quick math. $1.116 trillion in income taxes was collected in 2007. Of that, $455.3 billion was paid by the top 1% of earners. If they paid 22.2% as in the ‘80’s, they would have paid $247.8 billion in taxes, and right now we’d have $207.5 billion MORE dollars invested in our economy. That would be quite a stimulus package! Our current policy punishes success and chokes off fuel from our economic engines while we’re trying to climb out of a worse recession than we had in the ‘70’s. Not smart.

Some may think that this would simply mean that our government deficit would be $207.5 billion higher. This is not the case at all. These folks that make up that top 1% didn’t get there by being lazy or not putting their money to work. I know some folks in that group, and they WANT to put their money to work! I know one gentleman who had to be told some legal docs for a deal could not be prepared over the weekend because Christmas was on that weekend. These folks are like the world class athlete I mentioned above – by and large they’re disciplined and hard-working. Their money will build new businesses and create more jobs, and the government will collect far more revenue from this new economic activity than it would give up in collections from these top 1% folks. Think about it – how many of us have ever been hired by a “poor” person? Instead of punishing economic success, we should encourage it!

Bottom line, if government policy were to make sense, it would encourage these folks to maximize their economic potential and find the correct balance of revenue to collect and yet still promote economic growth. What would we prefer? That the government collects 50% of $1 trillion or 30% of $2 trillion? Hint: 30% of $2 trillion is a WAY better deal.

At SoftLayer, we think very differently about things. We simply do not punish our customers for succeeding. We empower them to be more successful – why? Because if our customers succeed, we succeed. We get this.

Can we prove this? Perhaps a look at how customers vote with their feet is an indicator. For the past few months, SoftLayer has seen the lowest percentage of customers terminating business with us in our history. If we punished our customers for their success, they would go elsewhere.

September 27, 2007

Who Counts Your Beans?

Just like any company, the search for ways to increase revenues and lower costs to make more money never ends. In the increasingly competitive hosting environment, raising prices is rarely an option but finding ways to cut costs while making the experience better for the customer can and must be done on an ongoing basis.

We have achieved some success to date with the provisioning of nearly 10,000 servers; however, the end game is far greater as the ultimate goal is to become a multi-national corporation serving markets all around the world. In the hosting space, you don't really have a choice, you either innovate and get bigger or you get out. The complexities are just too great to have the luxury of maintaining the status quo. The technology landscape is littered with companies that started reading their own press clippings and got fat, dumb and lazy. And keep in mind that copying your competitors only delays the inevitable; the "me-too" companies eventually go away. In the technology world, you must innovate and push the envelope to survive.

While we are constantly looking for new and better ways to serve the customer, a great deal of time is spent improving internal reporting systems. I work with a management team that understands the importance of budgeting and tracking various financial and operational metrics. To that end, we have made a substantial commitment in systems and people to gather data to help make the best decisions for us and most importantly, for our customers.

I would love to reveal all the data we have at our fingertips but for competitive reasons, I don't want to give away too much but let me leave you with this tidbit: I wonder how many of our competitors' CEOs can, from his/her desktop, drill down to any one of 10,000 servers in multiple data centers and know exactly how profitable each individual server is with the click of a mouse.

The best companies in the world are all supported by world-class accounting and finance departments providing pertinent financial and operational data to all its stakeholders. The right information gives you a tremendous advantage over your competition.

Find someone good to count and analyze your beans. Wal-Mart did and turned the world of retail on its head. With a little luck, we might be able to do the same to hosting.

-Mike

June 22, 2007

Money, Money, Money

The term "Digital Super-Highway" seems to be quite prophetic as the monetization of the internet seems to be exploding from all angles. Monetization of the internet is something that we are always focusing on here since a good portion of our customer base turns our underlying infrastructure into a revenue-generating engine for them, be it through Value Added Services, enablement of SaaS business models, e-commerce activities or whatever focus our customers have (which are too many to list).

I always knew the monies on the web were staggering, but I was caught off guard the other day when I came across an article in Business 2.0, "The Man Who Owns the Internet". The article is about Kevin Ham, who has built a $300 Million Dollar portfolio of domain names. $100,000 for Greeting.com, and $31,000 for Christianrock.com and so on. He's a domain name mogul.

In a technology world, this seems to be the "day-trading" of the internet. The other portion of this article that struck me is the monetization of the typographical errors in domains, referred to as "Typo Squatting". We have all accidentally fat-fingered a key here or there and after closing the 85 pop-ups, the monies are moving like a slot machine with triple 7’s across the board. In an article referring to the monetization of Typo Squatting, companies have built multi-million dollar producing firms on capitalizing on a misspelling here, a lack of dash there, etc. Just for reference, it seems that www.softlater.com is already taken, which means my dream of typo squatting my way to retirement has taken a drastic turn.

With the tools we have put in place through the API and the private network we have really streamlined the enablement of the monetization of the internet, which when we talk to our customers it’s at the forefront of both of our minds. The successes of our customers ensure our success, so putting these tools in place are essential. Not to give away the secrets of others, but I have peeked into the private back-end network and seen things like credit card processing gateways, server to server data transfers, licensing gateways and numerous other activities that are surely streamlining the money making processes for our customers.

So I am not sure that when the term "Digital Super Highway" was coined that we ever thought there would be toll-booths along the way, but its clear that these are here to stay.

As a side note, if anyone is interested in sharing their monetization stories, feel free to drop me a line at bizdev@softlayer.com

-Sean

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