Showing posts with label Strategy. Show all posts
Showing posts with label Strategy. Show all posts

Wednesday, June 25, 2008

Social Window Shopping

Back in the stone ages (i.e. before the Internet), people would get together with their friends for a day of window shopping.

Going from store to store, comparing and contrasting the alternatives, placing items of interest on layaway, and ultimately making a purchase based on the input of friends.

The web, of course, has changed this dynamic by making it very easy to shop online. Sites like Amazon.com have User Ratings and Reviews applications that allow any member to post their thoughts on a particular item. They also have Wishlist applications that enable people to set aside items that they are considering for purchase.

While these applications provide a great source of information to the shopper, they are still missing the crux of what made window shopping so powerful; namely the input and social camaraderie of friends.

Why is this important? Well, if you look at the chart below from Forrester's "Data Chart of the Week: Who Do People Trust?", you will see that the opinions of friends or acquaintances who have used the product or service is what people value and trust the most.

How much online North American consumers trust sources of information about products or services

With the advent of the Social Web, we are at a point where e-commerce websites can start to bring the power of social interactions back to the shopping process.

Social Window Shopping Example
Let's look at an example where you are shopping for running shoes on Sneaks4Geeks.com. You've narrowed your search down to your top three choices by reading all of the anonymous reviews and ratings. It's time to kick it up a notch and get your friends involved!

While you already have some friends on Sneaks4Geeks, you also want to get the opinions of your running friends on Facebook and the Nike+ community.

Sneaks4Geeks uses this really cool Social Window Shopping application that enables people to interact with and get shopping advice from their friends on a range of social sites. The Window Shopping application developers had the mentality of "write once, social everywhere" when they created the application, so they chose Ringside Networks to help them achieve this goal.

So on Sneaks4Geeks you add your top three running shoe choices into the Window Shopping application and reach out to your running friends on Sneaks4Geeks, Facebook, and Nike+. You include the note: "Help me choose! I'm considering the following running shoes for the Broad Street Run in May. What's your favorite?".

Since the Window Shopping application is also integrated into Facebook and Nike+, my friends across all of these sites can respond to my request from within the Window Shopping application available on their particular site. They place their vote for one of the running shoes and provide an insightful comment back.

After a little while, you tally the votes, read the comments, and make your purchase based on the input of your network of friends. For those friends who responded with an opinion, the Window Shopping application automatically thanks them and shares the results of your purchase.

You happily trot off with a new pair of running shoes, and your shopping experience reminds two of your friends that their running shoes are getting pretty worn out...maybe it's time for them to get some new running shoes from Sneaks4Geeks!

Conclusion
For any Social Web initiative to succeed, it is important to find the area of passion that will truly drive social engagement. In the example above, enabling people to shop and interact with friends for their thoughts and opinions touches on a critical area of passion for many people.

Please visit the Social Business section of the Ringside Networks website for more articles on the Social Web and to learn more about how Ringside Networks helps facilitate scenarios such as the Social Window Shopping example covered above.

Tuesday, June 24, 2008

Social Web Tip: Start With Passion

In my past two posts, I wrote about two very successful social web communities, the Jeep Community and the Nike+ Community.

What do these communities have in common besides well known and established brands?
PASSION

Just look through all of the pictures and videos posted by the Jeep community to get an idea of how ravenously passionate they are about their Jeeps. Similarly, the Nike+ running community just loves getting together for running events, talking about the latest running gear, etc.

Jeep and Nike are big companies with established brands and healthy, growing communities.

How about we look at an example where the seeds of passion are just being planted?

I recently caught up with a friend of mine who has launched a new site called Greenthumbr:




Bob McWhirter loves gardening and while he has only just started building the Greenthumbr community, the world is definitely full of people who love everything green too. So he has fertile ground upon which to grow a thriving membership.

Passion comes in big and small packages. Moreover, passion can start relatively small, but with the help of the social web, BIG things can happen!

Look at Barack Obama's rise to prominence as a perfect example of how the social web can amplify passion. While some people knew about Barack Obama 18 months ago, his MyBarackObama.com website as well as his Barack Obama Facebook page have attracted and energized millions of active and passionate followers.

So, my social web tip for you is to find the PASSION in your community and feed it, nurture it, encourage it, revel in it, wallow in it. And before long, you just might see the strong roots of a thriving social web community take hold.

Monday, June 2, 2008

Facebook Counters Google's OpenSocial With fbOpen

A week ago the rumors heated up that Facebook would open source its platform.

And today Facebook made good on the rumor by launching the Facebook Open Platform (fbOpen). On the Facebook Open Source Projects, they list fbOpen and the other open source projects (Thrift, MemcacheD, ...) they are involved in.

What is fbOpen? According to the website it is:
"a snapshot of the infrastructure that runs Facebook Platform. It includes the API infrastructure, the FBML parser, the FQL parser, and FBJS, as well as implementations of many common methods and tags."

Or put more simply:
fbOpen is an open source reference implementation of the Facebook platform.

This is a similar statement to:
Apache Shindig is an open source reference implementation of the OpenSocial specification.

In my "Social Networking Big Dog: Facebook or Google?" post, I draw a comparison of Google and its OpenSocial Foundation to Sun and its Java Community Process.

I'll extend that comparison further by equating fbOpen and Apache Shindig to be logical equivalents to the J2EE Reference Implementation. The primary difference between these two efforts, of course, is that OpenSocial provides a specification for the Apache Shindig reference implementation, while fbOpen is simply a snapshot of code from the already implemented, deployed, robust, and successful Facebook Platform.

So this news begs a couple of questions:

  • Does it matter that fbOpen is not based on a specification but is simply "a snapshot of infrastructure"?
  • Does it matter that implementations like Apache Shindig have a common specification (OpenSocial) to base their efforts on?
Before answering the questions, you should consider the success of open source projects like Hibernate and the Spring Framework, both of which did NOT implement the predefined J2EE specifications. Instead, they both defined new and better ways of doing things. Good technology trumped agreed-upon specification.

One final note. I expect that all or parts of these reference implementations will be leveraged by a wide range of people and companies interested in extending them to suit their specific market/product needs. Similar to how companies like BEA, IBM, Sun, Oracle, and JBoss all created their own J2EE application servers that implemented the specs as well as included piece parts of the reference implementation.

This matches what Ringside Networks has been doing by integrating and extending Shindig in order to provide a production-ready implementation of OpenSocial. Moreover, since our open source social application server already provides extensive Facebook platform compatibility, we'll look at fbOpen to see how we can leverage it so we can spend less time implementing Facebook compatibility and more time on our unique value add.

I'll elaborate much more on the Ringside Networks product strategy in upcoming posts.

Bottom-line:
  • Only time will tell if Facebook launched fbOpen in time to slow or stall the momentum of Google's OpenSocial Foundation.
  • Open code is better than closed code; but open does not necessarily translate into vibrant community.
  • Only time will tell if Facebook's community will be open and vibrant enough to generate significant momentum (and code) of its own.

Thursday, November 29, 2007

Scaling a Software Business (open source or otherwise)

OK, I've grabbed the bait Savio Rodrigues (of Big Blue fame) has cast for me. Savio's a good guy and we've traded opinions in the past, so here we go again.

Savio asserts "The OSS business model is great to grow from $0-$50M, but very difficult if you're trying to get to $100M.".

In my inimitable Philly style, my response is: Dude, that same statement can be made of most software companies, open source or not.

Let me use Princeton Softech (non open source) as an example. I was there before JBoss, and my focus was to help them grow to $50M and beyond. So I helped build and launch their database archiving solutions for Oracle E-Business, PeopleSoft, Siebel, and JD Edwards. In order to scale the business, we expanded our footprint beyond the generic archiving solution, to application-specific solutions. This scaled the business and increased valuation enough to entice your Big Blue to buy them recently...so be sure to treat my friends well! ;-)

So let me now use JBoss and Red Hat as examples.

To establish and build the business, you've got to start with great technology and A players. You then need to focus your business model on selling the right stuff. In the case of JBoss, we sold 75% subscriptions, 15% training, 10% consulting. Why? Because subscriptions have higher margins than training and consulting.

Once you've got momentum going on one product, you scale the business by:
  • Expanding your footprint (new products, product lines, solutions, etc.)

  • Expanding your reach (channel business, partners, geographies, etc.)
The focus when I joined JBoss in 2004 was to grow the footprint beyond the application server into a full middleware suite of products (Hibernate, JBoss jBPM, JBoss Rules, JBoss Portal, etc.). Add in our upcoming SOA Platform (based on JBoss ESB), and the fact we added MetaMatrix earlier this year, and you've got a nice footprint.

On top of that, Red Hat has a pretty cool strategy for the RHEL business, has a solid Channel focus that includes JBoss, and offers a global reach.

All of that adds up to a multi-product line company with decent reach. You take that into customer conversations and you're able to drive strategic decisions rather than single product discussions.

[Added on Dec 1]
To those who think “The support-only OSS business model does not scale.”. Uhhh…I disagree. It may take a while to build up a base, but once you do and you can keep renewals at a good level, it’s a very scalable model. It's actually quite similar to the maintence revenues traditional software companies treasure. The subscription model is the gift that gives day in/day out.

IBM is famous for its 10 year strategies, so I encourage you to visualize this over the long term and let me know if you're still having problems seeing the model scale.

Friday, November 23, 2007

Legitimate Open Source Strategy or All Wet?

Call me old fashioned, but I like reading the hardcopy version of the SD Times...and over the weekend, I caught up on some of the back issues.

One of the articles I read was Curl Opens RIA Tools to Community. I definitely scratched my head for a few minutes after reading it. Not to pick on Curl (since I don't really know them or their products all that well), but I cringe when I see statements like:
  • "We want to remove the concern that Curl is a proprietary platform," said Richard Treadway, vice president of product strategy at Curl. "We are releasing things above the platform that are fairly mature."
  • Curl will not release its runtime to the community, Treadway noted, because it's important that the runtime exist only in one version that is solid and can run anywhere.
Believe me, I realize that open sourcing previously proprietary software is a complex process, but it feels to me like Curl's strategy is to leave one foot on the [proprietary] dock and one foot on the [open source] boat...and firmly commit to neither.

My experience tells me that in situations like this...you get all wet!

I racked my brain for an example of a company that voiced a similar strategy and avoided getting wet.

Sun made similar statements. Their initial open source strategy excluded Java Standard Edition because they feared doing so would open the doors for competitors to fork Java.

I actually think Sun got a bit damp before they corrected their strategy by rolling out OpenJDK which put them firmly on the [open source] boat.

Bottom-line: Sun's a big company and can afford to get a little wet...but smaller companies that face credible open source alternatives need to get it right the first time.

Wednesday, November 21, 2007

Microsoft's Open Source Strategy

Microsoft's Bill Hilf Reveals Its Open Source Strategy caught my attention, as well as July's Microsoft's Open-Source Strategy Coming Into Focus.

I found Dana Blankenhorn's response interesting, and I have to agree with many of his points.

Microsoft's stance on open source is pretty clear to me:

  • Microsoft has no plans on flipping any of its flagship products to open source. Period. The effort vs. reward equation just does not make sense since it would be a HUGE effort to make the code consumable by a community.
  • Microsoft sees some value in understanding open source; hence its investments in Port25 and CodePlex.
  • Microsoft sees some value in open source technologies that run on or interoperate with its platforms and products.
  • Microsoft sees some value in enabling people to see (but not touch) parts of their code; as evidenced by them Releasing the Source Code for the .NET Framework Libraries. This is not open source, but it does yield some benefit to developers targeting the .NET platform.
  • Microsoft will aggressively fight/compete with products (open source or closed source) that pose a threat to its core products. Hence, Bill's points re: Red Hat Enterprise Linux.

Now, while I do work at Red Hat, I should also disclose that I know and respect Bill Hilf. We started working together a few years ago on the JBoss / Microsoft alliance. At that time, we agreed to set aside the Java vs. .Nyet (sorry Bill) debate and focus on better serving our developer and production users that target Windows. Among other things, we focused on interoperability (Web Services, etc.) and have participated in various plug-fest workshops over the years.

So, I have to admit that I'm disappointed to see Bill Hilf dance around the questions and hide behind such FUD as proprietary software "guarantees".

As much as I hate to say it, Microsoft could learn something from IBM's strategy. They make no bones about it: they work in the open source on piece-part components that they Bluewash into their closed-source products. While it's not a pure open source business model...it's clearly an open source strategy.

C'mon Bill, drop the FUD (that's Ballmer's shtick, not yours) and just say it as plainly as I have above.

Tuesday, April 24, 2007

Driving Developer Preference

JBoss' success has hinged on grassroots adoption by developers and users of our open source technologies. Thank you for your support over the years! With our relaunch of JBoss.org, we are hoping to fuel that innovative spirit further and keep our users informed and excited about our new technologies and directions.

There are many types of developers, of course. While many will download our open source components and tools and support themselves via our forums and wikis, many corporate developers just want a set of solid tools they can use and a well tested platform to develop and deploy on. While they may think innovation is cool...and will factor it into future applications...stability is what gets deployed today. They have a job to do and want vendors like Red Hat to make their lives simpler.

At Red Hat, we are focused on driving preference for our Open Source Architecture as early in the development lifecycle as possible. So, we are building on the grassroots relationship JBoss has with developers and consolidating our developer-related efforts into a single strategy across all of Red Hat.

Towards that end, we have launched the following new subscriptions:
  • Red Hat Developer Professional is designed for corporate developers and individuals.
  • Red Hat Developer Enterprise is designed for Independent Software Vendors, larger development organizations and mission critical development projects.
  • Red Hat Developer Studio is an Eclipse-based development tools environment that integrates tools for Linux, Java, and Web 2.0 application development.
The first two offerings provide full access and developer support for ALL Red Hat certified products (Red Hat Enterprise Linux, JBoss Enterprise Middleware, etc.) under a single subscription. We want to make it as easy as possible for developers to get access to any/all of our certified bits and support them in the use of those bits as they're developing their applications.

The Red Hat Developer Studio subscription is due out in the summer timeframe and will integrate all of our Eclipse-based tools, including the Exadel Studio Pro and Ajax technologies, into a development environment that works well with and includes our certified platforms. So, developers will not only get the tools but also access to our certified JBoss and Red Hat Enterprise Linux platforms.

This is a first step, of course, and as always, if you have cool ideas for other things we should be doing to help developers, just let us know.

Saturday, March 31, 2007

Building A Great Open Source Architecture

For the past 3 years, we have been busy building out JBoss Enterprise Middleware as the Open Source Platform for SOA. During this time, we have been very consistent in our stance that SOA needs to be Simple, Open, and Affordable. We contend that SOA technologies should be available to all, not just the privileged few who can afford the HUGE license costs.

This approach delivers real value to our customers. And since joining Red Hat last June, there are more and more people around the world who want to understand our strategy, product roadmap, etc.

I use a set of 3 graphics to describe our product strategy. These are designed to illustrate how I see the open source market - one graphic for last year, this year, and next year. The color coding on the slides is meant to illustrate the level of pain (threat level) that proprietary vendors are feeling due to open source competitors.

Needless to say, Operating Systems a la Red Hat, Web Servers a la Apache, Developer Tools a la Eclipse, and App Servers a la JBoss are causing high and severe alert levels for the proprietary vendors. Portal, Business Process Management (BPM), and Integration markets have been gaining ground and should generate strong momentum into 2008 and beyond.

I actually use these graphics for two purposes: 1) to explain to people how open source is penetrating software market areas that are relevant to Red Hat / JBoss, and 2) as a radar screen, of sorts, that I personally use to help identify strategic areas of opportunity/expansion.

For example, looking at the pace of BPM, Portal, and Integration, I ask myself: what things can I do to accelerate those areas. This is why you have seen JBoss spend considerable time and effort over the past two years on building out technologies such as JBoss jBPM, JBoss Rules, JBoss Portal, and JBoss ESB.

So, mapping all of this back to the bigger Red Hat Open Source Architecture strategy yields a product map that looks something like this:
This architecture, from left to right, covers the typical lifecycle areas of Develop, Deploy, Secure, and Manage. I believe we have a pretty impressive array of open source technologies in our architecture today, and I point you to the the recent reactions of some of the major sofware vendors in the industry as proof positive that the threat levels I illustrate above are accurate and real.

In my Open Source Strategy: Freeing Great Technology blog, I outlined the different approaches we take towards expanding our base of open source technologies. With this in mind, I encourage you to stay tuned over the course of 2007 and beyond as we continue to rollout new technologies and services focused on driving real customer value. The fact that this will have the net effect of turning up the heat on our proprietary competitors is icing on the cake.

What areas will we expand into next? Well...you'll just have to wait and see, now won't you? ;-)