The down market seems to be working in our favor. This probably isn’t going to news to some of you, but I thought I’d share a few random thoughts on this.

As a FOSS (Free, Open Source Solution) company, that also offers a cloud-based software-as-a-service option, we’re sorting through more deal opportunities than we can handle right now. We’re hiring based upon real growth … which is the ultimate barometer of any startup’s progression.

CIOs and other tech decision makers still have the same problems to solve within their organizations, they just don’t have a blank check book to work with anymore.  No one ever got fired for bringing in a Microsoft, Avaya, SAP, or any other market leader to implement a solution.  But if they can’t afford to do that, they can either look to a startup or smaller company for a solution, or postpone the project until the market gets better. Tech decision makers like to be heroes, so cater to that.  Give them a solution that makes sense to them in a down market. A down market is a GREAT time for an emerging company to secure a beachhead against established players.

So how do you cater to them in a down market?  I suppose there isn’t one correct answer - it will vary depending upon your business, but … here are some thought starters based on what we’re seeing.

Startups can be more agile and creative with pricing and infrastructure. You don’t have 25,000 mouths to feed.  Yet … You have a handful.  Be aggressive with pricing - don’t try to get your whole nut on your first deal or two.  Get creative. Options are limitless - per seat, per transaction, per CPU hour, etc.  Are those up-front professional services fees getting in the way of closing the deal?  Waive them, and incorporate them into a transaction fee where the customer can pay for them over time.

Make your solution solve a real problem. In this market, the checks are being written to solution providers who can truly offer an efficiency or savings (of either time or money, or hopefully both).  If you aren’t doing this, you probably won’t last in the enterprise space. Don’t make your internal champion go back and explain why his or her boss needs to write a check to you.  Instead, arm them so they go back and show how much time and money they’ll save by bringing you in AND how painless it will be to get started. Everyone wants an on-demand solution these days - the days of NIH are shrinking.

If your solution doesn’t really solve a problem - make it solve one.

Get the deal DONE (especially if it involves a reference customer). If you can do this, others will dial down their perceived risk of entrusting a critical function to a startup provider.  It could even be worth losing money on a deal like that if you know it will open other doors for you - plus it slows your burn or at least helps you get to breakeven.

Put it in the cloud. Hardware is now a commodity.  It is a lot easier and cheaper to build a cloud solution these days.  Blade server prices are down to incredibly advantageous levels.  And if you can’t or don’t want to do it yourself, check out Scalr.net, which has a fantastic interface around Amazon’s EC2 service.

Enterprise services are the “ultimate mashup”. If you are an enterprise services startup, and you can effectively add value somewhere in a chain of web services, you have a decent shot at surviving this “Great Correction” as I’m calling the current market - but you are going to have to get deals done outside of the box.

Would love to hear some other thoughts …

Cheers.

Our bizdev guy jockeying for the top spot.  FAIL!

I’ve been involved in no less than two dozen software or Internet-related launches in my career.  Having just finished the initial launch of StarPound, I thought I’d drop a few notes here about launching.  This post will ramble a bit, as I am still really decompressing from the launch.

I will preface this by saying that no matter how many times you’ve launched stuff, you will learn something new each time.  Embrace it!

The Launch Date

Putting a flag in the ground and declaring the date to the whole team is a big motivator, but it can be risky. But just do it. You can’t hit a date unless you first have a date to hit.  And your team has to have input and buy-off on that date.  It should be a stretch goal, otherwise, it is meaningless. 

If your engineers are telling you it will take 60 days, set an internal date of 45 days.  Get everyone motivated to hit that date.  If you are excited about things, they will, in turn, get excited about those things and will become superhuman during the last two weeks leading up to the launch.

But be careful about publishing your engineering date to the market … :)  You really need to know your engineering capabilities and what pitfalls might crop up ahead of the launch - otherwise, you could be setting yourself up for embarrassment.

And of course, don’t commit the whole team to a date and be “that guy” (or gal) that does’t do anything to  help them get there.  Which leads me into …

Don’t be Afraid to Get your Hands Dirty

If your the type of leader that likes to sit back and delegate, you shouldn’t have left your nice job at Bellsouth (unless you had no choice, of course).  Funny thing about people - they respond very well by being lead from the front, and not the rear.

Back when I was in the Army (under Reagan - sheesh I’m getting old) there was this one Lieutenant that all the guys wanted to serve under.  Young guy - green as hell - but he got his hands dirty.  He wasn’t above pitching in to get the job done.  Whatever it took.

When I arrived in Germany to my line unit in 1987, my new platoon sergeant has to break me in, so he dogged me and made me serve motor pool duty for a week - in the cold rain - scrubbing a whole fleet of original 105MM M1 tanks that were covered in mud (they had just come back from a big field exercise).  While the more veteran guys walked by me hazing me for being a new recruit, this Lieutenant walks up and asked me what I was doing. I told him.  He took his parka off, rolled up his sleeves and helped me wash every single tank on the line.  Most of the other officers were lame in comparison.  This guy gave a sh*t about his team, and we responded in kind.  We would have walked through the fire for that guy - and some of us did.

In any startup, people are expected to wear multiple hats, each and every day. 

If someone has a problem with that, you need to get rid of them - period - because they will kill you in the end, one way or another.  I recall one day a few weeks ago where my schedule roughly consisted of the following tasks:

• Morning status meeting with the whole team
• Writing PHP code for our new web site
• Biz Dev: meeting with a new Fortune 500 customer
• Meeting with potential investor
• Using Photoshop to create new buttons for our app
• Market research - then working on marketing packets
• Interview new sales guy

And this was just my schedule.  Other people had it much worse.  If you cannot willingly wear multiple hats, or  you don’t have the skills needed to wear multiple hats, you have already made your journey that much more difficult. If you really don’t have the skills to help out in other areas, make an effort to learn.  It’ll make you a better leader in so many ways.

In short - delegation is a fine skill to have, but you have to earn the right to use it, and you earn that right by leading from the front, not the rear.

Sales and Business Development

Don’t ignore the sales effort while you are prepping for the launch. You don’t want to wake up with a nice launch, and no one to show it to. If you aren’t balancing sales and business development calls with launch-related stuff, you are heading down a very slippery slope.  The technology dead pool is full of companies that blew their wad on great launches, but they ended up mostly being “all hat and no cattle.”

At the same time, don’t distract your engineers with too much sales support - they need to stay focused on the task at hand, which is getting product to market.  if you do need to tap your engineers for sales support, try to streamline their involvement as much as possible.  Do you really need to drag your whole development team into a pre-sales meeting?  How about just the CTO?  Another approach is to set aside a certain block of time each week that they can be available for sales support, rather than ad hoc’ing everything.

Patience.

People will miss things, so accept it now - certain tasks, even critical ones, can get lost in the noise. You’ve gotta stay on top of everything and everyone.  And guess what, you will miss things, too.  Get over it.

Your team’s level of motivation and attention to detail is going to have a fairly direct correlation to your ability to keep things moving forward, despite the cyclone spinning around you.

The 90% Solution

This is something I’ve espoused for a long time, and it is rarely more fitting than when you are trying to launch something new.  The 100% solution is never attainable - so forget about.  Strive for 90% and try to get that part right. The rest will come in time.

If you had a splitting migraine, would you pay someone for a pill that solved 90% of your pain, or are you willing to suffer in misery while they work on the pill that solves it all?

Cheers.

My StartupLounge.com partner in crime Mike Blake is gonna hate me for this, but I can’t help myself.

Besides sharing a deep-rooted passion for helping entrepreneurs, we also share a fanatical love of video games - good ones, bad ones, doesn’t matter.  Lately, we’ve been playing Madden NFL 2009 a few nights a week on our XBOX 360s.  Good stuff.  Gotta love Internet play.

I always play the Falcons, because, well, I’m a real fan.  I’ve been a Falcons fan since the pre-Bartkowski days when Auburn QB standout Pat Sullivan warmed up the bench behind Bob Lee and Kim McQuilken.  Blake tends to rotate his teams from night to night - but lately, he’s been fond of trotting out the Raiders.

Madden 09 has a great post-game feature that lets you take any play from the game and turn it into a highlight reel.  You can choose the camera angle and what not, and then publish to EASportsWorld.com for sharing. 

Lately we’ve been having some pretty competitive games - many of them coming down to the wire. Big surprise - the risk taking entrepreneur (me) is usually going for it on anything less than 4th and 5 outside of my own 20. The conservative finance guy (Mike) won’t hesitate to trot out the punter. He usually wins in the end, mostly because I can’t control my urge to roll the dice.

But the other night, I got my revenge.

Here is my inaugural video recording - a single back formation, halfback draw to Michael “The Burner” Turner, who breaks no less than 4 tackles and victimizes the Mike Blake-led Raiders defense on his way to a 63 yard TD run. Booyah!

Sorry, Mike - couldn’t resist

Cheers.

Due to logistics, we’ve had to change the event venue from the Galleria to the ADTC - same time - 2pm.

Let me repeat – PitchCamp will NOT be held at the Galleria, but on the 3rd Floor (Hodges Room) at the ATDC. You can get address/map info here:

http://www.atdc.org/contact/

Thanks to Lance and crew at the ATDC for helping us out!

Cheers.

Well, after four years of toiling, the StarPound project is finally seeing the light of day.  In the wee hours this morning, Wei Wang (CTO) and I published v1.1.0 RC1 of the open-source StarPound CORE platform to Sourceforge, and then published the new StarPound.net web site.  The team has been working nonstop over the past few months to make this launch date - we’re tired, but we made it.

You can read a lot more about the platform over on the site, but I’ll serve up a quick description of it here, and share a little bit about where we’re going.

StarPound CORE is a beautiful fusion of business process management (BPM), telephony (VoIP/SIP, PSTN/TDM, cellular, etc.), and web services (SOA).  What a mouthful.   In other words, the platform gives you an easy way to turn your organization’s business processes into web (or voice) services.  You can also use it to create any web service, not just those that are explicitly tied to some business process or telephony.

StarPound CORE is comprised of two key components: StarPound Studio and the StarPound Application Server.  StarPound Studio is a visual process modeling tool that is BPMN compliant (very cool), and built on top of the Eclipse IDE.  You create a visual model of what you want the voice/web service to do.  You can drag/drop really cool things like calls to external web services (e.g. Salesforce.com, Google, etc.), call control tasks, IVR tasks, etc.  Test it, then deploy it into the cloud on a StarPound App Server where it is ready to use.  The service can be initiated by a person, a phone call, an email, FAX, SMS, or web application request via SOAP or REST.

The platform is 100% Java/J2EE, but obviously you can invoke deployed StarPound services using whatever language you are using (via SOAP or REST calls).

There is a lot more to our vision than what I’ve described, but at its core (no pun intended), that’s what the platform does. You can read more about our vision here.

What’s even cooler than finally releasing the first release candidate of the platform is that we’ve also released two sample open-source applications that were built on top of the platform (StarPound PBX and StarPound Call Center).

StarPound PBX is a full-featured, free, open-source PBX that gives you pretty much all of the features you’d need out of a PBX for your office:

• Auto-attendant
• Voicemail (and web-based voicemail)
• Call menus
• Call hold
• Call forwarding
• Call routing
• Conference calling
• Hunt groups
• Unified messaging
• User directory
• Integrated voice response
• Call center support
• Web-based administration
• Open-source and free!

And, it is scalable because it is built on top of the StarPound platform.  Legally, I can’t mention any names, but one of the largest video game publishers in the world is now using StarPound PBX.  And why not? It kicks ass.

StarPound for Call Centers is also mega-cool. It provides mission critical functionality for call centers, like skills-based routing, automated call distribution (ACD), inbound/outbound, predictive dialing, workflow management, queue management, CTI integration, call recording/monitoring, screen pops, agent dashboard, supervisor dashboard, remote agent support, etc.  Again, free and open-source, and another really cool example of the types of apps you can build on top of StarPound CORE.

Right now we’ve got a ton of really exciting business and partnerships in the pipeline on the commercial side of things, and I’ll be writing some more about those things down the road as we work through them. But I can tell you that we are enjoying a tremendous push into the enterprise call center space, online marketplaces/exchanges, and scalable cloud services.

On a semi-related note, we’re also exploring opportunities to invest capital and resources in new startups that are in a position to take advantage of this new platform for creating disruptive applications within specific vertical markets.  More on this soon … but you can read the official particulars here.  We have a couple of deals that we’re already considering.

Now with all the cute cuddly launch comments out of the way, I’ll add this:  We have a long list of incumbent industry players that we’re going after, in multiple markets and sectors. And we’re coming fast and going for your jugular. Let the games begin.

Hats off to the whole StarPound dev team for this launch (Wei, Andrew, and the guys in St. Pete) - it has been a long time in the making, and I know that everyone is ecstatic right now about where we’re going with the company.  Good stuff …

Cheers.