John Gannon's Blog
How do you make money as a datacenter-focused cloud computing company? Aside
from the sale of compute capacity (a la Amazon or Rackspace), what are the
other revenue opportunities available? Here are some thoughts...
1. Management tools: The cloud hosters like Amazon are providing basic
management tools, but we can already see there is a proven market for
higher-order management and automation provided by companies like Rightscale
and 3Tera. There are also a variety of companies and products who have
figured out IT automation in the traditional datacenter (Bladelogic, Opsware,
etc). I’m waiting to see when they’ll start moving towards new product
development (or rebranding of existing solutions) that will be focused on
management of outsourced cloud environments. As their customers move to the
cloud, those customers will demand that their tradition... (more)
Last night I spent a couple of hours going over our personal finances which
included me spending some time on the American Express customer portal.
Amex does a good job of letting you on their portal where you could be buying
to maximize your membership rewards points. They will often tell you things
like “Buy at FTD.com and earn double points” (I don’t know if FTD.com
is actually a partner, I’m just using this as an example). The airlines
do this as well, letting you earn points if you purchase online from certain
I think its great that Amex, the airlines, and whome... (more)
I have been thinking about if there is a place for some cloud computing
vendors to come on the scene to handle what I call the ‘P2C’ conversion
process-taking a physical machine and converting it to an image that can run
on a cloud. If we look at the virtualization market, clearly P2V (physical
to virtual) was an enabling technology that helped people migrate existing
physical hosts into virtual machines, without having to completely rebuild
systems from scratch. VMware had a product in the space (and still does)
and there was also some popular products provided by 3rd parties ... (more)
Much of the focus in the technology press on Enterprise 2.0 platforms has
been on the similarity of these tools to public social networking systems
like Twitter, Facebook, etc.
One consequence of this similarity, and one that’s being missed by the tech
press and venture investors, is that these platforms make it possible for an
employee at any organization to build an internal personal brand.
I believe over time (3-5 years) that employees will view their internal brand
as critical to their success within the company, and the forward thinking
ones will put significant effort into ... (more)
Image via Wikipedia
As a junior staffer at a VC firm, I think its important to understand where
and how you can be helpful to portfolio companies. The advice I received
from my venture capital teachers Stuart Ellman and Will Porteous of RRE
Ventures (blog) has stuck with me, and I’ve tried to operate using that
advice since starting my VC career.
I’m paraphrasing here (it’s been about a year since the class where we
discussed it) but in essence, the advice was to simply be helpful and humble.
Here are some examples of ways that a junior VC can add value:
Business development: Int... (more)