Posts Tagged ‘Mindtouch’

What the heck is startup brand identity?

September 17, 2009

We’ve been thinking about startup branding for a while. I recently touched on branding when I posted ‘Do startups really need branding straplines?’ and concluded that top level marketing straplines embody the vision of the startup. This brings clarity of purpose, consistency of understanding and direction. It seems to me that ‘brand identity‘ is a vague and fluffy term.  However branding is not just for the big boys. It’s also great for startups. Brand identity helps brings credibility to a startups customer, investor and partner relationships.

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It’s the Real Thing

Startup branding certainly isn’t anything like coca-cola with their big budget corporate brand personality. However  both big company and startup branding is about personality. Branding is very, very, very important for the big companies. It’s worth an awful lot to these giants. It is also really important for tiny little startups like our new web monitoring service. Branding sends out a consistent recurring and reliable message of what the company and product stands for. Customers love consistency. They want to know what they are going to get and they will be satisfied. This builds brand and product/service trust.

In a startup brand personality means the founder’s personalities. Like it or not its about  the founders character’s!  The startup is a reflection  the founders values, beliefs and the way they behave. Startups have the ability to be much more human and friendly than the big faceless corporations. This means startups can use their founders personalities to their advantage. They can be so much more human, personal and engaging.  This is particularly effective in the new world of social media. However startup founders need to have a clear message on what they stand for and who is their the target audience. The founders also have to live and breath the brand for it to be real.

Mindtouch Aaron tattooMy friend Aaron Fulkerson, the CEO of MindTouch, has taken branding
to the extreme by tattooing the company logo on his leg!!

Most business relationships, whether B2B or B2C, are based upon trust. Potential customers need to know that a supplier will deliver on their promises and they will be around in the future. The challenge for startups is  that branding and trust takes time to build up.  If the founder chops and changes  messages or brand personality too much this trust will not buildup. It takes patience and persistence on a single course to buildup branding identity. This is what makes it so valuable for both the big companies and startups alike.

The future of software: Open source, but where’s the profit?

December 5, 2008

I’m fascinated by Open source. It’s changing how software is developed, marketed and customised but can commercial Open source firms make healthy profits? They have been grappling with this challenge since the 90’s.  Keith Curtis, an 11-year veteran of Microsoft, believes deeply that open source is the future of software” as discussed by Paige Finkelman. It seems the old proprietary and open source models are dead and commercial Open source vendors are now evolving into a mixed hybrid model.

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Is this the key to a profitable open source model?

This year I met two evangelical CEO’s of commercial Open source firms, Ismael Ghalimi of Intalio and Aaron Fulkerson of Mindtouch. Ismael attempted to commercialise with GPL licencing but had to restart his business twice, racking-up $43m $34m in debt investments. A recent report form The 451 Group entitled “Open source is not a business model” concludes,“There is very little money being made out of open source software that doesn’t involve proprietary software and services.” Stuart Cohen thinks that the Opensource model is broken and “open-source companies that rely on support and service alone are not long for this world.”

Open source firms such as Intalio and Mindtouch are increasing becoming a mixed model supplying both open source community versions and chargeable enterprise editions which are reliant on proprietary code. Whether they will make healthy profits is yet to been seen. We know it can be done. Red Hat is the leading Open source commercial provider with revenues of $400m (2007). Profiteering from an aquision as good as the Sun $1b purchase of MySQL is unlikely to come around again soon because the revenue challenge remains. MySQL makes a mere $60m from support and services. This compares against Oracle’s $22b in licence and service revenues.

Some concider MySQL a growing threat to Oracle. Conspiracy theorists see the Sun deal as trying to stop Open source growing so that the perpetual software vendors such as Oracle can continue to make huge profits. It turns out Sun’s aquision of MySQL is not going well with latest version having major bugs. Ismael believes that “traditional Software is a dead market with propriety software companies no long existing in the future”.

I believe this new hybrid Open source/propriety mix is the future of software. Open source brings firms like Intalio and Mindtouch a huge developer community and a powerful marketing channel.  Customers get cheaper, better software which is much easier to customise and integrate. This market change will spell the end of enormous profits for future software vendors.

However today’s big software vendors ain’t going down without a fight. Microsoft have taken a strong stance against Open source with accusations of patent violations. Some believe this attitude will change at Microsoft in the post Bill era as discussed by Dana Blankenhorn & Paula Rooney of ZDnet. I don’t think so. Does a leopard change his spots? The recession we are now entering is likely to be a long and deep depression. This pressure on budgets could be the catalyst which ushers in a new dominate software model into the market.


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