The Deal Behind VARStreet

IT Business
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I’m extremely biased (because as an Autotask integrator we stand to make and save a ton of money) in my opinion but I’ll offer it to you anyhow: The Autotask acquisition of VARStreet is perhaps the biggest announcement to hit the MSP space in quite some time. How so?

Think of VARStreet as an “App store” service for software companies (like mine) and service providers (like you) where the nightmares of partnerships, paperwork, agreements and licensing junk are reduced down to the point and click.

I was at MSP University event when Len DiCostanzo started discussing this subject with the MSPs in attendance. The premise of having an integrated shopping cart for the MSP is huge in terms of time savings and prospecting. I can tell you that because the biggest obstacle in doing commerce in the MSP world (as far as vendors and MSPs are concerned) isn’t the golf or the partnership or the handshakes with the owner – it’s making the solution easy to price, quote and position for the sales staff that actually makes the transactions happen.

The MSP industry and the associated PSA & RMM tools have made significant progress over the past year in the area of integrations – we can at this point pretty easily support your purchases directly through Autotask, we can sync your seat counts for reoccuring services, we can streamline the process of getting into the clients service through LiveLinks, etc – so what happens after the line which is dotted is signed is pretty smooth.

VARStreet is about the only thing out there, in my opinion, that will make the process that happens before the purchase smoother. At this point OWN distributes “Sales Cheat Sheets” for our products, brandable marketing collateral, go to market pamphlets and all this stuff you can “attach” to the quote or proposal – something that typically involves further complexity with a quoting tool, etc. In other words, we have a good bureaucracy of a process behind trying to get the sale.

With VARStreet all that changes.

Kudos to Autotask for spending their money wisely. We’ll be at the Autotask Live Conference later this month and I’m very interested in learning how we can further automate the process of selling. Nearly all the MSPs I talk about have growth goals – and you grow by selling more. Interesting times indeed.

Day 1 with iPad

Apple
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Yesterday I waited in line for an iPad with a few hundred of my closest friends and I killed time tweeting and catching up on my Facebook friends. Everyone wanted the opinion of the iPad and after a day of using it I am going to offer you some insight.

First, have an idea of what the device is going to do for you. Buying a gadget just for the sake of having a gadget will only bump up your electricity bill and introduce more dust and cabling nightmares. What can a gadget do for you that others can’t?

For me, the iPad is hopefully something I can use to structure my first and last hour of the day. Much of what I do these days is research, mentoring and management and I think the primary role is in communications. But when its late at night, an inbox with 299 emails to reply to sometimes takes a back seat to ESPN. Or I send a 10 page reply to someone that makes us $9.99 a month. Surely there is a way to be more efficient and less distracted.

My hope is not to have to bring a notebook into the bedroom and minimize those last minute distractions.

So thats my story. Here is my initial impression.

It’s hard to type laying down. The device is very slippery and slides around the sheets quickly. If I gain some weight I will pinch it between my gut roll and my legs. Got the image? Good.

The browser is absolutely amazing. Everything that is frustrating about the iPhone browser is absolutely perfect about the ipad one. Its kind of amazing, just as many prerelease reviews noted, the device simply disappears from the view.

The autocorrect onscreen keyboard is great but could use some work. Having an android business phone I can tell you that the keyboard is quite amazing, but it still has its quirks just like an iphone one.

The email app is great, but could really thrive with some management functionality, like flag categories and so on. For now, I just move stuff into a review folder and go from there but it should be easier and more Outlookish.

Lack of multitasking is a real downer. I know that they are going to introduce that soon and for now just having the multiple browser windows helps.

Overall design is great and when the device is on you don’t see any smudges. Turning the screen off would make you run for a bottle of Lysol. I didn’t buy any screen protection or sleeve for it at all, I don’t anticipate taking it outside of the house / bedroom. The screen lock while charging doubles as a digital picture frame.

I heard some comparisons drawn between this and a net book. In my opinion this device is far faster and friendlier than a net book. However, it is not as flexible. Much like all the Apple software, its great at a few limited things and sucks for just about everything else. I don’t own a netbook anymore but I would not consider this a good replacement for it.

All in all, I love it.

Vlad, tell me how you really feel.

Vladville
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I’ve been bombarded by requests both by phone and email about how everyone is doing. If I can be forward enough to guess, it’s because so many are seeing news of things going great for large software/ hardware – yet their businesses are not seeing anything near those numbers despite the increased interest.

I’ll make this brief because I am in a line for an ipad with a few hundred people and indeed, things are better – just not for MSP’s.

I’ve covered this before, but I’ll say it again: “Economy is never bad for things that people want to buy.”

In 2008 we started seeing a huge push to the cloud as customers rejected large and long term investments. The cloud opportunity was awesome. People downsized, cut spending – and yes in 2010 they are interested – just not spending at 2008 levels. And don’t kid yourself, they won’t again.

Now we are in 2010 and the clown truck has pulled up – your usual trunk slammers and experts are all knowing cloud experts now and the competition is fierce there now too so there goes another opportunity.

The reality of the business is that only first movers and eventual efficiency (read: low cost) survive and thrive. The rest (and I’m assuming that IT services are not luxuries or highly specialized/ skilled things anymore) die a slow or mediocre death.

2010 cloud expert is the 2008 MSP expert which is the 2006 SBSer.

What’s next is the big question.

One that you likely won’t find on a blog. Unless it’s yours.

And frankly, for many it doesn’t matter – you could still make money in any of the lapsed technological evolutions – the mirror match is just the question about how long you will be willing to wake up and go to work as an underpaid dinosaur.

No Vlad, tell me how you really feel…

Arnie recently told me that most people see me as an angry guy by reading the blunt comments on this blog. I get this in person all the time – “Vlad, you are nothing like I expected you to be.” Perhaps I’ll start a blog to blow sunshine up my fans asses as they march their way out of business – there are enough people out there that do that already though.

The reason people keep on coming back to this blog in such massive numbers is because there is very little veiled or shielded or polished or otherwise politically correct stuff to entertain you on Vladville. Every word you read here is exactly what I have on my mind. Really, really. And at the end of the day, if you find this abusive, I truly feel that you are the person in control of your destiny (life, business) through the decisions you make. If you read this blog, feel like it’s written to beat you down, you ignore it and you fail – thats your choice. I don’t write it to beat people down. I write it because I honestly believe that what I write here and so many people pick up on it and recognize the stupid things they do in their life/business. Do you REALLY think that with over 40,000 weekly visitors I am really writing it to you, yes you?

Either you’re in charge or you’re not. Either you’re going to do something about things or you’re going to sit back. Leadership is not something assigned, it’s something you just do and what you are. So love it or leave it folks, in the meantime this is one of the few places you can actually listen to a CEO of a multimillion dollar company and see how it’s done – even if I’m dead wrong about it.

Can you do better than 16?

Exchange, System Admin
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I recently got a challenge to build a solution that could be price comparable to what cloud storage services charge, except with the performance being key.

The challenge: You can’t build a $3 Exchange 2010 Mailbox!

Vlad: “Sure I can! Just not one you’d ever want to put data on.”

So I set out to prove myself wrong and create a PoC (proof of concept) redundant system that could do random read/writes in the very high double digit MB/Sec, possibly even triple digits. Mission accomplished, here is how I did it:

Storage Server Contents

rack2Below is a list of components, all available as a retail package (ie, 3 year warranty when it explodes) all accessible to everyone. Due to the pricing constraints I’ve had to make some significant sacrifices (particularly with the consumer-level drives, processor and motherboard) but mostly in the areas where I wish I had server-grade components but could not justify the cost differential based on performance.

 

Intel Core 2 Duo E7400 2.8GHz

G.SKILL 4 GB DDR2 800 (PC2 6400)

Gigabyte GA-G31 MicroATX Intel Motherboard

SuperMicro CSE-825TQ 2U Rackmount Server Case

8x HITACHI Deskstar 2TB 7200 RPM SATA 3.0Gb/s

areca ARC-1220 PCIe x8 SATA II RAID

rack1So to sum it up: 8x 2 TB hard drives ($149), Intel C2D Processor ($124), 4 GB DDR2 Memory ($93), Intel G31 Motherboard ($47), 2U Server Chasis with Rails ($339) and a RAID 6 SATA Controller ($454) all for the grand total of $2,249 or approximately $0.16 cents / gigabyte.

In RAID5 configuration this system delivers 14 TB of space at a bottom line cost of $0.16/GB. The overall system draws almost 2 AMPs and takes up 2U with included rack rails. It took roughly 30 minutes to put together the whole thing, most of the time having gone to taking 3.5” plastic fillers from hotswap trays.

Opinions

Before I show you the actual performance thats relevant to Exchange 2010 servers, do you have any recommendations,  suggestions or questions? Anything I could have further skimped on?

I considered Western Digital Green series, since they were significantly cheaper, but they run at 5400 RPMs and I had serious concerns about their ability to withstand a beatdown of an Exchange mailbox role. I didn’t consider any other RAID controllers and software RAID is a bit out of the question considering that every time we tried software RAID in a high performance server the motherboard melted down – also without battery in high performance situations things tend to smoke. What I wish I could find is a more efficient power supply that didn’t cost thousands of dollars.

Update: Specifically, what I’m after is if anyone out there knows how to get similar performance at a similar price/GB. Are there better controller, drives and motherboard choices?

Bitching and moaning or competing

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I’m on my way back from Dallas, reading the Wall Street Journal and my tears are just pouring all over the place for a little company called Porsche. Perhaps you’ve heard of them: they don’t make a single car under $46,000 and majority of their models cost six figures with the recently discontinued top model (Carrera GT) starting at $440,000. American.

The company is complaining that the new EPA requirements for fuel efficiency and pollution control would disproportionately hurt them, and I quote WSJ here:

“It’s not that we can’t do it, it’s that we lose competitiveness.” – Bernd Harling, Porsche

Now, if obscenely overpriced cars aren’t enough to jerk a tear out of you, also consider that Porsche routinely closes their production plants for nearly 2 months in the summer for vacations.

panamera1

I think I have a suggestion on something that would help your competitiveness: earn yo keep. If selling overpriced cars and being lazy isn’t enough, the excuse is “we could do it, but it’s easier to just complain instead.

The History

Most of these high performance automobile companies (Porsche, Ferrari, Lamborghini) were founded by amazingly competitive and hard working people who not only wanted to be the best but also didn’t back away from a challenge. As the legend goes, Ferruccio Lamborgini went to complain to Enzo Ferrari about his (Ferrari) car being a piece of track junk (too loud) to which Enzo politely explained that a simple peasant farmer simply couldn’t appreciate the engineering and luxury of a Ferrari.

When you’re in the industry with a ton of innovation and competitiveness, you simply don’t get to be lazy or say “no.”; When you do, you lose a client. Or your job.

The reality of the modern business is no different than when these companies were started around the middle of last century. What has changed for those companies is the priority: it’s all about the money.

When absolutely all that counts is the bottom line, your income, your pay, and you’re willing to let your products or output fall apart because it’s not worth it to you, it’s simply the end of the road.

The alternative: do your best, every day, try to bring the best to the table and believe me, you will get compensated and you will be competitive.

Android – Part #1

Mobility
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I love my Apple iPhone 3GS and I can’t really imagine life without it – it takes pictures, video, has great games, FaceBook and TweetDeck rock and when you need to kill time it’s awesome. However, my business phone is just not something iPhone is meant for. So after over a year of searching around I’ve decided to try and replace my business cell phone with the Google Nexus One.

Reasoning

Microsoft will be releasing Windows Mobile later this year. It’s about 90% likely to suck as Microsoft always does when they chase. I’ve never been a fan of Palm and it looks like they are about to die. Blackberry I have religious issues with.

So that left Android. I chose Google’s Nexus One because it got great reviews and unlike literally all the other handsets, it’s not controlled by the carrier so I don’t have to be at the mercy of a carrier when it comes to upgrades.

First Impressions

It’s an HTC. If you’ve ever purchased nearly any Windows Mobile phone you know what I mean – cheap Chinese piece of junk. Feels and looks cheap. Accessories look 3rd world all the way.

The OS is clunkier than the iPhone, not quite as intuitive and the keyboard is not even close to the iPhone one. Nexus One also has four shortcut keys underneath the screen so when you’re typing an email you can hit the buttons rather easily. The app selection is pretty diverse and looks better than the App Store. The Exchange AS works, but there is no way to provide a signature for sent mail – very, very strange but apparently being worked on. The phone itself is very responsive but also very hot. Multitasking implementation is awesome – killing applications isn’t, you need to launch another app (task killer). Voice Search is not very accurate. Battery life is about the same. The camera is amazing. Tethering is supported and the AT&T 3G is moving quite fast. Customizing ringers, etc is a bit touch and go.

In a nutshell, it’s decent. It’s no iPhone, not even close. If I had to choose only one, I would definitely get the iPhone. But for pure business… That I’m not so sure on.

So far, no show stoppers. I’ll post an in depth review after using it for more than 1 day 🙂

Where is the line?

IT Business
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Last night I had a very interesting conversation on where the line is drawn between producing a quality product and maximizing profitability. Believe it or not (software, MSP, IT Solution Provider, SPF) there is a tradeoff between perfection and profitability – the better you try to get your product, the more it costs and less it makes because it diverts money from sales and marketing efforts to make a better product that fewer people will buy.

But where is the line? Let’s for a moment forget the beta culture most of us younger entrepreneurs have brought up in and assume that there is a happy place between shipping shit for money and burning the midnight oil checking all the t’s and dotting the i’s.

The question is: Where is the line and how do you find it?

I don’t have an answer, earlier in my career when I was very close to the product development and support I spent far more time focusing on perfection but we made a lot less money. I worked very hard and we grew slowly and patiently – but we didn’t take it to that “next level” until I focused on the product distribution and growing the scale of what we do here. In the end, we’re able to deliver a product that has a higher quality and reliability with a better profit margin.

One piece of advice I have for people that are just starting up is to focus on building the business, not the products. You can always hire amazing people and build amazing things – once you’ve got the money. The line between where you can be proud of your solution and run a profitable business – that I don’t know. I’m proud of what we’ve build and what we deliver but I also know at least a dozen holes that we’re working on and I have another 200 that I haven’t even thought of yet. But by the time I perfect ExchangeDefender there won’t be any SPAM around to block anymore 🙂

Sense of Urgency (Why people work hard)

IT Business
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We’re on our way back from a long week in California, closing some fantastic meetings in Los Angeles, an awesome Xchange Service Provider event and the CharTec Academy. Fantastic partners, great people, ton of fun but not easy stuff by any means.

I had perhaps one of the most interesting conversations in a very long time that started with the following questions:

They seem to work really hard – barely seeing their kids.

He puts in insane hours just so his wife can stay at home and raise their kids.

But here is the response that my best friend shared with me last fall when I went to visit him and asked why his wife seems to be stressed out:

“She’s at home stuck with the kids and she wants time off but I just can’t give it to her right now.”

He works so that his wife can stay at home and can get the joy out of raising their kids. Yes, that too is a sactifice because there are times when we’d all rather do something else – but we all sacrifice for what is really important in life.

One thing I’ve learned in life (at my old age of 31) is that really successful people tend to sacrifice (at times a lot) to get to the next level and become successful. One of my friends in the industry recently shared with me that everyone thought she was a lesbian because she didn’t have a man and worked so much. Ouch.

I won’t speak for those people. And please understand, I am not trying to preach here – this is my life and this works for me, your life is your own and I am not trying to change it or challenge how you live it. At all. Please don’t look at this as anything other than an explanation of how us weird “workaholic” people see the world.

Believe me, if I could do this on a sofa in my tighty whities eating M&Ms from my bellybutton (oh yeah, you pictured it didn’t you?) I wouldn’t be writing this blog at 30,000 ft on a redeye flight on a Saturday night after an 80 hour workweek. Alas, Ferrari’s are expensive. As are Porsche’s. As is kids private school and college education. As is a big house, big house cleaners, insurance, Disney passes and Snaussages.

I was raised to respect money and my parents always told me that they both worked hard because they wanted me to have an opportunity to make something of myself in life. I don’t recall mommy and daddy ever handing me the Corvette keys – I had to earn those myself. And now that I have a family of my own, I want my kid to have a chance to have a better life than I did.

I wouldn’t trade my life with anyone I know. So it takes a few extra hours to earn it, will I really remember this redeye flight in a year? Doubtful.

About balance..

Lot’s of people seem to talk about “balance” in life. I for one don’t really find my life unbalanced, I’m blessed to love what I do and I would be on this computer doing this stuff at 2 AM no matter what. I don’t particularly enjoy the meetings with lawyers and accountants, or apologizing when we fail, but there is no such thing as perfection.

I also do not believe there to be such a thing as “balance”; Oh, I know a lot of people that talk about balance – and talk about it a lot – but truth of the matter is that someone always feels like they are losing out no matter how much you think you’re balancing it out.

— “ Your spouse thinks you’re working too much and you’ve got problems at home. Your boss doesn’t think you’re working hard enough so you’ve got problems at work. You bring your home problems to work which affect your performance which affect your compensation which leaves you to go back home to your loved ones and unload on them when they hit the wrong button during the “how was your day” talk. So you stay awake past your bed time to try to make it up with sex, wake up exhausted and just can’t wait for some sucker to call you up and as John Wayne put it – “Go ahead punk, make my day”  “

That little bit of darkness is courtesy of my friend Steve who delivers the above rant to a perfection in person. Gloomy, ain’t it? But there is a grain of truth there, we all have to sacrifice.

So why do it?

The reason I am writing this post is to tell you that there is an enormous sense of urgency among the technology providers to become a full technology solution – because so much is now possible without physical presence, all of the traditional “suppliers” and “vendors” are going direct to the consumers and the old “business2business” world is no longer an entity onto itself – it’s just an extension of consumer experience.

Everyone is racing at a frantic pace to offer VoIP, BUDR, cloud, commodity monitoring, remote services and support. We all want a spot on that clients org chart.

And among my hard working friends there is an understanding – hard work and dedication over time breeds winners. We become so critical, so essential, so core to the success of our organizations and our clients businesses that the payoff is guaranteed and proportional to our effort.

It’s the equivalent of the universe saying: the money is yours, all you have to do is put in the effort pick it up.

Some people only want to reach down for $10. Some will reach deeper for a $20. Some will roll up their sleeves and try to pull out a $50.

This is the greatest, most profitable time to be in business. And what you build now will stay with you for years. Make yourself indispensable.

So from the 30,000 ft in the air on the red eye flight after a 7 day workweek, with my laptop in one hand and gold plated revenue digging showel in the other… good night and happy Monday.

How do I get paid for not doing the job I was asked to do?

Uncategorized
3 Comments

This is my third part in attempting to answer the question behind a highly emotional set of responses I’ve received to this post. Things in the IT world are changing radically and it’s natural for most people to resist change – most people enjoy their comfort zone and when comfort zone impacts your livelihood it’s natural to feel uneasy about it.

To read about the journey so far:

How do you create compelling value on top of something that is no longer a problem people will pay to solve.

Why things fail.

And the post that started it all: Success.

Let’s continue…

This part is something that is universal to us all in business, business owners and business employees alike. We have to meet expectations. If we don’t meet expectations, we don’t get promoted or even worse we get fired.

Whether we’re fired by the client or the boss is of little concern here. What should be a concern is: are we meeting expectations. Now, keep in mind that this is where things tend to get complicated because money (that which we spend on our happiness) is at stake. And to make it even more complex:

1. You don’t control the expectations. Your boss or your client does.

2. You don’t judge whether you’re meeting expectations. Your boss or client does.

Argue with it if you will, cry that it’s unfair, paint a sign to abolish the filthy western capitalism – whatever makes you feel better. But accept it. You are not in control.

If you can make it past that….

(by the way, most won’t / can’t – because they feel it’s unfair)

Now that you understand that you are not the one in control of the situation, try to figure out a way to manage those expectations and even more importantly – celebrate when you exceed the expectations that you have established in black and white!

That is easy to say but very hard to do. Because what really counts isn’t that you’re meeting or exceeding expectations, it’s the consistency that matters. You have to be great all the time or the first time you flop you’re back to everyone else – us humans down here that make mistakes from time to time but generally seem to move forward at a slow pace.

Establish a set of goals and a set of metrics that can be easily measured..

Again, just common sense. When you need to prove that you’re actually worth being kept around as a service or employee, you need to establish the set of metrics that both parties can agree on and then do your best to exceed them and make sure both parties are aware of it.

And this is where it all falls apart..

🙂 Keep in mind that I am not a motivational speaker.

Here is the thing – just because you can agree on a set of metrics, doesn’t mean that the other party considers them to be important. What’s even more infuriating (as discussed in the previous post) is that the level of importance of the things you’re delivering tends to diminish as you get further away from the original problem you’ve been hired to solve.

To wit, your ability to maintain your current service charges / salary or even increase them depends on your ability to consistently prove you can do more than what you’ve committed to. Here is how the decision maker thinks: If this service/person is only delivering what I pay them for, giving them more business is not really going to make me marginally better off so I’ll have to think about it. It means – they don’t buy. In the HR terms, if the person is constantly asking for a raise but never consistently going above the call of duty, then giving them a raise will only increase the output so much and may not be worth it (what if they decide they don’t want to work as hard?)

So now you know why as a business owner you don’t get a ton of business or why as an employee you aren’t paid. Truth is, no matter where we are – after the initial euphoria of the win – we all believe we’re not being paid enough.

So here is the secret:

1. Dedicate yourself to constantly improving.

2. Market your improvement to the decision makers.

3. Prove you can do something before you ask for money (ex: at OWN we give people free trials)

4. Always, always, always go back to #1 and solicit feedback. Because remember, it’s the person that parts with the money that defines the parameters of your job and their expectations of you – it’s not up to you to decide whether that’s fair or what the service/job is. Ever tried arguing with your client over an invoice? How well did that go?

Summary

The truth of the matter is, whether you feel you’re underpaid or your business is not successful, at the core is the fundamental truth that you suck. <gulp> The nice thing about life is that “suck” is relative and so long as you can dedicate yourself to both improving and being open to the criticism (otherwise people won’t tell you that you suck and you’ll just keep on beating your head against the wall) the only thing that matters is consistency and dedication.

If you’re really willing to be successful (and aren’t just faking it) and are committed to always improving instead of quitting because you’re either right or the grass is greener on the other side.. success is just a matter of time and a journey, not a specific point in time.

To give you an idea: I run a multimillion dollar software company. Nobody gave me money to start it. I’m at a business conference where my sole purpose for being here is to ask people to give me their money because I can do something better than they could and for far less. It took a ton of time, money and sacrifice to build what I’m about to offer them. It took a ton of time to perfect my ability to communicate what I will do for them and why they should choose me over someone else. And then when I finally win the deal (or job) I have to keep on kicking butt every day, deliver more than what they are paying for (consistently, or they’ll switch to a lower cost solution) and keep on asking them if we’re doing a good job. It didn’t happen overnight. It didn’t happen in a single spurt either. It’s process. Nobody is just going to give you stuff. You have to completely blow people away before you can ask them to part with their money.

The beauty of capitalism is that (on the average) so long as you can execute all the above, you can drive a red Ferrari and take your kid to Disney World. Or whatever brings you joy.

MSPU Dallas Next Week

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The MSPU bootcamp monster is growing – if you’ve never seen MSP University bootcamp in action you’re missing out. It’s 3 days packed with MSP training on sales, management, HR, service desk – basically building and running a business from how to manage your hardware to how to manage the cleaning detergent supply for the office cleanup crew 🙂 We’ve proudly sponsored every single one of these and will continue to because they remain as (as biased as this may seem) the best resource for MSPs out there.

But now it’s growing again with pre-day events. Next week in Dallas, should you happen to come early, you can check out CompTia’s security workshop.

P.S. Your head will spin with ideas when you go through one of these – and they are free as well – so it’s not for everyone.