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Showing posts from March, 2014

Only in Palo Alto! Cloudera, Hortonworks and Hadoop

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Cloudera's new Series F  funding announced initially March 23 for 160 million  is actually 900 million dollars. As we see from Crunchbase below, the insiders knew that Intel also invested $740M, but for some reasons unknown to outsiders did not break the news until March 30, 2014.

Cloudera is now worth on paper $4.1 billion, which is an average of $7.2 million per employee (570 employees as of today)

Cloudera's competitor, Hortonworks announced also funding of $100 million on March 24, for total of nearly $200M so far financing. The two companies fought bitterly in the recent months. The Hortonworks team believes it’s poised to take the Hadoop crown and Cloudera is poised to fail because the market is still too young to buy the enterprise data hub package Cloudera is selling

Hortonworks CEO Rob Bearden said  "he expects the Hadoop market will be worth about  $25 billion in the next few years and he expects Hortonworks itself is headed toward an IPO and $1 billion in annua…

Cloudera new funding of 300 million dollars and the IPO prospect.

The question What is happening with Cloudera? from my blog on February 11,  has now an answer. According to Gigaom:
Cloudera has raised a $160 million round of venture capital, the company announced on Tuesday, led by T. Rowe Price, along with three other public market investors, Google Ventures and an affiliate of MSD Capital, L.P., Michael Dell’s private investment firm. Cloudera has now raised $300 million in venture capital as it marches toward an apparent IPO. In my article of February 11, I noticed an influx of "ivory tower" engineers and employee, but the company did not develop a Super Founder leader and their mission was to teach the world Hadoop. I do have a lot of respect for Cloudera engineers, for example Daniel Templeton, ex-Sun who is one the best  technical expert I ever worked with. Probably they are many more like him in Cloudera.

It seems the idea to go IPO , according to  CEO Tom Reilly
“Going public is not an event — it’s a long process and we still have…

The Wow Wow Wow Thinking of the Super-Founders

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From my previous post, I defined a Super Founder as follows:
A Super-Founder has both the skills (1) to bootstrap the company and (2) to manage the growth creatively when an abundance of funding suddenly becomes available. A founder in general thinks like this; I have a new technology, I get some seed funding, I get customers, I offer the product or service for free or low price. When I have more customers, I increase the prices, I get a few more rounds of capital, I flip the company and I am rich.

Google's super founders created the best web search technology in the world. For a while they sold some search appliances for private businesses. But they soon realized the biggest, by far, potential is advertising.

When we say advertising, we used to think instinctively in newspapers. in 2014 the top newspapers in the nation, like The New York Times struggle to replace sinking ad revenues , which for NYT  are maybe $0.8 B per year.

Google makes $32.2 billion per year, at least 40x  New…

Mobileiron Season 2

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In July 2012 I wrote about  Why Mobileiron stands out in MDM, according to Gartner I liked the company and their potential Mobile Device Management (MDM), as they were undisputed leaders. See the Gartner MDM Magic Quadrant from 2012
In 2012 Mobileiron came after 400% sales increase in 2011 and they had an investment of $60M. Since 2012, following the 2011 euphoria, they receive two more rounds of  $88M additional capital, for a total of $148M. That was an increase of  150%.

This is how the Gartner MDM Quadrant looks in 2013.

What Mobileiron did with this huge capital injection? They started hiring massively left and right. The web site management team looks like Cisco and one can see executive experts in company politics making compromise decisions. Most of them never started a company before.

In 2013,  the landscape changed. In the leaders quadrant we have SAP. Also Citrix  is there - they acquired     Zenprise ,  The former Zenprise CEO and founder Amit Pandey, leads Citrix's n…

How To Make People Listen to You: Ten Steps

Do people listen to you? Ten bullets to check before you answer.
1. Do we know what the listener does with the message?  No one ever complains about a speech being too short! Listeners make associations that will complete the message. Don't sub estimate their intelligence
2. Will the listener feel comfortable and secure? Yes, give them exactly the same advise you would like to hear 3. The listener will defend and re-enforce any attitude we attack?  ‘There is no right not to be offended!’: It’s a popular  slogan. Some time  we have excuses:“But I didn't mean it!” Yes, but it’s so hard to prioritize impacts over intents. Always feel the empathy of the listener before speaking (and not after that) 4. Is our  message relevant to listener's circumstances? Take visual clues in face to face meetings. Look at the pageviews for each article if you are a blogger. Then use your extra-sensorial feelings. You will be surprised of the new skills you develop in tuning your feelings to li…

Fighting the obsession to see people as numbers

SAT, MSAT, LSAT and ShmAT

As  I wrote in my previous post Can Human Resources Adapt our society is obsessed with number evaluations of human beings. The entire school system is based on ratings. Our traditional employment system is based on ratings. I learned from a tweet of a famous venture capitalist, that SAT system will be reformed.

I suppose we can not live in a society that eliminates ratings. But very wise people do not need ratings, or they interpret the numbers wisely. Higher does not mean better. Google seems to see the problem clearer.

 I wonder what the top law, medicine schools in US think. Using ratings, they admit a stereotype candidate, and this stereotype picture often fits the privileged ones
View today's Khan Academy SAT disruption. Ending the corruption in college preparation. https://t.co/pmVqiI7RdA
— John Doerr (@johndoerr) March 5, 2014@johndoerr "It is as if a man were alwaya manipulating weights and measures".  From "Tales of Hasidim" B…

WhatsApp versus Safeway. A lesson. Updated

Maximizing the employee productivitySafeway  supermarket chain was sold for $9.4 billions. They have 180,000 employees.  They have 1,335 stores in the United States and 195 in Mexico with its partnership with Casa Ley

This means the Safeway's selling price is $52,000 or $0.05 million per employee.

WhatsApp was sold to Facebook for $16 billions ($19B everyone reports includes performance bonuses payable later). They had one location and 55 employees

This means the WhatsApp's selling price is $291 millions per employee

WhatsApp made the human beings it hired 5,820 times more productive than the same human beings working as Safeway employees.

This is why Jan Koum and Brian Acton, the WhatsApp co-founders, are now worth an estimated $6.8 billion and $3 billion, respectively. They deserve every cent of it.

And above all, Mark Zuckerberg who created this kind of stimulus on our planet

Note added March 11, 2014
What if a Company Maximized Jobs Over Profits? This is a title of an arti…

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Can Human Resources adapt Product Management and bring happiness?

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Read also The need to hire non-conformists and underdogs

Jobs are, the most important element for creating social wealth and a higher quality of life.

Every company creates wealth. They create products. They create services. They create jobs
We use product management  to make products and services filling a need that customers want and like. There are no Product Managers in Human Resources.
The traditional recruiting process The The Steps of the Recruiting Process … and How to Identify Failure Points thinks the secret to recruit the best is to identify the failure points. The author recommends 19 (yes, nineteen ) steps for an "effective recruiting process"

Every author seems to have a different number of steps. This article recommends 10 steps.

Others make complicated charts, like this one:
This is the traditional HR app features. They are often looking for human beings that don't exist. The  candidates dress, rehearse, talk and write resumes hiding the real selves and fa…