According to an IDC report on Big Data storage, the market is estimated to grow from $3.2 billion in 2010 to $17 billion in 2015. Others peg the enterprise storage market alone at a $20 billion market opportunity.
Sramana Mitra: In 2010, you have $4 million more capital. What does the competitive landscape look like at this point? Are you starting to see competitors?
Kyle Vucko: Not really. We did see some smaller competitors who came and went. The competition landscape was pretty bare.
Sramana Mitra: As a result, does that mean that your PPC keywords were still pretty cheap?
According to Gartner and Forester, the Enterprise Backup and Recovery market is estimated to be worth $5 billion and growing at 10% annually. The researchers estimate that the bigger space of Data Management, which includes activities like data analysis, archival, de-duplication, and reduction to be worth $15 billion annually. BAAR, Switzerland-based Veeam is making big strides within this market segment.
Excerpt from my book, The Other 99% (Entrepreneurs).
There is a very real knowledge gap in the early stage start-up game, on both sides of the table. First-time entrepreneurs lack the seasoning to captain a steady ship through turbulent waters. Inexperienced friends and family (and, increasingly, crowdsourced investors) lack the ability to gauge the viability of a business, or to mentor naïve entrepreneurs.
This knowledge gap, I have come to believe, is best filled by savvy incubators. However, there are over 7,500 business incubators around the world. Most of them fail.
Sramana Mitra: In this strategy of being the a customer service portal for brands, the business model around that is not exactly an advertising business model; it’s more a SaaS business model, isn’t it?
David Karandish: That’s where half of the revenue comes from, but we leveraged the Advertising.com business model to build out the subscription piece. Three years ago, we had no subscription revenue. Today, it’s approximately half of our overall revenue. We were believers in both. We’re not against the dot-com side. We’re really excited about what we can do on the advertising there, but we’re looking at it saying that if we restrict ourselves to just Answers.com, we’re missing a big market where some of the most commercial questions and answers are available—or should be available—on some of the top websites of the world.
Sramana Mitra: How did you go about doing that? Is this your own factory or a third-party that you built a relationship with? That is the cornerstone piece of the delivery part of this business, right?
Kyle Vucko: There’re so many other pieces that go into delivering.
Sramana Mitra: Acquisition and all that is regular e-commerce. It’s the manufacturing fulfillment part that is the nightmare.
Kyle Vucko: We always had a very clear and strong vision >>>
Sramana Mitra: What percentage of the revenue would you say is BPO services?
Atul Jain: We are mostly a software company. When you say professional services, do you mean to say installation and implementation kind of stuff?
Sramana Mitra: No, anything that is custom where you’re not selling software.
Atul Jain: We don’t do any real contract-based software development. Sometimes, we do services that are not selling software. For example, we do have a portion of our business, which is not very large, where somebody will hire us to do optimization of their network. They’re not buying our optimization software. They want us to come in and optimize their network. Sometimes they will hire us to do managed services on an ongoing basis. There are services like that, but there are no services where we are building custom modules of our software. >>>
Entrepreneurs are invited to the 235th FREE online 1M/1M roundtable mentoring session on Thursday, October 23, 2014, at 8 a.m. PDT/11 a.m. EDT/8:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea to Sramana Mitra. You’ll gain straightforward feedback, advice on next steps, and she’ll answer any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.