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This discussion from 2020 with Madwire Co-CEO JB Kellogg includes all sorts of interesting nuances, including DIFM vs. DIY. Read on.
Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?
JB Kellogg: I’m from Colorado. I was born and raised there. We moved around, but most of my childhood was in Colorado. I was very into sports as a kid. I grew up with that as my primary focus, which catapulted me into college on scholarship for football.
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Sramana Mitra: What is your strategy vis-a-vis the players like Qualys and Palo Alto Networks? Are there opportunities for partnerships? If they’re not your direct competitors, do they have anything in their portfolio that you compete with? That would then open you up to large enterprises.
Aimei Wei: We have integrations with Palo Alto’s firewall. We also have integrations with other Palo Alto products. When customers have those products, we are able to support them. We do have the integration. We do have integration with Qualys.
>>>According to a recent research, the global e-learning market is expected to grow 13% annually to $645 billion by 2030 from $215 billion in 2021. The North American market is the largest market that is expected to grow 11% annually to $76 billion by 2030. Recently, Coursera (NYSE:COUR) announced its quarterly results that reported strong growth. But the results fell short of expectations and its weaker than anticipated outlook have sent the stock falling.
>>>Sramana Mitra: What happens next? This was still in 2015?
Lachlan de Crespigny: Right at the end of 2014. We ran a three-month test and if it worked, we’d decide whether we want to start this business. We started and the second one worked. The biggest next step was, we raised a seed round in the middle of 2015. We weren’t really sure what we were going to do with the money at that time but we knew that we had a business. We knew it was scalable and we knew that it was a big attractive industry.
>>>Sramana Mitra: Is it fair to say that your solution goes to market through the MSSPs?
Aimei Wei: That’s one type and accounts for 50% of our business. On the other hand, we do have enterprises that operate on their own, for example, higher education, government, or financial institutions.
Sramana Mitra: I’m going to discuss those two businesses separately. Let’s start with MSSP. What is happening in the MSSP world right now in terms of how you go to market with them? When you start an MSSP relationship, do they immediately offer you to all their customers?
>>>According to a recent report, the global SaaS market is estimated to grow at 19% CAGR to $702.2 billion by 2030. Redwood City-based Sumo Logic (NASDAQ: SUMO) is a leading SaaS analytics platform that enables reliable and secure cloud-native applications. It recently announced impressive quarterly results.
>>>Sramana Mitra: What was your hypothesis on how you were going to generate cash flow?
Lachlan de Crespigny: We were shocked to discover this industry where offline recruiters would do tasks that we knew could be automated quickly and they charged very large amounts of money for it. We need to sell something high-ticket, because I’m not going to be able to make a lot of sales every month to get started.
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