Sramana: How have revenues ramped at SOASTA? Tom Lounibos: We are still under $20 million in revenue but have ramped up substantially over the past three years.
Founded in 2003 by Ari Zilka, Terracotta, a wholly owned subsidiary of Software AG, develops breakthrough software that delivers snap-in performance, scale, and availability for enterprise applications. Terracotta’s technology can store up to a terabyte of data in-memory, which can boost application and system performance and scalability significantly. At the time of its acquisition in
Sramana: How do you compare to Mercury and Silk from a cost competitive standpoint? Tom Lounibos: We charge $1,500 an hour. They charge $60,000 an hour. There is a lot more to it, but that is the simple way to look at it.
Sramana: What is your business model? Tom Lounibos: We sell our testing by the hour. If a company needs only a couple of hundred users, the cost might be $300 or $400 an hour. If they need thousands of users, then the cost might be around $7,500 an hour.
Sramana: Who were your first customers at SOASTA? Tom Lounibos: It took us some time to build our technology. They were small companies and large companies. The larger ones were Hallmark and TurboTax. In 2007, TurboTax had an amazing [crash]. They filed 25 million tax returns, and their site went down in 2007 when a
Sramana: What did you do after Knowledgeware? Tom Lounibos: I went into small startup in the object oriented programming space called Digitalk. Our product was Smalltalk. When Steve Jobs went to Xerox park to find the mouse he found three things that day. One was the UI, one was the mouse and one was Smalltalk.
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. Tom Lounibos is the co-founder, president, and CEO of SOASTA, which provides cloud based web testing to optimize the functionality, performance, scalability, and reliability of websites and web applications. Prior to SOASTA, Tom served as president and CEO of Kenamea. Prior to Kenamea, he was CEO
SM: Let’s switch to entrepreneurial opportunities. Give me some ideas about interesting collaboration applications that are open areas that could be interesting businesses to build today, given today’s landscape. CL: Sure. I there’s still a lot of opportunities around better unification of the user experience, especially as it relates to data conferencing and Web conferencing.