Sramana Mitra: All your core customers today are based on your Mckinsey network essentially. Anil Kaul: Not anymore. Sramana Mitra: But that’s how it got developed. Anil Kaul: In the beginning. Sramana Mitra: Talk to me about the business dynamics. Typically, outsourcing companies have a certain model. There’s a certain profitability structure. They are not
Sramana Mitra: You guys have already done six months prototype building with seven engineers? Varun Singh: Yes. Sramana Mitra: Nexus gave you money before that process started? Varun Singh: Nexus gave us our seed round. Sramana Mitra: How much? Varun Singh: $750,000. Sramana Mitra: How long did that take you?
Aki Eldar: I and my brother founded Secure Islands. We did that because we figured out that there is a huge problem in the security industry. The problem was that people are talking about securing data, but they’re not actually doing it. They are securing the infrastructure, the exits, and the devices. But they are not
Sramana Mitra: Give me some examples of a typical client situation. Anil Kaul: For example, our client wanted to optimize their advertising spend. This was a company here in the Bay Area. It’s an online company and they had been doing a lot of spending. At some point in time, they decided to run a
Sramana Mitra: This was what year? Varun Singh: This was 2009. Sramana Mitra: What is ScaleArc? Varun Singh: ScaleArc is a database traffic management company. We provide a software that runs on top of MySQL and provide users the ability to run on a distributed data source without having to understand the application. Sramana Mitra:
Security is the venture industry’s most active segment. It is also the most crowded segment, and unless you have deep domain knowledge, you cannot play in the business. Aki and his brother do have deep domain knowledge and have leveraged that to build an exciting company. Sramana Mitra: Let’s start at the very beginning of
Sramana Mitra: This is happening in 2007, yes? Anil Kaul: Yes. Sramana Mitra: When you decided to make the switch, did you have analytics customers? Did you have an analytics product in mind? Had you built anything? Anil Kaul: It was small. I would say about 10% of our business was analytics at that time.
Varun Singh: They had a lot of problems with the website. They weren’t search engine optimized. They really didn’t have any traffic other than the traffic that CNBC would push to them by doing TV advertising. I’m like, “It’ll take you guys a long time to figure out how to go ahead and do this.