Sramana Mitra: Where do you see services like Shutterfly going? Matthew Dornquast: People who focus on everything will ultimately win over the specialization. There is always some new temporal period where a new format will get off, but then the large platforms absorb them. Sramana Mitra: If you were to ask entrepreneurs to look at opportunities in
Sramana Mitra: There’s another question on something that I asked you earlier about. Google has an incredible P&L. They have a business model that just throws out cash. They don’t want to pay that cash as taxes so they’re doing all sorts of things for the consumers and small business to benefit them. They certainly
Matthew Dornquast: That’s not enough. You have a database of consumers and you want to remind them that you have a business offering. You want to encourage them to participate in that. You need the connective tissue between your marketing systems and your enterprise sales force systems so that you will be able to recognize and
Sramana Mitra: I can understand why Google is doing that, but as a private company that has to make money to survive and build business value, what is the justification of being in that business of offering something for free? Matthew Dornquast: There’re a lot of benefits for the business if you know how to harness
Sramana Mitra: What would some of those examples be? Matthew Dornquast: If you think in terms of just backing up endpoint devices, that makes sense. But still a large chunk of them would say, “If it’s important, it should be in the cloud or it should be in the server room. Therefore, I should need to
This interview puts the spotlight on a very interesting topic: how companies that primarily monetize through their enterprise/B2B business and use B2C offerings to test software as well as to generate leads. In the cloud storage business, we’re seeing very interesting trends, and Matthew explains the rationale and the analysis very well. Great conversation! Sramana Mitra: