Sramana and Mark discuss cloud computing adoption in large enterprises such as BMC, issues involved, applications at BMC that are moving to clouds etc.
Over the past few weeks, I have been speaking with a series of thought leaders in cloud computing. We will soon be publishing these in-depth interviews. Let me share a few thoughts with you based on what I have heard thus far across various conversations.
Thought Leaders in Cloud Computing is a new series of interviews with CIOs and thought leaders across the industry. It covers the adoption of cloud across SMBs, mid-sized, and Fortune 500 companies from diverse verticals such as tech, finance, healthcare, government, and manufacturing. Most important, and as part of her 1M/1M global initiative, Sramana is brainstorming ideas on entrepreneurial opportunities in the cloud.
SM: I like that your business is simple and elegant. RK: The roots of the business were very simple. The focus was on the end user experience. It was an easy service to use and the product was not cluttered. If you look at other collaboration services there are 80 services there, most of which
SM: What was your revenue like when you first raised money? RK: It was getting close to $1M. We were three people but we had a very bandwidth intensive service. We had a substantial infrastructure that we were building out.
SM: Do you work integrated deals with other major software vendors? RK: We have some, but the majority of the time users need to go install the YouSendIt plug-in on their own. We have done a little bit of both, and we would like to do more integrated solutions.
SM: What was the conversion ratio? RK: Over the past two years we have doubled our conversion rate on the free-to-paid subscription side to 4%. Overall, including our transactional pay-per-use which includes enterprise, the conversion rate is close to 10%.
SM: I understand there were three cofounders. Did any of you take a salary role in the beginning of the company? RK: The other guys were still consulting at their previous jobs. I was out raising seed capital to keep the company going because my former company had just been purchased. I was able to