Been a while….

It’s been a while since I made my last post. A number of people have actually noticed and asked, “What’s up?”

In fact my youngest daughter said, “Hey dad, you didn’t make the Forbes’ 10 Best Venture Capital Blogs for Entrepreneurs“. She works for Salesforce in Product Marketing and reads this stuff.

“Yea…thanks for pointing that out,” I said as if I hadn’t already seen the article and been contemplating on how to boost my ratings for next year.

She said, “You need to post regularly if you’re going to win these things, you know.”

I said, “Thanks for the marketing advice.” Having adult children who aren’t afraid to point out your failings can be extremely annoying. I need to remember this the next time I look at revising the Will.

I had thought about making some sort of lame excuse about “being busy” but the truth be told I just haven’t felt compelled to write a new post until now.

Letter To IBM

Dear IBM:

Congratulations on your recent acquisition of Kenexa for $1.3B. The HCM application market has been steadily heating up and with SAP’s recent acquisition of SuccessFactors and Oracle’s purchase of Taleo, this looks like a good counter move.

Your announcement coupled with the recent news that Apple has become the most valuable company in the world prompted me to write this.

As I thought more about Apple and IBM and their respective positions in the current technology markets, I realized just how different the two companies are today from two decades ago.

Twenty years ago, when I worked for Apple as a young engineering director, IBM was “the” business information technology brand. Apple was nowhere — except in niche areas such as graphic design.

Under Steve Job’s leadership, beginning with his return to Apple in the mid-90’s, Apple emerged from near oblivion to become one of, if not ‘’the’, most powerful consumer — and business — technology brands.

Today, Apple’s products are used pervasively by people — at home and at work –  throughout the world. Apple has become the leading mobile platform developers target for consumer and business applications.

IBM, in the early 90’s, was faced with its own set of challenges stemming from poor financial controls, lack of innovation and other issues. Gerstner is appropriately credited with solving these and his successors — Palmisano and Rometty – have continued that success.

Now, IBM’s stock is at a near all time high, more than doubling over the past 3 years.  The Company invests in all the right buzz areas: Cloud Computing, Analytics, Mobile, etc. Wall Street is singing IBM’s praises.

Yet, in spite of all outward appearances, I respectfully submit that IBM may be headed toward another very rocky and challenging stretch of waters.

Do Venture Capitalists Suck?

Dave McClure, formerly with PayPal now at 500StartUps, posted a great article this past week he titled, “Scaling Venture Capital. We suck. We can do better.” I encourage you to read it.

Dave makes two points. The first point is that most venture capitalists are hypocrites. They expect entrepreneurs to build large, global companies while they as venture capitalists have never personally held an operational role nor built and scaled a large, global successful company.

I think it is this issue that tends to cause a lot of friction between entrepreneurs and venture capitalists and it is this point I am going to focus on here.

Back To The Future….

I recently had the opportunity and pleasure to speak on a panel held at Oracle HQ in Redwood City, CA. It was a small conference – sponsored by Oracle – and attended by current Oracle ISVs to discuss the issues of converting and/or building a SaaS business. The panel was moderated by Kevin Dobbs with Montclair Advisors .

Joining me on the panel were Byron Deeter, a GP at Bessemer Ventures and Joel York, CMO at Xignite. I really enjoyed the panel members and the audience interaction and was reminded again just how bright the people are throughout Silicon Valley and how fortunate I have been to work in an industry where the US still continues to lead the rest of the world.

Are Large Incumbents Structured and Motivated to Innovate? Spin Ins Might Help

I wrote about the dearth of innovation within large companies a couple years ago but I didn’t post anything in this blog on the topic. Based upon a number of conversations I’ve had lately, I thought I would dust off  and update what I’d said previously and reintroduce the idea here.

I look forward to any feedback you might have.