On October 20, 2009 at Pillsbury Winthrop in Palo Alto, SDForum held the Quarterly Venture Breakfast Series in collaboration with PWC. Sylvia Burks of Pillsbury Winthrop moderated panelists Savinay Berry of Granite Ventures, Jim Lussier of Norwest Venture Partners, Ho Nam of Altos Ventures, Prashant Shah of Hummer Winblad and Danny Wallace of PricewaterhouseCoopers.
Danny Wallace of PricewaterhouseCoopers kicked off the meeting with an analysis of where investments went over the past year in biotechnology, industrial energy, software, medical devices and media/entertainment. Basically the level of investment is where it was back in 1996. The consensus is that the economy has hit bottom and may be recovering slowly.
Enterprise software burst with dotcom bubble mainly because so few packages were actually implemented. The need for enterprise services is still there and may be met with software as a service (SAAS), cloud computing or just plain web services. Larry Ellison of Oracle appeared in video clip disparaging anything called â€œcloudâ€. Even the panelists were skeptical. Your elevator pitch must explain what it does for an enterprise not just that it takes place in the cloud. Large companies will still try to run in-house clouds but smaller companies can quickly benefit from pushing their IT functions into the cloud. IT managers will manage platforms and data rather than hardware. Over time the costs and benefits will be obvious and most companies will outsource their IT the way they outsource their electricity. Develop a product or service that is sticky for users and does not require begging for scarce resoures from an inside IT department. Offering reliable security is solid selling point.
As Appleâ€™s continued success shows, a good idea or service can triumph in bad times. A good idea can grow a company or create a new industry. They did not wait for a recovery. They started their own.
Copyright 2009 DJ Cline All rights reserved.