February 2007
 

Cutting Through the Hype and Hockey Stick Growth

By Ray Solnik

Life is full of paradoxes. Those of us who can see the paradox, live in it, and make the most of it – can often reap enormous rewards.  That's what we're seeing here at OpSource with many of our customers offering on-demand applications.

On the one hand, there is an enormous amount of media coverage and certainly some hype in the press around the concept of the Internet achieving its next level – Web2.0.  There are a number of companies that have hit the jackpot with quick starts and fast exits through sale of their company. Of course, we hear more about these wildly successful situations than we do about the ones struggling to make it. And then, there are those building solid on-demand companies based on compelling services, solid target markets, and achievable business models.

  • As the SaaS delivery expert for many software and Web2.0 companies, we have developed a good understanding of which business strategies and tactics work and which do not in building on-demand businesses. A distinct pattern of behavior has clearly emerged in those of our 80 plus customers achieving moderate to extreme success. In various degrees, these successful companies have all of the following pieces in place:
  • They take advantage of the hype to drive demand and funding.
  • They are rigorous and thoughtful about their business model, their customers, and their stepwise approaches to building their business.
  • They focus on building upon their core competency vs. reacting to competitive choices being offered to their customers.
  • And they know how to leverage the unique advantages of an on-demand business.

There is nothing wrong with taking advantage of the market hype surrounding Web2.0 and many of our customers are ridding that wave while still building real revenue and margin generating businesses with impressive results. To learn more about their success, take a look at our case studies on Microsoft, Etology, Agile Software, KANA and Visual Mining. The winning patterns of behavior will quickly emerge. You can find these case studies at opsource.net/case_studies/.

At OpSource, we tie our success to our customer's success. Our success-based business model insures that everything that we do is focused on helping our customers build the most successful on-demand businesses possible. We help them cut through the hype by surrounding our core delivery solution Optimal On-Demand (operational infrastructure, application management, 24x7 support, etc.) with services designed to help them build solid multi-tenant applications, winning channel models, pricing strategies, and lots more. We bring an enormous set of resources to bear on behalf of our customers – starting with our CEO all the way through our Client Services team, account managers, business consultants, and service delivery staff. Everyone is aligned to ensure our customers grow and thrive. And it's working!

Whether you're currently a customer or a possible future member of our ecosystem, I encourage to give us a call to learn what we're up to and how we can help you jump to the next level of on-demand success.

We care because your success is our success. 


Article written by Ray Solnik, President and Chief Operating Officer of OpSource Inc. Solnik was Chief Development Officer of New Edge Networks prior to the sale of the company to EarthLink, a $1+billion Internet company based in Atlanta, GA. Before joining New Edge Networks, he was president of AT&T's consumer Internet company, AT&T Worldnet in New Jersey. Throughout his career has had direct functional experience in finance, marketing, product management, and call center management. Solnik has a Bachelor's degree in economics from the University of Michigan, and earned his MBA at Stanford's Graduate School of Business.