Commentary
When Startups Face CIOs
When six startups took the stage at InformationWeek's annual conference last week to make their business pitches, Xkoto wasn't the odds-on favorite. Its Gridscale database load-balancing software isn't sexy or cheap, and end users never see it. Here's how Xkoto CEO David Patrick swayed the judges in his favor.When six startups took the stage at InformationWeek's annual conference last week to make their business pitches, Xkoto wasn't the odds-on favorite. Its Gridscale database load-balancing software isn't sexy or cheap, and end users never see it. Here's how Xkoto CEO David Patrick swayed the judges in his favor.Patrick and five other startup executives had a mere three minutes to make their business case in front of our CIO audience. The others were FireScope (business service management software), SugarCRM (open source CRM), Mi5 Networks (Web filtering appliance), Pentaho (open source BI), and Vyatta (open source networking). The six contenders were chosen by InformationWeek readers in an online poll conducted in August. For more on the methodology and poll results, see "Top 10 Technology Startups."
In last week's live contest, slide presentations and other audiovisuals were banned, putting a premium on clear, concise verbal presentations. A panel of three CIO judges (Carolyn Lawson with the California Public Utilities Commission, Robert Reeder of Alaska Airlines, and Mike Cuddy of Toromont Industries) questioned each presenter and graded them, on a scale of 1 to 5, for business feasibility and value.
More SMB Insights
White Papers
- Creating the Enterprise-Class Tablet Environment - by Yankee Group
- How To Regain IT Control In An Increasingly Mobile World - by BlackBerry
Reports
More >>Webcasts
- Effective IT Inventory and Asset Management: From Quagmire to Quick Fix
- Maximize ROI with Database Consolidation onto Private Clouds
Mi5 Networks finished slightly behind Xkoto in the scoring, and all of the startups scored four or higher with at least one of the judges. But Xkoto got its message across with the greatest success. (See "Database Virtualization Vendor Wins Startup City Contest.") Here's how:
Clearly stated enterprise value. Scalability, performance, and system availability are like oxygen to IT departments, and they were the gist of Patrick's presentation. Xkoto's load-balancing software increases resiliency and performance by creating "active" copies of databases between databases and the applications accessing them. The CIOs got it.
Right message for the audience. CIOs aren't system administrators, but they require enough of the technical nuts and bolts to determine whether a new product is a good fit for their IT infrastructure. Some of the startups failed to clear that hurdle in the few minutes available to them.
Straight answers. When I asked Patrick how much Xkoto's software costs, he didn't waffle: $100,000 for the DB2 version, $20,000 to $30,000 for the SQL Server version. Such unequivocal answers give startups credibility, while anything less sets off warnings. Says Cuddy, "You have to avoid the temptation to say yes to every question from a customer."
It's not easy getting a crisp message across in 180 seconds. While all of the startups on stage did a pretty good job, some would undoubtedly do things differently if given another chance. In the real world, however, startups don't get a second chance with CIOs. Everything depends on getting it right the first time.
Related Reading
| To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy. | |
|
|
T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting! |
Subscribe to RSSResource Links
Research & Reports
SMEs and the Cloud: How Much Is Too Much?
This exclusive downloadable research report examines how outsourcing certain IT functions to a service provider can pay off for small and midsize businesses, even more than for large enterprises. But go too far into the cloud, and you may suffer in terms of maintaining agility and responsiveness to market forces.
Secure Design on a Dime: Our Top 5 Best Practices for SMEs
This exclusive downloadable research report details the security tools that small shops need, at a minimum, to prepare for the increasingly complex security and compliance environment that exists today and the top 5 ways growing businesses can stretch their IT budgets.
Current SMB Issue
- 6 Steps To Modern Data Center Architecture: A phased data center upgrade makes technical and financial sense. Randy George suggests six steps to follow.
- Manage Your Managed Service Provider: Michael A. Davis discusses strategies for how the make your MSP work for you.
- And much more!
SMB Whitepapers
- Building a Business-Ready Mobile Infrastructure
- Shared Storage for SMB Server Bundles
- No Compromise, Cost Effective, VMware Storage for the SMB
- Three unique technologies provide users with a truly modern storage experience
- Rethinking Backup and Recovery: Disk vs. Tape
- Server Room Solutions: How small to midsize IT businesses can make their IT budgets appear larger than they are
- Top Three Microsoft Exchange Concerns and EMC Solutions



