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ESM and SaaS

By John | August 2, 2007

An interview with Botchagalupe.

Johnmwillis: Can ESM and SaaS work?

Botchagalupe: Absolutely.

Johnmwillis: Has it ever worked before?

Botchagalupe: No. There have been a few tries over the years. The first one I can remember was a company called SecondWave. These were a bunch of Ex Tivoli execs that started a Tivoli training company.  Then they transformed into a consulting company. Then they transformed into SaaS, although they didn’t call it that back then. They called it a MSP (Managed Service Provider). They tried to provide Tivoli as a service. I think it was really hot at the time. Then when they were doing about a ½ million a month in MSP services someone told them they should become a software company and they switched gears again  and tThen they just faded away.

Johnmwillis: I bet you it was the VC making them do that.

Botchagalupe: I know how you feel about VCs but to be honest I really don’t know. I do know that a lot of their IP was left at Prudential in NJ.  They were one of their biggest customers.

Botchagalupe: Anyway, there was another called Tri-Active. This was another bunch of ex Tivoli guys trying to get rich quick.

Johnmwillis: Were they VC backed?

Botchagalupe: Yeah, by Sierra Ventures.

Johnmwillis: Oh, I know those guys. I have a great story to tell you about them…

Botchagalupe: I thought you were interviewing me.

Johnmwillis: I’m sorry, you know me when it comes to VC.  Some other time I guess.

Johnmwillis: You say ESM and SaaS can absolutely work, but there are no good examples of it ever working. What gives?

Botcagalupe: Back in the late 90′s and early 2000 it was about security.  In one of the companies I owned I hired an ex SecondWave guy and he told me horror stories about getting large companies to buy into an MSP.  In fact SecondWave actually had to get investment funds to buy a security company just to be able to talk to speak the same language as the customer’s security group.

Johnmwillis: So is security the problem with running an ESM and SaaS?

Botchagalupe: It was back then.I don’t think it is an issue now.  In fact I have a lot of VPN accounts at most of my large Enterprise customers. Getting in and out is not as hard these days.

Johnmwillis: Your killing me Botcha. Is an ESM SaaS going to fly?

Botchagalupe: I know I am being allusive but I am an imaginary character so give me a break, However, in answer to your question, it has to work.  It makes too much sense.  I look at SaaS in the same vain as OSS.  I think OSS had a slow and rocky road in the enterprise but it looks like the OSS bubble is about to burst. We have seen things like Apache, JBOSS, and MySQL become mainstays in the IT industry.  Now we are seeing the ESM stack starting to take ground in IT.  SaaS has been driven hard by SalesForce.com. They had to hurdle some huge obstacles, IMHO, to get to where they are today. Think about it, they had to convince companies to remote locate one of their prime assets, their customer list. In the end it is a financial decision (ROI). A while back Larry Ellison spoke at some conference and said he reduced his cost of development from about 35% to about 19% by off-shoring his development efforts. What did all the software company CEOs start doing immediately? Today if you are a sales driven organization you are brain dead if you are not using SalesForce.com. I think ESM SaaS will be like that some day, but not now.

Botchagalupe: Also, I think there are better market opportunities today then there were seven years ago.The hardware technology has just exploded in the last 10 years and now every mom and pop business has about 50 or more servers.  This will be huge for ESM and SaaS. In fact this is the direction I thought FiveRuns.com out of Austin was heading about this time last year. 

Johnmwillis: I know about these guys.  I wrote a blog about them a few weeks ago Things that make me go Huh.

Johnmwillis: Have you seen this story about Klir Technologies on Cote’s RedMonk weblog?

Botchagalupe: Yea, Doug McClure at dougmcclure.net shot me a gmail on it.

Johnmwillis: I am sure the VC’s are just chomping at the bit to get in on this ESM SaaS.

Botchagalupe: Yea, maybe the Klir story will slow them down a little.

Botchagaluope: I thought you were on vacation this week?

Johnwillis: Yea, you know how that goes.

Topics: OSS, SaaS, caos, esm, ibm, opensource, opsource, salesforce.com, sierra ventures, tivoli | 1 Comment »

One Response to “ESM and SaaS”

  1. Botchanomics and The Big Galupe | John M Willis ESM Blog Says:
    March 11th, 2008 at 3:02 am

    [...] The last time we were able to catchup with you was back in August 2007 and we talked about ESM and SasS. Are you still working with any of that [...]

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