Archive for April, 2008

Targeting Your Market - Drill Down to Its Core

Monday, April 21st, 2008

Do you really know your target market? Do you know what they think? Where they live? How old they are? What websites they frequent? What keywords do they use when they search for something online?

 

If you don't - if you don't live and breath and think as your target market thinks - you must find out, because once you do, then you’ll know how to market to them.

 

You also will want to drill down and define exactly who your perfect customer is. Let's say, for example, you’re in the business loan industry. So when someone asks you who your target market is, do you just say "businesses who need loans?" I hope not – that's too broad.  It's amazing how many answers I get to this question as it relates to hosting.  In this case, the answer is often "anybody with a website."  Again this is too broad.

 

Instead, think niche. Are you looking for minority entrepreneurs? Women entrepreneurs? New business owners? Franchise owners? New franchise owners? A female who just bought a new franchise? Yes? Then just how old is this woman with a new franchise? Has she owned a franchise before? Is she the solo owner or is her husband or another partner involved in the business with her? You get the idea. Drill down to this woman's essence - you could write her biography if asked.

 Now that you know your target market perhaps better than you know your spouse, your next step is to market to your target in the manner he or she wants - not in the way you would prefer. You may be the boss of your own business, but your target market is the driver of your marketing campaign.

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Microsoft Hosting Summit - WHIR Tours Microsoft Redmond Campus

Friday, April 18th, 2008
Last Thursday, after the Microsoft Hosting Summit wrapped up, the WHIR contingent had the opportunity to tour Microsoft’s Redmond, Washington campus with lead marketing manager for hosted solutions Michael van Dijken.


The tour actually began at the company’s Bellevue office, just a few steps from the Westin hotel, where the conference took place.


Bellevue Office Entrance


We didn’t spend much time at the Bellevue office, but we did get a chance to check out the lunchroom on the top floor which has a beautiful (dare I say, belle) view of Seattle - not to mention the very strangely enclosed immediate vicinity in Bellevue.


A View from the Top


Over at the Richmond campus, the really remarkable thing is not necessarily the offices themselves - which from what we saw were about what you’d expect from any normal office space - but the overall scale of the campus itself.


It’s probably fair to say that with a few exceptions scattered throughout, Microsoft’s campus takes up about just all of what we saw of the city of Redmond (like Bellevue, a sort of suburb of Seattle). Obviously that’s not entirely the case, but according to van Dijken, Microsoft currently has in the vicinity of 40,000 employees working at the campus. And according to Wikipedia, a recent census puts the city’s population at somewhere in the range of 46,000. So anyway, it’s close.


Redmond Campus Signage


Another remarkable aspect of the campus is the fairly excellent job Microsoft has done building around the green parts of the city. There are trees - really huge trees, as a matter of fact - just about everywhere you look. Nice place to visit and, presumably, a nice place to work.


Redmond Campus Green Space


We spent a good chunk of our time in the Visitor Center, which provided some entertainment, as well as some of the best photo opportunities. I suppose it’s a testament to my vanity that among my favorites was a picture of me, but there were some pretty amusing scenes - and it’s my blog, so I suppose you’ll have to bear with me just this once.


Microsoft Visitor Center


Another of the really interesting features of the campus was the “Connect” system Microsoft has in place. Because it’s such a big place, the company - in an interesting eco-friendly undertaking - has set up a system of hybrid cars to shuttle employees between offices on-campus, which saves them from having to get into their cars to drive a mile or two. It’s worth noting the sheer number of these shuttles. They were really everywhere, making up a sizeable percentage of the cars we saw on the streets.


Connect Vehicles


Finally, we set up with Michael van Dijken for a WHIRtv interview. The full video of which can be viewed on the WHIRtv blog page.


Michael van Dijken Interview


These are just a few of the pictures I took on the tour. There are dozens more you can check out on our WHIR flickr page.

Microsoft Hosting Summit - One-on-one with Michael van Dijken

Thursday, April 17th, 2008

The WHIR team recently had the pleasure of attending Microsoft’s fourth annual Hosting Summit in Seattle, WA (which, for the record, is breath-takingly gorgeous and seems to have a unique balance between man and nature, and I could go on and on, but I digress). Hopefully you followed the ever-eloquent Liam Eagle in his live coverage of the event and checked out some of the photos from the summit on our Flickr site.

Lucky for us, after the summit we had the opportunity to explore Microsoft’s campus in Redmond (we saw the executive offices that Bill Gates and Steve Ballmer work in AND played in Microsoft’s museum) and took a moment to chat to a familiar guest on WHIRtv, Michael van Dijken, Microsoft’s lead marketing manager for hosted services. Michael had some enlightening things to say regarding the direction Microsoft is taking with its partners through these events.

In the coming week we’ll be bringing you some of the attendee feedback we collected from the event, and let me just say that the openness and willingness from Microsoft’s partners to share their thoughts and opinions was rather impressive.

I also wanted to bring to your attention that WHIRtv is now available through iTunes so if you want these videos conveniently delivered to you every time we post a new one, be sure to subscribe here.

Tomorrows Tax Day, Don’t Pay, I’m Certain

Monday, April 14th, 2008

“Certainty? In this world nothing is certain but death and taxes.” Except for not patenting electricity Benjamin Franklin is usually correct.

In regards to the life cycle of your web hosting company his timing is impeccable.

Your company should do everything possible not to pay taxes. You can either give it to the government, great benefit there, or grow your business and hence the economy. Hire more employees (let them pay taxes), spend money on capital equipment and that whole channel line pays taxes. But remember you don’t want your company to pay taxes. Not on April 15th.

Smart and profitable industrialists, hopefully like you, avoid taxes. That is one of the commanding reasons for acquiring a business.  Most web host firms have lousy balance sheets. They have depreciated the assets and have nothing to shield profits, they pay taxes.

I always find it sort of magical that you can acquire an asset (buy a company) that was fully depreciated yesterday, put it on your balance sheet today (stepping up the assets as accounts say) and voila! you have a complete new depreciation schedule protecting your cash. Sort of like asparagus cropping up in the spring, where did that come from?

So you say…“I am profitable but don’t have any money to make an acquisition Tom”. Even a better reason to take out a government loan. That is exactly what not paying taxes is, a differed no interest loan from the government. And if you screw up sort of risk free.  

Now Ben was correct…nothing is certain but death and taxes. In your case the death of your company. Don’t frown, this is just the end of the investment period…maybe the buyer of your company will keep the name, who cares?…your out. Now you want to pay a lot of taxes, big time taxes. You have taken those government loans and parlayed them into your success. As Franklin said taxes were certain, he just did not state when.

More about Tom:

New Commerce Communications

E-Mail Tom Direct

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Microsoft Hosting Summit - See all our Event Photos

Saturday, April 12th, 2008

Microsoft Hosting Summit - The Software + Services Distinction

Thursday, April 10th, 2008

Microsoft is a sort of fountain of terminology. Every time I speak to somebody at the company, I hear an acronym or a term I’m not familiar with. And a Microsoft-led series of presentations is just a concentration of that situation. There were whole pieces of software mentioned or alluded to in the Wednesday sessions that I’d never heard of. Microsoft is a big company.

One expression that came up pretty consistently on Wednesday was Microsoft’s notion of the “software + services” ecosystem. This is not a new expression, but it’s an important distinction that’s worth understanding thoroughly.

I had the opportunity to talk to Michael Van Dijken, Microsoft’s marketing manager for hosted services, Wednesday about that very thing.

Michael van Dijken

Importantly, “software + services” is not a semantic distinction (it’s not a different way of describing, say, “software as a service”). It’s a description of Microsoft’s vision for the software environment - which certainly involves software as a service.

Software as a service is the much-discussed delivery relationship that has a lot of people excited. On-demand software hosted in the cloud, in the opinions of many, is the future of software delivery - and the future of the hosting business.

Micrsoft’s software+ services distinction, describes the idea that SaaS is a delivery mechanism, and while some applications such as Exchange or CRM lend themselves to that model (the excitement about SaaS is certainly not unfounded), others simply don’t. They do, and will continue to, lend themselves to a desktop or on-premise model.

Many applications, he says, lend themselves to a blended model, in which an application has parts that are installed, and parts that are delivered as a service. As an example of this he offers the Xbox Live service. A video game can be played offline, on-premise, but the service piece, which enables players to play together online adds considerable value.

This combination is why Microsoft doesn’t think of itself as a “SaaS company.” It’s not a defensive distinction, says van Dijken. It’s a description of how Microsoft sees the world. We’re not living in a world where all the software will be hosted in the cloud. Microsoft doesn’t see its path as becoming like Google or Salesforce.com.

And those competitors have validated this thinking somewhat by introducing offline components to their services. Google released the desktop-installed Google Gears, and even Salesforce.com has issued offline pieces of its applications.

From a hosting perspective, hosts would probably prefer that all software transition to the on-demand model, considering the business that would create. Hosts typically aren’t that interested in talking about the on-premise delivery model. But they ought to be very interested in the applications that will have service components. There’s a big opportunity there, says Microsoft, for partnering with the ISVs developing that software.

Software + services isn’t a description of a fully-developed marketplace, or a view from a crystal ball. It’s an impression of the ecosystem that might develop around software and software as a service, and a best guess as to how things are likely to shake out. Nobody’s quite certain what the value chain is going to look like, but Microsoft is trying to provide its partners with a model that will help provide ISVs and hosts with a model for working together.

Microsoft Hosting Summit - Ravi Agarwal, Notes on the groupSPARK Sale

Thursday, April 10th, 2008