A couple quick thoughts…

It’s been a while so I thought I’d post a couple quick thoughts…

1. We’re all fishing in the wrong pond. Consumer based startups are all the rage right now. Blame Facebook and Twitter (the exceptions to the rule). Everyone wants to build the next application that has millions of users that hopefully, eventually, finds a way to use advertising to make a buck. Nevermind that this is really really hard. Conversely, the enterprise (“business”) software sector is bigger then the consumer sector by a factor of a zillion. That’s only a slight embellishment: Enterprise I/T spend (software and hardware like computers and servers) will be 2.5 TRILLION dollars in 2011. 2.5 TRILLION is a mighty big number. Capturing 1 one-hundred-thousandth of the market would still be a 25 million dollar business. For perspective, Twitter booked between 50 and 100 million in revenue last year. Which way seems easier to make 25 million bucks? Capturing a miniscule sliver of a huge market or becoming a leader in a “cheap” market?

2. Group buying is out of control. I would bet that 9 out of 10 new startups are trying to do some spin of the Groupon model. This is appealing to folks because they start making money from the word go. Problem is, most of these startups are foundd by people with zero technical knowledge but a hankering for being in the “tech startup” world. Nevermind that Groupon isn’t (yet) a tech company. They are featured on Techcrunch a lot so people with no tech skills who are DYING to be in tech somehow think this is their chance. But as Marc Suster (is that how you spell his name?) “the auto market is a multi-trillion dollar industry and you guys are worried about f***ing bars and restaurant coupons?”

There are no comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: