Dealing with Goliath Andy McLoughlin

I am co-founder / strategy director at Huddle.net Huddle is a network of secure online workspaces for team collaboration Huddle was launched in April 2007 HQ in London, sales office in Chicago Growing fast (8 to 35 people in 12 months) A little bit about me...

Who wants to build a $10M+ company?

Who wants to build the next $100M+ company?

Going big, quickly Viral growth (Twitter) Acquisition (Writely) Deep pockets (Zoho) Partnerships

Viral growth (Twitter)

Acquisition (Writely)

Deep pockets (Zoho)

Partnerships

Partners = WIN (for Huddle.net)

A Very Civil Partnership Huddle provides the application Partner provides the network / leads / customers / sales force Co-brand the application Revenue share on Huddle subscriptions and advertising Everyone gets rich and goes home early Easy, right?

Huddle provides the application

Partner provides the network / leads / customers / sales force

Co-brand the application

Revenue share on Huddle subscriptions and advertising

Everyone gets rich and goes home early

Easy, right?

Not quite!

The early days Use nice graphics from the website (or ask Keh) Partnerships are bloody hard work!

Use nice graphics from the website (or ask Keh)

Two very different partnerships

LinkedIn.com Huddle.net

How it came about

Facebook POC

LinkedIn mock ups

Count down!

Development: Moving from fragile to agile Building the thing

Internal Vs External Dev Internal Development Complete control Known high quality No OS expertise Opportunity cost External Development Flexible resource OpenSocial expertise Variable quality Additional cost Lack of control

Internal Development

Complete control

Known high quality

No OS expertise

Opportunity cost

External Development

Flexible resource

OpenSocial expertise

Variable quality

Additional cost

Lack of control

Existing API Architecture PHP Application on Linux Server C# ASP.net Application on Windows Server Huddle API Private SOAP API

Proposed Solution: “Quick Win!” PHP Application on Linux Server C# ASP.net Application on Windows Server Huddle API Private SOAP API Open REST API (http://my.huddle.net/api)

Issues No such thing as a quick job New API calls Application changes Project management Marketing preparation

New API calls

Application changes

Project management

Marketing preparation

Scaling

One of only six global partners on LinkedIn’s OpenSocial platform October 2008

Lessons Learnt (OpenSocial) Never outsource build of a core product! Technical debt = FAIL Especially to a company on the other side of the world Working across 4 time zones = EPIC FAIL There is no such thing as a quick job Be conservative on uptake stats and work out your CPA – is it worth it? Don’t film in a basement!

Never outsource build of a core product!

Technical debt = FAIL

Especially to a company on the other side of the world

Working across 4 time zones = EPIC FAIL

There is no such thing as a quick job

Be conservative on uptake stats and work out your CPA – is it worth it?

Don’t film in a basement!

Was it worth it? Absolutely YES!

OpenSocial - the Future’s bright Re-use the Huddle Workspaces app across other networks Ning OS launching in mid June 2009 3 rd OS launch in late June OpenSocial portability is still an issue (~£8,000 to roll out a new network)

Re-use the Huddle Workspaces app across other networks

Ning OS launching in mid June 2009

3 rd OS launch in late June

OpenSocial portability is still an issue (~£8,000 to roll out a new network)

“ How do I get on the platform?” Honest answer: be lucky Have ‘an in’ to the platform team Meet face-to-face Have an application they need Demonstrate ability to deliver and scale No new applications for 3 to 6 months 

Honest answer: be lucky

Have ‘an in’ to the platform team

Meet face-to-face

Have an application they need

Demonstrate ability to deliver and scale

No new applications for 3 to 6 months 

InterCall.com Huddle.net

About 15 months in the making!

Money, money, money

“ I have a cunning plan” Co-brand the Huddle app for InterCall Let InterCall bill them Inclusion on all InterCall setup emails Placement on InterCall homepage Get their sales people to create Huddle accounts on initial call to new customers Mass provision existing 1M+ accounts Easy upsell to Huddle Enterprise for $$$ Manage it all from London

Co-brand the Huddle app for InterCall

Let InterCall bill them

Inclusion on all InterCall setup emails

Placement on InterCall homepage

Get their sales people to create Huddle accounts on initial call to new customers

Mass provision existing 1M+ accounts

Easy upsell to Huddle Enterprise for $$$

Manage it all from London

Making it work Technical challenges Legal challenges Sales challenges Marketing challenges Cultural challenges

Technical challenges

Legal challenges

Sales challenges

Marketing challenges

Cultural challenges

May 2009

Lessons Learnt (The Big Co) Engaging the top level vision is easy You need to engage ‘the army’ Bridge the gap - you’re one step removed. Need feedback of what is / isn’t working Clear value proposition for their customers Be ultra-conservative on revenue estimates Be prepared for everything to take twice as long as you’d hope!

Engaging the top level vision is easy

You need to engage ‘the army’

Bridge the gap - you’re one step removed. Need feedback of what is / isn’t working

Clear value proposition for their customers

Be ultra-conservative on revenue estimates

Be prepared for everything to take twice as long as you’d hope!

Was it worth it? Absolutely YES!

Partnerships – A Summary Good partnerships can deliver everything you want but... Be realistic Pick your battles wisely Be prepared to invest Be prepared to wait Be prepared to argue, argue, argue Remember that David beat Goliath!

Good partnerships can deliver everything you want but...

Be realistic

Pick your battles wisely

Be prepared to invest

Be prepared to wait

Be prepared to argue, argue, argue

Remember that David beat Goliath!

Thank you! Email: andy@huddle.net Twitter: @bandrew Promo code: 1MONTHFREE