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Zack Urlocker, Scaling to a Billion and Beyond, BoS USA 2016

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Zack Urlocker of Duo Security talks at BoS Conference USA 2016

See all talks here: http://businessofsoftware.org/2016/07/all-talks-from-business-of-software-conferences-in-one-place-saas-software-talks/

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Zack Urlocker, Scaling to a Billion and Beyond, BoS USA 2016

  1. 1. Scaling To A Billion With the power of disruption Zack Urlocker COO, Duo Security ZUrlocker@duo.com Twitter: @Zurlocker
  2. 2. Who Am I ? • Software exec, advisor, investor • Chief Operating Officer, Duo Security • DataStax, Hubspot, PagerDuty, Puppet Labs, PubNub… • Three billion dollar exits • Zendesk, MySQL, Active Software • Reformed marathoner
  3. 3. Who Am I ? • Software exec, advisor, investor • Chief Operating Officer, Duo Security • DataStax, Hubspot, PagerDuty, Puppet Labs, PubNub… • Three billion dollar exits • Zendesk, MySQL, Active Software • Reformed marathoner • Bass Player • Best open source rock opera of 2016
  4. 4. Duo Security • Venture-backed SaaS security • Protect users, devices, applications • 75% of customers self-deploy in 24 hrs
  5. 5. Four Key Ideas • Scaling requires repeatable patterns • Scale after you have market fit • Disruption changes the game • Optimize for velocity
  6. 6. 90% of Startups Self-Destruct • Validation takes 2-3x longer • Wrong-phase errors burn cash, time $0-$2m $2m-$5m $5m-$15m $15m-$50m $50m-$100m+
  7. 7. Most Companies Scale too Fast • Find a repeatable model • Make it efficient, then scale $0-$2m $2m-$5m $5m-$15m $15m-$50m $50m-$100m+
  8. 8. Find Repeatable Patterns • What is driving adoption? • What are the common problems? • What are the common traits? • Industry, title, demographics • Context, competition • Lead sources
  9. 9. Optimize for Specific Patterns • Don’t scale until it’s working: Marketing, sales efforts have a predictable yield • Look to continuously improve performance around patterns
  10. 10. Continuously Experiment • Create a learning culture • Don’t worry if experiments fail • Bad news is good news!
  11. 11. Beware The False Dawn • Not every success is repeatable • Don’t compromise scalability for one-off successes • Headcount growth should be slower than revenue growth
  12. 12. Signs You’re Not Scaling • Every deal is customized • All decisions made at C-level • Some reps hit quota, many do not • Everyone working 60+ hours/week • More marketing spend has little impact
  13. 13. Disruption Changes The Game • An inferior solution • For an unattractive market • That changes the game
  14. 14. Are You a Disruptor? • There is an existing market • There are underserved users • You compete on different criteria • The new business is inherently unattractive to the incumbents
  15. 15. Relational Database Market • $30b oligopoly market • Oracle, IBM DB2, SQL Server • Ingres, Sybase, Informix…
  16. 16. Disrupting the Database Market MySQL • Web applications • Commodity x86 • Free Open Source • Widespread distribution • Small footprint • Fast read-access Incumbents • Mission critical • Expensive hardware • High prices • Direct sales model • Complex features • TCP benchmarks
  17. 17. Are You Being Disrupted? • Price becomes key • Trusted plays no longer work • New products fail to catch on • Inferior entrants are winning • Management needs a miracle
  18. 18. Velocity Trumps Everything • Make your product easy to understand, easy to buy, easy to use • Every decision has impact on speed • The faster you get customers to buy, the more robust your business When in doubt, simplify
  19. 19. What Increases Efficiency? Efficiency Levers Increased deal size Higher value markets Higher value products Increased win rate Better segmentation Marketing tools, Sales skills Lower acquisition cost More inbound marketing More A/B testing Better targeting Lower service costs Better product quality More one-to-many services Increased velocity More automation Less human friction More transparency
  20. 20. Build a Culture That Scales • Hire people who can scale as you grow • Hire consciously competent managers with a track record of growth & learning • Push decision making down • Diversity breeds creativity
  21. 21. Find Your Own Path • Focus on customers • Don’t obsess over competition • Don’t worry about categories • Listen to the market
  22. 22. Know More Than Your Board • Understand your market, customers and competition • Don’t worry about how things look; focus on how things are • Get input on strategy • Own the decisions
  23. 23. What Else? • Be positive • Make a difference • Perfect is the enemy of Good • Most problems are people problems
  24. 24. Resources • The Innovator’s Dilemma, Christensen • HBR What Makes an Effective Executive, Drucker • Art of the Start, Kawasaki • Company, Barry
  25. 25. Questions? Zack Urlocker COO, Duo Security ZUrlocker@duo.com Twitter: @Zurlocker www.rock-opera.com

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