30. Emerging Market for Optical Access A company needs a market position LuxN Space Metro POP Access Gateway Intercity Long haul Intercity Intracity Intracity Metropolitan Enterprise/ Access LANS Private campus
31. Value Proposition A company needs a value proposition Legacy SONET Upgrade existing 4-node OC-48 transport ring to OC-192 4 x $300,000 Lease 2 dark fiber pair (3 mi) $2,400/mo Install OC-48 terminal @ cust. prem. $75,000 (Fibre Channel requires pt.-to-pt. Fiber) Lease dark fiber pair (3 mi) $1,200/mo Install DWDM equip. @ CO/POP $50,000 Install DWDM equip. @ cust. Prem $50,000 Total Carrier Equip. Cost $1,375,000 Ann. Equip. Cost amort. over 3 yrs $458,000 Annual Total Cost $501,200 LuxN Platform at Metro Optical Network POP WavStation @ CO/POP $25,000 WavPortal @ cust. prem. $10,000 Lease dark fiber pair (3 mi) $1,200/mo Metro DWDM card @ CO/POP $20,000 Lease 2 dark fiber pairs (3 mi) $2,400/mo Install 2 WavPortals @ cust. Prem. $20,000 Add cards to WavStation @ CO/POP $16,000 Add Metro DWDM cards @ CO/POP $40,000 Total Carrier Equip. Cost $131,000 Ann. Equip. Cost amort. over 3 yrs $44,000 Annual Total Cost $87,200 1st customer requests ONE wire-speed GbE local optical access link: 2nd customer requests a Fibre Channel storage link and a wire-speed GbE: 1 Customer 1 Day 1 Serving POP GbE Customer 2 6 mos. later GbE FC
35. LuxN Organization (original) Tom Alexander President & CEO Lee Zipin Engineering Sabeur Siala Operations Eugene Park Marketing M. Govindarajan LuxN Fellow
36. LuxN Organization Tom Alexander President & CEO Brian Nugent Sales & Field Operations Paul Strudwick Marketing Mike McGregor Engineering Lee Zipin Product Marketing Sabeur Siala Operations Steve Vonderhaar Bus. Development Eugene Park International Mktg. M. Govindarajan LuxN Fellow Trisha Mount Finance & Admin.
37. The Voices of LuxN … The Renaissance Band … and the music of LuxN … (1 international marketing director, 1 engineering VP, 1 sales engineer, 1 product manager, 1 engineering manager)
44. thoughts by Chinese philosopher Laotzu: A leader is best when people barely know that he exists. Less good when they obey and acclaim him. Worse when they fear and despise him. Fail to honor people, and they fail to honor you. But of a good leader, when his work is done, his aim is fulfilled, they will say: ' we did this ourselves.'
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Editor's Notes
To tell the story of LuxN, I would like to go back to some basic ideas about human growth, and the way in which we work together to fulfill our peak potential.
This is a story of growth next few hours I will take you through the lives of the founders, how you start a company and grow it at a remarkably short period of time
This states why LuxN is an interesting case study, and then gives an outline of the whole presentation. We thought we will bring to you an interesting case study and picture through it some of the leadership styles practiced.
TA’s background: growing up amidst millions of people in India; yet a minority; family, education and professional background. This is a story of growth. It is the story of LuxN, a company founded to develop, manufacture and sell optical networking products. It is not only a story of corporate growth, but a story of personal, professional and intellectual growth - on the part of the company, its employees, and its leadership - of which I am a part. It is a story that has a number of levels. “Energy is neither created nor destroyed, but simply passed on.”
To understand the steps along the path of LuxN’s growth, we have to go back into my own history - not because LuxN is some sort of cult of Tom Alexander, but because we are all shaped by the experiences that formed us, and we carry those experiences into our lives as we progress. So we will look at some of the lessons that I learned as a child, at ways in which I and others who formed LuxN have grown personally, and at how we have set and achieved personal and collective goals. Along the way, we will hear and see some of the faces and voices of the people in LuxN …
Family and friends. Small town in southern India- orthodox chrisitian family. St. thomas went to India, Jesuit school education.
Tom tell the following stories: story of going to your friend’s whose father was a rice merchant. He said his father was a businessman, since your father was the vet you didn’t know what a businessman was. He showed the bag of rice. You noticed the stones and he told you his father mixed them in with the rice. When you got home and told your father you wanted to be a businessman, the story of the stones. He said never make a profit from cheating the less fortunate. This is similar to the stock warrants for potential customers issue at LuxN. The story of the official in your town. How he used to call a greeting from across the street but never come near your father. When you asked why your father explained that the man was an untouchable. It meant nothing to your father, he was a Christian, but it meant something to the man. Your father said to always treat everyone equally but respect the other person’s feelings. Rooming with the untouchable. At university, there was an untouchable in your class and no one would room with him. You remembered your father’s teachings and you offered to room with him. Unity in diversity.
Tom tell the following stories: Went to USA for post graduate work in Aerospace. Completed my Master’s degree and went to work for IBM. Started in Engg and moved on to sales and marketing. Continued further studies towards MBA at Harvard. . Student with leukemia. Hampton Institute IBM. Infotron No discrimination. In the final analysis, if one looks at an individual, it is how the individual behaves is what is important
Rat race… first start-up Sometimes it takes a crisis to wake us up and question what it is that is important in our lives - what value system we embrace. Making vp cry Not recognizing daughter’s photo
Becoming a VC … extending and applying the lessons mentioned in the previous point …acting as a venture funder did not necessarily give more time, but gave more flexibility in the use of time. Explain the VC business. Then the venture partner was diagnosed with terminal cancer, which meant managing the full portfolio … this took up time - required to balance the partner’s needs with the business needs. Finally the partnership wound up … angel investor … active involvement. With more time, there was the opportunity to run an enterprise. Through all of this, there seemed to be something more to do … especially as the children grew up and became independent … and so on to involvement with the leukemia society. Discipline and determination.
Lisa meets tom Luekemia society team in training a run for marathon Buddy runs from group Man in touch with feelings Training together Not as intense as in work 97 fall Helped people with the last 6 miles emotionally pump people up, 26.2 mi total Once a week when healthy Draws people and tries to find what they’re interested in Very supportive Loves life Challenge grant Ran a leg for another runner he was mentor Supportive guy without water, other people’s needs ahead of his own tom’s philosophy Core values add in Treat people with respect, love and understanding not intuitive about himself totally analytical Conflicts he is wealthy, moving to atherton when the kids were little. Unhealthy environment, wants to be accepted for who he is, not what he has Paradigm shift losing vc partner was that your running partner Not afraid of dying but left as a drain on his family Friend who plays many roles Employees have fun and enjoy work Top of mountain looked back down the path, saw his mistakes to focus ahead on people Set fund ask tom??
The lessons learned in the marathon and the century ride have application in the corporate world …
Many Gigabit Ethernet cards being sold …
The Lee Zipin factor … Few of us take the journey of life and growth alone - at least, few of us can be successful alone. We find companions who share something with us, or who complement us in some way, and who can subscribe to common goals - and with whom we can work effectively. Lee Zipin is one of my companions …
LuxN was formed out of a vision of optical networking and a chance event of serendipity and symbiosis - or, as Lee Zipin would doubtless express it, out of aligned Karma! Enzymes are a good analogy for the formation of LuxN. Enzymes, in the right place for the right time with the right biochemicals, can act as catalysts for the creation of new products. In the case of LuxN, the founders with expertise and experience in data communications had a chance meeting with two people with PhDs in Optical Communications - and a whole new vision of optical communication for the access network was formed. Vc try to be counselor/advisor many times what you want to accomplish ceo may not do, not enjoying missing leadership making 250 people work with one goal. Children graduating growing up going what should I do? Also saw optical coming to forefront , good marketeer can see what is coming Gigab it internet 2 years ago Saw tremendous demand through optical Total revolution in infrastructure: “I want to be part of it!” Do you still have the fire to run a company? Marithon trained for 5 1/2 months for leukemia. For discipline 26 miles out of your mind. Keep doing the right thing, do you still have it or are yuou going to panic 112 mile bicycle. To make sure wasn’t fluke Mentor leukemia runners to see got mentor in silicon valley 1st of 50 Part optical revolution 2. Friends like lee, sabeur, eugene motivation Wrapp session goal has been accomplished - don’t have to have ipo Bring optical to enterprise market Mtgt e and s Tried to put team together Copper guys under estimating understanding optics, kapakny asked where is your optical 2 guys running around looking for money are they worth it? Will buy 100 subsystems? Why don’t the 4 of us join together they decided to join together being a founder is like being in a marriage Analogy come from - When put team together, s&e were thinking optics piece meld the pieces datacom new discipline optical networking Need working name lee came up with michelangelo masterpieces bring to masses by keeping cost down.
So LuxN was born - and along with LuxN, a basic piece of positioning that has been used to represent the company - the optical renaissance. (David on left, digitized mona on the right)
LuxN was started with seed funding from the founders …but that’s not enough … not from a financial point of view, but for validation and visibility and connections. The steps towards establishing a new company in silicon valley have become almost standard - with the proviso that there is room for creativity and innovation oi the way they are pursued. One needs venture funding to seed the development of new ideas and products, which in turn creates an opportunity to establish a board of directors. Selecting the VCs on the basis of prospective board members - Stuart and Peter - adding value. Building on connections and building a well-connected board.
Becoming a VC … extending and applying the lessons mentioned in the previous point …acting as a venture funder did not necessarily give more time, but gave more flexibility in the use of time. Explain the VC business. Then the venture partner was diagnosed with terminal cancer, which meant managing the full portfolio … this took up time - required to balance the partner’s needs with the business needs. Finally the partnership wound up … angel investor … active involvement. With more time, there was the opportunity to run an enterprise. Through all of this, there seemed to be something more to do … especially as the children grew up and became independent … and so on to involvement with the leukemia society. Discipline and determination.
Becoming a VC … extending and applying the lessons mentioned in the previous point …acting as a venture funder did not necessarily give more time, but gave more flexibility in the use of time. Explain the VC business. Then the venture partner was diagnosed with terminal cancer, which meant managing the full portfolio … this took up time - required to balance the partner’s needs with the business needs. Finally the partnership wound up … angel investor … active involvement. With more time, there was the opportunity to run an enterprise. Through all of this, there seemed to be something more to do … especially as the children grew up and became independent … and so on to involvement with the leukemia society. Discipline and determination.
Getting office space is very difficult in silicon valley. We need to give warrants.
Many people believe that the streets of silicon valley are paved with gold - that sumptuous surroundings and pampered luxury are provided for the employees who grind out code or sweat over their hardware designs. In truth, most start-up companies have quite humble origins … as was the case for LuxN’s first physical premises.
LuxN began in a small rented office space, next to a Laundromat, …
… with a handful of people. This is LuxN’s entire employee population after a little more than six months.
Fortunately, the proximity of the Laundromat not only gave us a convenient opportunity to keep our clothing freash, but also provided us with a venue for all-employee meetings! (Notice that there are twelve people in this picture - LuxN is always growing.)
In many ways, the steps involved in building a company and ensuring that it grows successfully are quite simple. LuxN needed people, space to put them, and a vision to drive the company. Under the veneer of simplicity there lurks a whole host of issues and challenges in the execution of those steps, of course.
LuxN established its market position to serve the “last kilometer” or the portion of the network that connects the enterprise premise to the point of entry into the network.
Growing an organization is not without its challenges. We have had to scale LuxN from the initial dozen or so employees to a company of nearly 300 people. Everyone is affected by this. Some have been able to grow comfortably into broader spans of responsibility, but this is not for everyone. Believing that we have established a unique and valuable culture, we wished to nurture and sustain it. Collective leadership; not a mercurial dictatorship Flex timing… no sign ins
Initially, LuxN’s growth was modest. But over 18 months, the company saw dramatic growth in headcount - encouraged by its funders to recruit talent while people were available.
LuxN is distinguished by having organization charts that place the so-called senior managers at the bottom - to remind everyone that leaders are not created in a higher position but earn respect through supporting those with whom they work.
LuxN’s organization has now grown substantially, but still embodies the principle that managers support their people, rather than the other way around. Team spirit. Standing naked
MarkC story…band…jazz….hiring drummer trumpeter
One of the ways to ensure continued growth with stability is to create an environment that fosters fulfillment. Fulfillment springs from the convergence of multiple, varied factors. Some wish to realize a sense of social responsibility. Others have an interest in music - Eugene and Lee, Mark, etc.
There are numerous other challenges to be faced in growing a company quickly. Finding a way to communicate with all employees on a regular basis is important - at LuxN, this started with “Wrapp” sessions, named after the type of burrito provided for lunch at the sessions. Now “Wrapp” sessions have to be conducted off-site, to accommodate the number of employees! Employees need space for quiet, and there are a number of employees of diverse cultural and spiritual/religious backgrounds whose needs for quiet space and time must be met. LuxN has provided a generically named “meditation” room as a quiet place for prayer and/or meditation. But the basic challenge remains hiring people and finding space for them in a very competitive environment. Which is why we responded with panache in our Open Houses …
Becoming a VC … extending and applying the lessons mentioned in the previous point …acting as a venture funder did not necessarily give more time, but gave more flexibility in the use of time. Explain the VC business. Then the venture partner was diagnosed with terminal cancer, which meant managing the full portfolio … this took up time - required to balance the partner’s needs with the business needs. Finally the partnership wound up … angel investor … active involvement. With more time, there was the opportunity to run an enterprise. Through all of this, there seemed to be something more to do … especially as the children grew up and became independent … and so on to involvement with the leukemia society. Discipline and determination.
Becoming a VC … extending and applying the lessons mentioned in the previous point …acting as a venture funder did not necessarily give more time, but gave more flexibility in the use of time. Explain the VC business. Then the venture partner was diagnosed with terminal cancer, which meant managing the full portfolio … this took up time - required to balance the partner’s needs with the business needs. Finally the partnership wound up … angel investor … active involvement. With more time, there was the opportunity to run an enterprise. Through all of this, there seemed to be something more to do … especially as the children grew up and became independent … and so on to involvement with the leukemia society. Discipline and determination.
Becoming a VC … extending and applying the lessons mentioned in the previous point …acting as a venture funder did not necessarily give more time, but gave more flexibility in the use of time. Explain the VC business. Then the venture partner was diagnosed with terminal cancer, which meant managing the full portfolio … this took up time - required to balance the partner’s needs with the business needs. Finally the partnership wound up … angel investor … active involvement. With more time, there was the opportunity to run an enterprise. Through all of this, there seemed to be something more to do … especially as the children grew up and became independent … and so on to involvement with the leukemia society. Discipline and determination.
