This is something that I have heard more than once. My reply is always, “That sounds great!” What I really want to tell them is that they are about to discover there is more than one reason to virtualize their servers. Here are a few of my favorites.

Reason #1 – Consolidation of servers
Virtualization makes it easy to replace six (or more) servers with one. This greatly reduces / simplifies power, network, and KVM connections. Electrical and cooling upgrades to your data room are no longer required (for a while at least).

Reason #2 – Engineering Test
Virtualization makes it easy to test software releases against multiple OS / browser platforms. Imagine replacing a room full of test machines with a collection of files (virtual machine images). Engineers can then use these virtual machine images to test new releases against every platform using only their laptop computer. No more building or managing test systems.

Reason #3 – Security
Virtualization does simplify the task of rolling out security patches and updates. My favorite security benefit is virtualization enables supporting new customers with dedicated (virtual) systems. Separated servers helps keep customer data safe and secure.

Reason #4 – Agility
Virtualization makes it easy to adapt to changing business conditions. New servers can be deployed in minutes rather than days. System upgrades will go smoothly now that IT can “practice and perfect” the upgrade process using clones of the real servers.

Reason #5 – Compatibility
Virtualization allows continued use of legacy / mature (older) applications. For example, a Windows XP virtual machine can be used to run “XP Only” applications on Vista and Windows 7 systems. This helps to reduce software costs and there is no need for retraining.

Reason #6 - Business Continuity
Virtualization lets you deploy a virtual machine image on multiple hosts. You can operate a primary server with a secondary (hot standby) system. When the primary goes down, the secondary server can go online instantly. No more half day outages while IT rebuilds the exchange server.

Summary
There are many reasons to virtualize. It only takes one compelling business reason to actually do it. Once you virtualize, you will wonder why you didn’t do it sooner.

So, what will you do with all of your old computers?

Shaun McNerney

So we started going along and he was driving like he always drives – pretty fast and aggressive. I was driving like I always drive – moderately fast and aggressive (OK, maybe cautiously slow). Right away he zoomed through a yellow light leaving me behind. So, here I am in an unfamiliar town, unsure where we are going, feeling lost. My friend, on the other hand, was at the restaurant, wondering where I am, upset that I didn’t keep up.

The point of this story is that when you’re leading an individual or a group – to a restaurant or a business idea – it is critical that you match your speed to theirs. Don’t try to lead faster than they can go.

Simply stated, here is a process that works for me:

1. Determine their speed
2. Match your speed to theirs
3. Watch your speed (don’t lose them)

Determine their speed
When working with others try to determine their speed as quickly as possible. As you discuss new concepts observe how fast they absorb the idea. Did they get the idea immediately? Do they need some time to think it through?

Match your speed to theirs
There are two cases here – you either need to slow down or speed up.

If you’re leading the discussion, chances are you need to slow down. For some, taking it slow can be frustrating. But, it is better to take it slow and make progress than to go nowhere fast.

If you’re leading the discussion and need to speed up, then you have to prepare. Go into the meeting with all your thoughts in order. Be brief and concise as you lead the group to the destination.

Watch your speed (don’t lose them)
The concept here is simple – arrive at the destination together.

If you are a consultant, you are probably an expert in your field. Your speed is likely many times faster than the speed of your clients. It is important that you don’t lose your clients when discussing new concepts or ideas. This is a perfect time to slow down and match your client’s speed.

If you are an employee, you need to work well with others. By matching your speed to that of your peers, managers, and subordinates you will be able to build strong working relationships.

Summary
Watching your speed when you work with others is a simple but powerful concept. Working together at the same speed will build strong relationships. Working together at mismatched speeds will eventually destroy relationships.

So, how fast do you go?

Shaun McNerney

One of the hardest things to do is to come up with a compelling idea for a new technology business. Here is the process that I use to help uncover hidden opportunities.

1. Identify Fundamentals
   • Asset or Baby Business
   • Product or Service
   • Better-Faster-Cheaper or Brave New World
2. Collect Ideas
   • You
   • Your Company
   • Customers
   • Emerging Trends
3. Fail Fast
   • Prototype The Business
   • Test The Market
   • Time – The Most Precious Resource

Fail Fast

Read this very carefully. This is important.

Bad ideas should Fail Fast.

Good ideas stand the test of time. Every other idea should Fail Fast. Here is the process I use to Fail Fast.

Prototype The Business

Don’t explore a new business idea by building it. Instead, prototype the new business idea. Napkins, white boards, sketches, or (if you must) PowerPoint presentations are a great way to prototype a new business. The whole idea is to spend as little time as possible on bad ideas (and there will be many of those).

The elevator pitch is another good way to prototype the business. The elevator pitch plays a big role in the next step – Test The Market.

Test The Market

Your new business needs customers to be successful. Test the market by talking to as many potential customers as you can. Ideally your idea should solve one of their top 3 problems. If it doesn’t, then it is probably time for the idea to Fail Fast.

Note: Be sure to remember the customer’s top3 problems. They may lead to other ideas.

Fail Fast

Time is the most precious resource that you have. Rich or poor, everyone has the same amount of time. Don’t give bad ideas any more time than necessary. Always look for ways to fail bad ideas fast.

If a new business idea doesn’t Fail Fast then either:

• You are not performing enough due diligence on the idea

- or -

• You have found a great new business idea

Let me know how you find and evaluate new business ideas. Leave a comment or contact me directly. Enjoy!

Shaun McNerney

Note: This is Part 3 of a 3 part series — Part 1 | Part 2 | Part 3

One of the hardest things to do is to come up with a compelling idea for a new technology business. Here is the process I use to help uncover hidden opportunities.

1. Identify Fundamentals
   • Asset or Baby Business
   • Product or Service
   • Better-Faster-Cheaper or Brave New World
2. Collect Ideas
   • You
   • Your Company
   • Customers
   • Emerging Trends
3. Fail Fast
   • Prototype The Business
   • Test The Market
   • Time – The Most Precious Resource

Collect Ideas

When it comes to new business ideas, you want to collect as many as possible. When you are collecting, there is no such thing as a bad idea.

Ideas come from many places - you, your work, customers, and from emerging trends.

I write down all of the business ideas that I come across. I sort them into one of three categories: Need, Want, and Other. I then explore only the “Need” ideas.

Tip: When collecting new technology business ideas, try to match them to one of the Gartner categories or IDC market areas. This helps to define what you’re offering, establishes the market opportunity, and identifies competitors.

You

Some of the best ideas come from a problem that you experience personally. Back in 1997, I needed to capture audio recordings (meetings) and post them on a web site. This problem turned into a business – TellSoft.

The problem with ideas that come from you is that you might be the only one that cares about the problem. Your might be the only customer buying.

Your Company

Great ideas are born when your company has a problem. A company that I worked for was having problems sending large, confidential files between office locations. The idea for Bit Weld, my current business, was born from that problem.

Businesses make great customers. If the problem is critical to their business, some companies will pay for a solution before it is built (a great way to finance your new business).

Note: Be extremely careful if you are working on a new business idea inspired by your current employer. The idea may not be yours to pursue.

Customers

Networking with customers and partners is a great way of collecting new business ideas. Here are some questions to ask your customers and partners:

• What are your top 3 problems?
• How are you addressing them?
• What is the impact to the business if they are/are not addressed?
• How can I help?

Remember to listen to the customer and to capture the problem as accurately as possible. Each problem has the potential to translate into a new business idea.

Emerging Trends

New business ideas can be cultivated by observing emerging social and business trends. This requires a combination of vision, imagination, and business sense.

If you are the first to sign up for new online services, first to buy new technology then you might be able to cultivate new ideas from emerging trends. If you’re not an early adopter, then you should focus on getting ideas from you, your company, and customers.

Continued …

Shaun McNerney

Note: This is Part 2 of a 3 part series — Part 1 | Part 2 | Part 3

One of the hardest things to do is to come up with a compelling idea for a new technology business. Here is the process that I use to help uncover hidden opportunities.

1. Identify Fundamentals
   • Asset or Baby Business
   • Product or Service
   • Better-Faster-Cheaper or Brave New World
2. Collect Ideas
   • You
   • Your Company
   • Customers
   • Emerging Trends
3. Fail Fast
   • Prototype The Business
   • Test The Market
   • Time – The Most Precious Resource

Identify Fundamentals

Before you can start to evaluate new business ideas, you need to create a foundation for yourself. One way to create a foundation is to establish a few ground rules – a few business fundamentals.

Asset or Baby Business

The very first thing you need to decide is whether you want to create an Asset Business or a Baby Business. This is important because it influences every other decision that you will make.

I tend to favor asset businesses. In the world of technology, I think asset businesses have a greater chance of a big success.

If you like to have total control or you don’t like working for someone else then you should consider a baby business.

Note: You can read more about this topic at “Your Business – Asset or Baby?.”

Product or Service

Are you going to sell a product or a service? For technology businesses, products include hardware, software, and software as a service (SaaS). Services typically include various forms of consulting.

If I have a choice, I would choose Software as a Service (SaaS). I like SaaS because it generates reoccurring revenue, has a lower barrier to entry, and there is no inventory to maintain. The downside to SaaS is that it takes time and resources to build the reoccurring revenue stream.

Service businesses (aka consulting) are great baby businesses. The path to revenue is immediate. The problem I see with service businesses is that they really don’t scale well.

Switching from a service to product business is tough. I have seen several service companies fail when they try to switch to a product business. A venture capital investor friend of mine (Craig Dawson) summed it up best – “Consulting deals are like doing drugs. Once you start you can’t stop.”

Switching from product to SaaS is a challenge as well. My first company (TellSoft) started as a product company then transitioned to a SaaS (we just didn’t call it that in 2000). TellSoft encountered several problems because one of their business fundamentals changed. This is why it is so critical that you decide product or service right away.

Better-Faster-Cheaper or Brave New World

To be successful, a new businesses needs to be either Better-Faster-Cheaper (BFC) or Brave New World (BNW). Choosing one over the other affects the potential success capability. BFC businesses are more likely to succeed (they are tapping into an existing market). BNW businesses are more likely to grow faster (first to market).

Many BFC companies are the second company to enter a market space. Second companies can be more successful than the first company. This is because the second company doesn’t have to educate customers and they can replicate and enhance the first company’s products.

BNW businesses are pioneers, trend setters. Done right, BNW business can be very successful for a long time. Done wrong, they can be big failures.

I tend to favor a BFC business with a BNW twist. It is hard to find a compelling Brave New World idea. It is much easier to find an early stage market opportunity and then build a BFC offering with a BNW twist. The end result is a better product than is offered by the current market leader.

Continued …

Shaun McNerney

Note: This is Part 1 of a 3 part series — Part 1 | Part 2 | Part 3

1. Define your objectives (goals).
2. Develop a realistic marketing plan.
   • Product (what you’ll sell)
   • Place (how you’ll sell, distributers)
   • Price
   • Promotion
   • Competition/market intelligence
3. Develop a compelling marketing story (include the fundamental elements of who, what, where, when, why, how).
4. Develop a “Real World” sales plan.
5. Develop a realistic territory plan ( retailers, VARs, idependent sales reps, wholesalers and distributors, consultants, manufacturer reps, system integrators, brokers, national buying services, mail order companies, government distribution, TV marketers, superstores, internet/online services, professionals).
6. Develop an account plan.
7. Develop a sales call plan.
8. Now achieve your objectives!

Shaun McNerney

For those of you who can’t wait, let me jump right to the biggest problem that I had, the dreaded Windows Blue Screen of Death. Here was the basic scenario:

HDMI monitor + default graphics driver + power off monitor = BSoD

Here is how I fixed the problem:

HDMI monitor + updated graphics driver = Problem solved

Here are two scenarios where I encountered issues installing Windows 7.

Virtual Machine Install
I installed Windows 7 (x86) in a VMWare Workstation 6 environment. I use VMWare to test and evaluate new operating systems and application software.

After the install process completed, the audio device did not work. The simple fix was to update the device driver from the Internet.

Media Center Install
Recently I rebuilt a computer and decided to install Windows 7 on it. The computer is an HP Pavilion desktop that is used to record and watch TV shows using Windows Media Center.

My first attempt was to install Windows 7 (x64). The installation process went smoothly except the TV tuner and the sound card did not work. The problem turned out to be that 64-bit drivers for the devices were unavailable. The fix – install Windows 7 (x86).

Installation of Windows 7 (x86) went smoothly but had the same problem. The TV tuner and sound card did not work. The fix – update the device drivers from the Internet.

OK, now the big problem surfaced. Every time I turned off the HDMI monitor, the computer would reboot and then hang after POST and just before the Windows startup screen was displayed. When I turned on the monitor, the computer was unresponsive (locked up) and all I saw was a black screen with a blinking underline cursor in the top left corner of the screen.

It turned out that turning off the HDMI monitor caused a fault in the display driver (aka Blue Screen of Death) which caused the computer to reboot. Since the HDMI display was off, the boot process (and the computer) hung and only a blinking cursor was displayed.

The fix – update the display adapter device driver from the Internet.

Summary
I would highly recommend Windows 7. I like the improvements in the UI. I really like that I can now watch HD videos (M2TS files) in Media Center.

If you are having problems getting Windows 7 to work, try updating the device driver software. Be sure to search your computer and the Internet for the latest driver software.

Good luck.

Shaun McNerney

Disclaimer: I am an investor in Microsoft.

I have a friend that never listens. All he does is talk (about his business). He could easily go on and on for hours at a time.

Listening is a skill that everyone should learn. It takes practice and patience. Here are some basic tips to be a good listener:

Stay Focused – Maintain eye contact. Listen to what is being said (the content) and ignore how it was said (the delivery).

Remain Objective – Avoid emotional involvement so that you hear what was said and not what you want to hear.

Avoid Distractions – Don’t interrupt. Interruptions send a signal that you’re not listening.

Listen…Acknowledge…Reply – Wait until the talker is done, take some time to process what they said, formulate your reply, then reply.

Apply The 50/50 Rule – Try to balance talking / listening so everyone participates equally.

Finally, all of these tips can be used by talkers. Talkers should look for signs of good listening. After all, why talk to someone if they aren’t going to listen.

Shaun McNerney

I think you should practice what you preach. When I talk with new entrepreneurs, I strongly suggest that they start by implementing MBO for themselves.

There are many aspects and complexities to MBO. Here is my simplified MBO checklist.

1. Define your goals.
2. Define your key results.
3. Evaluate your strengths and weaknesses.
4. Determine a course of action.
5. Budget your resources (time personnel, and capital).
6. Determine completion date.
7. Write down your plan.
8. Monitor results.
9. Implement rewards.

Start managing yourself by objectives today. This is an easy way to improve your productivity and happiness.

Shaun McNerney

I can remember when FTP was cool. That was back in 1999 when I was using FTP to download 1 MB files. Now I need to securely share 100MB files. When I think of FTP today I think of failures, no privacy, difficult to secure, no audit trail, and a frustrating user experience.

FTP just doesn’t cut it. Businesses should “Just Say No” to FTP. There has to be a better way to share files. There is - Secure Workspaces from Bit Weld.

Shutdown Your FTP Server
Secure Workspaces are a replacement for FTP. Using a web browser, you can upload and download files easily and securely via https.

A big advantage Secure Workspaces have over FTP is that you can create dozens of Secure Workspaces in minutes - all independent of each other. Using FTP you would have to get your IT staff to create dozens of subdirectories, dozens of user logins, and then apply access controls (security) to each subdirectory separately.

Another advantage is Secure Workspace access is audited. I know exactly who downloaded which files and when they did it.

Check It Out
Click here to try a Secure Workspace that I have set up just for this blog.  The password is “easy” and you will need to enter your email address (your signature) to access the Secure Workspace.

Feel free to create a folder and upload some files into the Secure Workspace. Just keep in mind that I will be alerted when you do.

Summary
So, why should you use Secure Workspaces?

• Simple – Secure Workspace are easy to use. File uploads, downloads are quick and simple. Working with multiple files is a snap.
• Secure – Unlike FTP, secure workspaces are fully encrypted, access controlled, and audited.
• Peace of Mind - Each of my clients have their own separate Secure Workspaces. I know exactly who is accessing my data.

You can try creating and using your own Secure Workspaces for free. Click here to sign up for a 14 day free trial. Enjoy.

 
Shaun McNerney

Disclaimer: I am an investor in Bit Weld.