Listen: Cisco, Webex, Dave Duffield Neal Bush discussed on Christopher Lochhead Follow Your Differentâ„¢
"Re Barriers to center is a moat around. Your Business Idea the the first scaler Tends to be the the the one to capture those benefits And in a certain sense if there is no motive what if there are no benefits to being the first gala while doesn't matter anyway So you might as well be the first to scale up and sees the market if it turns out to get market anyway. Well you haven't lost anything. I mean there there's a bigger there's more waste but But the point isn't to be Efficient is to kind of grab the market And you know in the early days of the is of these markets. You really don't noise out the APP and they're going to be. I mean there are certainly examples where you know. Markets didn't pan out but there's many more examples of Marcus that ended up being so much bigger than and people thought in the early days. Well if you look at ridesharing is a great example right. I mean it do what he saw coming. I don't care who you are right at the scale that it's at but now we will remember having this discussion around the poker table of you know weekly poker game and People were talking about the future market size as being somewhere between Adding up the taxi industry and carry town cars and in my view on was that it could be. It could be a lot bigger than that because as for me I I basically stopped me full Lubar and so you can start to see the the the potential for a trip to replace car ownership but But yeah I mean I think it is generally hard in the early days to To see the full potential markets. I mean I. I don't think we ever would have guests twenty years ago that pay out today. One hundred twenty eight hundred thirty billion dollar market CAP company Mean literally twenty years later Well I mean I don't think we. We thought that at the time we saw the coming from a half billion then. I don't think we thought it would be like a hundred times bigger So so at least you know I mean I guess on some level you think it's going to be huge but But it's it's. It's very hard to see how hobby exactly it's going to be. You don't know it you you know is is one billion success at ten billion a hundred billion you don't quite know the the magnitude of how he's GonNa be on who knew that we'd be sitting here talking talking about three or four tech companies. That are dancing around a trillion dollar market cap right. I mean all these markets have turned out to be a lot bigger than we thought. I mean it with SAS software. I mean the optimistic we were. We're doing Amer Circa two thousand two thousand nine so basically ten years ago and I mean that was. That was still at a point where the cloud was just presumptively insecure. I mean every single sales conversation. We had with a prospect at every they all went the same way which is sounds break. Can you burn it and put it on just for us and send us the desk or put on Sir versus like that will write it on prem and it really what do you mean it runs on your data center. Not Art Data Center Conversation Right Right and then and then we'd have to explain. What multi tenant man? We have to explain how you know. So the the electrons are not GonNa jump from your tendency to to someone else's at there's no you know it's like the is going to somehow magically leak over someone else's instance But you know these kinds of conversations that for years and But I guess my point is just you know we thought in those days that like a one onto two billion market cap was kind of what success looks like and you know and as a result we sold Yemen two thousand twelve to March saw for one point two billion. I mean we thought that was sort of you know that was sort of what success looked like. Now you have. Companies that are pretty routinely appealing for five ten billion. I think that the cloud one hundred the average market cap that I feel now is like three to four billion sales forces. I think salesforce is like a five to ten billion dollar company at the time we started and because they were sort of like a competitor and so we kind of look at look at them and there are sometimes better one hundred twenty billion thirty billion baht Marquette. I think it's really and we just had Not Long Ago Eric Eric you you on on from zoom for the second time and like I think it was founded in twenty eleven. If I'm remembering right as a twenty billion billion dollar market cap company today right well. Yeah and I guess he did The first version of zoom he sold to Cisco that was Webex Roddick's. Yeah so I mean. I think it's kind of like classic story where you go. At the time they sold Webex. They didn't know how big the market who's GonNa be And then probably saw how big a got it at Cisco and realized he could do a better and they were doing that story. Basically you know the idea again end better and you know but this time a market. You're chasing just checking his. You're talking it looks like Thanks to our friends at Google Cisco paid three point two billion so I think you're really onto something. I think the the valuations and market caps and therefore the definitions of success. When you were younger guys coming up in a three point two billion dollar outcome extraordinary album the outcome you had it pay pal extraordinary the outcome you had it yet extraordinary but to your point and be actually interesting to ask A guy like that. Or you think about Fred. Laudi the founder era of service. Now or a Dave Duffield Neal Bush re write these these entrepreneurs who have road ridden on multiple waves in the same space. But it's it is interesting to."