SDForum events WHAT'S HAPPENING IN 2003_ - SVForum by wuzhenguang


									                                                                                          vol 6/issue 1        FEB/MAR 2003

S T R A T E G I C    A L L I A N C E S
       Microsoft Corporation
                                                                 SDForum events
        Sun Microsystems
    The Redevelopment Agency
        of City of San Jose
                                              What’s Happening in 2003!
           P A R T N E R S
             BEA Systems
           IBM Corporation
          Oracle Corporation
          C A T A L Y S T S
            Ernst & Young
                                         D         on’t miss the following new
                                                   programs coming in 2003 –
                                                   in addition to our already
                                         great line-up of foundational events
                                         (Special Interest Groups, one-on-
                                                                                    company to brief the community on
                                                                                    cutting-edge products and innovations.
                                                                                    Join us to learn inside information and
                                                                                    in-depth demonstrations on some of
                                                                                    today’s hottest, or hotly contested,
      New Enterprise Associates          ones, and brown bag lunch sessions):       technologies.
            Onset Ventures
            Sierra Ventures              The Future of Software                     Technology Expos
            L E A D E R S                Development Series                         Following up on a successful Web
    Advanced Technology Ventures
              Alta Partners              This series features a group of techni-    Services Expo in 2002, SDForum will
   Brobeck Phleger & Harrison LLP        cal luminaries, each of whom has had       host several Technology Expos in 2003.
     Garage Technology Ventures          a significant impact on how software       Each expo brings developers, technolo-
   Gray, Cary, Ware and Freidenrich      is created. Each, in their work, contin-   gists, and IT managers together to learn
Hanson Bridgett Marcus Vlahos Rudy LLP   ues to explore and shape the comput-       about a new technology or cutting-
               HiTech Law                ing landscape. The talks in the series     edge trend. Successful companies
  Hummer Winblad Venture Partners
          Silicon Valley Bank            will analyze, from varied and some-        in a particular space will demo their
              White & Lee                times controversial perspectives, up-      technologies while experts will share
      S T A K E H O L D E R S            coming changes in the technology of        their insights through panels and
             Altos Ventures
            Aspen Ventures               software development. Recent speak-        presentations.
             Atlas Venture
          BA Venture Partners
                                         ers have included Richard P. Gabriel,
              Bay Partners               Alan Cooper, Tim O’Reilly, and             Panel Series
       Cardinal Venture Capital          Grady Booch.                               Join SDForum as we gather CIO’s and
       Crystal Internet Ventures                                                    other top executives to share their
      Eastern Idaho Forum for IT
              IDG Ventures               Case Study Series                          insights and needs. Find out what
          Inductus Associates            Join us in February for the launch         business and technology issues are most
                 JETRO                   of a new series of case study sessions.    important, and how they will shape the
      Kirkpatrick & Lockhart LLP         We will focus on companies that have       technology landscape. Hear about who
       Morrison & Foerster LLP
   Panasonic Digital Concepts Center     shaped Silicon Valley, and address         is spending money, what they are
          ProofPoint Ventures
           Red Rock Ventures
                                         issues around building a company.          spending it on, and how recent tech-
        Selby Venture Partners           Topics that will be covered include:       nologies have been applied to solve real
            Sequoia Capital
           Sevin Rosen Funds             product strategy decisions, merger         business issues. Continued on page three
       Thelen Reid & Priest LLP          and acquisition decisions, change
            Woodside Fund
                                         management decisions, and many
  I N - K I N D     P A R T N E R S
                                         others. Entrepreneurs of today will
                                                                                                 IN THIS ISSUE
             Digital Clarity
               Execustaff                learn the important lessons from com-        ROI Performance Measurement ............... 7
                Rockliffe                                                             Cooper’s Manifesto ................................ 8
           The Ideas Group               panies that have shaped Silicon Valley.
                                                              Secrets of Early-Adopter Customers ....... 12
          Sic-em Advertising
                                                                                      E-Mail Marketing: Trials and Triumphs ... 15
                 WebEx                   Technical Briefings
   Wilson Sonsini Goodrich & Rosati                                                   Universal Business Language ................ 16
                                         Each month we host a high-tech
                                                                                      SDForum Survey Results ................ 18
                             SDForum news provides you with the latest news and events of the Software Development Forum. The not-for-profit Software
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          Kaye Caldwell, Computer Software Industry Association                         International            Jeannine Athas, Charlie Pfefferkorn
                        Bill Coleman, BEA Systems                                       Internet Security        Ames Cornish, Ira Victor
                 Esther Dyson, Edventure Holdings, Inc.                                 Java                     Bill Grosso, Tom Hill,
                          Gordon Eubanks, Oblix
                                                                                                                 Paul O’Rorke, Dave Yost
                             Brian Gentile, Brio
                  Ron Gonzales, Mayor, City of San Jose                                 Marketing                Jim Schibler
                               Ellen Hancock                                            Venture Finance          Jonathan Abrams, Steve Bennet,
                                 Sandy Herz                                                                      Tom Cervantez
          Fred Hoar, Band of Angels, Weber Shandwick Worldwide                          Web Services             Mike Abbott, Earl Bingham,
                     Doug Kaewert, Sun Microsystems                                                              Kate Gardner, David Nielsen
                       Steve Kirsch, Propel Software                                    Windows/Visual Basic     Chuck Berg
                                 Ed Niehaus
                                                                                        Wireless Media/Voice     Alex Chan, Joe Jasin, Phil Korn,
                 Jim Robbins, Software Business Cluster
                  Heidi Roizen, Mobius Venture Capital                                                           Srinivas Penumaka
                      David Schwab, Sierra Ventures
                   Tim Scott, PricewaterhouseCoopers                                                    in-kind support
                        Robert Simon, Alta Partners
                              Rod Smith, IBM                                          Integra Insurance Co., Microsoft Technology Center, Openwave,
                                Steve Westly                                          Silicon Valley World Internet Center, Thelen Reid & Priest, LLP

2                 S D F o r u m            n e w s        •        v o l   6 / i s s u e            1       •    w w w . s d f o r u m . o r g
                   SDForum events:                    WHAT’S HAPPENING IN 2003!

Continued from page one
Debate Series                                        The SDForum
This series kicked off with a bang in No-           Debate Series
                                                   kicked off with a
vember – Sun faced-off against Microsoft
                                                  bang in November –
(Sun ONE vs .NET)! This debate series is             Sun faced-off
a fair, side by side, feature by feature look      against Microsoft
into a variety of products and technologies            (Sun ONE
                                                       vs .NET)!
in a debate format. We will continue this
series in April with two new competitors.                                                    The Sun Team
For the most up-to-date calendar
of events, please visit our web site at!
We are known for having hard-to-schedule,
sought-after speakers which requires
us to book them just a few weeks before an
event, so continue to check the web site or
get on our events email list (send the mes-
sage “join” to
to get the latest information.

      CAREER                                                      The Microsoft Team
                      BROWN BAG
                         DO YOU WANT TO
                         KNOW MORE about
                       how to conduct a suc-
                       cessful job search,
                         work as an indepen-
                          dent consultant or
                          manage your ca-
                          reer? SDForum has
   created a Career Series of Brown Bag
   Lunches designed to give you the infor-
   mation you need on these critical topics.                               The Distinguished Judges Panel
      We have gathered local experts that
   specialize in the technology sector to pro-
   vide SDForum members with the most
   relevant information available today.
   Speakers will provide guidance on how
   to be an independent consultant; the el-
   evator pitch for job seekers; how to work
   with recruiters; tax benefits to job seek-
   ers; and more!
      The Career Series Brown Bag Lunches
   are interactive and limited to 40 partici-
   pants. Check the web site for the next
   one, and sign up early!
      See the SDForum calendar for the
   schedule of monthly evening events on
   career development.

S D F o r u m         n e w s       •     v o l   6 / i s s u e   1    •     w w w . s d f o r u m . o r g   3
                   sponsor profile

                   Alta Partners: Series A Financing
I   n the current investment environment,
    it may seem like raising your first round
of investment from venture capitalists is
nearly impossible. The investors have
                                                how you are going to make him a ton of
                                                money. You do that by convincing him
                                                you are going to build a big company.
                                                You build a big company by addressing
                                                                                                   risks? Do you have proprietary technology
                                                                                                   and how easily could a potential competi-
                                                                                                   tor reproduce the product?
                                                                                                      In general, investors are willing to take
unrealistic expectations like a trailing        a painful, difficult problem that lots of          technical risks because you are smart,
revenue of $3 million, 20 plus customers,       customers have. Once you have identified           hardworking and will likely find a solution
a full management team and a CEO                the market and its pains, you convince the         to the problem. We much prefer if only
who has lead Intel’s IPO and can leap           VC that you are the team with the experi-          you, because of your domain expertise,
tall buildings.                                 ence and talent to address the problem.            could create the solution. Once you have
   You reply, “Well if we had 20 custom-        No problem you say. The difference                 identified a promising market and started
ers, we’d have $3 million in revenue and        today is that after the VCs went hog wild          delivering a solution, we all get annoyed
we wouldn’t need your money.” And you           in 1998-2001 and funded anything, they             when a competitor comes along and
question what business they are really in –     now realize they have to be more careful           effortlessly develops the same solution.
commercial banking or risk capital. Both        and have turned into members of the
sides have a point                              “Show Me clan.”                                    3. Team
   It is accurate to characterize the fund         To get financed, you need to prove that         What is the background of the founding
raising environment today as much more          you have identified a large market and that        management team? Is there depth of do-
difficult than any time in the last 10 years.   you are the team to successfully address it.       main experience? How about startup man-
This current tough environment is the           Specifically, your case for funding should         agement experience? Is there a complete
perfect storm: reduced enterprise IT            cover the following areas.                         team, including VP of Engineering, Sales,
spending, hangover from the failed                                                                 and Marketing? A team that incorporates investments, and venture partner        1. Market                                          sales and marketing early on will give you
focus on saving the existing portfolio          What is the large, unmet need or point of          good customer input into the product
rather than new investments. Finally, pre-      pain for the customer? How painful is the          requirements.
viously funded early stage companies with       problem: does it need an Aspirin or Vita-
developed products and some customers           min solution? Will the customer pay any-              Once you have covered the above major
are competing for funding with brand new        thing for a solution or would they only            areas in your business plan, it is critical to
startups. Though these environmental is-        take it if it were free? How many custom-          include proof points to support your case.
sues are beyond your control, you need to       ers have this problem?                                Again, market opportunity is often the
recognize your surroundings in order to            Market opportunity is often the crux            focus of much discussion. Having some
understand how high the hurdle is for new       of the issue with outside investors. Large         initial customers goes a long way in ad-
investments, and more importantly, how          market opportunities are required to build         dressing this question. Investors shy away
strong you must make the case for invest-       large companies. We know how difficult it          from market risk. We get most frustrated
ment in your company.                           is to build a company, and large markets           when we believe in the product but, un-
   Put yourself in the investors’ shoes. As     provide a bit of cushion and allow for a           fortunately, no customers do. After being
an outside investor, what do you need in        greater margin of error before competitors         burned by the recent investment madness,
order to be convinced of a company’s vi-        come at you. For a venture investor, large         we are back to relying on the customers to
ability before you’re willing to invest?        markets generally mean about $1 billion in         tell us how great a product is rather than
Show that you not only understand the           total market and greater than $400 mil-            our potentially faulty instincts. Show a
investors’ questions but also have answers      lion in addressable market. We want to             prototype or beta version to prove that
and data to support your answers.               invest in companies that have the potential        you have overcome most technical risks.
   First and foremost, venture capitalists      to reach $80-100 million in revenues in               Finally, be realistic in your expectations
are in it for the money. They too have in-      3-5 years.                                         of financing and don’t despair. Most soft-
vestors, and for the venture capitalist to be                                                      ware companies do not need to raise large
successful and stay in business, he has to      2. Technology                                      amounts of money; $6-8 million should
make money for his investors. So the way        At what stage of development is the prod-          do nicely. PeopleSoft was started with $5
to get money from a VC is to show him           uct? Are there any remaining technical                                      Continued on page 19

4                 S D F o r u m          n e w s     •    v o l     6 / i s s u e        1     •      w w w . s d f o r u m . o r g
                  sponsor profile

                  Red Rock Ventures Renews Support
                  of Software Development Forum
R      ed Rock Ventures is pleased to
       renew its support of SDForum for
2003. “We find the one-on-one sessions
and the panel discussions are useful ways
                                                develop solutions that cost more than
                                                $100,000 per customer per annum and
                                                are sold with a direct sales force. The
                                                company invests in both infrastructure and
                                                                                                Red Rock’s five general partners, Laura
                                                                                             Brege, Peter Dumanian, Bob Marsh, Kip
                                                                                             Myers, and Bob Todd, all have operating
                                                                                             backgrounds including multiple tours as
to meet experienced software entrepre-          application companies and both license       CEO, CFO, VP of Engineering, and VP
neurs. We have watched the quality and          and ASP models. Historically 50% of the      of Marketing. The partners focus on
focus of the entrepreneurs improve over         firm’s initial investments have been seed,   helping their portfolio companies succeed
the years through the efforts of the Soft-      with the other 50% split between first and   operationally, through assistance with
ware Development Forum and would like           second rounds.                               product strategy, cash management, sales
the organization to continue its fine              Typical investments range from            introductions, recruiting, and introduc-
work,” said general partner Peter               $500,000 to $2,000,000 per financing         tions to additional financing sources.
Dumanian.                                       round with a total of $6,000,000 reserved
  Red Rock closed a $90 million third           for one company over multiple financing      Red Rock is geographically focused on
fund last March and is actively looking         events. Red Rock always shares or syndi-     companies that are located west of the
for new investment opportunities. Red           cates its investments with at least one      Rocky Mountains. To contact Red
Rock’s focus is on seed and early stage         other venture fund that is new to the same   Rock, please email Peter Dumanian
enterprise software companies that              round of financing.                          at and send
                                                                                             an executive summary if available.

                                                    HiTech Law AD

S D F o r u m        n e w s       •    v o l     6 / i s s u e       1    •    w w w . s d f o r u m . o r g                         5
                   The Big Shift from Digital to IP Switching
W           hile traditional legacy PBX’s
            have established themselves as
a critical tool in business networks, they
no longer deliver the competitive edge
                                                relying instead on single, integrated
                                                network communications platforms that
                                                support voice, data and video traffic.
                                                                                                   the computer infrastructures, and can
                                                                                                   yield an investment to schools.

                                                                                                   6. Universal Presence
required by today’s business environ-           2. High Utility to Smaller Branch                       for Mobile Workforce
ment. The drive to deploy IP based                   and Satellite Offices                         The architecture of IP PBX greatly
services has been predicted since the mid-      For large enterprises one of the biggest           enhances the contact management and
90’s when the expectations for corporate        catalysts for IP technology to date has            location querying of all employees;
environments were forecast to transform         been the ability to network branch offices         therefore, addressing the need of the
overnight. That did not happen. The             in an affordable fashion.                          growing telecommuter segment.
inability to quash quality of service (QoS)
issues, address redundancy concerns,                                                                  Despite continued soft demand for new
struggle to establish standards, and com-                The rationale to deploy                   telecommunications equipment through
bat interoperability of technologies issues              advanced IP technology                    2002 in all regions, companies continue
caused a ‘wait-on-the-sidelines’ approach           services is a result of the need               to evaluate and express interest in the ad-
for many companies. This delay was                                                                 vances being developed in the integrated
                                                       for companies to generate
compounded when companies then found                                                               IP space.
                                                     efficiencies in the workplace,
themselves dealing with the need to                                                                   To accommodate these needs,
                                                   open avenues to increase produc-
invest in new systems or upgrade their                                                             Teltronics will provide a new enterprise
current systems in preparation for Y2K.            tivity, and provide more effective              offering called the Vortex SE, an IP Cen-
   Today, as a result of solving these issues           communication between                      tric PCX. The Vortex SE is a scalable IP
and with the economic instability that has             employees and customers.                    based PCX (packet switched PBX) that
impacted the corporate economy many                                                                provides integrated voice & data function-
companies are seeking advanced, inte-                                                              ality for small to medium sized businesses.
grated ecommerce and communication              3. Support of New Breed                            The Vortex system will deliver the most
service – while minimizing cost of equip-            of Multimedia Applications                    commonly used traditional PBX applica-
ment and maintenance, which has created         The purchase decision could be based on            tions. Additional offerings provided by
a strategic opportunity for IP technology.      the openness of the platform and its ability       Teltronics include the Intelligent Systems
The rationale to deploy advanced IP tech-       to execute enhanced applications when              Management (ISM) and Telident product
nology services is a result of the need for     they are required such as internet enabled         lines. The ISM products have the ability
companies to generate efficiencies in the       applications including contact centers.            to manage today’s complex and converged
workplace, open avenues to increase pro-                                                           networks by monitoring the health
ductivity, and provide more effective           4. Simplified Management                           of a wide range of network elements.
communication between employees and                 of a Single Network                            The Telident 911 solution helps your
customers. In addition, the appeal for          Remote system administration has been              PBX or IP Centric PCX provide vital,
many companies of a single network for          one of the prime drivers of IP PBX and             lifesaving information to the 911 public
all infrastructure applications, IP con-        converged systems.                                 safety network.
verged solutions have reached a point                                                                 The Vortex SE system has been built
of not “if“ but “when.”                         5. Government Programs Stimulate                   upon the strengths of previous product
   There are several Key Drivers for                 Investment in IP PBX                          offerings and complete deployment will
company’s that are fueling this Shift:          The introduction of global government              begin in second quarter of 2003.
                                                sponsored program has also spurred
1. Cost Savings Due to                          growth in the IP PBX market. For in-
     Lower Operating Expenses                   stance, the educational sector has had             For more information on Teltronics or
The cost savings can be achieved by elimi-      access to E-Rate money and since the               the Vortex SE product, please contact us
nating multiple and separate infrastruc-        IP PBX and converged systems run on                at 707-766-2240 or visit our website at
tures from specific communication traffic,      the LAN, they are considered part of     

6                 S D F o r u m          n e w s     •    v o l     6 / i s s u e        1     •      w w w . s d f o r u m . o r g
                    ROI Performance Measurement – Friend or Foe?
A        while back, FutureSight Consulting
          coined the saying “4 P’s for ap-
proaching the CFO”1 in reference to how
IT managers and tech vendors are influ-
                                                   resulting in dramatically different results
                                                   from the original forecasted ROI analy-
                                                   ses. This statement is most unfortunately
                                                   illustrated by a recent Wall Street Journal
                                                                                                        On a positive note, we are seeing a
                                                                                                     minority who are now either embracing
                                                                                                     or gearing up to embrace the challenges
                                                                                                     of conducting on-going ROI performance
encing senior management IT investment             article (WSJ, Sept. 23, 2002)2, highlight-        measurement because they understand the
decision-making by portraying a proper             ing a survey of 22 companies that pur-            potential benefits – on both the organiza-
ROI analysis. The 4 P’s are Professional-          chased Siebel Systems Inc. software.              tion and the technology vendor sides.
ism, Practicality, Proof and Perspective.          It was found that 77% of respondents              A few of the benefits include:
In short, you need to provide CFOs with            said they believed they hadn’t received
                                                                                                     IT Management Benefits
Professional, numbers-driven presenta-             a positive return on the investment.
                                                                                                     • ROI Performance Measurement ensures
tions. They like to see Practical analyses         These Siebel reference customers had
                                                                                                       projects are more financially successful
that they can run different scenarios              expected a positive ROI, and hence
                                                                                                       because they are more actively managed
against. They also require Proof, or refer-        were less than satisfied with their Siebel
                                                                                                       from a financial perspective
ence data to backup claims and assump-             CRM initiatives.
                                                                                                     • It enables alignment of technology
tions, and they appreciate an independent             Siebel did mention the report was
                                                                                                       initiatives with overall business strategy
Perspective rather than biased self-repre-         “highly flawed” and “statistically insig-
                                                                                                     • It allows IT stakeholders to see how
sented analyses. FutureSight Consulting is         nificant.” In these situations where ex-
                                                                                                       their activities impact directly on
beginning to see a growing trend within            pected ROI is not realized, the vendor is
                                                                                                       financial targets
the executive ranks. They are starting to          not the only party that suffers. The IT
                                                                                                     • It helps to prevent project disasters
mandate seeing a 5th P before they allo-           management responsible for project per-
                                                                                                       when proactive financial monitoring
cate IT investment dollars. We are calling         formance also take a major blow in terms
                                                                                                       is in-place
this 5th P “Performance.” CFOs are                 of credibility and trust for future technol-
                                                                                                     • It supports IT and business manage-
starting to say, “I want to see demon-             ogy initiatives. In short, everybody loses
                                                                                                       ment in making corrective decisions
strated performance over time against              over time when proper ROI performance
                                                                                                       when ROI projections go awry
your promised ROI. Before I sign off on            measurement is not conducted. So, why
                                                                                                     • It positions IT management for more
this, I would like to see how you are going        aren’t IT organizations and the vendors
                                                                                                       share of senior management attention
to measure up against this ROI projection,         who support them putting in-place on-
                                                                                                       over time, and additional investment
and review this with you at different              going ROI performance measurement
                                                                                                       dollars, when they are consistently
project milestones.” In short, CFOs are            against technology initiatives? Here are
                                                                                                       delivering on financial targets
beginning to want to see ROI perfor-               some of the standard excuses we are hear-
mance measurement conducted over the               ing, including:                                   Technology Vendor Benefits
life of technology initiatives. So, this is the    • “We lack the know-how and resources             • ROI Performance Measurement
trend. How are organizations and the                  to do proper ROI measurement”                    ensures greater loyalty in customers
technology vendors who support them                • “It takes too much time and money                 when they are achieving expected ROI
responding to this mandate for a 5th P                to measure ROI, and we don’t know                performance
today?                                                if it’s worth it”                              • It provides an incredible source of rich
   Several recent studies have highlighted a       • “We don’t know what to measure”                   feedback for understanding technology
growing percentage of organizations that           • “There are too many things to                     impact, and how to enhance customer
are requiring ROI justification before ap-            measure, and how do you measure                  business value over time
propriation of investment funds; however,             for uncontrollable factors”                    • When positive ROI is demonstrated,
only a fraction of those same organizations        • “We can’t get the business stakeholder            customers are more inclined to investi-
are actively measuring ROI performance                time and support for doing this mea-             gate and purchase additional vendor
over time. What’s the problem with this               surement properly”                               solutions and offer good references
scenario? The simple fact is that what is          • “We don’t want to hang ourselves
not measured is not managed, very often               if we don’t meet our ROI targets”                                     Continued on page 13

    WSJ, September 23, 2002, “Report Finds Low Satisfaction Among Most Siebel Customers” By a WALL STREET JOURNAL Staff Reporter
S D F o r u m           n e w s       •    v o l      6 / i s s u e        1     •    w w w . s d f o r u m . o r g                            7
                   event review:                  THE FUTURE OF SOFTWARE DEVELOPMENT

                   Cooper’s Manifesto
A         lan Cooper spoke on December
          5, 2002 at The Future of Software
Development lecture series put on by
                                               ago. In the 1990s I wanted a standard
                                               component bus to plug-in my favorite
                                               tools into an IDE. I wanted a flexible,
                                                                                                      Alan called for a return to software
                                                                                                   craftsmanship. He noted that the Indus-
                                                                                                   trial Age diminished craftsmanship in
SDForum and the Computer History               open make utility that the industry would           exchange for high volume production.
Museum (              get behind to make it easy to build and             This has a deleterious effect on software
Alan is the third speaker in the series that   deploy software. I wanted a visual way to           development overall. Alan made the case
included Tim O’Reilly and Grady Booch.         work with objects. Instead I got Visual             that software construction needs to be
If you are in the Silicon Valley consider      Studio and NetBeans. Alan pointed out               recognized as a noble craft. His remarks
attending this very good series of public      the stagnation in development tools we              were not limited to developers.
talks.                                         are suffering through.                                 “Imagine if IT success is measured by
   For the past 10 years Alan built Cooper        Alan’s speech got me to focus on the             employee loyalty?” Alan asked.
Design ( – an agency            long term. For example, how do we take                 The more Alan asked me to imagine the
centered on high technology usability.         the innovations (practices, patterns, and           Information Age the more uncomfortable
He is a Microsoft fellow and known             algorithms) that we all recognize are               I felt. Alan’s words moved me to think
widely as the “Father of Visual Basic.”        worthwhile and adopt them forever?                  about the complex and difficult changes
Ironically, looking at the usability offered   That is, once something is recognized               we will need to accomplish. Here in the
in most VB applications today perhaps          as worthwhile every future development              Silicon Valley, and likely in the rest of the
Cooper Design is Alan’s penance.               tool would come with them automatically.            US, the recession is in full swing, we are in
   Over the years Alan taught me much          In today’s environment it is still up to de-        the War on Terrorism, and full-scale war
about software development processes,          velopers to cobble together development             in Iraq seems likely. Alan’s lecture brought
software design methodology, and user          tools into useful solutions. On the server          my own fears and frustrations into focus.
interaction axioms. For the past year he       side that “cobbling” makes systems brittle          I am suffering from what Alan describes as
has been somewhat quiet in the computer        and hard to maintain.                               an IT environment themed of fear. I won-
industry. He might have simply been re-           Alan spent the first half of his presenta-       dered if this is the right time to challenge
sponding to the ravages of the recession       tion recounting a litany of business prac-          the Industrial Age? It doesn’t seem to
on Cooper Design. On the other hand            tices that stifle and poison good software          want to be messed-with right now.
it is very much like Alan to go quiet for      development efforts. He challenged us to               Alan challenges everyone to think about
a while and then burst upwards with new        imagine software development where busi-            the ways software is developed today, to
creative energy. When this happens I have      ness managers understand the impact of              shun the management practices held over
been lifted too. Alan introduced his           imposing deadlines that are unlinked to             from the Industrial Age, and to build
“Manifesto for Goal-Directed Software          the software development process, where             products that enable end-users to reach
Construction.”                                 customer input does not dictate software            their goals.
   Alan began by telling the 150 or so         architecture, and where product managers               Enterprise development still has not
software developers in attendance that he      understand and facilitate collaboration             finished its work on building commonly
has begun coding again. Alan is building       between engineer and end-user.                      understood user interfaces to data and
a new software product and a new kind             “In such a world Dilbert comics would            functions. Focusing development commu-
of software publishing company. It has         not be ironic self references,” Alan said.          nity attention on improving our practices,
been 11 years since he last wrote any code.    Instead software would be understood                methods and tools seems like an especially
So hearing his contrast of old and current     to be a new medium that requires new                good effort right now.
development techniques and tools was           thinking, new business processes and new               The agile software development move-
very interesting.                              methodologies. Alan describes the change            ment ( is a very
   “I recall the old axiom that program-       from old to new in terms of moving from             good example to enterprise developers of
ming was like digging the Panama Canal         today’s Industrial Age to the Information           a community that formed to challenge the
with a spoon,” Alan said, “And now I find      Age. In the Industrial Age coders who are           way we develop software.
that programming in Windows is like dig-       managed by the same processes used to                  Alan pointed us to the Manifesto
ging the Panama Canal with one tine of a       manufacture steel and other real goods              for Agile Software Development
fork.” My development tools are equally        develop software. In the Information                ( The manifesto is
difficult as the same tools I used a decade    Age software is created by craftspeople.                                    Continued on page 19

8                 S D F o r u m         n e w s     •    v o l     6 / i s s u e         1     •      w w w . s d f o r u m . o r g
                  what’s happening:                         SDForum SPECIAL INTEREST GROUPS (SIGs)

                                                 Stanford Barn, 700 Welch Rd. Suite 250,         Mountain View. Contact Chairs: Jonathan
              SDForum                            Palo Alto. Contact Chairs: Jeannine Athas       Abrams, Tom Cervantez and Steven Bennet.
   Special Interest Groups (SIGs)                and Charlie Pfefferkorn Sponsored by Crosby
  are informal evening meetings held on          Sponsored by Invest Northern Ireland, Invest    Heafey, GrayCary, PricewaterhouseCoopers,
  a monthly basis and organized around           UK, and Localization Industry Standards         Silicon Valley Bank and White & Lee LLP
   a specific business or technical area         Association.                                    (Note: Cost to attend this SIG: $20 for mem-
    of interest to software and Internet                                                         bers; $30 for non-members).
    professionals. Please always check           Internet Security and Privacy. Fills the need
  our website for the latest information         for developers to get first hand information    Web Services. Web Services allow program-
   before attending a meeting. There is          about security products, technologies, and      mers to write code that can be used by other
      typically no charge for SDForum            processes, and to exchange information on       programmers written in any language, on any
     members, $15 for non-members.               current practices and encountered threats.      operating system, running on any hardware
                                                 Meets second Wednesday of the month,            platform over the Internet. Mildly put, Web
                                                 6:30 PM at Cubberley Community Center           Services represents a revolution in the busi-
Business Intelligence. Provides a forum for      4000 Middlefield Rd., Rm. H-1, Palo Alto.       ness model of e-commerce. Meets fourth
discussing the growing opportunities soft-       Contact Chairs: Ames Cornish and Ira            Tuesday of each month, 6:30 PM at
ware provides to use information to improve      Victor Sponsored       Microsoft, 1065 La Avenida, Bldg 1, Moun-
business management practices. Meets             by Kaspersky Lab, Privastaff and Sierra         tain View. Contact Chairs: Mike Abbott, Earl
third Tuesday of the month, 6:30 PM at Lucie     Ventures.                                       Bingham, Kate Gardner and David Nielsen
Stern Community Center, 4000 Middlefield                                                Sponsored by BEA Sys-
Rd., Community Room, Palo Alto. Contact          Java. Gives developers a chance to interact     tems, IBM, Microsoft, Raining Data, Sierra
Chairs: Gail Klein and Richard Taylor            with and learn from other Java developers.      Ventures and Sun Microsystems. Sponsored by Microsoft        Presentations cover significant products or
and Sun Microsystems.                            technologies of interest. Meets first Tues-     Windows/Visual Basic. An open forum for
                                                 day of the month, 6:30 PM at Cubberley          collecting and disseminating technical infor-
Emerging Technologies. A forum to discover       Community Center, 4000 Middlefield Rd.,         mation on programming Microsoft Windows.
and discuss the most recent developments         Rm. H-1, Palo Alto. Contact Chairs: Bill        Technical panels, presentations by experts,
in technology, how these technologies af-        Grosso, Tom Hill, Paul O’Rorke and Dave Yost    and previews of new development tools by
fect us, and how we can define business          JavaSIG@sdfor Sponsored by               company representatives all teach the lat-
models around these technologies. Meets          AltoWeb, DataDirect Technologies, and Sun       est Windows technology. Meets first
second Tuesday of the month, 7:00 PM at          Microsystems.                                   Wednesday of the month, 6:30 PM at
Cubberley Community Center, 4000                                                                 Microsoft, 1250 Charleston Avenue, Moun-
Middlefield Rd., Rm. H-1, Palo Alto. Contact     Marketing. Success or failure of companies,     tain View. Contact Chair: Chuck Berg
Chairs: Janice Carter, William Grosso, Tom       including technology companies, is often de- Sponsored by Microsoft.
Hill and Bill Grosso           termined by the quality of their marketing.
                                                 This SIG helps people learn how to better       Voice/Wireless Media. This SIG was cre-
Founder’s Forum. Helps new and seasoned          position, brand and promote products and        ated to establish and support a community
entrepreneurs learn from each others expe-       services. Meets on the second Monday of         of software developers interested in creat-
rience, enthusiasm, focus and vision. Meets      the month, 6:30 PM at the Mitchell Park         ing wireless and voice based web applica-
first Tuesday of the month, 6:00 PM at           Community Center, 3800 Middlefield Rd.,         tions. Monthly meetings serve to provide
SDForum, San Jose. Contact Chairs: Chris         Palo Alto. Contact Chair : Jim Schibler         technical insight into the rapidly emerging
Yeh and Joe Silvestor                              technologies, as well as to provide an envi-
Sponsored by HiTech Law.                                                                         ronment in which attendees can network
                                                 Venture Finance. This SIG will help you prac-   with each other. Meets first Thursday of
International Software. Assists software         tice your pitch and presentation and get        the month at 6:30 PM at Openwave, 1400
companies in developing and delivering soft-     feedback from VCs and entrepreneurs who         Seaport Blvd., Redwood City.. Contact Chairs:
ware products to international markets.          have talked the talk and walked the walk.       Alex Chan, Joe Jasin, Phil Korn, Srinivas
Meets third Monday of the month, 6:30 PM         Meets third Wednesday of the month,             Penumaka Spon-
at the Silicon Valley World Internet Center,     at Microsoft, 1065 La Avenida, Bldg 1,          sored by Microsoft and Sun Microsystems.

S D F o r u m         n e w s      •     v o l     6 / i s s u e         1    •    w w w . s d f o r u m . o r g                            9
                       M O N D A Y                                                    T U E S D A Y                                        W E D N
 3                                                               4                                                         5
                                                                                         ● Java SIG

           Feb2003                                                      6:30 pm, Cubberley Community Center, Palo Alto

                                                                                      ● Founders Forum
                                                                              6:00 pm, SDForum Center, San Jose
                                                                                                                                                ● Windo
                                                                                                                                    6:30 pm, Mountain Vie

10                                                               11                                                        12
                                                                                 ● Emerging Technologies SIG
                        ● Marketing SIG                                  Scalable Architectures for Distributed Systems                          ● Secu
                     (no meeting this month)                            7:00 pm, Cubberley Community Center, Palo Alto            6:30 pm, Cubberley Com

                                                                                         ▲ XML Event
                                                                                    6:30 pm, San Francisco
                                                                                 (see website for exact location)

17                                                               18                                                        19
                       ● International SIG
     6:30 pm, Silicon Valley World Internet Center, Palo Alto                      ● Business Intelligence SIG                               ● Venture F
                                                                        Lucie Stern Community Center, Community Room,                 Microsoft Main Cam
                                                                                           Palo Alto

24                                                               25                                                        26

                                                                                     ● Web Services SIG                                   ▲ Next Generatio
                                                                            Microsoft Main Campus, Mountain View                6:00-8:30 pm, Microsoft Ma

 3                                                               4                                                         5

                                                                                         ● Java SIG
                                                                                                                                                  ● Windo

                                                                        6:30 pm, Cubberley Community Center, Palo Alto
                                                                                                                                     Microsoft Developer C
                                                                                      ● Founders Forum
                                                                              6:00 pm, SDForum Center, San Jose

10                                                               11                                                        12
                                                                                 ● Emerging Technologies SIG
                                                                                    Interactive Storytelling                                     ● Secu
                                                                        7:00 pm, Cubberley Community Center, Palo Alto            6:30 pm, Cubberley Com

                                                                                         ▲ XML Event
                                                                                    6:30 pm, San Francisco
                                                                                 (see website for exact location)

17                                                               18                                                        19

                        ● Marketing SIG
      6:30 pm, Mitchell Park Community Center, Palo Alto                          ● Business Intelligence SIG                                 ● Venture F
              (date change for this month, only)                        6:30 pm, Lucie Stern Community Center, Palo Alto          6:30 pm, Microsoft Main

                       ● International SIG
     6:30 pm, Silicon Valley World Internet Center, Palo Alto

24                                                               25                                                        26

                                                                                     ● Web Services SIG
                                                                        6:30 pm, Microsoft Main Campus, Mountain View

10                  S D F o r u m          n e w s        •     v o l     6 / i s s u e         1     •     w w w . s d f o r u m . o r g
 E S D A Y                                 T H U R S D A Y                                             F R I D A Y

 ows SIG
ew Community Center,
ain View
                                            ● Wireless/Voice SIG
                                      6:30 pm, Openwave, Redwood City
                                                                                           CALENDAR AT-A-GLANCE
                                                                                         Save these dates for SDForum events!
                            13                                                            Then refer to the What’s Happening section
                                                                                            of this newsletter and visit our website
 rity SIG                        ▲ The Future of Software Development Series                   REGULARLY for complete details.
mmunity Center, Palo Alto                 Speaker: Stephen Wolfram
                                       Topic: A New Kind of Science ...                    ● = SIGs   ▲ = Events   ■ = One-On-Ones
                                    And Technology for the Coming Century
                                          6:00 pm, PARC, Palo Alto
                                                                                        M E E T I N G         L O C A T I O N S
                                                                                                      SDForum Center
Finance SIG                                                                             111 W. Saint John Street, Suite 200, San Jose
mpus, Mountain View

                                                                                              Cubberley Community Center
                                                                                         4000 Middlefield Road, Room H-1, Palo Alto

                            27                                                                 Lucie Stern Community Center
                                                                                               1305 Middlefield Road, Palo Alto
on Entrepreneurs                             ● Career Strategies
ain Campus, Mountain View                     6:30 pm, Palo Alto                                   Michaels at Shoreline
                                        (see website for exact location)
                                                                                              2960 N. Shoreline, Mountain View

                                                                                                  Microsoft Main Campus
                            6                                                              1065 La Avenida Bldg. 1, Mountain View

ows SIG                                     ● Wireless/Voice SIG                                Microsoft Developer Center
Center, Mountain View                 6:30 pm, Openwave, Redwood City                      1250 Charleston Avenue, Mountain View

                                                                                              Mitchell Park Community Center
                                                                                              3800 Middlefield Road, Palo Alto
                                                                                             Palo Alto Research Center (PARC)
 rity SIG                                                                                     3333 Coyote Hill Road, Palo Alto
mmunity Center, Palo Alto

                                                                                           1400 Seaport Boulevard, Redwood City

                                                                                            Silicon Valley World Internet Center
                                                                                        Stanford Barn, 700 Welch Road #250, Palo Alto

Finance SIG                                                                                          Thelen Reid & Priest
 Campus, Mountain View
                                                                                        2nd Fl Multipurpose Room, 101 Second Street,
                                                                                                        San Francisco

                            27                                                     28

                                             ● Career Strategies
                                              6:30 pm, Palo Alto
                                        (see website for exact location)

          S D F o r u m     n e w s    •     v o l      6 / i s s u e      1   •    w w w . s d f o r u m . o r g                       11
                  event review:                  OCTOBER SPOTLIGHT EVENT

                  Secrets of Early-Adopter Customers
F     or entrepreneurs of young software
      companies trying to achieve wide-
spread enterprise adoption, the October
16, 2002 SDForum Spotlight Event,
                                             one that they are willing to make an
                                             equity investment in and where they
                                             help shape the product for their needs.
                                                                                                on the three aspects of any supply chain –
                                                                                                physical, financial, and information – and
                                                                                                how to take the costs out.

“Secrets of Early-Adopter Customers,”        Balancing Risks with Benefits                      Getting The CIO’s Attention
provided extremely useful insight and        In the higher risk situation of new tech-          So how does a fledgling enterprise soft-
direction. A panel of three distinguished    nology adoption, Cates emphasized the              ware company command the attention of
CIO’s gave entrepreneurs practical advice    critical need for a CIO to have a commit-          early adopters? Cates advised entrepre-
and a roadmap to success from their point    ted sponsor in the business unit with a real       neurs to ask for input, not for a sale. Also,
of view. The event was moderated by          need. John Lafferty concurred whole-               show the CIO how his competitor will
Dave Margulius, a Contributing Editor        heartedly, emphasizing that the business           benefit versus them, if they don’t adopt
for InfoWorld Magazine, and included         sponsor helps win the political battles            the technology. If you’ve called on an ac-
James E. Cates, VP, Information Tech-        as well as the technology ones as the              count several times, but have met only a
nology and CIO, Brocade Communica-           project moves forward. The clear lesson            few people, you are probably not going to
tion Systems, John Amos, VP of               to entrepreneurs is to understand who              be successful selling that account so move
Technology Strategy, McKesson and John       their business sponsors are and to build           on to the next one. Entrepreneurs were
Lafferty, Emerging Digital Technology        relationships with them as well.                   advised to get 15 established customers
Group, Eastman Chemical.                                                                        before trying “the big guys” to build
   Dave Margulius opened the evening by                                                         credibility and for assurance that the initial
observing that Geoffrey Moore’s Crossing               For entrepreneurs of                     bugs are worked out. Amos stated that
the Chasm model, labels early adopters as          young software companies                     3-5 customers wasn’t enough to pass
the high risk/high reward opportunity.            trying to achieve widespread                  McKesson’s “market viability” test and
Visionaries are possibly easy to sell but                                                       that about 15 customers are necessary to
                                                     enterprise adoption, the
notoriously hard to please. Pressure from                                                       sustain a young company during the bud-
                                                    October 16, 2002 SDForum
early visionary customers sometimes                                                             get cycle reviews of larger companies.
causes companies to highly customize                 Spotlight Event provided                   Lafferty advised entrepreneurs to be sensi-
their product for that project and puts              extremely useful insight                   tive to the annual budget process and the
them a step further back from the mass                     and direction.                       cycle time for evaluation in large compa-
market.                                                                                         nies. Be clear with CIOs whether you will
                                                                                                modify your product to meet an early
Why Adopt Early                              Weathering the Downturn                            adopter’s needs or explain how they need
“Necessity forces you to be an early         Even in a “normal” economy, CIO’s are              to change their process to use the prod-
adopter,” according to James Cates. He       deluged with new technology proposals.             uct. And lastly, don’t overextend your
judges new technology by its fundamental     How has the downturn in the economy                company to service one very large cus-
benefit to the business – better, faster,    and IT spending affected early adopters?           tomer as it presents too high of risk.
cheaper. John Amos agreed and provided       Cates says, “The focus has changed away
his experience with helping Symbol Tech-     from ‘breakthrough’ technologies to cost-          Contract or Relationship?
nologies design a ruggedized PDA solu-       cutting technologies.” Entrepreneurs               All three CIO’s emphasized the need for a
tion to solve his business problem of        should be clear if their product improves          strategic relationships at the early adopter
providing a receipt for drug deliveries to   P&L (reduces expenses) or the balance              level versus a spec-driven contract. Start
stores. He chose AvantGo to closely part-    sheet (working capital). Amos noted that           small and try prototypes to learn together.
ner with on a solution to move the data      McKesson’s philosophy of “machines                 Lafferty noted that having the product
from the PDA to a backend system. He         good/people bad” results in adopting               used successfully inside the corporation
noted that McKesson looks for partner-       technologies that eliminate the human              makes an equity investment a more likely
ships in technology development, not         element (and error involved) of transac-           scenario.
simply a supplier-customer relationship.     tions. Amos stressed that McKesson con-
McKesson views a strategic partner as        tinues in a down economy to be focused                                   Continued on page 13

12               S D F o r u m         n e w s     •   v o l     6 / i s s u e         1    •      w w w . s d f o r u m . o r g
Continued from page 12                          Where Does It Hurt Today
                                                Entrepreneurs in the audience wanted                            streetwise:
Business Managers as Early Adopters             to know where the CIO panelists biggest                         ROI PERFORMANCE
The CIO panelists cautioned against sell-       pain points are today. Panelists listed how
ing only to them. Cates observed that true      to manage different ERP systems, how to       Continued from page seven
leaders in a business try things that are       implement web services for e-commerce,           So, if you are not currently conducting
new. They are often the best innovators         and standardizing and securing web ser-       ROI performance measurement, you
because they intimately know the business       vices as some of their top priorities. CIOs   might be asking, where do we begin? Start
process and problems. Amos stated,              judged anti-spam as an area where a real      by shifting your mindset. Abandon ROI
“Rogue projects are good – once a               solution has not yet emerged but an area      justifications just to obtain your technol-
problem is solved, IT can ‘industrialize        of concern.                                   ogy initiative funding (of if you are the
the application’ for ongoing support.”                                                        vendor, the order). Extend the outcome
Approach a business person to champion          Lessons Learned                               of this upfront analysis by establishing
the product within IT and the company.          In the current business environment,          ROI metrics and key performance indica-
                                                focus on how software reduces costs, and      tors to monitor against over the life of the
Getting References                              specifically, what kind of costs. Look for    initiative. You will achieve better project
Having a referenceable customer is a tre-       and develop relationships with the busi-      success and ROI results over time if you
mendous benefit to all software suppliers.      ness-side “early adopters”. Focus on          follow this strategy.
CIOs generally demand something in              visionaries for early sales to develop
return for providing references such as         enough customers (approximately 15)           Bruce Scheer is the Founder of FutureSight
reduced fees, license costs or maintenance      to have credibility at larger corporations.   Consulting, a leading developer of ROI
deals. CIOs often want an application in                                                      methodologies, modeling tools, white
production at least 90 days to ensure that      Gayle Schaeffer is a strategic marketing      papers and case studies for technology
it has achieved the predicted result before     consultant and can be reached at 510-         initiatives. He can be reached at
supplying a reference.                          573-2538 or

                                                 Hanson Bridgett AD

S D F o r u m         n e w s      •    v o l     6 / i s s u e        1     •    w w w . s d f o r u m . o r g                         13
                  event review:                  BUSINESS INTELLIGENCE SIG

                  Business Intelligence – The State of Play
R         ichard Taylor is Co-Chair of the
          Business Intelligence SIG and for
the last five years he has been a Software
Architect working on the Red Brick Data
                                               • SCM (Supply Chain Management) –
                                               planning and management of materials,
                                               production, inventory, logistics, and
                                                                                                 with packaged applications are: the solu-
                                                                                                 tions could be only a partial solution from
                                                                                                 a strategic point of view, they are expen-
                                                                                                 sive, and they are no longer a competitive
Warehouse, now with IBM. Richard gave          • Human Resources – managing learning,            advantage because everyone has one.
a view of the last two years of the BI SIG’s   growth, healthcare, personal finance.                Richard mentioned that the investment
topics, interwove the present state of                                                           ratio of the platform to platform integra-
Business Intelligence into the application     The Application Lifecycle Model                   tion is around 10 to 1. The analytic appli-
lifecycle model and ended with a brief         and How it Applies to BI                          cation must add value by doing the
peek at the future.                            • Phase 1 – New Application. Hire pro-            following less expensively than engaging
   The natural progression of BI or            grammers and code it for the company.             a consultant:
analytics was from paper reports originally    It gives that company a competitive edge.         • Encapsulate domain knowledge
to OLAP about 10 years ago to Data             • Phase 2 – Packaged Application. The             • Automate manual procedures
Mining more recently.                          platform becomes available and there is a         • Make data exploration easy for
   With OLAP, or OnLine Application            general understanding of the application.            business users
Processing, the underlying data must be        Companies can choose the best in each                Sample analytic applications range from
“drilled down” manually. Data Mining           category from vendor offerings. There is          a new business problem to address (churn
(DM) tries to extract interesting data from    no longer a competitive edge.                     analysis in telecom) to ongoing challenges
the source automatically and then some-        • Phase 3 – Application Suite. There are          in industries, such as merchandising plan-
one looks at the extracted data to decide      suites of components and companies no             ning/analysis for retail, route planning for
if it is useful.                               longer need to assemble the best indi-            transportation, risk analysis for financial,
   Another use of Business Intelligence        vidual applications.                              fraud detection for insurance, and fore-
is to analyze the collected data and feed      • Phase 4 – Outsource. The application            casting, budgeting, and customer behavior
it into another application. For example,      is no longer a strategic commodity, so it         modeling for all industries.
when deciding stocking levels for a new        is outsourced.
product, the stocking level for item X                                                           The Future Lies In:
(example, ice scrapers) can be based on           The BI industry is in Phase 2 of the           • Vendors developing complete platforms
item Y (example, de-icer spray) numbers.       lifecycle. All vendors of components tout           – integrating cohesively ALL of the
This is a forecast for a new item based        that they have a complete platform, which           components needed
on a related use item.                         is not correct. There are a large number          • New areas of use
   The driving force behind the current        of mergers and acquisitions among the             • Other data sources – competitive
BI surge is the enormous amount of data        various BI vendors.                                 intelligence
available, since storage is inexpensive and       Business Intelligence analytic offerings       • Analyze processes – business process
methods of collecting the data are auto-       are the most robust in the finance area,            modeling
matically built into most transactions.        since finance is more similar between com-        • Outsourcing of data – media rating
Terabytes of data are common.                  panies than other areas are, such as CRM            companies (Nielson) and coupon
   BI is used primarily for improving the      and SCM. This makes generic finance                 fulfillment companies
execution of the current business model        packages and platforms easier to build.
                                                                                                   The presentation ended with questions
or changing the business model itself. The     Richard pointed out that developers need
                                                                                                 and answers.
execution improvements are currently being     to build the same application three times,
applied to the following four areas:           before they understand it well enough to
• Finance – forecasting, budgeting,            build a application platform package.             Susan St.Pierre who does documentation
management, and tax and legal reporting           Packaged applications have the advan-          and training materials for business intelli-
• CRM (Customer Relationship Manage-           tage of: quickly addressing a specific pain       gence and knowledge management software.
ment) – marketing sales, service, store        point, development is not needed (in              Her clients have included Pacific Bell,
placement, stocking, forecasting               theory), and they encapsulate domain spe-         Hewlett Packard, Brio Technology, and
                                               cific knowledge. However, the problems            Informix.

14               S D F o r u m         n e w s      •    v o l     6 / i s s u e       1     •      w w w . s d f o r u m . o r g
                   event review:                  MARKETING SIG

                   E-Mail Marketing – Trials and Triumphs
T   he times are changing for email direct
    marketing. Once heralded as the
Internet’s killer app, email has been over-
used and abused in the past few years.
                                                 rolling out a marketing program to as
                                                 many potential customers as possible.
                                                 That dilemma led Beasley to a discussion
                                                 of lists and list procurement.
                                                                                                  emails can keep them on the list.
                                                                                                     Personalization also helps boost response
                                                                                                  rates. Customized content is the most
                                                                                                  sought-after form of personalization, but
Witness the federal and state legislative           The best list is the list a company builds    other personalizations such as use of the
initiatives aimed at spam but likely to          itself, she said, because permission can be      recipient’s name, demographically targeted
affect most email marketing.                     assured and the right audience is more           messages, and personally timed reminders
   But email is still a very cost-effective      likely to be targeted. However, purchased        (“your car is due for service”) are also well
strategy for getting your company’s              lists can also be effective, though they         received.
message out – as long as you do it right,        have their limitations.                             The single most important tactic for a
according to Laurie Beasley, a profes-              There are four sources for opt-in lists:      successful campaign, however, is probably
sional email and direct mail marketing           e-mail collections or alliances such as          the offer. Free samples, T-shirts, gift certifi-
consultant who was featured at the               PostMaster Direct; YesMail and                   cates or even points can make the differ-
Marketing SIG’s December meeting.                TargitMail; bonus purchase programs such         ence between a ho-hum campaign and a
   Beasley ticked off a list of impressive       as MyPoints and IntelliPost; vertical lists      successful one.
email statistics: three times as many emails     such as Industry Standard and PC World
than postal letters are set every day in the     Online; and private list exchanges market-       Content: King Again
U.S.; 37% of the U.S. population uses            ers can make with partners and portals.          The content of the email – what you say
email daily; and email boasts double-digit          One problem with virtually all pur-           and how you say it – is most important.
compound growth rates.                           chased lists is selectability, because privacy      More research has been conducted on
   Impressive as they are, the same statis-      concerns have resulted in registration           solicitation letters than on any other aspect
tics that effectively demonstrate e-mail’s       forms that ask relatively few questions and      of direct marketing, Beasley said, and email
growing pervasiveness also prompt an             do not have the high level of demographic        marketers can benefit by using it. A few of
important question: How can an email             and preference data most marketers are           her tips: Be very specific about a single
marketer maximize the probability that           used to getting with direct mail lists.          product feature and how it benefits the
recipients open – and act on – his or her                                                         customer; put the offer and call-to-action
email message?                                   The Good News                                    at the top of the email; write a short but
   The question is far from rhetorical.          After detailing the potential pitfalls of        compelling subject line for the email; state
Beasley pointed out that the average click-      email marketing campaigns, Beasley of-           that satisfaction is guaranteed; and, keep
through rate (CTR) for business-to-busi-         fered her keys for overcoming them. The          the email as short as possible.
ness email campaigns are falling. CTRs for       first is to set up an email strategy to deal        At a strategic level, Beasley has found
B2B newsletters, for example, dropped            with processing and managing the positive        that multi-step campaigns generally
from 3.4% in 2000 to 2.8% in 2001 and            results as well as an unexpectedly large         increase response rates and sales. This
to 1.9% in 2002.                                 volume of unsubscribe requests, flames,          sequence generally starts out with an
                                                 returns (bad addresses) and unanticipated        attractive offer that directs the customer
Permission is Important                          customer inquiries.                              to a microsite or “landing page” that,
Getting the customer’s permission to send           This usually means that not just mon-         in turn, involves the customer at a deeper
email makes a big difference in response         etary but also human resources must              level such as completing a survey. Cross
rates, Beasley said. A customer opinion          be allocated to the email campaign.              selling and up selling are also part of the
survey of reactions to unsolicited versus        As effective as it can be, email marketing       multi-step campaign formula, she said.
permission email conducted by IMT Strat-         has management and data processing                  Beasley can be contacted through her
egies found, for example, that 64% of the        costs that are essential for success.            company, Beasley Direct, at 408-782-0046
respondents had “very negative” opinion             At a tactical level, the best advice is       or
of unsolicited email. At the other end of        to give email recipients what they want,
the spectrum, 26% had a “very positive”          Beasley said. This includes an easy to find      Jack Shandle is president of e-ContentWorks,
opinion of permission email – as opposed         opt-in or opt-out Web page with more             a consultancy that creates editorial content
to just 2% for unsolicited email.                than just a black/white, opt-in/opt-out          for high-tech corporations for either print or
   Permission-based email marketing often        choice. Asking subscribers if they want          electronic publication. He can be reached at
has to compete with the challenge of             specific types of email or less frequent or 415-601-8548.

S D F o r u m         n e w s       •    v o l     6 / i s s u e         1     •    w w w . s d f o r u m . o r g                              15
                  event review:                 WEB SERVICES SIG

                  The Universal Business Language (UBL)
                  and Its Impact on eCommerce
I  ntroduction to Speaker Jon Bosak
   Jon Bosak is a Distinguished Engineer
at Sun Microsystems. He organized and led
the group that created XML, and he pres-
                                                it’s expensive. It’s not unusual for costs
                                                to run to $10 million or more, and yet
                                                with a large company’s economies of scale,
                                                it’s been well worth it in decreasing their
                                                                                                  components: Collaboration Protocol
                                                                                                  Profiles (CPPs), Collaboration Protocol
                                                                                                  Agreements (CPAs), Business Process
                                                                                                  Specification Schema (BPSS), and Simple
ently chairs the OASIS UBL TC. You can          overall costs.                                    Object Access Protocol (SOAP).
reach him via email at          For example, even today only 100 (out             CPPs are XML documents that that use
                                                of 12,000) American banks use EDI. It’s           a specific vocabulary that identify business
Three Important Facts                           true that EDI costs have come down in             processes that a company is will to partici-
about eCommerce                                 recent years, but are still are comparably        pate in. For example, a news clippings
First, business is built on standard, legally   high – still too high for a small and me-         company would provide a CPP interface
binding documents, and business online          dium size business to implement. So the           to other companies that would allow them
means putting those documents online –          vast number of businesses have remained           to purchase their services.
it’s that simple.                               untouched by EDI (and thus eCommerce)                A CPA is composed of CPPs from each
   In addition, a lot of recent publicity is    because of this major cost barrier. What to       trading partner that specifies what collabo-
on B2C services (online stocks, Amazon,         do? One partial answer: ebXML ...                 rations take place and the specifics about
etc); however, today B2C makes up only                                                            them. Once the trading partners have
6% of e-Commerce while B2B makes up                                                               agreed to a CPA, they can use BPSS to
94%. According to Gardner Research B2B             eCommerce is heading toward                    define and describe the business process
will increase to 96% eCommerce by 2006             EDI and its follow-up technolo-                and business documents. Finally, SOAP is
with only 4% being B2C.                            gies: Electronic Business XML                  the open message transport mechanism
   Third, today Electronic Data Interchange       (ebXML) and Universal Business                  that encapsulates the CPAs, CPPs, and the
(EDI) accounts for 75% of the B2B and it             Language (UBL) ... UBL and                   BPSS’s.
will remain an important technology in the            ebXML will become cost
years ahead.                                        effective for a vast majority                 Just What is the Universal Business
                                                      of small and medium size                    Language (UBL) Anyway?
So Where’s eCommerce Heading?                       companies that have not yet                   UBL is a set of standard formats for com-
The answer is EDI and its follow-up                                                               mon business documents such as purchase
                                                  been touched by B2B commerce.
technologies: Electronic Business XML                                                             orders, invoices, and advanced shipment
(ebXML) and Universal Business Language                                                           notices. These formats meet the needs of
(UBL). Why? Because UBL and ebXML               Evolving eCommerce:                               many businesses and can be customized.
will become cost effective for a vast major-    Electronic Business XML (ebXML)                   The formats are made up of “standard
ity of small and medium size companies          ebXML ( is a modular                business information entities” such as
that have not yet been touched by B2B           suite of specifications that enables enter-       addresses, prices, etc. The UBL uses these
commerce.                                       prises of any size to conduct business over       business entities to create core schemas
                                                the Internet. It enables parties to extend        that can be shared and reused between
Present State of eCommerce:                     their current EDI investment to new trad-         companies.
Electronic Data Interchange (EDI)               ing partners. Developed by cooperation               UBL is primarily composed of UBL
The standard definition of EDI is “auto-        between two organizations, UN/                    schemas and UBL context methodology.
mated, computer-to-computer exchange            CEFACT (a UN trade body involved in               In the UBL world, a business publishes
of structured business documents between        developing UN/EDIFACT, the interna-               profiles that specify the business context of
an enterprise and its vendors, customers,       tional trade standard), and OASIS                 a transaction such as industry type and
and other trading partners.” EDI has            (, an international consor-         geographic regions for their trading part-
been in place for over 20 years and is          tium that promotes collaborative develop-         ners. These context-specific formats are
mainly used by large corporations.              ment of interoperability specifications.          based on standard UBL components, and
Why only large corporations? Answer:               ebXML consists of four main                                           Continued on page 17

16                S D F o r u m         n e w s      •    v o l     6 / i s s u e        1    •      w w w . s d f o r u m . o r g
Continued from page 16                             can work with UBL. Finally, there will be      • 75% of this B2B business will be Next
therefore guarantee inoperability between          a simple context methodology that will           Generation EDI and it will grow as
trading partners. And because they will            describe how you can add context-based           millions of small businesses find out
become standards, expensive EDI custom             extensions to UBL.                               how cost affordable it will be.
programming will no longer be required.               To be completed by mid-2003, Phase 2
                                                   will contain full-blown context methodol-      • UBL schemas are available now for the
The eCommerce Future:                              ogy that will describe all extensions in a       developer and integrator to experiment
EDI Next Generation = UBL + ebXML                  recombinant fashion.                             with. Great fertile opportunities for us
By combining UBL with ebXML you get                                                                 folks.
the next generation of EDI. The equation           So What’s the UBL Implications
that sums up the most important point in           for Developers?                                • Unlike the past five years, Next Genera-
this lecture: Next Generation EDI = UBL            The first real UBL schemas are now avail-        tion EDI will be driven by the folks up-
+ ebXML.                                           able (          stairs who write the checks. Keep your
   This combination is cheaper, easier to          ubl/lcsc) including Order, Order Re-             eye on them and not the sales or the
implement, and is Internet-ready. It ex-           sponse, Library (500 elements). These are        developer’s hype.
tends EDI benefits to smaller businesses at        almost semantically complete and are suit-
a reasonable cost. And it fits existing legal      able for experimentation. The UBL syntax       OASIS: Organization for the
and trade concepts. “This technology is            is expected to stabilize by end of 2002.       Advancement of Structured
real and exists today and is being adopted            The UBL fixed tag set is easier to          Information Standards
by innovative companies,” says Bosak.              implement than generic XML software,           OASIS is a non-profit organization and is
                                                   and the standard UBL schema has the            open to the public. Membership is open
Who Will Be First to Use EDI                       potential to jump-start entire user-driven     and anyone can comment.
Next Generation?                                   applications. Remember what HTML did
Answer: The large verticals that already           for the development of the web? UBL has        • For more information:
use EDI that including those in the elec-          even more potential to do the same for           –
tronics, automobile, chemical, and health          eCommerce.                                       –
care industries. Each of these industries             With the combination of UBL and
have their own XML-based technologies              ebXML, you will be able to create com-         • OASIS UBL Portal:
and they work great as long as you stay            plete, user-configurable, interoperable          – http://oasis-open/committees/ubl
within your vertical; that is, as long as, for     business systems. Example: If a company
example, the auto manufactures orders              has two different applications and they are    • Great tutorial:
within his vertical, there is no problem;          both UBL-ebXML enabled, they will both           –
however, as soon as he goes outside his            be able to be easily configured to talk with      ubl/info/ubl-tut.ppt
vertical, say, to an electronics manufac-          one another. Now that’s true application
turer, he has problems and that’s where            integration!                                   • UBL public comment & news list archive:
UBL fits in – to enable this cross-                                                                 –
verticalization interoperability. Now in-          And What’s the UBL Implications                   archives/ubl-comment
stead of just the Fortune 1000 using EDI,          for Integrators?
millions of small and medium size busi-            Simply put, UBL will become the business       • To subscribe:
nesses will be able to be take part in             integrator’s bread and butter. Human   
eCommerce at a reasonable cost.                    read-able UBL files can be programmed
                                                   by adapting UBL style sheets. Developers
What is Coming to Make eCommerce                   using the UBL tag set will create shell
Happen: UBL Deliverables                           scripts to perform a lot of ordinary           Dan Dunne, Ph.D., is a senior technical
In Phase 1 that will be completed by the           operations.                                    writer, courseware and eLearning developer,
end of 2002, a UBL library composed of                                                            and can be reached at
reusable building blocks and standard              Summary of Key Points                          Among his numerous recent achievements,
document types will be available. Also             • The future equation to remember: Next        he was the first person to design, develop and
included will be schema data rules that              Generation EDI = UBL + ebXML and             teach Java classes in California as well as
represent UBL in XML/XSD, and a                      96% of this business will be B2B, not        create an eLearning Java class.
description of how external modules                  B2C (sorry Amazon).

S D F o r u m          n e w s       •     v o l     6 / i s s u e        1     •    w w w . s d f o r u m . o r g                            17
                   SDForum news
                   SDForum Survey Results
T   hank you to everyone who participated
    in our November 2002 survey. We had
over 800 responses from both current and
previous SDForum members. Overall, we
                                               This total includes both current and
                                               previous member responses.

                                                                                                 SDForum Programs
                                                                                                 Overall, respondents found all of the cur-
                                                                                                 rent SDForum programs valuable. The
                                                                                                 top two ranked business-oriented pro-
gathered a tremendous amount of informa-       • Job Function                                    grams included the One-on-One meetings
tion about our member base, as well as           As expected, over 41% of SDForum                with investors, attorneys and coaches, as
great feedback on additional content,            participants have a technical background        well as the Executive Panels. Of the cur-
courses and types of resource information        (engineering or IT) and 37% have a mar-         rent technical programs, members rated
you would like to see. The SDForum staff         keting, sales or business development           the Technology Expo and Special Interest
will be reviewing this input to determine        background. The remainder of the                Groups (SIGs) as the most valuable. In
what changes we can make to add even             participants fall into a variety of other       addition, we gathered over 20 new topics
more value for our members and event par-        business-related functional categories          and areas of interest for the year ahead.
ticipants. Below are some of the highlights.     (CEO, finance, legal, ops, etc.).                  Again, thank you to all of you who par-
                                               • Job Level                                       ticipated in our survey. We look forward
Member Satisfaction                              Director level and above account for 64%        to 2003, and the opportunity to build
When asked how satisfied participants are        of SDForum participants with 43% being          new programs and provide additional ser-
with their membership – the result was           in top C-level and founder positions.           vices that meet the needs of our members.
a total of 94% satisfaction among members.     • Type of Company
Many of you, 46%, selected the top               The majority of companies participating         Noel Adams of Phase Forward, SDForum
two boxes – extremely or very satisfied.         in SDForum, 63%, are privately held             In-Kind sponsor, can be reached at
An additional 48% answered satisfied.            companies.                            

                                                           IBM AD

18               S D F o r u m         n e w s      •    v o l    6 / i s s u e        1     •    w w w . s d f o r u m . o r g
                                                                                                   That is, while there is value in the items
                  sponsor profile:                                event review:                 on the right, we value the items on the left
                  ALTA PARTNERS                                   COOPER’S                      more.”
                                                                                                   Manifestos seem especially relevant to
Continued from page four                        Continued from page eight                       software developers today. If not for a new
million and raised a total of $10 million;      a concise statement of values that software     manifesto today what do we have to look
Adobe took a total of $1 million in out-        developers may adopt by signing-on.             forward to? Just the Homeland Security
side investment and Aldus was started           Among other things the manifesto says           agency’s future regulations, more empha-
with less than $1 million. The path to          that while there is value in items such as      sis on EJBs with no real criticism on why
financing will not be short. Rumor has it       processes and tools, agile developers value     we should use them, and consequently a
that the founders of Aldus Corporation,         individuals and interactions more. The          bit of history repeating.
the very successful developers of               manifesto is a thought-provoking read.             “The issues are human and not techni-
PageMaker, met with over 60 different              Alan was so fascinated with the              cal,” Alan notes about the manifesto’s
venture groups before convincing two            manifesto’s approachable style that he          effect on the future of software develop-
firms to invest $1.5 million. They went on      put forward his own manifesto for Goal-         ment. “The solution lies in examining
to become a $400 million software com-          Directed Software Construction. It goes         ourselves and not our tools. This is a time
pany that merged with Adobe Systems in          like this:                                      to be introspective.”
1994.                                              “We are uncovering better ways of serv-         I find all of this to be fascinating and
   Take some small comfort in knowing           ing the highest needs of the real end user      uplifting.
that the funding environment is tough for       by having talented, skilled architects deter-
everyone. If you successfully make your         mine how software can best serve the user       This article was originally posted
case and get funded, it is unlikely that a      in collaboration with talented, skilled pro-    on The Server Side. To see the full
competitor will also get funded. Though         grammers who determine how the software         discussion that this article initiated,
companies these days have to run through        can best be built. The synergy between          visit
a more hazardous gauntlet of investors,         these two pragmatic crafts brings value:
customers and tight spending market             • ARCHITECTS AND PROGRAMMERS
conditions, if you pass these tests, your          over engineers and coders                    With 25 years of personal computer industry
chances of building a successful company        • DOING THE RIGHT THING                         contributions, Frank Cohen is the “go to”
and business are higher.                           over doing the thing right                   guy when enterprises need to test and solve
   Alta Partners has $1 billion under           • SERVING THE USER’S GOALS                      problems in complex interoperating infor-
management and invests in early stage              over obeying the user’s pathology            mation systems, especially Web Services.
information technology and life science         • RESPONDING TO REAL NEEDS                      Frank is CEO of PushToTest, a test automa-
companies. Alta’s partners are active              over creeping featurism                      tion solutions business and author of several
investors and most often take a board seat.     • COLLABORATION                                 books on testing information systems. Reach
Most of the partners have extensive oper-          BETWEEN PROFESSIONALS                        him by phone at 408-374-7426 or via email
ating or entrepreneurial experience and            over turf battles                            at
have founded companies or been CEO.
Investment size is typically $2 – 6 million
dollars with a total of $8-12 million
invested in a company. Alta focuses on
investments in the following sectors:
enterprise software and infrastructure,
networking and telecommunications,
                                                   THANK YOU
                                                       We would like to thank
semi-conductors, wireless and security.                our EVENT SPONSORS
Alta Partners is pleased to continue its               for sponsoring the
sponsorship of SDForum. SDForum
provides community and connection for
                                                       Holiday 2002 Showcase:
our clients and continues to support the               IBM
technology changes in Silicon Valley.
Robert Simon has been a general partner                Hanson Bridgett Marcus Vlahos & Rudy LLP
investing in information technology at Alta            ...and also our CO-HOST: The Churchill Club
Partners since 2000.

S D F o r u m        n e w s       •    v o l     6 / i s s u e        1    •     w w w . s d f o r u m . o r g                            19
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Apr/May issue is February 21.                                                                             Start-up Company:
                                                      EXECUTIVE INSIGHT. WIN-LOSS ANALYSIS.                   (3 members)
FREE WEB SERVICE RELIABILITY TOOLS.                   CASE STUDIES. Cerado’s vision is clear: to
PushToTest offers free open-source test soft-         be the leading provider of services that en-
ware and global services solutions that test,         able a sales force to be more successful.
monitor and automate Web Service systems              Cerado uses advanced technology to enable
for functionality, scalability and performance.       executives and sales professionals to commu-
The result is the right size datacenter, better       nicate more effectively, compete more effec-
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