Fast 50 Program

Deliotte & Touche named WebEx as part of their Fast 50 Program. From 2001 to 2005, Webex increased revenue a whopping 280%, earning them the #20th spot on the prestigious list.

To qualify for the Technology Fast 50, companies must have had operating revenues of at least $50,000 in 2001 and $5,000,000 in 2005, be headquartered in North America, and be a company that owns proprietary technology or proprietary intellectual property that contributes to a significant portion of the company's operating revenues; or devotes a significant proportion of revenues to the research and development of technology. Using other companies' technology or intellectual property in a unique way does not qualify.

Thanks,

David Chao
The Web Conferencing Expert

Yahoo IM Plug-In

WebEx released a plug-in that enables Yahoo instant messengers to "co-browse" websites at the same time. My wife and I actually used it the other day when she was showing me some XMAS presents she wanted to buy. In the past, she would copy and paste the URL's into IM. I would then have to click on the URL's and navigate on my own until I found the product she described to me over the phone.

With the new WebEx plug-in for Yahoo IM, we browsed the sites together. She navigated and I simply followed along and saw everything she did on the browser.

You can download the plug in here: www.webex.com/go/yahoo

Thanks,
David Chao
The Web Conferencing Expert

The Art of Listening

The other night I was watching the Will Smith movie, "Hitch." Will Smith plays a date Dr who promises any man that he can help woe any woman. Throughout the movie he provides some pretty clever dating tips. The one that stood out to me was when he said, "You need to listen. That way when it's your turn to talk, you'll have something interesting to say."

In sales, LISTENING is critical. Too many sales reps are so eager to talk, to get a turn to chime in, when in realty the best thing to do is ask thought provoking questions that draw out needs and motives and then sit back and LISTEN to what the customer has to say. If you can't master the art of active LISTENING, you'll never master sales.

Watching the movie got me thinking about common phrases and what they actually mean. For example, in a Classifieds Ad, when you hear "Must be self-motivated," that really means "must work your butt off with very little direction or guidance." Sure there is some sarcasm here but you get my point. Then I thought about this across sales. Here are a few phrases I thought of:

* Not Interested = "You have said nothing of value."
* Not a Priority = "You have not shown me any reason that this should be a priority."
* Management Did Not Give the Go-Ahead = Your fault for investing time and selling to a non-decision maker who could not effectively sell management on your behalf.
* Price is Too High = "You have not differentiated yourself, your company, your process or your product compared to your competition."
* Price Objection: an opportunity to demonstrate value, indicates buyer interest
* Lowest Price = Lowest Profit, Lowest Value

In my opinion, any question from the customer is a buying signal. It's the customer's way of saying, "Tell me more. Clarify this a bit more for me. Help me understand." The key is to LISTEN carefully and translate what they mean since everything the customer says is a clue in helping you unlock their needs and win the sale.

The most successful sales reps are those that can master the many complex components of a sale, one of the most important being LISTENING skills.

Thanks,
David Chao
The Web Conferencing Expert

Lehman Brothers and WebEx

WebEx will be making a presentation to investors at the Lehman Brothers Global Technology Conference on Wednesday, December 6.

A webcast and replay of each presentation will also be available on the company's investor relations website. Click Here to View the WebCast

Thanks,
David Chao
The Web Conferencing Expert

Genesys Lay-Offs

Confirmed by a close insider, last week Genesys laid-off a large part of its sales team and executive management team, mainly VP's. The reason...Genesys needed to shake things up since the company was not hitting the revenue target goals.

Today's stock price for Genesys (GNSY) = $1.45 a share

I presume the numbers below played a large part in the lay-offs:
Profit Margin: 0.30% [Lack of Profitability]
Return of Assets: 6.47% [Lack of Effective Management]
Return on Equity: 2.82% [Lack of Effective Management]
Quarterly Revenue Growth: (-5.50%) [Lack of healthy Income Statement]
Quarterly Earnings Growth: (-97.60%) [Lack of healthy Income Statement]
Total Cash: 8.54M and Total Debt: 44.18M [More debt than cash]

Thanks,
David Chao
The Web Conferencing Expert

Microsoft Vista

With the new Vista Operating System, Microsoft has once again proven that is stands behind it's traditional fat-client business model. Considering that Windows and Office account for more than 60% of the companies revenue, I suppose it make sense to stick with what has worked in the past. Only problem is that ultimately it's the customer that suffers in the end with the hefty annual fees for the upgrades.

I am still a huge believe in the Software as a Service model simply because of the benefits that the customer immediately realizes. Low risk, low cost, zero implementation.

Thanks,
David Chao
The Web Conferencing Expert

Adobe Connect Re-Run

In the "World Web Conferencing Market Report, 2006, Chart 1.15, by Frost & Sullivan, Breeze/Adobe Connect was listed in the "Others" category for market share meaning that Adobe Connect has less than a 0.3% market share in the on-demand space. WebEx has a 60%-plus market share in the same report. More on Adobe Connect

Many people do not know that Macromedia originally acquired the Breeze technology in 2003 from now defunct, Presidia. Then in 2005, Adobe acquired Breeze from Macromedia and rebranded it Adobe Connect and launched it as a new Adobe product offering. Most analysts have expressed their concerns that Adobe Connect is now part of a much larger product family which could hurt Adobe Connect in terms of resources, budget, and R&D.

According to the TMR Report, Q2 2006 by Helen Gallagher, Breeze received 2 our of 4 stars for ease of use. "Breeze is a challenge to learn, even for those with experience with other synchronous tools. Breeze does not have the ability to create breakout rooms and does not have an e-commerce capability." Overall, WebEx received 4 our of 4 stars, the highest mark of all solutions evaluated in the same report.

In NetworkWorld's recent test of web conferencing products, Breeze was ranked 9 out of 11 competitors, suggesting that the Breeze performance might not be at the same level as some of its peer products. More on Adobe Connect

An interesting comparison might be to look at the number of companies Microsoft has acquired and how many of the technologies generate revenue for the company compared to Adobe. After looking at the list, you'll agree that most of the listed companies and their respective technologies are ones you have never heard.

List of Microsoft Acquired Companies

My suspicion is that something similar with happen to Adobe Connect when compared to Adobe Illustrator, Photoshop Suite, Dreamweaver and Flash, etc, it will eventually fall into the abyss of forgotten products. More on Adobe Connect

Thanks,
David Chao
The Web Conferencing Expert

SugarCRM

SugarCRM is an open source CRM application built on LAMP stack: Linux OS, Apache server, MySQL database server, and PHP language. With their open source architecture, over 2,000,000 downloads of their solution have taken place! Though they are not the current market leader in the on-demand CRM space, they are creating waves because of their unique value proposition: flexibility, customization, integration, and of course, the fact that it is open source. They could give Salesforce.com a run for their money with the right mix of marketing and partnerships.

Speaking of partnerships...

About a month ago, it was announced that SugarCRM Professional would be available on the WebEx Connect Application Grid. (Today, SugarCRM serves over 800 customers in 40 different languages.) The key to success for any open source solution with a low price point like SugarCRM is VOLUME. What better way than to immediately tap into the WebEx Connect Application Grid that currently has close to 30,000 companies and 2-3 millions of users connected to it!

Integrating SugarCRM and WebEx provides customers with an end to end, on demand solution so they can effectively manage their customer relationships with a 360 degree view.

How to Become a WebEx Connect Partner

Thanks,
David Chao
The Web Conferencing Expert

WebEx Connect Strikes Again

You can check out http://davidchao.typepad.com also....

The WebEx Connect Strategy is already gaining acceptance and traction in the marketplace with recent partnership wins with Business Objects, Mindjet, FaceTime, Spring CM, BMC Software, OpSource Optimal, DreamFactory, AdvenNet/Zoho, and SugarCRM.

The idea behind WebEx Connect is to extend the WebEx Network to 3rd party partners so they can instantly penetrate a population of 25,000-plus companies and over 3.5M WebEx users who understand WebEx, who understand the SaaS market. The ability to instantly market to this many companies without having to spend significant marketing dollars is of tremendous value.

It's an equal benefit for individual companies and end users to know that they can access readily available and out-of-the-box integrated technologies to help them optimize their business performance and efficiency. If you are a buyer or a seller of applications, you'll probably find what you are looking for through WebEx Connect.

I also came across an equity report from Brad Whitt, an analyst from RBC Capital Markets Corp. (November 10, 2006). One of his comments caught my attention:

How is Connect Different From AppExchange (Salesforce.com's Saas Platform)?

• "We struggle to find any significant similarities in the two strategies. WebEx provides a collaboration platform (essentially the glue that binds), AIM Pro and the 'killer app' - web meetings. AppExchange is not a collaboration platform and the core application is a database intensive SFA (sales force automation) tool. Unlike AppExchange, WebEx Connect is 'application agnostic' and open to working with on premise and on demand applications. Interestingly, none of the partners presenting at the WebEx analyst meeting see value in partnering with AppExchange."

With WebEx Connect, WebEx is truly extending the value chain across their customers, their customer's customers and 3rd party partners, creating a symbiotic environment where all parties need each other equally. Over time, I think that the WebEx Connect strategy will demonstrate WebEx's ability to make major contributions to their customer's business success and advancement of their customer's strategic initiatives.

Thanks,
David Chao
The Web Conferencing Expert

Web Conferencing Market

According to Frost & Sullivan, the web conferencing market is currently valued at $725.4 million and projected to reach $2.9 billion in the next 5 years, which equates to a market growth rate of 24.4%! Even more shocking is that the web conferencing technology penetration rate is less than 5%!

Frost & Sullivan also states that the web conferencing companies that are focused on integrating their technologies with Instant Messaging, VoIP, and video conferencing will benefit the most from the explosive growth over the next 5 years. WebEx already has WebEx AIM Pro Business Edition for enterprise instant messaging, built-in VoIP and video built on the H.264 video codec. Add WebEx Connect and you have a recipe for long-term success.

Thanks,
David Chao
The Web Conferencing Expert

MSFT Live Meeting Crashes!!!

Upon my return from Las Vegas, some very, very compelling news was waiting for me in my inbox..."Security Rivals Shut Out Of Microsoft Meeting." Microsoft hosted an online meeting last Thursday using their very own "Live Meeting" solution to discuss Windows Vista with Symantec and McAfee among others. About 15 minutes into the presentation, the meeting crashed and Symantec and McAfee were unable to log back in.

"Microsoft hosted an online meeting this morning, but it never really got started," said Siobhan MacDermott, a McAfee spokeswoman. "Despite numerous attempts to reconnect, we were never able to get back into the meeting. However, we were notified that the meeting had ended."

Symantec had a similar experience, said Cris Paden, a company spokesman. "Our team was shut out, and only one person was able to get back in," he said.

Apparently the Live Meeting camp said they sent out "wrong" invites to all attendees. (They sent out invites out as presenters.)

I can understand that these crashes can happen as no technology is 100% perfect, however, one still needs to question the Live Meeting platform as it pertains to scalability, security, fault tolerance and performance. Perhaps the meeting crashed because the "wrong" invitations were sent out, seems a bit unlikely to me but who knows? The reality is that there is not one company out there that would take on that risk and want be in the sames shoes as Microsoft on Thursday. Who would want to handle all that heat? For small companies, a meeting crash like this with their respective partners or clients...not sure if they would be able to bounce back like Microsoft could. The damage to reputation and credibility of a small to mid-size company might not be repairable.

(Live Meeting is a very small piece of the Microsoft Product Suite as it it part of "Information Worker" Business Unit meaning it competes for resources and funding with Microsoft Office and Visio. Pretty tough competition within the same product family. One has to wonder about the liklihood of Live Meeting getting lost in the shuffle of all the other Microsoft products that actually contribute significantly to Microsoft's top line.)

In simplest form, perhaps the meeting crashed because the system could not accommodate all attendees. The smaller security-based companies apparently had no issues logging in so why were some of the companies like Symantec and McAfee unable to log in while others were?

"More than 20 partners successfully signed on and participated in the meeting," the Microsoft representative said.

Note to self, "This is a serious RED FLAG when evaluating Live Meeting."

Reuter's Article on the Microsoft Meeting Crash
Tech Republic Blog on Live Meeting

Thanks,
David Chao
The Web Conferencing Expert

Unlocking WebEx Connect

WebEx has launched "WebEx Connect," which consists of the WebEx Connect Grid and the WebEx Connect Workspace. Via the WebEx Connect Platform, people are connected and integrated with their most critical business applications. No longer is there a disconnect among people, process, and technology.

The WebEx Connect Grid, provides a set of "connector" services so that any 3rd party application can be easily integrated with the WebEx suite of services. This platform benefits both partners and individual companies. Imagine if partners or ISV's could use the connectors to make their technologies accessible to the 25,000-plus WebEx customers? Talk about instant reach, credibility, and the potential for immediate breakthrough business results. On the flip side. imagine if WebEx customers could access any of these integrated technologies and select those that will enable them to be successful. If I need a CRM solution, I can choose between Sugar CRM and NetSuite among others. If I need a solution that will help my employees and client better visualize ideas and project plans, I can select MindManager 6.0 from MindJet.com

Here is another way to think about how impactful WebEx Connect will be. Just like you go to iTunes to download your favorite music, scrolling through the different genres of music, WebEx Connect is the same think but you are now shopping for applications. WebEx Connect is the technology marketplace for technology providers and buyers to connect and conduct business. Behind the scenes, WebEx is at the core of every single new business relationship that develops.

“By creating tight, two-way integration between multiple applications, WebEx Connect composite applications are the business equivalent of consumer mashups,” said Roopam Jain, principal analyst for conferencing and collaboration at Frost and Sullivan. "By merging business processes and data from several sources with WebEx collaborative applications, WebEx is eliminating the need to rewrite traditional software simply for the sake of being 'on-demand'.”

"Business Objects sees the launch of WebEx Connect as an excellent opportunity to take part in creating an online community that links people across the entire business ecosystem," said Steve Lucas, vice president of strategic markets at Business Objects. "Individuals can use WebEx Connect to build "mashups" by stitching together and customizing the business applications they need. By contributing the industry's leading business intelligence solutions, Business Objects is giving information workers an easy way to access and use critical data in the familiar environment of today's Web 2.0 applications."

Thanks,
David Chao
The Web Conferencing Expert

The "New" Adobe Connect?

A few weeks ago Adobe announced "Adobe Connect," which is simply a rebranded version of the recently acquired Macromedia Breeze application with Adobe Acrobat. Same capabilities as before, nothing really new except for the integration piece and now a different name. It looks like Adobe is doing the same thing Macromedia did when they acquired the Breeze technology from Presidia and the same thing Microsoft did with Placeware and Groove Networks. Simply rebranding the same product and positioning the "new" product as a new product. (Casey Ryan from Nollenberger Capital Partners states, "Macromedia has been acquired and we believe their collaboration offerings will be less competitive as a piece of a larger company.") More on Adobe Connect

Initially, the strategy to integrate Breeze with Acrobat to instantly start meetings from PDF's is interesting but how useful is this really? (The Important of Integration) PDF's are static documents that cannot be revised or changed. How useful would it be to start a Breeze meeting and not have the ability to make changes to a document? Imagine a Marketing Manager starting a Breeze meeting from a marketing collateral piece that has already been converted to PDF. The Marketing Manager simply wants to review the final version with the VP of Marketing before they go into print. They step into the meeting together and the VP of Marketing decides he/she wants to see what the text would look like in a different font. Granted the meeting was launched from a PDF but now what? Zero changes can be made from the static PDF file! How productive, collaborative or efficient is this? More on Adobe Connect

I am not sure how much value or benefit the Breeze/PDf integration will provide, most likely very little. It is a unique differentiator for Adobe but not a very compelling one since many competitors like WebEx or Live Meeting could easily create this integration capability over night. I could see Adobe/Macromedia taking this integration a step further and integrating Breeze with Illustrator, Dreamweaver, and Photoshop which could prove to be more fruitful. More on Adobe Connect

A few interesting quotes from analysts:
Claire Schooley from Forrester Research has stated, "Breeze does not integrate with many applications and systems out-of-the-box. It integrates with other systems through an extensive set of API's." (The Forrester Wave: Web Conferencing, Q2 2006)

In TMR's "Synchronous Learning Report 2006, "For new users-even those with experience with other synchronous tools- Breeze is a challenge to learn."
ZDNet Review: "Macromedia, like its competitors, bundles telephone and email support with its service. The Macromedia Breeze five-user, $375/month plan, for instance, allows you just five tech-support incidents per month, which is a bit stingy, in our opinion."

According to Frost & Sullivan, Breeze has a 0.3% market share.

I have also included a downloadable Excel spreadsheet that details the "research" Adobe/Macromedia performed when comparing their technology to industry leader, WebEx. It was very interesting to see the number of erroneous claims and data points they mentioned.

Take a look at the spreadsheet for a more accurate comparison between technology capabilities, infrastructure, along with other criteria like training and support that was not mentioned. More on Adobe Connect
Download macromedia_false_claims.xls

Thanks,
David Chao
The Web Conferencing Expert

The Importance of Integration

I believe that one of the strategic IT objectives of all companies is to increase utilization and efficiency of existing infrastructure investments. Most companies have a hodgepodge of systems that each perform a unique set of functions. Sometimes these systems are designed to serve only the needs of either one region, one office, or one department. The problems that arises is a siloed IT infrastructure where multiple systems cannot work together. There is no standardization. There is no commonality that interconnects these disparate systems so they can act as one. This is where integration comes into play.

Imagine if you could better leverage your existing IT infrastructure. Imagine if you could log into one single access point and have the ability to utilize all systems or databases. No longer would you have to log onto one system to perform one task only to have to log onto another system to run a report. This is the beauty of integration.

The companies that provide integration capabilities or open API's are the companies that will develop the strongest long-term strategic partnerships while increasing adoption across the technology ecosystem.

When you take a close look at the Software as a Service market, companies like WebEx have a slew of partners with out of the box integration solutions, as well as, provides open API's for specific customization. The benefit is tremendous flexibility to pick and choose which of your existing systems you want to interconnect.

Increased asset utilization, greater productivity, reduced costs.

Partial List of WebEx Integration Partners:

• Mindjet: information mapping and brainstorming application
• Salesforce.com: CRM
• Viewcentral: event management
• Remedy: case ticket management for customer support or helpdesk
• AOL Instant Messenger: integrated enterprise instant messaging
• GeoLearning: learning management application (LMS)
• Learn.com: learning management application (LMS)
• Xerox
• SumTotal: Docent and Click2Learn merger, performance and learning management
• Plateau Systems: learning management

Thanks,
David Chao
The Web Conferencing Expert

"Outperform" Target Price

Yesterday, the financial analysts at Robert W. Baird held firm on their "outperform" rating while raising the target price from $38 to $42.

Casey Ryan from Nollenberger Capital set a price target of $40 on August 21st and with a close on Friday of $38.71, it looks like Casey is on point so far.

Peter Goldmacher and Jim Bao, both analysts from Cowen and Company also maintain their "outperform" rating. With the release of new WebEx products, Cowen and Company believes this will translate into new top line revenue.

New Products include the following:

• WebOffice
• WebEx Mail
• Workspace
• AIM Pro Business Edition
• Desktop Management/Systems Management

Thanks,
David Chao
The Web Conferencing Expert

Instant Messaging Mission Critical?

In reference to my Collaboration Predictions for 2006 back in February 2006, it seems as though parts of the predictions are coming true. Earlier this week, WebEx released the first enterprise-class on-demand application for enterprise instant messaging (EIM). EIM has more robust capabilities and compliance policies that the standard MSN, Yahoo IM, Trillian, Skype etc lack. (Instant Messaging has come a long way since the days of MIT's "Project Athena" back in 1987!!!)

With the AOL partnership, WebEx AIM PRO Business Edition penetrates a user base of over 70M active users, which is over 2 times larger than the Microsoft IM user base (29M active users) and Yahoo IM user base (21M active users), IBM Sametime (15M active users).

The Radicati Group, a technology market research firm out of Palo Alto, CA, has stated that instant messaging (IM) is utilized by over 135 million workers and viewed as a mission-critical collaboration application. Radicati expects this number to grow to 477 million users by 2009. This provides tremendous opportunities for companies that can integrate other collaboration technologies with IM: voice, audio, video, instant data sharing, calendaring.

With WebEx AIM Pro Business Edition, customers can now instantly communicate and share documents in real-time across the WebEx MediaTone Network. With end to end 128 bit SSL encryption, companies can feel confident that all IM communications are secure and compliant. The automatic file scanning and SpIM blocking dramatically reduces the concerns of computer viruses and worms. Cross IM platform communication is also a huge plus since no other EIM solutions allow this today.

Microsoft has their on-premise Live Communications Server solution and IBM just unveiled new instant messaging capabilities to their on-premise SameTime solution so we are seeing the convergent properties starting to merge into a unified platform. Though their is a push from these on-premise giants to compete with software as a service leaders like WebEx and Salesforce.com, the fact remains the same, the days of traditional enterprise software and siloed IT environments are numbered.

WebEx AIM Pro Business Edition Flash Demo

Thanks,

David Chao
The Web Conferencing Expert

Linkedin.com Profile

Take a look at my Linkedin.com profile. For those that are not familiar with Linkedin.com, it's a business networking site that connects you to old collegues or new business contacts.

Check it out http://www.linkedin.com/in/davidchao

The Impact of Web Conferencing for Small Businesses

Wainhouse Research recently released a new study on web conferencing and its impact on small businesses. Wainhouse Research had over 1,500 survey participants, of which 75% worked at companies with less than 500 employees. A majority of the small businesses leverage web conferencing as a competitive advantage to drive revenue, penetrate markets, and expand territory reach with minimal resources. Most even stated that web conferencing has become such a vital part of day to day business that they could not conduct business without it.

"Considering that SMBs constitute about 99.7% of U.S. businesses, comprise approximately 44% of the overall U.S. private payroll, and are responsible for more job creation than any other sector of the marketplace, Web conferencing is proving to be a strategic business tool," reported Alan Greenberg, senior analyst and partner at Wainhouse Research. "Next-generation Web conferencing solutions give SMBs the capability to impact local and global economies as never before possible."

Survey Highlights:

• "Outbound" Web conferencing applications that involve customers and prospects are most important to SMBs.
• 75% of SMB respondents believe the ability to involve/reach more people and save travel costs and time are major reasons to use Web conferencing; 59% say it makes meetings more productive.
• 55% of SMBs (and 44% of large enterprise respondents) say that in addition to the more predictable improvements in business practices, Web conferencing enables users to solve problems they could not solve before.
• 69% of all respondents use Web conferencing to enable new meetings that could not be held in any other way due to cost constraints, timing and several other issues.

"The majority of companies polled indicated they are increasing their use of Web conferencing, and are enjoying a high to very high return in value," said Greenberg. "Though companies of all sizes use Web conferencing to drive business processes, SMBs are much more aggressive in using online presentations and demonstrations to drive marketing and close sales by facilitating meetings with customers and prospects."

It is evident that even the smallest of small businesses need web conferencing. Companies like WebEx, have designed programs specifically for small businesses: cost effective and flexible price models to match the needs of any small business. Without web conferencing, and reviewing these results, any small business that does not have a reliable, secure, and easy to use web conferencing solution will not reach cash flow positive status any time soon.

To view other similar research reports by Wainhouse Research, click here.

Thanks,
David Chao
The Web Conferencing Expert

What is Web 2.0?

Web 2.0 is simply a fancy name for the "next generation" of the Internet. It is a term used to reference the many different facets of how the Internet can be leveraged for business, development, communication, collaboration, e-commerce, etc.
With the growing popularity of Software as a Service (SaaS), more and more companies are thinking about the possibilities of running all their traditional desktop applications directly on the Web. The "old generation" of the Web had a simple function: serve up webpages from a variety of sites, click, click, click. Web 2.0 goes beyond this, where companies can access their corporate applications directly from a computer that has an Internet connection. There is no need for a VPN or special firewall configurations, thus, remote employees and knowledge workers can work as if they were on the corporate network. The significant benefits for a small business are obvious in terms of cost savings and IT resources.
I think the simplest way to think about Web 2.0 is that of a Global Web Platform, one that interconnects Internet applications we are familiar with: Google, Blogging, Flickr, Wikipedia, My Space, LinkedIn, Napster, Search Engine Optimization, Internet Marketing, etc.
Back in 1996, a little unknown company called WebEx created a real-time communications platform called the "MediaTone Network." This information switching architecture provided the first and only video, audio, and data communications platform. With the new wave of Web 2.0, I think it will be very interesting to see how WebEx leverages MediaTone as a potential "Application Exchange" for not only customers but for partners, vendors, anyone who is looking to conduct business on this WebTrust and SAS-70 Certified Platform. I could also see WebEx personalizing the WebEx experience by integrating RSS feeds, blogs, photo sharing, music file management. Imagine if WebEx created a My WebEx page that automatically served all the pertitent information you wanted so that the first thing you did when you got into your office was to log on to your My WebEx page to check your email, calendar, access docuements, read real-time RSS feeds, viewing WebEx recorded meetings, conduct WebEx meetings!
Web 2.0 opens the doors for companies like WebEx. Over the last 10 years, WebEx has changed the way companies conduct business over the Internet. Subrah Iyar, President and CEO, has a strategic vision that over 25,000 corporate customers have already bought into. Dave Berman, the Master Arctitect and VP of Worldwide Sales, has successfully executed Subrah's vision from a revenue generation and market share penetration standpoint. The combination of Subrah and Dave, along with a very experienced and proven executive team, we can only expect to see some incredible and inspiring technology innovations.
I think in the next 3-5 years, WebEx will have the a significant impact on Web 2.0 and how businesses and consumers communicate over the Internet.
A comprehensive description and history on Web 2.0 can be found here: Wikipedia

Thanks,
David Chao
The Web Conferencing Expert

NetMeeting is a Dinosaur!!!

Every now and then I will come across a company that still uses NetMeeting as a customer-facing communication tool. I never understand why a company would subject their customers, partners, or prospects to the time consuming process required to establish a connection with NetMeeting. Imagine starting a customer meeting with, "Sure Mr. Customer, I can show you a quick demo of my product but can you first get your IT Admin on the phone so we can ask him/her if it's okay to open up ports in the firewall, make a quick configuration to the proxy server, and provide us with your IP address so I can get connected to you? Second, if other people want to see the demo, great but they have to watch the demo with you on your computer since NetMeeting is designed for only one on one's and it's daisy chain architecture creates a performance bottleneck if more people join...Thanks."

After spending 10-15 minutes finding the IT Admin and establishing a connection, you finally begin the demo. Five minute pass by and the customer asks if they can "test drive" the application. (They can't with NetMeeting) Then they ask if it's your product or NetMeeting that is slow. (You tell them it's NetMeeting of course but wonder if the customer thinks otherwise.) Then the meeting abruptly ends for no reason but you tell the customer that you accidently closed the connection and apologize. Finally, as you wrap things up, you wonder why they said, "Well, the budget is really tight right now. We are just collecting information and doing a tirekicking session, thanks for your time. We'll get back to you when things start picking up." (How to Establish a Netmeeting Connections Through a Firewall)

This is a scenario that I hear all the time from my personal customers who reduced their technology risk and made the switch.

If this isn't enough to get companies to start looking at alternative high-touch web collaboration solutions, how about the fact that Microsoft has discontinued this FREE product! (Download NetMeeting at CNET.com) What's Microsoft saying about their very own technology if they discontinue it and no longer support it? In addition, it lacks tools to monitor usage, lacks API's for integration, and does not support a record and playback capability necessary for compliance with new requirements for audit trails such as Sarbanes-Oxley.

Bottom line...NetMeeting is difficult to setup, not reliable, and is subject to many performance issues. It is a high risk gamble if you plan to use it for customer communications. Potential consequences...lost deals, lost revenue, lost market share, dissatisfied customers, update the resume, find a new job.

Thanks,
David Chao
The Web Conferencing Expert

The GoToMeeting Buzz

I have to admit that there has been quite a buzz about GoToMeeting, maybe because it's a $49 per month product offering from a pretty reputable company. Citrix is a pubically traded company that sells Enterprise Application Integration Software, so they sell traditional servers, gateways and software for load balancing, application development, and resource management (Their flagship product is their Citrix Metaframe Presentation SERVER). Web collaboration is not their core competency, as 95% of their revenue comes from Metaframe Server sales.

Perhaps a bit of background would help at this point in time.

On February 27, 2004, Citrix acquired a company called ExpertCity and renamed the division Citrix Online, selling GoToAssist, GoToMyPC, and GoToMeeting. They are still very new to web collaboration, lack a robust real-time communications infrastructure, lack back-up sites, and have been know to subject customers to performance bottlenecks. I have heard from customers that it is a decent product if you are an independent IT Consultant doing a quick one on one, but not a good solution at the enterprise level since it lacks stability, key capabilities, and a professional look and feel.

GoToMeeting is built on a server-based "store and forward" architecture that relies on storing content and data on the Metaframe Server. This raises red flags for many companies from a security standpoint. I do not know of many companies that would be comfortable storing company information on a server outside their corporate firewall, but then again I wonder how many people are actually aware of how data is transmitted with GoToMeeting. Perhaps the only thing they are aware of is its $49 per month price. (Though they do support SSL data encryption, they have not earned any independent 3rd party security certifications.)

Interestingly enough when I scrubbed their annual report this is what I found:

* "Use of GoToMyPC, GoToMeeting, or GoToAssist services involves the storage and transmissions of customers' proprietary information, and security breaches could expose us to a risk or loss of this information and litigation, and possible liability."

* "Computer viruses could be introduced into our systems or those of our customers or suppliers, which could disrupt our network or make it inaccessible to our Citrix Online division customers."

* "We believe increased regulation is likely in the area of data privacy, and laws and regulations applying to the solicitation, collection, processing or use of personal or consumer information could affect our online customers' ability to use and share data and restricting our ability to store, process, and share data with these customers."

This should be a clear sign to any business that it needs to weigh the security consequences which may negatively impact the business against the GoToMeeting price. Is lost data, lost revenue, viruses, downtime, and dissatisfied customers worth it? Do you want to put your company's most important asset, INFORMATION, in the hands of a $49 per month product offering?

Thanks,
David Chao
The Web Conferencing Expert

Live Meeting Lay-Off

Recently, I was at a technology symposium that focused on new emerging technologies and business process strategies. It soon became apparent to me that everything really revolved around helping companies become more productive, more agile, and more responsive to customer needs and market changes. It was all about "Convergent Collaboration."

Many of my customers have been talking about "convergence," specifically the convergence of audio, VoIP, video, real-time collaboration technologies (like WebEx) along with email and instant messaging. Traditionally, companies only have part of the capabilities and each from a different vendor. The problem is that there is no integration and no enterprise standard! A typical company has multiple audio providers to manage, maybe an antiquated video conferencing solution that is collecting dust, Yahoo IM, AOL, MSN, Jabber, Trillian for instant messaging, Cisco IP phones or something from Avaya for VoIP. It is all over the map, no common denominator.

By bundling these independent convergent capabilities into a single platform, the time savings, productivity and efficiency gains are tremendous. Imagine being able to host a real-time web meeting with a handful or remote individuals and then store the discussed documents into a central data repository located in your virtual "WebOffice." If someone has questions on one of the documents, they can jump on an integrated instant messaging solution to chat, place a VoIP-based video call, or initiate another web meeting. It's that simple since all the moving parts work together as one.

My prediction is that more and more businesses will enable their employees with an integrated communications solution that encompasses web collaboration, instant messaging, VoIP, video, web-based document sharing, and audio capabilities. Convergence of these capabilities helps extend value across the entire value chain and across the existing infrastructure while creating a corporate communications standard. The results... huge cost savings and measurable organizational productivity gains.

Thanks,
David Chao
The Web Conferencing Expert

How to Lower Your Overall Cost Per Lead

If you look at a typical sales force, leads are generated the old fashion way: cold calls. A few drawbacks of generating leads by cold calling: time consuming, low hit rate, lowers morale, and rejection. However, the grand daddy of them all is the overall high cost and low numbers produced from cold calling. As an example, if a sales rep's annual compensation is $100,000 a year, that means each work day, productive or not, equates to a $400 a day pay rate. Let's say a rep does 30 cold calls per day and generates just 5 solid leads from cold calling for the week. That means each call, or really each dial, cost $13.34 while the average cost per lead is a whopping $400! What happens in situations if the sales reps does not feel like cold calling, is working off a poor call list, or does not have time to cold call because of time spent servicing exisiting accounts? Sound familiar? What do you think will happen to the lead flow? Will there be enough active opportunities in the pipeline to generate closed business? Think the sales team will hit their numbers? Probably won't even come close.

Sales is a numbers game. If you disagree, ask yourself one simple question, "Would you want more leads or less leads?" You probably have a good idea of what your win ratio is and what your average deal size is. Put the numbers in the equation: (number of leads x win ratio x average deal size = revenue brought in) If you increase the number of leads, you increase the amount of revenue brought in. Simple numbers game.

One of the most cost effective ways to generate high quality leads is through online webinars. You can quickly broaden your reach, penetrate emerging markets, and capture the attention of an executive who happens to watch your event during his lunch break, never having to leave his office to hear you speak in person at a hotel conference room hundreds of miles away. Get in front of more decision makers, you'll close more business.

So here is how online webinars work...

Let's say you are a consulting firm that specializes in Sarbanes-Oxley and other Compliance-related issues. You plan to do an online webinar on "SOX and Risk Mitigation." You put together a PowerPoint presentation and include a few short video clips of customer testimonials and success stories. Then you begin actively promoting the event for about 4 weeks via your website, newsletter, partners/sponsors, banner ads, Google ads, email, direct mail, etc.

An executive sees your event and is intrigued with the topic and decides to enroll for the event. You capture pertinent contact information like name, email, phone number, company name, title and even ask some customized qualified questions. He presses submit. Boom, your first lead. You then track where the lead actually came from: Google Ads, corporate website, newsletter, referral, banner ad, email campaign, a mailer, and prioritize the lead based on his answers to your qualifying questions. If he is a C-level executive that runs a $1B company, he scores more points than a non-decision maker from a company that generates less than $1M in revenue. If you have this information, your sales team can follow up accordingly based on the "hottest" leads. You also can identify which marketing campaigns generated the greatest ROI. If more leads came from the newsletter than from the direct mail piece, perhaps more focus should be put on the newsletter since it produced better results. About now, you should get yourself in the mindset of thinking "cost effective, repeatable, measurable results." Replicate this process over and over with each event and you will always have leads.

As you can imagine, online webinars can quickly generate more prospects in a shorter time period than cold calling. The leads are pre-qualified, scored for follow up, and were generated at a lower average cost per lead compared to cold calling. For example, you target 10,000 potential prospects with a 2-3% enrollment rate which equals 200-300 registrants. There will be "no shows" but you now have 200-300 potential leads of people who filled out your enrollment form and provided their contact information for follow up. By spending around $10,000 annually for an online webinar solution with a trained Event Producer, your average cost per lead is only $20-$30!!!

You can improve those numbers by sending follow up "Thank You" letters or inviting the prospects to view a URL of the recorded online webinar. You could also post the online event on your corporate website for playback, while capturing contact information from a short registration page before the prospect views the recording. More leads and no added time or resources were needed.

Would you rather spend $400 per lead from 5 cold calls or $20-$30 per lead from 200-300 online webinar registrants?

Thanks,
David Chao
The Web Conferencing Expert

Software as a Service Viability

The old adage of "Never outsource your mission-critical business functions or processes," no longer holds true. More and more companies are seeing the benefits of a Software as a Service (SaaS) business model. It enables companies to focus on revenue-generating activities and lets the service provider handle the product upgrades, hardware, performance and network connectivity. IT departments do not need extensive training nor do they have to worry about implementation, database configurations, or wonder if the technology with integrate interoperably with the existing infrastructure. Deployment is a matter of days compared to a matter of months so ROI is achieved that much faster.

There is absolutely a paradigm shift to the SaaS model. Even giants like SAP are moving into this space for a competitive advantage. SAP is taking the NetWeaver platform and moving their Enterprise Services Achitecture (ESA) to a services architecture. They even went as so far to acquire a SaaS company to provide added functionality to their CRM/SRM solutions.

Microsoft is another company that is trying its best to adapt to a changing world where legacy software is no longer king. A source close to me in the Microsoft camp told me that there is much confusion these days. He is told to say that their customers still prefer on-premise solutions yet they went out and acquired Placeware 2 years ago to provide a SaaS web collaboration solution. (They have not been successful in selling Live Meeting to their customers. Even their Microsoft Gold Partners opt for WebEx because of the added security (WebTrust Certification), robust functionality, and real-time communications architecture where nothing is ever stored on the WebEx network.) Instead of admitting that the Live Meeting technology is not where it should be from a reliability, ease of use, or functionality standpoint, Microsoft simply says, "our customers like on-premise solutions. They do not like and stay away from Live Meeting because all content is stored on our servers." This is 100% correct! What company in their right mind would feel comfortable storing content and company data on servers outside of their firewall? Talk about increasing one's RISK exposure.

My personal recomendation to any IT individual is to look closely at the Live Meeting solution from an infrastructure and data transmission perspective. Ask them about the "iVault server" and how and why content needs to be upload, converted and stored on their server. Ask they why they cannot support video if communications are truly "real-time?" Microsoft is a great company. I own stock in it myself and it has made me plenty of money over the past 8 years but to invest in Live Meeting simply because it is from Microsoft is foolish.

One of the most successful companies in the Software as a Service market is WebEx and Salesforce.com IDC market research named WebEx #1 SaaS provider. From the IDC Report:

WebEx is helping customers experience on-demand software delivery by providing more people with access and exposure to the model," said Erin Traudt, IDC software as a service research analyst and co-author of the report, "Recent studies have shown increased customer interest in the SaaS delivery model and web conferencing applications is high on the list in terms of SaaS adoption."

The report also states that, "IDC finds that not only are cost-savings benefits and rapid implementation times fueling overall SaaS adoption, but also intangible benefits such as increased employee productivity and efficiencies are being recognized."

I predict we will start to see more and more companies following in the footsteps of WebEx. 27 consecutive quarters of revenue growth...hard to argue against the SaaS model.

Thanks,
David Chao
The Web Conferencing Expert

Realistic Benefits of Web Collaboration

In a recent online poll that I conducted, corporate productivity, operational efficiency, customer service, and revenue generation topped the list as to components that were strategic areas of focus, followed closely by product development/innovation and lead generation.

The most common questions executives asked were the following:

• Productivity and Time Management: How do I do more with less? How can I improve corporate efficiency? What much does one hour of lost productivity cost me?

• Revenue Generation: How can I expand my revenue opportunities? How can I increase my customer acquisitions?

• Competition: How do I differentiate myself from my competition?

• Customer Focus and Service: How can I quickly support my customers? How do I keep them loyal? How can I enhance customer value?

• Market Share: How can I capture market share and gain brand recognition?

There is a huge paradigm shift from conducting business face to face to meeting online in a virtual environment that enables even the smallest of small businesses to have the global connectivity and international presence that typically only Fortune 1000 companies enjoy. Web collaboration technologies level the playing field and help small and mid-size businesses penetrate new markets, generate revenue, increase customer acquistions while reducing operational expenses and lost productivity hours. In short, web collaboration/web conferencing helps companies address the questions listed above by most executives.

Whether you reference The Gartner Group, IDC, Wainhouse Research, AMR, the benefits of web collaboration are measurable and very, very compelling to the point that companies like WebEx now have over 23,500 corporate customers subscribing to their hosted solution. (This number alone is about 5-6 larger than their nearest competitor, Microsoft Live Meeting.) Though it has been documented that typical Total ROI can be 200%-500% (ROI from travel costs + ROI from increased productivity), the greatest value is the immediate impact web collaboration has on revenue growth and customer acquisitions. Most ROI calculations merely focus on the reduced travel costs and productivity gains.

The true measure and value of web collaboration is incorporating improved win-ratio, increased customer count, new markets penetrated, new prospects developed, larger average deal sizes, shorter sales cycles, faster product delivery times and happier and more loyal customers.

The reality is that the biggest competitive threat a company has is not what the competition down the street does but the companies that get creative and add web collaboration to their day to day work flow. They view web collaboration and companies like WebEx as a competitive advantage.

Translation: As you are trying to "figure things out," they take business away from you, and take it away quickly.

Thanks,
David Chao
The Web Conferencing Expert

Do Commodity Products Exist?

Often times I hear people tell me, "David, my product is becoming a commodity. How can I win more deals when I am selling a commoditized product?" If you think this is the case, you are dead wrong. How has Toyota climbed to the #1 selling car manufacturer, out selling Ford and GM? What about Kleenex and Coca-Cola?

Differentiation is critical!

How do you explain Miller Beer capturing huge market share from Anheuser Busch? They differentiated themselves with what we know today as Miller "Lite" Beer. Whether it is differentiating through product capabilities, marketing, methodology, or strategy your customer must have the perception that you are different than the competition.

How is it that I have been a loyal Cingular customer for 8 years? In my eyes, Cingular differentiated itself from the other cell phone providers. Call it marketing, positioning, better sales, but to me, Cingular was absolutely different. Their monthly "rollover" minutes plan, 5-bar network reception, free in-network calls, no other company had these things that I found of value. Top it off with excellent customer service and Cingular has a life long customer.

The reality is that if you feel that you are selling a commodity product, it is because you are failing to differentiate yourself, your product, and your company from the competition. Be different than every other sales reps that sells similar products. Instead of asking standard questions like, "Can you tell me a bit about your company. Have you heard of my company?" Do some research and learn about the company you want to sell to so you can ask intelligent, thought provoking and unique questions that the prospect has never heard.

Differentiation is critical!

Rather than focus on things that you and the competition both can do, focus on everything the competition cannot do and the risk of overlooking these critical components.

Differentiation is critical!

Rather than talk about price, be of value to your customer. Demonstrate your expertise and business acumen in understanding their business so that you can provide creative ideas to help them grow their business and generate revenue. Every single company out there is in business to make money, it is that capitalist way, it is why they are in business. Show your customers how they can generate revenue, increase profits, increase productivity, and you will win business every single time.

Have a positive attitude, exude confidence in yourself, your company, and your product and your prospects will realize that they are not buying a commoditized product.

Differentiation is critical!

Thanks,
David Chao
The Web Conferencing Expert