Blue Box listeners,

Well, it's been a while. A long while. This summer turned out to be a bit crazier than Jonathan or I ever expected. The good news is that the renovation at my home is finally done and I've moved into my home office. The box of podcasting gear has come up from the basement. I'm not traveling for several weeks... so everything looks good to finally get the huge queue of back episodes out the door.

My goal this week is to get some of the older main shows out first followed by some of the excellent Special Editions that our volunteer production team has put together. If things work out the way I hope I should be getting you a show a day for the rest of the week. (We'll see.)

Thanks for your patience and continued interest in the show. We have very definitely not "podfaded"... and we'll be back with more shows and interviews in the weeks and months ahead! Thanks for continuing to listen.

Dan & Jonathan

The convergence of voice and video traffic are quickly transforming the growing complexity of networks at a torrid pace. IDC estimates that the skills gap in VOIP should grow to 19% by 2011.

This changing profile in the role of the network plays a key role in the skills shortage. Network enabled collaboration tools such as social networking apps and the Webex conferencing/collaboration solutions we use in our business each and every day are demanding a new set of IT skills to deliver business value.

My perspective is two-fold on this issue; the first is what I have seen in the resources we have attempted to hire! We give a very straightforward quick written/oral test to all new technical hires. This requires basic networking knowledge and some Unix commands. On average, (after filters from reputable recruiting firms, some with 5-10 years experience) less than 10% pass muster for the first filter we use in our hiring process. This is a troubling fact, which has cost us considerable time and effort to secure the right resources with competent skills. So I can say from our market assessment in a very strong technological job skills market, core Unix and networking foundation skills are slipping.

The second is that we as an IT Operations Management (ITOM) industry need to keep pushing hard to build better proactive and intuitive solutions to aggregate instrumentation from all Data Center tools, including more work around VOIP, video streaming, and collaboration so that we can ease this transition. If ITOM solutions become more proactive across the typical Cisco infrastructure that is commonly installed in the Data Center, we can free up some additional time for advanced “emerging technologies” training where existing IT workers can enhance their core skills and re-invigorate their careers. We have to do a much better job of getting our existing IT professionals trained on emerging technologies!

While there’s less that ScienceLogic can do around training, we certainly strive to do our part to enhance a day in the life of the networking engineers who use our solutions to simplify monitoring of increasingly complex networking, Wireless, VOIP, and collaboration needs.

To kick off our celebration of our first five years, we asked ScienceLogic founders Dave Link, Richard Chart and Chris Cordray for their thoughts and memories on events leading to today’s milestone. How and why did they set out on this venture? What happened along the way – expected and unexpected? Why were they successful in times when other new (and established) businesses have come and gone?

How did you three put together this team?

We all worked together at a large Managed Service Provider for a couple of years before leaving to start ScienceLogic, so we all knew each other and knew our collective strengths. More importantly, each of us had worked with network management tools on some level (sales and marketing, engineering and product development), and knew first-hand all of the customer pain points, from every perspective. So we left and began rapidly figuring out how to build a better network management solution based upon our real world operational experience..

Dave: One interesting aspect is that our areas of expertise don’t overlap, which has contributed to our success. Chris is excellent with developing the product front-end and interface, Richard handled the backend architecture and engineering and I focused on the technical business side of sales and marketing. Our roles have been to build a product that works well and that provides real value to operations teams that experience the same day to day frustrations that we felt.

Whose idea was it to start the company?

Dave: It was really a collective effort. We were all passionate about “getting it right” and not just starting a company. We knew the industry need and between us, we had the knowledge and skill sets to address all of the right aspects of developing a product and a building a business around it.

What process did you go through to get started?

Richard: From the beginning we knew the type of solution the market needed and we knew that we wanted to build it as an appliance. From different vantage points, we had each experienced the effects of long, difficult and expensive installations that still exist with traditional network tools. Every install has unique variations: there are always different server types, varying hardware and software versions, different patches installed, and on and on. Every installation was time consuming and unpredictable. We knew that an appliance model would address all of these variables and save a lot of time on how quickly customers could achieve immediate value.

The harder decisions were around actually starting the business, assessing the market and of course determining the product pricing.

EM7 completely flips the traditional model of complex, lengthy and expensive deployments. How did you convince others that the EM7 Meta-Appliance product was valid?

Dave: Yes, EM7 totally disrupts the traditional model for network management. While others take a narrow approach, we intentionally designed EM7 to focus on the broad problem – managing the data center. How do you cover a variety of technologies and make sure they work seamlessly together? The vision was to make it easier, not harder, for customers.

Chris: I have to give it to Dave – very early on, he realized the power of a demo. If Dave could get in front of someone, he’d make them a believer. He’d use the Peter Falk/Columbo technique of “let me show you one more thing.” It was very effective. It’s getting easier, but even today people sometimes have to see EM7 in action before they become believers.

Can you describe the early days of running a new business?

Dave: ScienceLogic is a classic case of entrepreneurship. For the first year we worked out of our basements. We kept the costs low in every conceivable way and spent the first year developing the product before we even made a sale.

Chris: We stayed at lots of odd places when we were on the road, took cheap flights with multiple layovers and purchased lots of our first test equipment on eBay. This was during the dot-com bust so there was lots of equipment for sale on eBay, really cheap!

Richard: The amount of equipment I had in my house was absolutely crazy. Back then, servers were huge – I had a Cisco 6509 Catalyst, a Compaq Proliant DL380, Brocade switch, IBM Netfinity 4500R, and tons of other machines.

Chris: I had to install a new circuit box at home because I was blowing breakers. I remember when that 6509 crashed, we revived it and it died again. The second death was final.

So you started in your houses – what was your first office space?

Dave: My friend, the CEO at Ernst & Young Technology had a few extra cubes and a data center in their office that they graciously allowed us to use. Their help was an important step in helping us really formalize the business. We started doing well and adding people, but ironically, their company was downsizing. Before long, many of their original YET people were gone and the ScienceLogic team kept growing in to the open cubes.

Our first leased space was converted warehouse space in Chantilly, VA that once housed an internet radio station. It was cool – it had a large salt water fish tank, a loft, a spiral staircase and a Star Trek door that retracted into the walls with the customary lights and “whooshing” sound.

We outgrew the Chantilly space, leading to our current office in Reston, VA.

Who was the first ScienceLogic customer?

Our first paying customer was Martins Point Health Care. We deployed there in July 2004 and are pleased to say they continue to be a ScienceLogic customer. Other early (and still) EM7 customers include Navy Knowledge Online and the Department of Transportation. Nearly all of our customers are still actively using EM7 and renewing their maintenance.

Where do you see the company in the next 5, 10 or 15 years?

Well, our revenue has doubled year-over-year in each of the last three years, so of course we’d like to continue to grow like that or even faster. In five years we’ve gone from three founders to the point where Dave does not know everyone’s fondest childhood memory. We’ll continue to scale our growth to cover the demands of our growing customer base.

Where do you see the industry going over the coming years?

Chris: IT is always moving and gaining in complexity, so network management is also becoming more complicated. There’s increasing diversity, new standards, virtualization and cloud computing. All of these are today’s technologies. Customers have a mix of the old and the new, so EM7 has to accommodate and support both.

Richard: Each generation of products has a new set of ways to monitor, but the “old” doesn’t go away. Even when a new, hot technology comes along, the old technologies still need to be supported. We work to ensure EM7 keeps up with both.

Dave: After five years we’re just hitting our stride and we’re just now reaching the tipping point in awareness of ScienceLogic and EM7. We’re all still passionate about the product and as Chris and Rich said, there’s still a lot do. We’ll continue disrupting the market with EM7. Our vision hasn’t changed, and with the increasing levels of automation that customers demand, the market needs are greater than ever. Our future is as bright, or brighter, than ever and we’ll continue to be looking for smart ways to automate traditionally manual IT Operations processes.

What’s your advice for someone interested in starting their own business?

Chris: Be passionate. That’s what has gotten me through the tough times. I didn’t really appreciate this thought when I heard others say it before. But it’s very true.

Richard: I agree. We met and talked with lots of people who told us, “That’s been done before.” But we kept going because we truly believed in what we were doing and we knew that while our approach was different, that it would be successful.

Richard: Be fearless. You can’t be too nervous and you need to be able to expect and handle the stress because it will be there. You have to learn to accept the stressful times as a necessary part of the process of starting out on your own.

Dave: Know your niche from the beginning and give potential customers a compelling reason to trust you and really benefit from your solution. You have to know the problem, see the gap and have a clear and consistent vision of how to solve the problem. Then you have to execute. If you don’t build your team with “doers” you won’t make it.

Chris: It helps to have friends. ScienceLogic was built on friendships and relationships, starting with the three of us. If you look at our team, most of our hires are referrals – people who developed and maintained great connections with other great people throughout their careers. Maintain your connections and keep in touch with your network of friends.

"Q: Where do you see Russia fitting into this as it comes onto the scene?

Rogers: I don’t. Russia will continue to disintegrate. The Soviet Union has already broken up into 15 countries. Putin controls Petersburg, Moscow, a few airports, et cetera, but Russia never has been a homogeneous [nation] - I mean, in the Soviet Union there were 124 - the "official" number was 124 - ethnic, linguistic, religious, historic and national groups. 

It’s broken up into 15 states. It’ll be 50 … it’ll be 100 [states] before it’s over. Ukraine may break up next. Who knows who’ll break up [after that]? Maybe even parts of Russia. 

To the bulls who say I’m wrong, my rejoinder is this: Let me ask you about Chechnya. The Russians have been trying to deal with Chechnya for 15 years with no success. 

Chechnya’s the size of Connecticut. Chechnya has a million-and-a-half people. If they can’t handle Chechnya, how is the Soviet Union, or Russia, going to handle these other places that are pulling away? 

There’s capitalism there, but it’s outlaw capitalism. If you’re good with dealing with the Mafia, you can probably make a fortune, if you’re on the ground [there]. For the most part, they have a lot of natural resources, which has been great. 

They have huge foreign reserves, but they’re stripping the assets. 

They’re not reinvesting for the most part in productive capacity. They’re stripping the assets. You know, oil production has peaked in Russia, even though there could conceivably be gigantic amounts of oil there somewhere. Nearly everything has peaked, because they have been stripping the assets, rather than reinvesting. "

Since the 1999 Columbine High School shootings and the 9/11 terrorist attacks, many parents feel better having a way to contact their children. But hundreds of students on cell phones during an emergency can cause problems for responders.

"There's a huge difference between feeling safer and being safer," says Kenneth Trump, president of National School Safety and Security Services.

According to Trump, students' cell phone use during emergencies can do three things: increase the spread of rumors about the situation, expedite parental traffic at a scene that needs to be controlled and accelerate the overload of cell-phone systems in the area.

Tom Hautton, an attorney for the National School Board Association, said that cell phones in schools also can lead to classroom distractions, text-message cheating and inappropriate photographs and videos being spread around campus.

We are just naturally inclined to make irrational security decisions when it comes to our children.