We’re seeing a few glimpses from Mix10 of what Windows Phone 7 Series will look like for the enterprise. Perhaps most compelling is the continued emphasis on creating an experience more so than an enterprise “phone.” It appears that Microsoft has learned a lesson that is more apparent every day. People want smartphones as much for personal use as for business use. Sponsor But Microsoft is saying little about what it does plan for the enterprise with its Windows Phone 7 Series. They say more is to come in the next few weeks but clearly the emphasis is on the consumer market, not the enterprise. Network World did a little sniffing around Mix10 and did get a few tidbits of what we should expect: Windows Phone 7 is no longer enterprise-centric but the user experience is still catching the fancy of independent software vendors that want to sell it into the business market. The iPhone and Google Android are proof enough that people will find relevance for smartphones in the enterprise even if the devices are meant primarily for consumers. A developer community is ready and waiting to make applications for Windows Phone 7. Developers can create applications within a development environment they understand. Network World notes: “Visual Studio programmers can drag and drop controls onto a Windows Phone surface, bring in existing Silverlight libraries or Azure cloud projects, and wire them up to data sources, behaviors and services, just like they do when writing software for a Windows PC.” Microsoft is expected to offer a secure area within its Marketplace to accomodate enterprise applications. The intention wold be to provide a place where enterprise customers could download company specific software or the framework for their own marketplace. This would provide IT administrators with ways to administer applications within the enterprise. It’s uncertain what security features will become part of Windows Phone 7. Microsoft has historically provided Microsoft Exchange Active Sync which enables Windows Mobile devices the ability to sync with Microsoft Exchange. Actice Sync has offered a number of security features such as remote data wipe and encrypted connections. Will this rich security framework be kept intact? With such a consumer focus, it’s uncertain what will come of it. Windows Phone 7 includes an Office Hub, allowing people to create and edit Microsoft Office documents. Microsoft has put a lot of effort into making Sharepoint a mobile site. Windows Phone 7 will integrate with Microsoft Exchange. It appears users may set up tiles within Windows Phone 7 to edit and share Sharepoint documents. It appears that Microsoft may not necessarily have to focus on the enterprise. Its rich user experience may be enough to get people interested. Core enterprise features will only help give Windows Phone 7 a chance to compete more effectively. Discuss

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McKesson is a global health care leader that has 26 operating companies. The centrial IT group had the vision to automate “the last mile” of IT planning, the budget approval process. We think of it as the budget approval dance, and when containing costs, it’s a ritual that can leave scars. This company has evolved to the point of improving the cost of budgeting, and making it faster and smarter by understanding the assets, services, and service delivery of IT. Budgeting can be painful because it can be in slow-motion. Contrast this with the real-time controls of such as VMware V-Motion and Amazon’s web service console and we see a great linkup for driving process change through budgeting. And driving budgeting by cloud and virtualization. We took a look at McKesson’s journey and the service catalog functions of NewScale , an IT services catalog company. Sponsor McKesson: Let’s Start with Less Meetings and Less 5mb Spreadsheets NewScale has customers like McKesson and Charles Schwab and competitors like HP, IBM, Tivoli. The company has been growing its customer base and helping stable-state enterprises to leverage Service Management. And that leads directly into cloud procurement. We tracked the use case at McKesson, where the company landed at the service desk in the cloud as a means to the end in their journey to build a low-impact budget process . We see a lot of benefit in this approach, where if successful, it would mean that the advantages to go with commodity pre-approved services dramatically improves the timing and effort of procurement. This is a lever that gives Finance a significant hand in the IT spend. Since cloud and virtualization offerings can be spun-up with service call, the cloud is well positioned to be there as budgeting and approval processes are automated. In phase one, the company reported significant progress in moving processes towards the service catalog. One click vs. Fill Out the Form In the end, the move towards enterprise standards may be won over simplicity. Is it less clicks to provision. This means connecting the dots between processes, systems, software, teams, and policy. To EC2, or to EC2 through Official Channels: That is the Question IT services management comes into the picture and could make a difference in how the business and technical contributors of organizations are rewarded for moving to a standard platform. Information Technology Infrastructure Library is tool set that has been given to IT managers to try to wrap standard language around IT service management. It gives the enterprise a common way to manage processes for IT and track the changes involved in building and operating systems. Services platforms like Amazon and Salesforce can be considered IT disinter-mediation. We all know a IT leader out there somewhere who is funding their project by credit card out in the cloud. IT, of course, knows this also (especially since they are likely watching your network traffic). One part of the service management offering is making it even easier than Amazon. Carrot, vs. stick. Service catalog management has the promise when it wraps things like Amazon’s EC2, or VMwares offerings, gives the enterprise a way to get the same service from the web. And, with budget approval and IT approval baked in, the carrot is there. All of IT moves towards transparency and IT processes as being measured as processes. In the ITIL community, there is discussion of the next layer of the library moving towards service delivery in the move towards ITIL Version 3. It’s easy to see that “provision server” becomes fully automated. Soon, all the IT functions below it become invisible. We see this as a future cloud inflection point, where instead of there “cloud services”, we are all in one. Zen Mashup What has been your experience in mashing ITIL, ITIL Service Delivery in your environment? Do your IT services flow like water? Discuss

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More often than not, an entrepreneur with a great idea looking for funding will pitch his or her startup dozens, if not hundreds of times to potential investors. There is an endless amount of resources out there for entrepreneurs looking to learn the best practices for their pitch, including what to include in their decks, how long to speak, and what pitfalls to avoid. By the time an entrepreneur actually gets funding, they’ve probably mastered their pitch to a point where they could recite it in their sleep and provide advice of their own to newcomers. The problem with this is they can get stuck in their pitch mentality and it can creep into areas of their business that need the ole straight talk express. Sponsor Michael Hirshland of Polaris Venture Partners , who blogs under the name VCMike , wrote today about a problem he often sees when in board meetings with startups. The issue is that entrepreneurs are so used to speaking a certain way to VCs that they sometimes have a pitch-like tone that gets in the way of board room progress. As Hirshland points out , don’t try to beat around the bush when it comes to bad news. “VCs hear bad news all the time — it is part of the startup process and part of the VC job description,” says Hirshland. “Any VC worth his or her salt should respond to bad news, provided it is shared in a timely fashion, by helping the entrepreneur figure out the best way to respond rather than dwelling on what went wrong.” He advises CEOs to stear clear of attempts to placate their board members by spouting off excuses for whatever their bad news is, or by claiming that they are already fixing the problem in hopes of avoiding any impending wrath. From what Hirshland says, board members are not schoolmasters there to punish you and whip you into shape; they are there to help, so don’t isolate yourself, he says. If you speak openly and honestly about your issues with your board, chances are you will preserve your most valued asset as an entrepreneur and as a startup: credibility. “Early stage ventures are filled with ambiguity. Entrepreneurs and their investors need to make quick decisions based on information that is far from complete,” says Hirshland. “This necessitates relying to a very substantial degree on the entrepreneurs’ interpretation of the situation and prospects.” In other words, you are the eyes and ears for your board, and if you aren’t being open and honest with them, bad things will happen. Worst of all, speaking with fluff and rounding out the rough edges of your company will destroy your credibility, which Hirshland calls “toxic” to your partnership and “not a happy place for either the entrepreneur or the investor.” As we mentioned earlier this week, credibility is your best friend when trying to get funded, so make sure you carry it with you and preserve it in your board meetings and into your company’s future. Save the pitching for future rounds of fundraising, and when it comes to your board members, don’t try to win them over, simply treat them like equal members of your team. Discuss

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The Web has hit a point where tracking pageviews is useless for startups. There was a time when all you needed to succeed on the Internet were lots and lots of eyeballs, and the best way of measuring those eyeballs was by tracking pageviews (measuring exactly which pages on a website are viewed by individual visitors). The dot-com crash showed us that the eyeball-based business model was a failure. Sponsor Since then, startups have moved toward direct monetization strategies such as subscriptions and virtual goods – and these businesses using these strategies require very different metrics than an advertising-based business would. Make no mistake, pageviews were valuable metric once, but their time has passed. Guest author Tim Trefren is one of the founders of Mixpanel, a real-time Web analytics service that helps companies understand how users interact with Web applications. He writes about analytics at the company blog . For startups that sell something, metrics like average revenue per user (ARPU) and customer lifetime value (CLV) are vastly more valuable than detailed pageview tracking. It doesn’t make any sense to focus on pageviews (an approximation for value) when you can measure the real thing directly. There’s also a clear pattern in the direction the Web is heading – toward interaction and responsiveness, and away from separate pages. If you’re going for incredible user experience, on-page interactions are your bread and butter. Can you imagine what a drag it would be if the page reloaded every time you commented or ‘Liked’ something on Facebook? It would be awful. This trend further devalues the pageview as a valid metric. If you have a highly interactive Web application that spans only a few pages, there’s not a whole lot of value in seeing how many times those pages were loaded. Much more valuable information can be found by tracking the parts of your application that your users are interacting with the most. The benefits here are twofold: You can directly measure the things that are important to you, and you gain unparalleled insight into how people actually use your application. If Not Pageviews, Then What? When you’re deciding how to incorporate analytics into your strategy, the most important thing is that you are gathering actionable data. By this I mean that you have to be able to use the information you gather to make a decision and take action . If you’re not going to use it to make a decision, it’s a waste of time to even look at it. With this in mind, there are a few areas we should focus on: split testing, interaction tracking, conversion funnel analysis, and click tracking. These methods will give you the information you need to both improve your conversion rates and your understanding of user behavior. Just a few years back, your only options were to roll your own analytics or to pay tons of money to a giant company like Omniture. This left startups in a tough spot, one many startup founders still encounter today: it’s difficult to justify putting a lot of development time into analytics when it’s not your main product, and it’s hard for a small company to work with a large sales organization. Luckily, the analytics landscape is changing. Many new companies are sprouting up to handle every aspect of your analytics, freeing you from the need to develop your own internal tools. Split testing Split testing involves creating different versions of your site and measuring how the changes affect user behavior. Your changes can be as small as a different call to action or as large as a complete redesign. With this data in hand, you can make changes to your website to massively improve your conversion rates. What companies do it? Google Website Optimizer is a free multivariate testing solution. It makes it possible to change a number of different things and determine the optimal combination of changes. Conversion funnel analysis Funnel analysis is a way of measuring conversion rates across multiple steps of user acquisition. For example, you can measure the rate at which visitors from the front page go to the pricing page, and then how many continue on to actually create an account. This is an incredibly important concept to understand, and can be applied to many aspects of your application. What companies do it? Mixpanel (my company) is a freemium service that provides funnel analysis and segmentation. Google Analytics has a feature called Funnel Visualization that provides basic pageview-based funnel tracking. KISSmetrics is a new company with a funnel analysis product in closed beta. Click tracking Click tracking is a great way to measure how effective your website is. Every click a visitor makes is recorded, so you know which links and buttons are receiving attention. There are a number of ways to report this data, but the most popular is to overlay an image of your website with a heatmap of all of the clicks. If your users aren’t performing as you expect, you can try changing the page and continuing the test. What products do it? ClickTale is a freemium service that can generate click heatmaps and movies of single visitor sessions. CrazyEgg is a paid service that can generate a few different reports for your visitor click activity, including heatmaps. Event tracking Event tracking is a way of measuring exactly what users are doing on your site. Things like invites sent, videos played, and user signups all count as events. This functionality will grow more and more important as the Web grows more interactive. What companies do it? Kontagent is a freemium service that is focused on Facebook applications. It can track Facebook-specific events like invites and notifications, among other things. Google Analytics recently added basic event tracking to complement its pageview based service. Measure Relevancy, Not Your Ego Ultimately, analytics are crucial to online success. If you want to improve your startup, you’ve got to be measuring it. It’s critical to measure the right things, though – the things that are actually important to your business, not things merely appeal to your ego. It can be mesmerizing to watch the unique visitor count go up day-over-day, but this is a dangerous diversion. The era of eyeballs equaling success is long past, so you should instead be measuring the things that are truly relevant to your business. If you’re not measuring your visitors yet, I urge you to get your toes wet – track something small. The conversion rates for the buttons on your front page would be a great place to start. Is the pageview really dead? What other companies and services are available to help companies move beyond a pageview-centric mindset? Let us know in the comments Photo by Iva Villi . Discuss

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Back in early February, while aboard a red-eye to New York, Dave McClure wrote a long, humorous, rambling, profanity-laden rant of a blog post that focused on startup business models. While it makes for an entertaining read, McClure’s post is also very insightful and makes a solid case for why startups should shift from advertising models and instead build their new businesses on subscriptions and micropayments. Earlier this month I had the chance to visit the headquarters of ZooLoo , a startup that witnessed this very shift first-hand with their own business model. Sponsor During my visit I spoke with Aaron Baer, Director of Communications at the Scottsdale-based ZooLoo, a site that provides individuals with the ability to share and manage content on their own domain. Like many startups in the past decade, ZooLoo opened for business under an advertising business model, but eventually caught on to the changing trend McClure evangelized on his blog. “[ZooLoo's original model] was an advertising platform, we had a shopping page, we would do affiliate marketing, you could buy and order prints off of our website – we had a very broad business model,” says Baer. “We discovered that didn’t work.” They also realized that it wasn’t the model their customers wanted. Under the old model, users were presented with two options: a free basic service, and a premium service with more features in an “all or nothing,” fashion. Customers complained that they wanted to upgrade and purchase premium services, but that they weren’t willing to pony up the full price for a bunch of other features they didn’t want. In January, ZooLoo fundamentally changed their business model by creating a storefront through which customers could pick and choose features on a micropayment level. Now if a user wants to purchase their own domain name, but doesn’t want to pay for ZooLoo’s SEO services, they can do that instead of being forced into picking from a tiered package. While customer feedback was a substantial motivator for the change, Baer says that potential investors also played a role in the addition of the storefront. “The investors said, ‘You have a solid product, but I want to see you find a better way to package it, and a better way to sell it’,” he says. And the change worked. Since adding their micropayment storefront, ZooLoo has seen an increase in purchases of their premium services. The company is making more money marketing virtual goods in a micropayment system than they were when they bundled everything together at a higher price and relied on advertising and affiliate marketing. This is the exact paradigm shift in online marketing that Dave McClure preaches in his post mentioned earlier. “Gradually we are discovering that the default revenue model on the internet should probably be the simplest one,” writes McClure. “That is: basic transactions for physical or digital goods, and recurring transactions (aka subscriptions) for repeat usage.” Without repeat usage, McClure says that the biggest obstacle in the way of getting users on board with micropayments is that they forget their password. Honestly, if I was asked to login to my Amazon or PayPal accounts right now, I would be playing a guessing game with a handful of passwords because I don’t use those services too often. But for iTunes , Google and Facebook – the services McClure says will be the leaders in eCommerce login in five years – I use those every day, and surely remember my password. ZooLoo realizes this too, which is why they foster repeat usage by connecting their services with Twitter, Facebook, and other popular online social networks. Users can also log into ZooLoo using Facebook Connect, which eliminates the problem of remembering a less frequently used password. ZooLoo and Baer are fully on board with this emerging model, and suggest others hop on as well. “There is this social media bubble forming where all these services are saying, ‘We’re free, come use us!’, but eventually those services need to make money,” says Baer. “We think micropayments are the next big thing.” Photo by Flickr user r-z . Discuss

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