Beyond PaaS, Pivotal Conversations #001

I've finally started up podcasting at Pivotal - it took me long enough! The first episode of my sub-series, Pivotal Conversations, is up. It's me and Andrew Shafer talking about "PaaS" vs. "cloud platform."

There's a full on transcript, use the player above to hear it or download it directly, and check out the full-show notes over on the Pivotal blog.

And, of course: you should subscribe to the podcast feed!

More on GigaOm's demise from the former head of the analyst side of the house

Commentary on GigaOm shutting own from the analyst/research perspective:

We thought, what if we could provide a platform for some of these independents to reach a wider audience through a research service from Gigaom? We believed that if we could pay these independents to write reports on a freelance basis, they would get the exposure of being part of a ‘virtual analyst network’ at Gigaom and we would get to tap into their expertise without having to pay the high salaries that often come with such knowledge and backgrounds. Win-win.

Including pricing, an aspect of the analyst business that I think will is key, esp. for new ventures there

We made a decision to launch at what seemed to many a ridiculously low price of $79 per year. But because we were doing something that we believe had largely never been done before, we were trying to gain significant conversion of our readership — probably around 2–3 million monthly uniques at the time — to the research product. We thought if we could make the price so low, it would enable the ‘true fans’ of Gigaom to subscribe and support while providing immense value in the form of research.

Also, this on revenue estimates:

Over time, increasing the sales and marketing mix towards research did make sense. According to an interview made by Paul, he said that research made up 60% of the company’s revenue. In the same article, revenue were estimated to be $15 million, so that translates to about a $9 million research business.

Anyhow, if you like the inside baseball of analyzing the analysts, this one's got some.

More on GigaOm's closing

Well, this is a problem:

But Gigaom’s research business had actually become a significant drag on the company. While it had started out as a “pro” subscription business charging individuals as much as $299 a year, after a couple of pivots, the company’s research arm was now focused on creating custom whitepapers and other products, like Webinars, for corporate clients. While that group booked $8 million in business last year, it wasn’t profitable. That was partly due to high sales and product costs and but also because some of that $8 million never materialized as the company didn’t create the work it was supposed to.

As reported in one of the more in-depth pieces in GigaOm over at re/code.