Software as a Service


With the publishing of Eric Ries’ book, The Lean Startup, I can barely go a day without talking to someone about it. Eric clearly executed a lean startup on himself and this topic – by focusing on learning. Eric started much of his work a couple of years ago with his blog Startup Lessons Learned and by publicly speaking on the topic. I saw him first at Return Path, a local Rally customer, in May of 2010.  Since that time, he has continued to refine the principles and collected great stories for this book that speaks equally well to an new entrepreneur as a seasoned business professional.

The book is just a fantastic and hard-hitting summary of this approach to business, as well as a manual on how to teach entrepreneurial behaviors.  If Eric was a seasoned author, this would be a great book, but given the fact it is his first effort – it makes the book astonishing.  It debuted at #2 on New York Times Bestseller list!

If you do not know Eric or The Lean Startup model, it works by developing product/service in parallel with the customer in a market.  The method can be summarized by three words executed repeatedly; Build, Measure, Learn.  These cycles continue to help you assess whether to stay the course, pivot or stop.  The Lean Startup is a combination of applying Agile Development, and Customer Development methods, but draws on Lean, crowd sourcing/social and complexity to create a true collection of thinking and acting tools for today’s complex world.

Eric’s sub title really sums the book up well –

How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses

… as these ideas and thinking apply equally as well for venture-backed tech startup, impact investing, social startups or internally funded intrapreneuring efforts.  If you read his blog, you will see he A/B tested about 20 sub-titles to come to this one. So, not only is a great sub-title, but it is one that attracts the right market.

Have you clicked on the book image to buy it yet?  No?  Let me try one more thing!

For Agile teams, programs or enterprises, the message from this book should be clear: you need to start applying customer development approaches to the front-end of your Agile efforts. You can read about Rally’s latest customer development in the Making of Project Stratus; and you can see the results of these efforts at our Agile Portfolio Management launch in December.

As part of this launch effort, Zach Nies and I have been given a great gift in the last month of continuous lean startup (more on that in later posts). Last week, I found out that Zach and I will have the opportunity to interview Eric live on February 2nd.  If you don’t buy the book, you should at least register for the 1 hour video event.

Ryan Martens is CTO/Founder of Rally Software, a recovering Entrepreneur-in-Residence at the Unreasonable Institute and chief promoter of the Entrepreneurs Foundation of Colorado. You can follow him on Twitter @RallyOn.

Please help us find qualified candidates for an exciting new opening at Rally’s Boulder headquarters.  With compounding user growth, seven agile teams, four product lines, two development locations, as well as multi-tenant SaaS and on-premise deployments, it is time for us to hire a VP to help us continue to grow and thrive.

RallyWe have managed with various folks playing parts of this role over the last seven years, and now we need to add a skilled, servant leader and operator to our senior team to enhance functional management across the software value-delivery chain.

This person will be part of our senior management team and be responsible for all technical engineering and operations. As a peer to our VP of Products and supported by Zach’s four product line managers, you and your teams will collaborate with these managers to advance the product portfolio components and overall strategy.  This person will work with a world-class team of software, systems, operational engineers and scrum masters.   Service Level Agreements (SLA) with customers will measure success in this role with the goal of increasing overall engineering resource development, mentorship and flexibility to meet evolving products, features, and architectural needs.  Our intent is to continue growing this part of the business through organic, development partners and acquisitions.

A major part of personal success in this job comes from thriving in our culture of team collaboration, personal responsibility, high ethics, social give-back and intrinsic motivation.

If this sounds like you, we would love to hear from you via the career section of our web site. There you will find a detailed job description as well as other benefit details.  (If you are not quite ready to apply, but want to have a quick confidential conversation with the management team, please send email to vpengops@rallydev.com. No recruiters please).  If this is not you, but you know someone who might be interested, please share this with your friends and with your networks using the “ShareThis” button below or through our LinkedIn post.

We are very excited to find the right addition to this agile engineering and operations group.

Ryan Martens is a the CEO of the Entrepreneur’s Foundation of Colorado, and CTO at Rally Software Development.

We compiled our carbon footprint data for 2009, and the CO2 per 100 paying users continues to decline.  In 2008, we emitted about 8.2 tons of CO2  per 100 users.  In 2009, that number dropped to about 7.8 tons of CO2 per 100 users. (We include building utilities, employee commuting, air travel, IT, hosted operations and SaaS vendors in our total carbon calculation)

2009 CHG Rally

Unfortunately, the total tons for our business and tons per employees continues to increase as we are growing in both employees, offices and people that travel on airplanes.  In 2009, we expanded the use of virtualization (VMWare), HD videoconferencing (Lifesize), desktop videoconferencing (both Google and Skype) and located more of our sales and field services employees into their territories.

As we look to 2010, we are beginning to work with our landlord to do longer term planning with regard to solar options for our Boulder facility.  We are also making major upgrades to our hosted operations and testing/staging platforms to support our growth and the growing mission critical nature of our application.  I expect our total CO2 to increase, our CO2 per employee to flatten and CO2 per 100 users to continue to decline as users, employees, airline miles and servers all go up in 2010.

Recycle

Some of the e-waste collected at our recycling fair

To end on bright note, we ran our electronic recycling fair again.  This year 8 pallets of CRT, TV, computers, servers and amplifiers left our offices and homes headed again for local recycling at Luminous Recycling in Denver.  Total weight of the 8 pallets was 3,984 pounds. This year we did it around St. Patrick’s day and held a Biggest-Loser-style competition in our game room with green beer on tap.  Though the race was tight between one of our engineers, an accountant and our CFO, I am proud to announce that engineering team of Mike and Susan won the competition this year with over 450 pounds of e-waste diverted to local recycling.

To read more about our carbon footprint, you can read my post and comments from 2009.

Ryan Martens is a 100# e-waste loser for 2009,  founding board member of the Entrepreneurs Foundation of Colorado, and CTO at Rally Software Development.


Climate Change due to the increase of carbon from human activity is a “Global problem,” thus it has a couple of unique attributes compared with other world problems:

  • It affects everyone
  • You can act on it anywhere

I choose to act on this problem at home and at work.  As part of this action,  Tim and I chose to attend the Society of Organizational Learning’s (SoL) workshop based on Peter Senge’s book Necessary Revolution.

This three-day workshop leveraged long-time SoL content on leadership and mastery into the context of the global climate change.  It was a fantastic workshop that I highly recommend – as it has changed me and my mental models.

Tim Miller, Peter Senge & Ryan Martens

Tim, our CEO, Peter and myself at the end of day three

Living in Boulder Colorado with tons of the worlds best climate scientist and a University that helps you Lean More About Climate, I am familiar with much of the science behind climate change.  But, in this workshop we got to take our understanding up to the larger system level through system archetypes, multi-player games and simulations.

On the third day, we played with and did mock negotiations using the climate change system simulators that were built for negotiating teams going to Copenhagen in the next two weeks.   The systems dynamics models baked into the C-Lean simulator are made more apparent in the Seed Simulator on Carbon flows. (It is a simple bath tub model of how carbon flows through the natural system.)

For your information, the answer to the simulation puzzle of putting climate change in check and keeping average global temperature from rising more that 2 degrees involves three things:

  1. have all countries in the world (un-developed, developing and developed) reduce there carbon output by 80% from 2005 levels by 2030
  2. stop deforestation efforts
  3. maximize reforestation efforts

To do this, the world will have to cross the threshold to a new game;  an infinite game of win/win behaviors that measures success based on ecological restoration and social well-being.  Finite game behaviors coming from zero-sum game thinking and patterns of shifting the burden and escalation will have to stop.  I like to think of this an maturation of our species from wildly growing adolescents to young adults.

Peter’s 5th Discipline Fieldbook and The Dance with Change, come with tons of exercises, tools and guest lectures that are all helpful at understanding organizational learning and systems thinking. However, as Peter said in the workshop, understanding the concepts are easy, but practicing them can be much harder.

Part of the success of this public workshop was working with these concepts in a context of a global problem that we all share.  We got to work on ourselves and a shared global issue.   And as a result, we seemed to all have limitless energy and worked from 8:30 AM to 7 PM each day.

I encourage you to visit these sites, they give climate change a face and a shorter feedback loop.  Both of these benefits can lead you and your teams to better understand and more easily act on this Global issue.

Thank you Tim, Peter, Sherry, Darci and all the other great folks who attended our workshop in DC.  I have my joy and I will share it and my personal learning’s from this event in my next post.

About the Author: Ryan Martens is a telemark skier,  founding board member of the Entrepreneurs Foundation of Colorado, and Founder and CTO at Rally Software Development. Subscribe today to get free updates by email or RSS.

As part of our goal to have a zero carbon footprint by 2020, we calculate our total carbon footprint each year including building facilities, travel, commuting, IT and waste.  As we get more accurate every year, we are adding in the impact of using Software-as-a-Service (SaaS) to that calculation. I have been unable to find a benchmark of other SaaS companies carbon footprints, so I am putting out a call for SaaS companies to share their footprint per user. co21

Rally’s benchmark – 8 tons of CO2 per year for every 100 users

At Rally, we have been growing steadily (227% in 2005-2007, 242% in 2007-2009) at the same time working hard to limit our carbon footprint.  Unfortunately, as a company grows, its carbon footprint often grows with it.

We have been able to keep carbon per 100 users flat at 8 tons per year for the last two years – the same amount produced by a single person flying from New York to Deli, India round trip 4 times. In addition, we estimate that our SaaS customers are avoiding an additional 1 ton per year of CO2 as compared to running an application in a robust manner in their own data center.

What is your SaaS carbon footprint per 100 users?

Lacking any other information, I used our figure – 8 tons per 100 users per year – to calculate our carbon use per 100 SaaS seats for each of our SaaS suppliers including: Google Enterprise Apps, Salesforce Unlimited, NetSuite, Big Machines, Eloqua, Xactly, and Open Air.  I assume our numbers are conservative because we are not the scale of the Google or Salesforce, and we count airline miles and employee commute in our footprint.  Can any other SaaS providers tell me your carbon per 100 users to increase the accuracy of our calculations?

Like Salesforce, we buy renewable energy credits from NativeEnergy to offset the carbon of hosted operations.  This is a very small portion of our overall carbon footprint -  about 7 tons per quarter.  However, it does a couple of things for us: 1) It supports our SaaS service being carbon neutral since 2008,  2) It keeps us learning about carbon credits at a national and local level, and 3) most importantly, it keeps us focused on our goal of zero carbon by 2020.

Do you want to partner?

In addition to our efforts to battle climate change in our industry, we are also working hard in social responsibility by following the 1% model started by Marc Benioff and Suzanne DiBianca at SalesforceFoundation.orgLast year, we hit our 1% target of volunteer time with over 2,500 hours helping 90 charities.  This year, we are in search for a strategic non-profit partner to help us focus our corporate social responsibility efforts and volunteer time in one of three areas:

  1. Reducing the environmental burden from the IT industry (carbon, e-waste, toxins, take-back efforts)
  2. Decreasing the digital divide in society (universal access to the Internet)
  3. Increasing the level and engagement in corporate social responsibility behaviors

If your non-profit believes it can leverage the 3000+ volunteer hours from a company in Colorado, North Carolina and the UK to help on one of these efforts, please contact us.  We are looking for a true partner who wants to start developing a relationship in 2009.

The importance of sustainability at Rally

Our efforts are based on trying to stand on the shoulders of Ray Anderson from Interface. See Ray’s Fortune interview on pushing through on sustainability in light of the current economic crisis that is radically affecting his commercial carpet business.  Since then, Google’s efforts and Salesforce’s efforts in the SaaS IT space have kept us moving forward.

We look forward to driving zero footprint data centers, increasing remote collaboration technology and having a zero footprint campus in the next decade. We are preparing a sustainability report for 2008, following the Global Reporting Initiative format.  It is not a small project, but it was the clear next step for our sustainability efforts that started in earnest in 2007.  Our goal is to release it by July 1st so stay tuned.

ADDED After Publishing and based on comments:

A better video of Ray Anderson is his speech at TED in 2009, it gives more background, and more data.  – Thanks to David Koontz

Graphic below to provide clear breakdown on sources of Carbon in our business – 6/17/09

co2-by-type-07-1h09


On our recent webinar “Demystifying Cloud, The Next Generation Architecture” we had a number of thoughtful and tough questions related to security, intellectual property and risks. We provided answers to these questions in the recording, but I found the recent SD Times article “Cloud Providers Answer Tough Questions” an even better source. In this article, a number of experts on specific platforms from Microsoft, Google, Salesforce as well as Rally’s own Zach Nies answer questions about security, lock-in and IP.

Henry Ford didn't know the impact of his first car - do we know the impact of the Cloud?

Henry Ford didn't foresee the impact of the first car - do we foresee the true impact of the Cloud?

Daryl Plummer from Gartner also did a great job recently describing the real point of cloud computing as he reviews Russ Daniels recent Forbes article. Russ says:

“In my view, the ability to facilitate innovation and entrepreneurship in this new model is one of the most promising ways to ignite the next wave of economic growth. We can no more see the full impact of the cloud than Henry Ford foresaw the impact of his desire to produce more cars in less time.”

As a result of SD Times’ tough questions and our desire to “ignite the next wave of economic growth,” we decided to talk in our next webinar with Global Logic and IBM about how to go to the cloud and mitigate risk along the way. As with any pilot, the goal is to enter wisely, learn fast and then move forward.  Given the iterative and incremental method of Agile is best suited for this fast-learning approach, we will title our next talk “Going to the Cloud – the Agile Way.”

We are structuring the content now, but I would love to hear your ideas, questions or feedback on this topic. I will also post a registration link for the webinar as soon as I have it.

Thesis: Taking a learning-first approach to your cloud efforts can help you avoid the risks of vendor lock-in, IP security and a spectacular failure

Proposed Agenda:

  1. Review the innovation, benefits and risks
  2. Typical approach – Choosing early, over selling, dramatic big bang
  3. The Agile/Lean approach – Set-based, scientific and learning-based
  4. Case study
  5. Close

copyright - Enrika Bressan - http://www.sxc.hu/profile/enrika79

The Dream of the Cloud by Enrica Bressan

What is your dream for the cloud? 

Is it a blob that will cause you to lose all control, including your job?

Or, is it an amazing innovation that will save your company from this world-wide recession?

Or the its the Blob - Buy the Classic @ Turner by clicking image

Or the it's The Blob - Buy the classic @ Turner by clicking image

On April 15th, I will be fortunate enough to join Sachin Saxena from Global Logic and Mac Devine, the AIM SaaS/Cloud CTO at IBM,  for a webinar to attempt to answer these questions (learn more and register here).  They are both experts in internet technology and hold deep knowledge (along with beautiful slides) on the topic of cloud computing.  Their goal is to help you understand the massive energy, time and computer savings made possible by the many cloud options.

Specifically,  they will define the cloud, its opportunities and roadblocks. They both plan to highlight case studies, and my role will be as a customer and extensive user of cloud solutions.  This is much the same role that I played at the New Jersey CIO summit in February.  (If you can’t wait for the webinar – don’t miss Troy Angrignon’s opinion post at Sandhill.com about the implications on cloud computing on software firms.)

At Rally, we are very comfortable with the application of these technologies.  As a 160 person SaaS firm provider, we have been in the early market for many of these technologies.  It was fun for us to benefit from the fast move to free of hypervisor/virtualization portion of this wave. Listen to Mike Cote’s podcast on the topic at RedMonk. He has been covering the Cloud/virtualization for years as an open source analyst.

As a result, I believe that 100% of the companies who attend this webinar will leverage these technologies in 2009 in a strategy to reduce risk and cut costs.  But what are the other rationales for the cloud?  What are your stories?  I think cloud/SaaS, Agile development and web 2.0 customer communities are an even bigger story, but one that will take longer to develop than the use of public/private clouds and virtualization technology.

Next up on this topic will be the actual energy savings reports from our virtualization and power management efforts lead by our internal green team.

njtcThis Friday, February 27th, I will be speaking on a panel at the New Jersey Technology Council’s 2009 CIO Conference called “Moving to a Virtual World” ( www.njtc.org). The panel is on Cloud Computing and it is a mixed collection of vendors and CIO’s talking about the rapid arrival, the clear benefits and struggles of adopting Cloud Computing.

At Rally, we have gained some firsthand knowledge of these technologies, platforms and applications as we try to find the most energy efficient, stable and cost effective solutions for us and our customers.  As a small fast growing technology company, we are an ideal customer for Cloud Computing and I am sitting on this panel as a user, supplier and leader on software development for the cloud.  (We use Amazon EC2, VMWare ESX, Salesforce and seven App-Exchange Apps, Google Apps Premier to run our business and manage our own multi-tenant SaaS/PaaS application in the cloud.)

In preparation for the panel, I was brushing up on some of the latest news and views on this topic.

Here are the worthwhile Cloud Computing links that I used to prepare my talking points:

(more…)

In this 20-minute interview with Michael Vizard, I do a wide survey of why Agile development practices can be so effective at cutting the costs of development and operation of strategic IT applications. Michael asked some great questions, including whether the current economic recession will stimulate change in the development process or cause it to stagnate, how people will train and staff for the coming changes, and how today’s ALM tools differ from what he refers to as the “old guard,” who are starting to claim that their tools also support Agile development.

Read related posts on:

Can you afford the software you are developing? (from Israel Gat’s blog)

Cutting costs through productivity improvements, and

WHY do you develop and operate software?

Let me know what you think!

Sustainable Leadership podcast with Ryan Martens on BlogTalkRadio.com

Just got off the phone with Dan Montgomery who interviewed me on his BlogTalkRadio channel on Sustainable Leadership.

Following the ‘More…’ link will show my notes and links from the 50-minute interview using the Decker Grid.

(more…)

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