Erlang and the Chasm. A tour of the interac5on between engineering and marke5ng. Torben Hoffmann

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1 Erlang and the Chasm A tour of the interac5on between engineering and marke5ng Torben Hoffmann Product & Research Manager Erlang Solu5ons Session code: #3799 1

2 Have you ever... 2

3 Have you ever... wondered about why some technologies did not make it? 2

4 Have you ever... wondered about why some technologies did not make it? worked on a product that did well for a while only to falter away? 2

5 Have you ever... wondered about why some technologies did not make it? worked on a product that did well for a while only to falter away? been met with Who else is using that? when trying to advocate a tool? 2

6 Have you ever... wondered about why some technologies did not make it? worked on a product that did well for a while only to falter away? been met with Who else is using that? when trying to advocate a tool? felt the lack of ways to address these issues? 2

7 Have you ever... wondered about why some technologies did not make it? worked on a product that did well for a while only to falter away? been met with Who else is using that? when trying to advocate a tool? felt the lack of ways to address these issues? Then this is the talk for you! 2

8 Have you ever... 3

9 Have you ever... been looking for a way to leapfrog your competition using new technology? 3

10 Have you ever... been looking for a way to leapfrog your competition using new technology? felt that productivity using mainstream technologies X, Y and Z has been abysmal? 3

11 Have you ever... been looking for a way to leapfrog your competition using new technology? felt that productivity using mainstream technologies X, Y and Z has been abysmal? ignored Who else is using that? when selecting a tool? 3

12 Have you ever... been looking for a way to leapfrog your competition using new technology? felt that productivity using mainstream technologies X, Y and Z has been abysmal? ignored Who else is using that? when selecting a tool? felt the lack of ways to address these issues? 3

13 Have you ever... been looking for a way to leapfrog your competition using new technology? felt that productivity using mainstream technologies X, Y and Z has been abysmal? ignored Who else is using that? when selecting a tool? felt the lack of ways to address these issues? Then this is the talk for you! 3

14 The Link to Architecture Understanding how your customers think is good for engineers Nonobvious customer needs can easy or hard to implement depending on your engineering choices Having a common vocabulary across the organisation will make communication better 4

15 Model: Crossing the Chasm Crossing the Chasm by Geoffrey More Marketing and Selling Disruptive Products to Mainstream Customers 1st edition in 1991 Revised 2001 Makes you think Not the Silver Bullet 5

16 Use Case: Erlang and friends Presenting a model without personal use cases is dull Erlang fits the notion of disruption very well Erlang has great benefits, if you are willing to change parts of your technology stack Erlang shows signs of being in the Chasm Ecosystem not as mature as, e.g., Java A number of people have had massive successes with Erlang, but mainstream penetration is has not happened yet 6

17 slides[<your favorite tech>/erlang] 7

18 Technology Adaptation Life Cycle Originally developed by Joe M. Bohlen, George M. Beal and Everett M. Rogers 8

19 Technology Adaptation Life Cycle Technology enthusiasts Originally developed by Joe M. Bohlen, George M. Beal and Everett M. Rogers 8

20 Technology Adaptation Life Cycle Technology enthusiasts Visionaries Originally developed by Joe M. Bohlen, George M. Beal and Everett M. Rogers 8

21 Technology Adaptation Life Cycle Pragmatists Technology enthusiasts Visionaries Originally developed by Joe M. Bohlen, George M. Beal and Everett M. Rogers 8

22 Technology Adaptation Life Cycle Pragmatists Conservatives Technology enthusiasts Visionaries Originally developed by Joe M. Bohlen, George M. Beal and Everett M. Rogers 8

23 Technology Adaptation Life Cycle Pragmatists Conservatives Visionaries Technology enthusiasts Laggards Originally developed by Joe M. Bohlen, George M. Beal and Everett M. Rogers 8

24 The Technology Enthusiast Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

25 The Technology Enthusiast Appreciates technology for its own sake Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

26 The Technology Enthusiast Appreciates technology for its own sake Great critics cause they really care! Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

27 The Technology Enthusiast Appreciates technology for its own sake Great critics cause they really care! Gatekeepers for new tech Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

28 The Technology Enthusiast Appreciates technology for its own sake Great critics cause they really care! Gatekeepers for new tech Want the truth no tricks!! Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

29 The Technology Enthusiast Appreciates technology for its own sake Great critics cause they really care! Gatekeepers for new tech Want the latest stuff... Want the truth no tricks!! Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

30 The Technology Enthusiast Appreciates technology for its own sake Great critics cause they really care! Gatekeepers for new tech Want the latest stuff... but it has to be cheap! Want the truth no tricks!! Source: https://en.wikipedia.org/wiki/file:gyrodisney.jpg 9

31 The Visionaries Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

32 The Visionaries Driven by a dream Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

33 The Visionaries Driven by a dream Business goals, not technology goals Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

34 The Visionaries Driven by a dream Business goals, not technology goals Looking for a quantum leap forward Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

35 The Visionaries Driven by a dream Business goals, not technology goals Looking for a quantum leap forward Willing to take high risks Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

36 The Visionaries Driven by a dream Business goals, not technology goals Looking for a quantum leap forward Willing to take high risks Easy to sell very hard to please Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

37 The Visionaries Driven by a dream Business goals, not technology goals Looking for a quantum leap forward Willing to take high risks Easy to sell very hard to please Understand their dream and you can market to them Source: https://en.wikipedia.org/wiki/ File:Steve_Jobs_Headshot_2010CROP.jpg 10

38 The Pragmatists Dana Scully (XFiles) as opposed to Fox Mulder Source: 11

39 The Pragmatists Looking for incremental, measurable, predictable progress Dana Scully (XFiles) as opposed to Fox Mulder Source: 11

40 The Pragmatists Looking for incremental, measurable, predictable progress Risk = the chance to waste money and time Dana Scully (XFiles) as opposed to Fox Mulder Source: 11

41 The Pragmatists Looking for incremental, measurable, predictable progress Risk = the chance to waste money and time Loyal once won Dana Scully (XFiles) as opposed to Fox Mulder Source: 11

42 The Pragmatists Looking for incremental, measurable, predictable progress Risk = the chance to waste money and time Loyal once won Likes standards Dana Scully (XFiles) as opposed to Fox Mulder Source: 11

43 The Pragmatists Looking for incremental, measurable, predictable progress Risk = the chance to waste money and time Loyal once won Likes standards Expect to live personally with a technology choice for a long time Dana Scully (XFiles) as opposed to Fox Mulder Source: 11

44 The Conservatives Comes in all shapes and forms. I went for a Palm TX instead of a smart phone in We can all be conservative in some dimensions and something else in other dimensions. 12

45 The Conservatives Against discontinuous innovations Comes in all shapes and forms. I went for a Palm TX instead of a smart phone in We can all be conservative in some dimensions and something else in other dimensions. 12

46 The Conservatives Against discontinuous innovations Often fear high tech a little bit Comes in all shapes and forms. I went for a Palm TX instead of a smart phone in We can all be conservative in some dimensions and something else in other dimensions. 12

47 The Conservatives Against discontinuous innovations Often fear high tech a little bit Likes to buy preassembled packages at a huge discount! Comes in all shapes and forms. I went for a Palm TX instead of a smart phone in We can all be conservative in some dimensions and something else in other dimensions. 12

48 The Conservatives Against discontinuous innovations Often fear high tech a little bit Likes to buy preassembled packages at a huge discount! Tech just has to work! Period! Comes in all shapes and forms. I went for a Palm TX instead of a smart phone in We can all be conservative in some dimensions and something else in other dimensions. 12

49 The Conservatives Against discontinuous innovations Often fear high tech a little bit Likes to buy preassembled packages at a huge discount! Tech just has to work! Period! Products dedicated to a single function are best understood Comes in all shapes and forms. I went for a Palm TX instead of a smart phone in We can all be conservative in some dimensions and something else in other dimensions. 12

50 In Theory... You conquer the TALC group by group in one smooth motion 13

51 In Theory... You conquer the TALC group by group in one smooth motion 1 13

52 In Theory... You conquer the TALC group by group in one smooth motion

53 In Theory... You conquer the TALC group by group in one smooth motion

54 In Theory... You conquer the TALC group by group in one smooth motion

55 In Theory... You conquer the TALC group by group in one smooth motion

56 In Theory... You conquer the TALC group by group in one smooth motion but it s just an illusion :( 13

57 Cracks and a Chasm 14

58 Cracks and a Chasm Technology enthusiasts 14

59 Cracks and a Chasm Visionaries Technology enthusiasts 14

60 Cracks and a Chasm Pragmatists Visionaries Technology enthusiasts 14

61 Cracks and a Chasm Pragmatists Conservatives Visionaries Technology enthusiasts 14

62 Cracks and a Chasm Pragmatists Conservatives Technology enthusiasts Visionaries Laggards 14

63 Cracks and a Chasm Crack Pragmatists Conservatives Technology enthusiasts Visionaries Laggards 14

64 Cracks and a Chasm Crack Crack Pragmatists Conservatives Technology enthusiasts Visionaries Laggards 14

65 Cracks and a Chasm Chasm Crack Crack Pragmatists Conservatives Technology enthusiasts Visionaries Laggards 14

66 1st Crack 15

67 1st Crack From Technology Enthusiasts to Visionaries 15

68 1st Crack From Technology Enthusiasts to Visionaries Typical issue: not able to show that the tech enables a leap forward 15

69 1st Crack From Technology Enthusiasts to Visionaries Typical issue: not able to show that the tech enables a leap forward Benefit typically shown as a single, compelling application 15

70 2nd Crack 16

71 2nd Crack From Pragmatists to Conservatives 16

72 2nd Crack From Pragmatists to Conservatives Conservatives are not willing to become technologically competent Product must be easier to adopt than before 16

73 2nd Crack From Pragmatists to Conservatives Conservatives are not willing to become technologically competent Product must be easier to adopt than before User interface and user experience has to be redesigned Don t spend R&D on adding more features 16

74 The Chasm 17

75 The Chasm From Visionaries to Pragmatists 17

76 The Chasm From Visionaries to Pragmatists Visionaries buy a change agent to get a radical discontinuity 17

77 The Chasm From Visionaries to Pragmatists Visionaries buy a change agent to get a radical discontinuity Pragmatists want a productivity improvement for existing operations 17

78 The Chasm From Visionaries to Pragmatists Visionaries buy a change agent to get a radical discontinuity Pragmatists want a productivity improvement for existing operations Pragmatists want evolution, not revolution 17

79 The Chasm From Visionaries to Pragmatists Visionaries buy a change agent to get a radical discontinuity Pragmatists want a productivity improvement for existing operations Pragmatists want evolution, not revolution Pragmatists wants references 17

80 Visionaries vs Pragmatists Visionaries have four characteristics that alienate Pragmatists: 18

81 Visionaries vs Pragmatists Visionaries have four characteristics that alienate Pragmatists: Lack of respect for their colleagues experiences 18

82 Visionaries vs Pragmatists Visionaries have four characteristics that alienate Pragmatists: Lack of respect for their colleagues experiences Takes greater interest in technology than in their industry 18

83 Visionaries vs Pragmatists Visionaries have four characteristics that alienate Pragmatists: Lack of respect for their colleagues experiences Takes greater interest in technology than in their industry Fail to recognise the importance of existing product infrastructure 18

84 Visionaries vs Pragmatists Visionaries have four characteristics that alienate Pragmatists: Lack of respect for their colleagues experiences Takes greater interest in technology than in their industry Fail to recognise the importance of existing product infrastructure Overall disruptiveness 18

85 Meanwhile in galaxy far, far away from here... 19

86 Introducing Erlang Erlang is a programming language originally invented by Ericsson create telephone switches faster and with higher quality Open source since 1998 Main development still supported by Ericsson 20

87 Erlang s Original Requirements 21

88 Erlang s Original Requirements Large scale concurrency 21

89 Erlang s Original Requirements Large scale concurrency Soft realtime 21

90 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems 21

91 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction 21

92 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction Very large software systems 21

93 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction Complex functionality Very large software systems 21

94 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction Complex functionality Very large software systems Continuous operation for many years 21

95 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction Complex functionality Very large software systems Continuous operation for many years Software maintenance onthefly 21

96 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction Complex functionality Very large software systems Continuous operation for many years Software maintenance onthefly High quality and reliability 21

97 Erlang s Original Requirements Large scale concurrency Soft realtime Distributed systems Hardware interaction Complex functionality Very large software systems Continuous operation for many years Software maintenance onthefly High quality and reliability Fault tolerance 21

98 Erlang s Sweet Spot GUI Middleware Erlang Coordination Control Drivers 22

99 Erlang Success Stories Riak (NoSQL DB) used in Denmark s Shared Medicine Record CouchBase (NoSQL DB) used in Draw Something XMPP (ejabberd and MongooseIM) Messaging Gateways both text and voice 23

100 So if Erlang is the best thing since sliced bread, how successful is it? 24

101 Erlang Vital Statistics TIOBE Index Feb2013 Source: 25

102 Erlang Vital Statistics TIOBE Index Feb2013 In a league far, far away... Source: 25

103 Erlang Vital Statistics Language Popularity Index tool Feb2013 Source: 26

104 Erlang Vital Statistics Language Popularity Index tool Feb2013 In a league far, far away... Source: 26

105 Is Erlang in the Chasm? 27

106 Is Erlang in the Chasm? Some, but not many, are enthusiastic about Erlang Some, but not many, success stories No major upward trend to be found Erlang might very well be stuck in the Chasm 27

107 Market Definition 28

108 What is a Market? 29

109 What is a Market? Before we go any further we need to agree on what a market is: a set of actual/potential customers for a given set of products/services who have a common set of needs/wants, and who reference each other when making buying decisions 29

110 What is a Market? Before we go any further we need to agree on what a market is: a set of actual/potential customers for a given set of products/services who have a common set of needs/wants, and who reference each other when making buying decisions The referencing aspect is key! 29

111 Crossing the Chasm 30

112 Dday Analogy 31

113 Dday Analogy Mainstream market 31

114 Dday Analogy Early Market base 31

115 Dday Analogy Strategic target market segment 31

116 Dday Analogy Chasm 31

117 Dday Analogy Additional market segments 31

118 Trying to cross the chasm without taking a niche market approach is like trying to light a fire without kindling 32

119 Trying to cross the chasm without taking a niche market approach is like trying to light a fire without kindling If this is all you remember from this talk you are not too bad off! 32

120 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason 33

121 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason How bad can it be to be sales driven? 33

122 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason How bad can it be to be sales driven? disastrous 33

123 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason How bad can it be to be sales driven? disastrous Surely things can just work themselves out? 33

124 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason How bad can it be to be sales driven? disastrous Surely things can just work themselves out? not always 33

125 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason How bad can it be to be sales driven? disastrous not always Surely things can just work themselves out? We will discover our market, led to it by our customers? 33

126 Why is it difficult to Commit to a Niche? Most companies do not have the discipline to stop pursuing any sale at any time for any reason How bad can it be to be sales driven? disastrous not always Surely things can just work themselves out? We will discover our market, led to it by our customers? not in a million years! 33

127 Crossing Goal 34

128 Crossing Goal Must secure a beachhead in the mainstream market 34

129 Crossing Goal Must secure a beachhead in the mainstream market create a referenceable pragmatist customer base 34

130 Crossing Goal Must secure a beachhead in the mainstream market create a referenceable pragmatist customer base By ensuring that our first set of customers completely satisfy their buying objectives 34

131 Crossing Goal Must secure a beachhead in the mainstream market create a referenceable pragmatist customer base By ensuring that our first set of customers completely satisfy their buying objectives give them a whole product 34

132 Crossing Goal Must secure a beachhead in the mainstream market create a referenceable pragmatist customer base By ensuring that our first set of customers completely satisfy their buying objectives give them a whole product Anything missing = incomplete solution 34

133 Crossing Goal Must secure a beachhead in the mainstream market create a referenceable pragmatist customer base By ensuring that our first set of customers completely satisfy their buying objectives give them a whole product Anything missing = incomplete solution Incomplete solution = cannot be referenced 34

134 The Lure of Selling to Everyone Source: 35

135 Market Leadership Pragmatists wants to buy from market leaders Owning a market provides a solid base Source: 36

136 Applications vs Platforms 37

137 Applications vs Platforms Applications crosses the chasm easier 37

138 Applications vs Platforms Applications crosses the chasm easier end users more likely to champion disruption than tech professionals operating current infrastructure 37

139 Applications vs Platforms Applications crosses the chasm easier end users more likely to champion disruption than tech professionals operating current infrastructure if one fixes a broken, missioncritical business process end users will force IT departments to install 37

140 Applications vs Platforms Applications crosses the chasm easier end users more likely to champion disruption than tech professionals operating current infrastructure if one fixes a broken, missioncritical business process end users will force IT departments to install Platforms are multipurpose 37

141 Applications vs Platforms Applications crosses the chasm easier end users more likely to champion disruption than tech professionals operating current infrastructure if one fixes a broken, missioncritical business process end users will force IT departments to install Platforms are multipurpose infrastructure is the domain of the IT community 37

142 Applications vs Platforms Applications crosses the chasm easier end users more likely to champion disruption than tech professionals operating current infrastructure if one fixes a broken, missioncritical business process end users will force IT departments to install Platforms are multipurpose infrastructure is the domain of the IT community better to disguise as an application 37

143 Applications vs Platforms Applications crosses the chasm easier end users more likely to champion disruption than tech professionals operating current infrastructure if one fixes a broken, missioncritical business process end users will force IT departments to install Platforms are multipurpose infrastructure is the domain of the IT community better to disguise as an application better when markets go mass 37

144 Riak vs Erlang Riak is an application NoSQL database written in Erlang thriving company behind it with a number of million $ fundings Erlang is a platform supported by Ericsson and open source community no mainstream penetration 38

145 Crossing the Chasm Phases Target the Point of Attack Define the Battle Launch the Invasion Assemble the Invasion Force 39

146 Target the Point of Attack 40

147 HighRisk, LowData Decision You have to pick a beachhead without having any hard market data Cannot use the data from the Visionaries You are on your own! Use informed intuition instead of analytical reason 41

148 Target Customer Characterisation Must get personal markets are impersonal and abstract Create a number of them until you start repeating yourself For each customer profile you create a scenario With a number of scenarios in hand you rate them against the Market Development Strategy Checklist 42

149 Scenarios Who is who? End User, Technical Buyer, Economic Buyer A day in the life (before) What is the problem with the existing approach? What are the economic consequences? A day in the life (after) What does the new approach enable? Show me the money! 43

150 Market Development Strategy Checklist Showstoppers: Target customer Compelling reason to buy Whole product Competition Nice to have: Rate them 15 and sum Partners and allies Distribution Pricing Positioning Next target customer 44

151 Commiting to the Point of Attack Pick one and pick it hard Optimal choice of beachhead not important as long as you win it! Size matters pick on somebody of your own size you have to become market leader 45

152 Assemble the Invasion Force 46

153 Whole Product See Levitt s The Marketing Imagination for details 47

154 Whole Product Generic Product See Levitt s The Marketing Imagination for details 47

155 Whole Product Expected Product Generic Product See Levitt s The Marketing Imagination for details 47

156 Whole Product Augmented Product Expected Product Generic Product See Levitt s The Marketing Imagination for details 47

157 Whole Product Potential Product Augmented Product Expected Product Generic Product See Levitt s The Marketing Imagination for details 47

158 Whole Product Potential Product Augmented Product Expected Product Generic Product Pragmatists evaluate and buy whole products! See Levitt s The Marketing Imagination for details 47

159 Whole Product Planning Simplified for chasm crossing Anything else Training & Support Standards & Procedures Generic Product Additional Software Additional Hardware to achieve your compelling reason to buy Installation & Debugging System Integration 48

160 Whole Product Planning Simplified for chasm crossing Anything else Training & Support Standards & Procedures Generic Product Additional Software Additional Hardware to achieve your compelling reason to buy = marketing promise to win the sale Installation & Debugging System Integration 48

161 Erlang Whole Product 1/2 Generic product: Erlang compiler and runtime Additional software: rich library shipped with each release many open source libraries Training & support: ESL provides many courses ErlangCamp also provides training 49

162 Erlang Whole Product 2/2 System integration: mostly casebycase few public success stories Installation & Debugging: Adequate functionalities for installing applications Lack of good mass deployment tools Good debugging tools, but not well publicised 50

163 Riak Whole Product 1/2 Generic product: Riak distributed NoSQL database Additional software: Riak Enterprise: multi data center Riak Cloud Storage: storage on top of Riak Improved graphical tools Simplified log management Training & support: Offered by both Basho and ESL 51

164 Riak Whole Product 2/2 System integration: Development: ongoing addition of adapters to languages RiakCS is S3 compatible Operations: SNMP monitoring Installation & Debugging syslog integration DTrace/SystemTap multiple adaptations to installation tools used by customers 52

165 Whole Product Evaluation 53

166 Whole Product Evaluation Riak is just beginning to enter the mainstream market still mainly Visionaries as customers doing things to mature the whole product for mainstream customers 53

167 Whole Product Evaluation Riak is just beginning to enter the mainstream market still mainly Visionaries as customers doing things to mature the whole product for mainstream customers Erlang is in the chasm a number of Visionaries has picked up the tool not clear market leader in any segment shortcomings on the whole product 53

168 What s Next for Erlang ESL initiatives working on an Operations and Maintenance tool to automate mass deployments new and improved community site working with clients on publicising system integration stories publicising testimonials about Erlang usefullness 54

169 Define the Battle Pragmatists needs to see competition you can define it! Value has to be stated in marketoriented terms Positioning the single largest influence on buying decisions exists in people s heads, not in your words is something people are conservative about changing perception of 55

170 Launch the Invasion Main objective: make the pragmatist customer comfortable Direct sales best for chasm crossing Use distributionoriented pricing price as the market leader allocate extra margin for the channel 56

171 Reflections Business seldom evolves smoothly if it is not Moore s chasm that is holding your business back, could it be another chasm? chasm for gaming: papayamobile/papayawebinarleveraginglifecycle Focus on a niche is used in lean startup methodologies: Running Lean: first focus on a single of the potential customer segments 57

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