I am sitting here staring at power supplies and empty cases. Cleaning out the garage and closets, looking at the remnants from my PC building days. I used to love going out to select new motherboard and chipset combinations, hand-selecting each component to build just the right database server or video game machine. Over the years one sad acknowledgement needed to be made: after a year or so, the only pieces worth a nickel were the power supply and the case. Sad, but you spend $1,500.00 and after a few months the freaking box that housed the parts was the only remaining item of value.

I was thinking about this during some of our recent meetings with clients and would-be clients. Rich, Mike, and I are periodically approached by investors to review portfolio companies. We look both at their technology and market opportunities, and determine whether we feel the product is hitting the mark, and reaching buyers with the right product and message. We are engaged in response to either mis-aligned vision between investors and company operators (shocker, I know), or more commonly to give the investors some understanding of whether the company is worth salvaging through additional investment and a change of focus. Sometimes the company has followed market trends to preserve value, but quite a few turn out to be just a box of old parts. If this is not a direct consequence of Moore’s law, it should be.

We see cases where technologies were obsolete before the hit they market. In a handful of instances, we do find one or two worth salvaging, but not for the reasons they thought. In those cases the engineering staff was smart enough, or lucky enough, to build a deployment model or architecture that is currently relevant. The core technology? Forget it. Pitch it in the dust bin and take the write-off because that $20M investment is spent. But the ‘box’ was valuable enough to salvage, invest in, or sell. It’s ironic, and it goes to show how tough technology start-ups are to get right, and that luck is often better than planning.

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Nice opening post, especially with the kicker at the end that you’re actually writing it on a plane! 🙂 I definitely find myself purposely unplugging at times (even if I’m still playing with something electronic) and protecting my private time when reasonable. I wonder if this ultimately has to do with the typically American concept of super-efficiency…milking every waking moment with something productive…at the expense of the great, relaxing, leisure things in life. I could listen to a podcast during this normally quiet hour in my day! And so on…
@Porky Risk…Pig: It doesn’t help that every security professional shotguns everyone else’s measurements…and with good reason! At some point, I think we’ll have to accept that every company CEO is different, and it takes a person to distill the necessary information down for her consumption. No tool will ever be enough, just like no tool ever determines if a product will be successful.
@My dad can beat up your dad: Ugh…I have some pretty strong opinions about cyberbullying and home internet monitoring…but I tend to shut up a bit because I don’t have kids and I’ll likely rub parents wrong (not that my humor isn’t dark enough to do that anyway!). While social networking didn’t exist when I was in school, I certainly have to give a lot of caution to taking away a child’s privacy. Protection is one thing, but being overly controlling and in their business is often a recipe for a lifetime of resentment…especially in their most carefree years of life where they have hours upon hours of free time without the burden of responsibilities or death anywhere on the horizon. I think it is simply most important to keep honest communication open (both ways) and make sure actions are taken when something awry happens. If someone isn’t your friend, why are you “friends” on Facebook with them? Masochistic? Sinister plans?
With rare, very saddening exceptions, a vast majority of kids will survive despite the rigors of childhood and school and self-discovery outside protective umbrellas. (I do make one exception. If there is monitoring and intrusion of privacy, they should never find out and you should never make them suspect it. It should be a silent angel watching over. But once you flaunt it or they find out, that is when the resentment and deeper hiding will happen…imo. Again, this is from a one-sided perspective and does not apply to all personalities. 🙂 )