How to make sure the CEO funds your crazy ideas to make developers happy
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How do you convince your business leaders that your programs to engage and excite developers are good for business? This talk will analyze case studies on three successful developer engagement programs: packaged licensed software, open source development framework, and infrastructure as a service. Each of these different business models has a different way to measure the value of a developer. Understanding what this value is and how it is computed is essential for securing funding for the developer programs you want to build.
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How to make sure the CEO funds your crazy ideas to make developers happy
- 1. © 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Adam FitzGerald Head, Worldwide Developer Marketing Amazon Web Services How to make sure the CEO funds your crazy ideas to make developers happy Funding Models for Developer Relations Programs @DevRelChap
- 2. Who am I?
- 4. Who are you?
- 5. What do you make/sell?
- 6. What do you make/sell?
- 7. What do you make/sell?
- 8. Pay as you Go Subscription Consumption Pricing
- 9. You are a cost center!
- 10. What does one developer mean to my company’s business?
- 11. What do you make/sell?
- 12. What do you make/sell?
- 17. What do you make/sell?
- 19. Spring Community Population (Open Source) User base: 2,500,000 Key Ratios Core:Expert 20:1 Forum:Registered 10:1 Registered:Global 20:1 Global Population Registered Forum Experts Core Active: 12,000 Committers: 20 Population 20x 30x 20x Subscribers: 125,000 Answers: 400 10x User base: 2,500,000
- 20. Application Management Middleware / App Server Platform Frameworks and Tools Hyperictc ServerSpring & Grails ManageRunBuild SpringSource Solution: Modern Platform for Business Critical Applications
- 21. Spring Community Population (Open Source) User base: 2,500,000 Key Ratios Core:Expert 20:1 Forum:Registered 10:1 Registered:Global 20:1 Global Population Registered Forum Experts Core Active: 12,000 Committers: 20 Population 20x 30x 20x Subscribers: 125,000 Answers: 400 10x User base: 2,500,000
- 22. Raw Leads: valid contact information, but have not been assigned to an AE. Open Leads: “Assigned Leads”have not yet been contacted by an AE. Raw Leads Open Leads In Process Working OPPTY In Process Leads: AE's are attempting to make contact via email and phone calls. Working Leads: The lead responded to an email or a conversation has taken place.. Opportunites: AE was able to determine that there is a real project with a real budget and a project will take place in the next 3-months. AssignedLeads Community $ 5% 25% 30% 30% 20% Key Conversions Community-to-Raw: 5% Raw-to-Open: 25% Open-to-Working: 30% Working-to-Opty: 30% Opty-to-Close: 20%
- 23. DevAcqCost < X% * CCR*CRO*COW*CWO*COC*avgD$
- 24. Pay as you Go Subscription Consumption Pricing
- 28. Auto Regressive Integrated Moving Average
- 29. DevAcqCost < X% * CustLifeValueFT
- 30. How to make sure the CEO funds you crazy ideas to make developer happy?
- 31. 1: Know your expected DevAcqCost for each tactic 2: Know your company’s business model 3: Know your CEO’s tolerance for X%
- 34. AWS Pop-up Loft
- 38. Thank you! Adam FitzGerald @DevRelChap
Notas do Editor
- I’ll spare you the existential version of this question.
- Started in technology at BEA Systems doing some evangelism and eventually running their Dev2Dev program. Joined SpringSource to help Adrian Colyer and Rod Johnson build a powerful open source community of Java developers Acquired by VMware and worked with the Groovy/Grails and RabbitMQ communities Built the Developer Relations team for Cloud Foundry while at VMware and Pivotal Joined AWS in 2013 to run technical evangelism and community building
- Who has made a code commit in the past month? Who has grepped something? Who has curled an endpoint? – no that isn’t a Portland microbrew so Who has written some code in Haskell?
- Do you sell traditional packaged licensed software?
- Screw you and your corporate capitalist hierarchies! Software is a meritocracy and ideas need to be free!
- If you have “blank-as-a-service” in your company description anywhere, you are in this group.
- Regardless of your job or your company’s business model, you are a cost center! Someone is paying for your salary Who pays the bill? Ultimately your customers do. You are in developer marketing, so presumably your target audience is developers That means you have to work out
- Your customers do. You are in developer marketing, so presumably your target audience is developers What is a developer worth to your business? What does it mean
- So let’s take a look at packaged software
- In particular, the Windows OS in the 1990s.
- Name drop: Charles FitzGerald, Todd Nielsen
- For Microsoft in the late 90s, every developer seat was estimated to produce and average of 7 additional sales of Windows OS. Microsoft knew the marginal cost of production for each licensed issued, and hence the marginal value (net profit) for each license Customer acquisition cost (CAC) was set at a fraction of the marginal value
- Screw you and your corporate capitalist hierarchies! Software is a meritocracy and ideas need to be free!
- Open source Java Dependency Injection framework
- What does one developer mean to my company’s business? SpringSource went through a couple of different business models - support, developer subscriptions, special features, IDE sales Eventually settled on selling…
- Gave away the developer tools Sold a production ready version of Tomcat to WebLogic and Websphere shops Integrated it with a production monitoring and management solution
- So what was one developer worth to SpringSource business? Almost nothing. Its was the lead flow into selling the run time Did a
- CCR*CRO*COW*CWO*COC*avgD$ CCR = Conversion Rate Community member to raw lead CRO = Conversion Rate raw lead to open lead COW = Conversion Rate open lead to working lead CWO = Conversion Rate working lead to opportunity COC = Conversion Rate opportunity to closed deal avgD$ = Average Deal size
- If you have “blank-as-a-service” in your company description anywhere, you are in this group.
- For a lot of these as-a-service companies a developer is revenue stream Need to understand what that customer is worth
- Time Series Analysis: https://en.wikipedia.org/wiki/Time_series
- Understand your execution costs and the price you plan to charge for your service Build a revenue model and collect data (one year minimum for monthly charges, one quarter for weekly) Discard your outliers (free tier and big spenders) Check for stationary or seasonal behavior Construct an appropriate ARIMA model (Auto Regressive Integrated Moving Average) Forecast yearly/quarterly revenue based on this model Project Customer Lifetime Value over a time window you care about Set your developer acquisition budget per developer to be fractional component (20-40%) of your CLV [1] https://en.wikipedia.org/wiki/Autoregressive_integrated_moving_average [2] http://www.itl.nist.gov/div898/handbook/pmc/section4/pmc4.htm
- Set your developer acquisition budget per developer to be fractional component (20-40%) of your CLV
- How to make sure the CEO funds your crazy ideas to make developers happy