Insight
Category leaders win on superior sales culture rather than pure product
“Normally what happens is like the number one company Is number one, not just because they have great product, but because they also have a very strong sales culture and DNA. No, most of the time you do want someone who is like spent. So they know what good sal…”
Disclosure
Board misalignment over long-term vision was a factor in selling AppDynamics
“But if I have investors who don't want to do that for the longterm, we want to do in something different vision for what the company should be. Then you're kind of misaligned and that creates a big execution and uncertainty and risk. Unfortunately, we had thos…”
Insight
Bundling software modules destroys internal accountability by hiding inferior underlying products
“But we create a model that we don't bundle things. So each of these modules are sold on their own to create accountability. They will never be best of breed in them. If we don't have accountability to the customer, the minute we bundle it, then you can have li…”
Disclosure
AppDynamics fired Netflix as a customer to protect its engineering capacity
“Some point in time, and that was the hardest decision I probably ever made, we decided to lose them. They were so much bigger than our customer number, you know, like they were customer number one in terms of their size, and our customer number two to 20 combi…”
Insight
Enterprise product-market fit requires delivering verified ROI to 25 distinct customers
“For most enterprise software products over time, the rule of thumb that I've learned is that if you have delivered value to 25 customers, you have a very strong product market fit.”
Insight
Technical founders should hire a senior sales leader before individual reps
“If you don't have experience managing salespeople, try not to learn as on the job for the first time there. If you can, you know, you have the money and ability to recruit a senior person, do that because you're de-risking your learning and a lot of things tha…”
Opinion
About half of venture capital investors chase hot deals purely from FOMO
“Because, you know, half of them are, of the investors are just, oh, this is a hot deal. I need to chase it. And they don't really fundamentally believe in the problem or you”
Opinion
Most startup board members lack the domain expertise they believe they possess
“Most of the time, board members have, don't have the domain expertise, or the industry expertise, or the expertise. They think they might, you know, that's a problem.”
Disclosure
Harness completely rewrites all acquired startup codebases within six months
“Whenever we acquire a small company, we rewrite the code completely in six months to on our platform. So the, all the old code goes away on our platform.”
Insight
Enterprise product flexibility creates user experience weaknesses in the mid-market
“In enterprise, you need a high, you want lots of capabilities and lots of flexibility. Lots of capabilities and lots of flexibility could become a complex user experience in, in mid-market. So what's your strength in enterprise could become your weakness in th…”
Insight
Software product design must directly align with its intended go-to-market motion
“How you design the product is very dependent on how you're going to sell it. So if you don't think about it, like the product is solving the problems, your go-to market is going to be PLG and you didn't really design for that experience. That's going, not goin…”
Insight
Scaled sales organizations plan revenue around capacity rather than individual deals
“Like to me, it's like a scale sales organization is when you're not talking about deals. You're talking about capacity.”
Insight
Sales struggles without successful customers indicate a product problem, not go-to-market
“If you don't have successful, happy customers, it's most likely a product problem. It's not a go-to-market problem.”
Disclosure
Jyoti Bansal managed initial sales reps directly until Harness reached $1M
“Actually at harness, I initially didn't hire until the first million, I didn't hire out of sales. And I said, okay, I'll just hire a few reps. I know how to manage them.”
Insight
Early startups should avoid hiring sales executives removed from frontline management
“So if you're hiring your first head of sales, I would look for someone who hasn't been too far removed from a first line or a second line manager.
If they come in from a place where it's like a
Three hundred million sales org, and they are like six layers betw…”
Insight
Recruiting ability is the primary differentiator of world-class enterprise sales leaders
“I'll tell you that the number one thing that they do extremely well is recruiting.
And it sounds like, you know, you're talking about sales.
Why is recruiting the
Number one thing.
And all I've found is that eventually the sales scaling comes down to ability t…”
Insight
Enterprise sales talent rarely crosses successfully between applications, infrastructure, and hardware
“Most enterprise software. This is my learning is you can put into three buckets in terms of sales experience. One is business applications, CRM and all that. And they're like very good salespeople who are very well-trained to do that. Like, you know, they work…”
Insight
Founders cannot effectively scale a sales organization without first selling themselves
“There's no way you'll be able to
Manage and make that sales org work if you don't learn how to sell yourself.”
Assertion Not checkable as stated
The first AppDynamics term sheet required hiring an outside business CEO
“Actually my first term sheet I got, it came with a condition that a business co-founder has to join a CEO.”
Assertion Not checkable as stated
Cisco escalated its AppDynamics buyout offer to 2.5x the IPO price
“And this conversation started three days before the IPO Cisco came in and said, you know, we'll, we'll pay you more than you. The price you will list. And we said, no, it's, we'll go IPO. Said, no, they came with another price, which is like, we'll pay you mor…”
Disclosure
Jyoti Bansal spent 25% of his time managing a broken AppDynamics board
“I probably spend, like, One to two percent of my time managing the board in Harness or maybe not even that. In AppDynamics, I had like a kind of a broken board dynamic that I had to spend like. 25% of time, my time managing the board and the shielding our team…”
Insight
Boards should replace incapable executive teams rather than making their decisions
“And I always look at like if the board believes that the executive team is not capable of making the right decisions, they should change the executive team instead of trying to make the decisions.”
Disclosure
Harness requires feature parity and a binary differentiator before launching products
“The rule that, that I like to follow is like, we are not launching a new product until we have, these are the table stake parity capabilities. And these are the binary differentiator that we have at least one strong binary differentiator. Maybe it's two, but a…”
Insight
Developers will build homegrown tools rather than adopt inferior bundled software
“I feel like in developer tool space, you want to build good products for each of those. Otherwise people won't use them. People will just build their homegrown things and all that.”