Jay Kreps, co-founder and CEO of Confluent, explains the organizational friction enterprise software companies face when launching a new cloud product line.
Assertion Supported
Kreps: Amazon built Kinesis to imitate Kafka before monetizing the open-source
“Amazon had a system that was actually built in, I believe imitation of Kafka called Kinesis. So it was incompatible, but kind of looked roughly like it. And that was popular. And we were like, oh man, that's going to take the opportunity. And if it doesn't, Th…”
Insight
Kreps: There is no business in selling pure open-source software
“And so, you know, if you're trying to sell a product which is purely open source, you know, effectively The price of that product should collapse to the cost of providing it, which is basically kind of a scale of zero, right? So, so there's no business in sell…”
Disclosure
Kreps: Confluent relegated its core cash-cow product to engineers' spare time
“Originally it was like a small group that was working on the cloud offering. And then we were like, no, okay, everybody. Only does the cloud thing, and we will work on the software product in our spare time. Team by team, which is a very dangerous thing to do,…”
Insight
Kreps: CEOs must learn ~80% of what functional executives know
“I think CEOs need to know, you know, about 80% of what their executives know about their function, I think, over time. So really kind of learn that discipline. Not enough to be good Add it, but enough to be, to know what good is and know if it's going well.”
Opinion
Kreps: Extreme vendor lock-in lets infrastructure vendors over-extract value
“I think it is the case that some of these early infrastructure offerings, you know, that it goes too far where the lock-in is so tight that the vendor can actually, you know, extract in some sense more than the value they create because moving off of it is suc…”
Insight
Kreps: Managers who recruit their own teams are massively more successful
“So I found that to be very true in hiring where, you know, people who just, you know, act like they have, they, you know, they just have to fight for their life to go hire this team by themselves as if there was no recruiting support and they're just really de…”