Sonoma County News and Notes

I hope everyone is getting back into the swing of things from the Holiday weekend. To help you get off the ground and head in the right direction Brian Tracy is having a Goals 2014 call next week. I can get you into the call if you contact me at The call is free and just e-mail me if you want to attend. The call is next Tuesday at 10:30 AM and will last till noon. Again, just let me know.

There are several local events to check out in January from a business standpoint. The Chamber and the Economics Development Board are both having year starting events. The Business Journal is publishing its Book of Lists and throwing a party about that. These are great places to network and learn. I highly encourage you to attend whenever you can.

You know I found it interesting that my post yesterday aligned with a later announcement by Cyan that it was missing its quarter. The reason is that they posted about progress in Tier 1 proof of concept and lab work. I hope my friends at Cyan (and I have a lot of them) read that post. If they start deploying in a major network inside a Tier 1 vendor, they will need to rethink a lot over their current model. I plan to reach out to some of them quietly to see if I can give them advice on my learnings from that world. My evidence for their need of advice is their reason for missing their quarter. They have a single large customer (Windstream) who is considered a Tier 2 vendor. They took a precipitous drop in revenue from this customer and have had to pre-announce a bad quarter because of this. In their Q3 call, they said they would do about $30M revenue this quarter. The quarter is coming in at closer to $20M. All I can say is that somewhere that customer relationship is massively mismanaged. You can not have a customer that represents so much of your business and not be in lockstep with what they are going to do. If that gets carried over to a Tier 1 carrier relationship, Cyan will get tossed out very quickly. It is all fixable, but needs to be top of mind with the Executives and BoD. I will be interested in listening to the Q4 call to see what they say publicly.

I wanted to briefly talk about a local struggling firm that has come to the point where it is cash flow positive from what I hear. I used to work at a company named Red Condor which was bought and is now Edgewave. The local Edgewave office is in Sonoma Mountain Village. The group here is in the E-mail filtering and Security business. Red Condor was started by a group of Sonoma County software engineers and they are all still working at Edgewave. The product is used by about 2,000 customers, many of which are in the North Bay. Edgewave offers a number of products and services that might interest various businesses in the North Bay. Great way to support a local company. One thing you could do to help them is lobby Sonic to use their product. Edgewave has over 200 Internet Service Providers as customers. Sonic is not one of them and one would think a company that is vocal about local business would use them. Just never happened.

Finally, I want to pre-announce something myself. Starting in February I will be doing "Lunch and Learns". I will provide more details later, but I want to let people know that they are coming. Have a great day and Friday we will chat again!

Jim Sackman
FocalPoint Business Coaching
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