#38: Joni Girardi, Founder & CEO | DataSelf
Download MP3I wanted to see how to deal with
business and sell stuff using technical conversation.
But I had no clue.
I never sold anything before.
And then I got the flavor of how
amazing it is when you really understand a
complicated subject, you know, programming why it's happening, and explain
to someone that has no clue.
The feeling of being able to understand a
problem and explain how we're going to be
solving it technically, to me, was so empowering.
Welcome to In The Thick of It.
I'm your host, Scott Hollrah.
In this episode, we hear from Joni Girardi
Founder and CEO of DataSelf, a
business helping midsized organizations use data and
analytics to gain a competitive edge.
Joni discovered his passion for
technology at an early age.
He remembers the excitement he felt when he first learned
that a diode is a one way street for electrons.
After first pursuing a career in electrical engineering,
he turned to programming and joined a web
development company in the late nineties.
While working in Silicon Valley during the.com movement,
he learned about gaps businesses were facing due
to a lack of insight into their data.
Eager to share his knowledge of business intelligence,
he launched DataSelf to offer affordable data
resources for growing small to medium sized businesses.
Joining us today on In The Thick of It
is Joni Girardi, founder and CEO of DataSelf.
Joni, thanks so much for joining us today.
Great pleasure to be here, Scott.
All right, so you're in the US
now, but you didn't start here.
Talk to us about growing up. Yep.
So I'm originally from Brazil.
I'm from a small town in the
south of Brazil called Tape Jarrah.
Probably can find on the map
nowadays if you search for it.
But back then, it was pretty obscure place, dirt roads,
you know, very hard to get to modern society.
We're very recluded from the rest of the world.
In 7th grade, I bought a science magazine.
I was already really kind of a geek early
on in my life, kind of books and whatnot.
So I bought a science magazine, and I
learned that one article about diodes, which are
electronic components that can only allow electricity go
one way, not the other way.
You know, if you reverse the
poll, there's no electricity reverse. Electricity goes.
I was like, oh, my God, this is amazing.
Something that controls, like a gate to electrons.
Me was mind boggling.
And that magazine put me on a path
that today took me to the Silicon Valley. Right.
So 7th grade, I pretty much found my
passion in a way, and I started to
just dive into electronics related stuff.
I stayed in that small city until the
end of the high school, but my mind
was already into technology, something related to electricity.
Computers back then were not yet in
Brazil, especially in my small town. Tvs.
Yes, in Brazil.
Back then, Brazil was like no, 15 years behind the US.
Color tv in the US was in the fifties when it started.
In Brazil hit in the late sixties. Wow.
Brazil was very behind technology
wise, what was happening here.
So me in the small town, completely attached to the
world, I got this idea of technology with my future.
So when I finished high school, I went to
the kind of, you know, applied for the best
college in my state, and then I was able
to get into a electric engineer course.
So back then, there's no programming classes, was just electrical
engineering was the thing you could learn if you want
to go into technology, as we knew back then.
So there was like one path. That was it. Yeah.
You know, back then, choosing a career was
not many options, you know, primarily when be
a physician, a lawyer, lawyer, an accountant.
I mean, like we have like 2030 classes
that course you could pick from, maybe more.
But the main class were very limited.
And electrical engineering was the one
for technology around electricity things.
So I didn't know exactly what my future would
be, but I thought that would be the future.
Electricity, tvs back then, calculators was already something
you could do with a little device.
So I was fascinated by all those things.
And since my 7th grade, and I started to
read a lot of magazines and books around electricity,
electronics, how calculators work, and things of that nature.
So when I went to college, which was electricity focused,
in the fifth semester, I got into a programming class,
basic, which was back then very simple language and all
using those computers that were all black screen.
Well, actually my first class, yeah, no, that class was
a computer, a very basic computer, but a computer.
And I remember that in that
class I got even more fascinated.
Oh my God, computers.
And you can tell the computer what
to do and you can say hello.
Write a program to say hello.
Just put the word hello in the screen.
And I was amazed by then, back
then, everything was very difficult to do.
And I remember that at the end of the class,
the professor gave us an assignment which was impress me.
You know, you study for six months, impress me.
Just wide open, no direction. Write something.
Write something to impress me. Right.
And as a geek that I already was,
I started to think about what can I
do with basic now, this very basic computer.
And then I learned in some of the books
that I read that I could actually know.
It was all text based back then, right?
Program was all text based, but you could actually design
pixel by pixel, like a little line in one text.
In one word, you can make another line.
In other words, you could actually write a
line, just a straight line on the computer.
And I could not do that without programming.
Like, oh my God, I can write a line on the computer.
So, ah, this is the path.
Wait, if I can write a line, horizontal
line, I can make a vertical line.
Wow, I can make a square.
So I design a square.
Anyhow, eventually using just pixels, one by one,
I was able to design a cube, right?
So eventually make a square, another square, join the
cubes, and eventually use math to rotate the cube.
When I showed this to the professor, was
thinking, I didn't know that was even possible.
So impress me.
I think you accomplished that.
Yes, it was so fun because it was all text based.
But you know, when you learn the basics of
the pixels and you know how to make a
line, another line, you make a square, then you
know how to rotate using math, a dot.
And you coordinate them through math.
You know, it's just the foundation of all the things that
computer do is just moving bits around in a way.
So I remember that pretty much that class
took me from electric engineering hardware future into
programming, which eventually my career was all mostly
focused on software side of technology.
And then that was another kind of
taking from technology into specific programming.
I continued to do electric engineering.
I completed.
But then when I went to work in Brazil,
my first job was already focused on software engineering.
So I joined very successful local company in the
south of Brazil called Altus Systema D Informatica.
They do programmable logical controllers, equipment
to control machineries in manufacturing installations
to control automatically production.
But it was a company that developed
hardware and software to do industrial automation.
And for three years I was brushing
bits and bytes doing heavy duty programming.
Back then, the language was circumental, which even
today the foundation of a lot of hardcore
computing is based on the c language.
So it's not an easy language, but it's very powerful.
And that company, because you were doing
best practice overall, was very enlightening for
me to learn programming from that perspective.
The whole object language programming
was novelty back then.
There's no tools, was just a concept.
And we, we heard about it from the US
that there's this new technique to program and we
kind of developed a whole framework around this.
From a programming standpoint, that job gave me an
amazing insight into how programming works, how database works,
how data works, how to connect to multiple systems,
how like no Internet of things nowadays back then
was like the beginning of Internet of things was
what we were doing in that company. Anyhow.
In my last year of college, just going back
a little bit, in my last year of college,
I did an internship in a company as an
electric engineer programmer, but in a sales engineer role.
Somehow I don't know even why I got into a sales role.
Technical, I think was just thinking, let me see what
happens was that someone that fits your personality, I'm very
geeky, but I'm also not those that are recruited and
don't want to fuck with people, right?
I like the social side of things and I
think I probably went into this opportunity because I
thought it was fun, it was different.
I want to see how to deal with
business and sell stuff using technical conversation.
But I had no clue.
I never sold anything before.
And then I got the flavor of how amazing
it is when you really understand a complicated subject.
You know, programming hardware is very complicated, very
freaking to open the hood, look and understand
what's happening, why it's happening, and explain to
someone that has no clue.
The feeling of being able to understand a problem
and explain how we're going to be solving technically
to me was so empowering, you know, thinking, oh
my God, I think my future is become as
technical as possible, but I want to be in
the business side because conveying technical things to non
technical people, boy, is complicated.
And I thought that, you know, being between these
two universes, the technical and the business is very
hard because most techies, they like to be there.
Most business on the other side and in
the middle, it's a very difficult place to
be and there aren't a lot of people.
So I thought, I think there's a place that I can
add a lot of value by being between these two universes.
So I thought, you know, let me just first
dive, you know, head first into the technical side,
learn as much as I can, complicated things, and
eventually when I transition to business.
So I went to that company that I told you
about, the Altus company, the programming for three years.
In the fourth year, I decided to do an MBA in
Brazil to get now started education around on the business side.
And about the same time the company saw that I
had the skill, the soft skill on the business side
and they put me on the, on the sales engineering
side of the company and to start a department around
selling those systems for their clients.
And then it was also a fun, amazing
opportunity to start using the technical side, the
business side, and get better mixing the both
of them in parallel to this whole universe.
The company started to expand internationally.
They already had an office in Germany and
they were considering an office in the US.
And to me, Silicon Valley as a data, was
not a data geek yet, was still just a
geek, was already like, wow, Silicon Valley.
I was just looking the news and what's happening
with, you know, that back then was early nineties.
So a lot of, you know, the computers,
you know, the Microsofts, the Apples, all of
those big companies, HP's, IBM, the most successful
technology companies, harder and softer.
They were primarily, mostly, I mean, a lot of
them, they were here in the Silicon Valley.
So I already have a thinking.
I wish I could eventually go in that direction.
At what age did that, like, start?
Was that in college? Was that post college?
Or like, even as a kid, were
you kind of dreaming about Silicon Valley?
Been a few years to remember the details, but if
I would think when I got that perspective in the
7th grade, I think, you know, I couldn't yet even
understand where this technology was coming from.
I was too young, you know, 7th grade, you
are like, I don't know, 1213 years old.
I was in this very obscure place
away from modern life back then.
I think high school is when you start
to become a little more self aware of
the world around you, but you're still not
sophisticated to understand exactly the details.
And I think Silicon Valley was
still not a known place globally.
I think college was definitely, you know,
I started to have english classes with,
you know, english teachers down in Brazil.
Then, you know, in college, you usually know
you're opening your mind, right, you know, what's
out there, what I can do.
So I would expect, I don't remember specifically, but I think
in college was when I really had a perspective of the
bigger world out there in the US being such a US
in specifically Silicon Valley senior being such a mecca of the
technology, you know, in the whole universe.
In my interest in coming to the US became prominent, and
then later I just slowly but surely got to here. Yeah.
Before we get too much deeper in the career,
let's go back to, like, being a kid.
The fact that you were like so interested in science at a
young age, like, were you like a really dialed in straight, a
kind of a student or were you just kind of. No.
Yeah, you know, I think that was
my geek side from the beginning.
I didn't know where to put that energy,
but I was very anal about studying.
I believe that studying was a way
to many of my peers back then.
They were fine with the lives
that they had in that place.
It was mostly agriculture based
and some commerce around.
You could be working for a bank,
could be working for agriculture, or maybe
in the church, maybe in the hospital.
The options locally were very limited.
And I think through books, I was seeing a bigger
world out there, even if I didn't knew the world,
but I could see it by magazines, whatnot.
And I thought that the education was
my way to go out and experiment.
All of this thing that I was reading
about from early age, you know, I was
always getting straight A's and working hard and.
Yeah, so it came early.
And apart from your studies,
did you have, like, hobbies? Did you.
I mean, when I think of South America, I
mean, I think I assume that everybody plays soccer.
Like, were you into soccer?
Were you into sports?
Yeah, I was into sports, but I was
more likely into running into some interesting stories.
I remember, I think one of my
frustrations with soccer, Brazil is very popular.
I think was in fourth or fifth grade.
When we're playing soccer, we're
already behind the ball.
Everyone goes where the ball is,
so there's no strategies, just running.
And I was the goalkeeper, and we had this
championship, and then the game went to the finals.
And we have penalty kicks, and a guy, you
know, kicked the ball, which was very heavy.
You know, you have those heavy balls.
They're not just full of air, they have
something side, and they hit my private parts.
Was that your last game as a goalie?
That was pretty much, no, I
don't like this sport anymore.
I was so freaking hurt by that that it
took my interest in soccer as playing soccer.
Now I don't want to do this anymore.
And it was fairly common also back then for
people to get hurt playing soccer, either breaking a
foot or breaking a knee or some kind of.
It was very common to get hurt and not just bruising.
No, you can get bone broken because
people are very kind of aggressive.
So that penalty was pretty much took me out
of the soccer interest, and I pretty much went
to running long distance and tennis and whatnot.
Just one fun comment about sports.
So tennis in my hometown, there's nothing at all.
It was just on tv that we could see that tennis exists.
And my father used to travel.
He was a truck driver, so he would travel
every week to the capital of the state to
bring goods for the company he worked for.
And then a friend of mine and I was middle school, we
got into know we need to find a way to play tennis.
So eventually got my dad to buy for the two of
us one racket for each one of us and one ball.
And then we got, oh, my God, we can play tennis,
but we had no place to play because there's no court.
Tennis court.
We only had volleyball courts.
In volleyball courts, you know, we kind of
took the net down to the height, but,
you know, the holes are pretty big.
So when we play with the volleyball, we'll go through
the net with, you know, there's no net for it.
So, like, no, we need to come
up with a tennis court net.
And eventually, we asked my dad to buy
the things to do this from scratch.
And eventually, he and I, in the course of two
months, we kind of, you know, created a freaking net.
Wow.
So it was fun that there's no resources.
I came from a low, middle class family,
so we didn't have money to buy expensive
stuff, and everything was a struggle.
But when you sweat to get things done, you learn the
value of what you put into it, and you make a
difference, because sometimes if you don't do it, you just.
If you don't take it, the initiative to
go through the hard way to get something
done, you just don't enjoy the benefit of.
You were very resourceful. Yes.
Back then, you had to.
So growing up, obviously, you had tv, but, like,
did you have other electronics in the house?
So going toward electronics, my first gadget,
I would say, would be a typewriter.
So back then in my hometown, there's no computers,
but typewriter was the first way that you can
put this handwriting into something like a book. Right?
Something into, like, a book format typewriter. So I.
My dad decided to buy for us a typewriter, and then
he bought a typewriter that was about almost 80 years old.
Oh, my gosh.
Was that the kind of, like, really, you had to,
like, mash down on those keys to get the ink
onto the paper and, wow, it was solid.
It was heavy.
You know, it was like 80 pounds.
I mean, it was a beast.
I remember when he brought, you know, he was,
you know, brought in a, like, wow, okay.
And, you know, when you press it.
No, it was a, you know, really well built, very strong.
It was working perfectly.
And then to me, in a way, the
typewriter, you know, when I was looking at
book, book is on paper, professionally written stuff.
So to me, it was like, yeah, you know,
the book is the way that I can get
out of this place into a bigger world.
And I've seen that learning typewriting is probably part
of the skill set that I need to evolve. Right.
So that was a little bit of the motivation to.
To get into typewriter by the way, I
was the youngest of six, and eventually I
kind of learned to use a typewriter.
So through high school, the only digital device that
I had access to in my small town was
mostly tvs, radios, the LP's, you know, the.
To play music with the LP. Right.
FM music was something that appeared in my life
when I was, you know, in high school.
So FM was super novelty.
I remember I was, oh, my God,
I can see the sounds different. Two boxes.
Oh, my God, this is amazing.
Computers really start to appear in Brazil in my life.
I think my older brother, he got a computer when
he went to college, so I was exposed to, I
think was actually an Atari game, but I think it
was a computer when I was late in high school.
So I started to see, you know, there's
a lot more beyond calculators and real computers,
really, that I use was in college.
And by the way, after my basic class,
which was using regular computers, I also took,
I think was a Fortran class.
Back then, Fortran was already old language.
Using the cards, you know, you have
to make punch, or the cards. Wow. Yeah.
I touched a little bit of that technology where you
have to write a code, go to machine, punch the
cards, send the cards to a data center, and then
in a few days, they come back with the output.
And that Fortran class, the funniest. Not back then.
The moment was in our final project.
Each one of us had to write
a code to submit to the professor.
So you write the code, you go, you punch the cards,
and we're like, you know, dozens, three, four dozen cards.
Then you go to the place you
put the cards, the cards are red.
And then eventually you got the machine
returning the result of the code.
So when we're going towards myself and my
friend, each one of us with a little
box with our cards already perforated, my friend
tripped, dropped the box, and the cards.
Oh, no.
And then when they're out of order.
Yeah, you know, there's no.
There's no sequence of the cards.
Oh, my gosh.
Back then, you know, it was before thinking, well,
what if, you know, you lose the order?
Put a number one. We didn't. It was.
Was a nightmare for him.
I remember in college having three and a half inch floppies,
and I was a ta for a professor in the business
school, and he had a class that was like 450 students.
It was huge, huge class.
And I kept the gradebook on this floppy,
and I remember that floppy getting corrupted one
time, and I was freaking out.
Thankfully, we were able to.
Somebody was able to come in and
run some application and do some recovery.
But man, you drop all those cards,
there is no putting that back together.
Oh, my gosh.
Yeah.
And keep in mind, again, this was late eighties
in Brazil being like, you know, 1015 years behind.
You know, there's still quite a bit of the
computing resources in Brazil back then, available in colleges,
was still for trend and all of those things.
So it was interesting for me to get a
little bit of the flavor of how far we
came, technology wise, from that old world.
And eventually today, which is just all over
the place, you don't even know it's there.
Computer just a little ahead of back then. Yeah.
All right, so you're working for this company,
you're doing connected device kind of work, and
that led you to the states, right?
Right, yeah.
So in the fifth year that I was
working for this company, they decided to open
a subsidiary in Florida, in Fort Lauderdale.
And as they were announcing this
move, I raised my hand.
They said, hey, you know, if you guys need
to send someone, I would definitely be interested.
I'm super excited.
I think it's an amazing opportunity.
And eventually they sent me over to start from scratch.
The business here was in Florida, and
the business has two main purposes.
One was, well, three main purposes.
One was try to sell our technology worldwide, especially
in the Americas, North America and Central America.
So there's like an outbound effort.
The second effort was just source
technology in the US to Brazil.
In Brazil, we were
building computer industrial computers.
So we have to buy components,
electronic components like chips and whatnot.
So that was the second, that is with
sourcing of raw materials for production, Brazil.
And the third was just being aware of
the latest and greatest, whatever novelties what happened
in the US to tell Brazil.
So there's some new trends, let's invest in this to
learn and hopefully absorb as part of the technology.
So we had this three different efforts.
I stayed with that business for
five years, 95 to year 2000.
Late nineties was when the
Internet bubble was going crazy.
Here in the Silicon Valley.
People are making, you know, becoming rich
by selling pineapples over the Internet.
And I started to become really feeling the
pull to actually come to the Silicon Valley.
So towards the end of this, you know, 1999,
I made a deal with the company owners where
I would help the second person that was in
the office in Florida to take over my position.
And then once she would take over, I
would quit and then move to the Silicon
Valley to experiment the Internet, crazy world.
And that happened pretty much in the year
2000, early 2000, I left the company, came
to the Silicon Valley and back then, Washington.
Job trades, you know, you go to trade shows
where the main goal is just hire people.
They're not selling, they're not.
The only purpose is to hire people.
It was to me was fascinating to see 100 plus companies
in a big convention center showing why you should work for
them and giving all the perks and all the big.
I mean it was.
And were they primarily looking for developers
or were they looking for anything?
The inflow of money, you know, investors money
to this, all of these startups was crazy.
So many business models that were really made no sense.
But because it was the crazy fad,
people were getting a lot of money.
And then if you had.com in your
name, people would write you a check. It was insane.
And then they just need technical
people and there's no, not enough.
So they, you know, do you know anything technical?
And then if you do, they would say, well, maybe here.
I mean, I interviewed several companies, I got
an offer from a few of them.
To me it didn't seem a reality,
you know, especially coming from Brazil, where? Brazil.
Until from my early, you know, I started to
work in high school, second year, started to work
part time, got my money, got my savings, buy
my little things, do my own stuff.
As I was going through education in Brazil
back then, in the late, well, the whole
eighties and early nineties, inflation was crazy.
At the top, I think it was in January
1990, the monthly inflation was like, no, 80%.
So if you had $100 in day one and you keep in
your pocket at the end of the month, you'd have 20.
So you couldn't keep the money in the
pocket, put in a bank, put in an
investment account that would keep up with inflation.
It was insane.
It was very challenging economically to live in Brazil.
And because of this financial situation in the country,
business in Brazil was very up and down.
There's always up and down, there's always,
you're doing great, then next six months
later, you are almost breaking.
So feeling that the world was very unstable was that
all the time was part of my growing up.
When it came to the Silicon Valley and started seeing
all of this Internet bubble craziness, to me it was
like, I don't think this is real, but sounds fun.
So I joined.
One of the companies was
a web development company primarily.
This company was, there are so many startups needing
development, they couldn't hire people fast enough, so they
would outsource to a company like ours.
Our goal was just to have a bunch of engineers
and business people, whatever you needed to be the development
branch for startups, meaning like they come to you with
the idea and say, here's my idea, we're going to
pay you to bring it to life. Right.
Instead of you come with it as an
entrepreneur, you come with the idea, with the
money from the investor, with the business plan.
Now I need someone to create this
product instead of me going through it.
You start hiring people and train people.
It's a lot of process.
No, let's accelerate by outsourcing the whole technical side to
a company like the one that I was working for.
Pretty much outsourcing, right?
Yeah, but really focus here
on the Silicon Valley market.
Okay, so this was, you said early 2000, right?
So it wouldn't be but a
few months before the.com bust happened.
So what was that like for
you, going through that transition?
Yeah, in a way.
When they arrived in the Silicon
Valley was in March 2020.
And if you look at the stock market, March was
pretty much when they started to, it took a few
months to really get busted, but March was the pick.
Sometimes I was joking, I think
I stepped on the bubble.
Blame it on Johnny.
So I joined this company and
the company was also fairly new.
I was the employee number 56.
And in six months the company doubled in size.
And it was coming from a place where you
work your ass off to get things done, to
earn your next month and grow a little bit.
I was in this company where a bunch
of perks, you have ping pong, you have
scooters, you have all of these things.
It looked like it was everything
you think about silicon Valley.
Yeah, but back then it was novelty.
Nowadays we have seen it, we have seen the social
media, they've been around for a long time doing this.
Many of us probably already have
experienced this kind of thing.
And nowadays it's much more common
to have a work balance.
And we have companies who give a bunch of perks.
I mean, we give a bunch of perks to our own employees.
But back then was not normal.
And I was thinking, I don't think this is sustainable.
It's too much fun to be like, it's just, I mean,
not too much fun is stop in the middle of the
day to go play ping pong and stay for 2 hours.
A few of us to me back then was like, you
know, this is too good to be true in a way. Right.
Of course there was a reason why there
were so, I mean, many companies became so
successful because we didn't leave the work.
You know, sometimes you go early in the
morning, would leave at like 10:00 p.m.
because you eat, you play, and you just keep on
working for many more hours than you would otherwise.
So there's a value that works
for many companies, that whole thing.
But back then, to me, Washington, I was thinking,
this is not sustainable real quick at this point.
Are you married?
Do you have kids?
Yes, I got married in 98, and my first kid was in 2002.
So, no, I didn't have kids yet, just married.
Okay, so working till 10:00 at night like
that wasn't too much of a problem. Yes.
Yeah, I was more on the business side.
I was on the business side.
So business side, you don't stay much longer
because a lot of your work is working
with the businesses, which usually would have more
than nine to six kind of schedule.
So I wasn't, my work was
more regular schedule with that company.
But when it was looking the way that the
engineers were working, compared to the prior experience where,
you know, it was, they have a schedule, but
they were really working hard, and they were usually
very push, you know, pushed to.
And the perks, usually there's no perks, you know, you
just work, and if you need to get a coke,
you have to go out and buy a Coke.
Only during the break, not anytime, right?
Yeah.
So I stay with this company.
So six months, it doubled in size, but
then the whole market was crashing, and then
a bunch of these startups start to fail,
and then the company starts to have difficulties.
And then to me, it was obvious that that
model that took the Silicon Valley from whatever it
was before until the peak, which was pretty much
March 2020, a lot of companies would not survive.
And I was hoping that at least our business model,
it was a good business model, as long as the
money didn't dry out too much too fast, there are
still many good business models that would eventually succeed.
So I thought that company was one of
them that would be able to survive.
But eventually, within the next six months, the company
fired first, laid off 20% of the people.
I was not affected.
But then the next round, two months later, was
80% of the people, and pretty much only the
founders and the very close programmers stayed.
And then all of us were laid off.
And then in a few extra months, they just closed.
Because it was just automating.
It was a good idea.
I think if it wasn't too hard, too
bad, the whole crisis, that business model would
sustain, because nowadays there's a lot of companies
doing outsourcing and they're successful.
So that was mid 2001.
So what'd you do after that?
So a company here actually was from
Brazil, from Recife, north of Brazil.
They started a business here
in the business intelligence area.
And then one of the owners, I got to
be introduced through the brazilian friends here, and he
was telling about his vision, what you're doing.
And I was out of job, so looking for
a job, and he was actually hiring people.
And then at first, I was like, you know,
I didn't understand what business intelligence was back there.
And then he said, well, you know,
it's pretty much to help people analyze
their data, building reports, making it easy.
And I said, but that makes no sense.
I mean, it's so easy to build a report. He laughed.
Well, you are a programmer.
You were a programmer.
Of course, for you, you can go to the
database and do things because you are a programmer.
But most business people are not like you.
They have no clue what even a database or a table is.
So for them, they need the insight, but the data
is in a place that only the techies know.
And to me, like the light bulb poof.
That's exactly my vision.
15 whatever years ago, when I thought about
business problems and solutions in the tech world,
there's a big gap between these two.
You know, when I'm in the
middle connecting these two complicated worlds.
And I thought, wow, it makes sense.
I mean, business people, usually they have
the money, are the people that make
decisions that really move the needle.
And if they cannot make the informed decisions
because the data is stuck in a place
where only the freaking techie people know, it's
very inefficient to actually have that insight.
I think I can help this universe.
And then I decided to take the offer
from my friend and got into the business
intelligence world, which is mostly no table databases,
data, and converted data into actual insights.
In my career, it was an electric engineer.
I was harder, completely harder.
Eventually, I got into programming,
but just plain programming.
And my education in programming was not computer
science, and I was not studying programming.
It was just a specialty
inside of the electronic engineering.
But I got enough exposure that when I
decided to really understand in more detail the
business intelligence that is mostly databases, that I
had little exposure to databases.
I again put my tech hat, even though I
was hired as the sales director of the company.
But I put my tech hat, and I need to understand
databases, data, and how to convert this raw data that is
usually in format that is good for the data to get
in and the data to get out for the transactions.
How can get that raw data to help
decision making, which is a big problem.
Data problems are complicated for decision making.
That was the beginning of my data geek
career, and since then it's been my passion.
So at that firm, what size, what
kind of companies were you working with?
So their vision was, which is the
same vision that eventually I started.
DataSelf is the continuation of that business.
So that business, the vision was back in
the early two thousands, big companies, they already
had money, people and resources to do business
intelligence, data warehousing, reporting tools and analytics.
Back then, big companies already had
their own business intelligence initiatives.
So no problem.
Small companies, they don't need business
intelligence because they are small enough
to know their customers, their products.
They just know stuff because it's so small.
The vision of the company
was, well, mid sized companies.
They already no longer mom and pop.
They already have a lot of people where
management is no longer doing things, they have
other people to do for them.
There's a detachment between what happens
in the business from management.
These companies, they need better access to the insights,
but they struggle because they don't have the money
and resources to buy the big, expensive bi technology.
So the vision of the company was exactly,
let's build an amazing bi solution for SMBs
for small and medium sized businesses.
And their focus was initially in Sage, the Sage
100, which was called Mass 90, mass 200.
Back then, the ackbac, that eventually became Sage 300.
So it's mostly around sage because geographically, here in
the Silicon Valley, I think they were exposed to
those vendors ERP systems that were targeted to SMBs.
And then they were designing this monolithic solution
that would do the whole bi for SMBs.
And just make a long story short, I
worked for them from 2001 through late 2004.
They folded.
They also investor funded.
And because the market was crashing, in many senses
because of the bust of the Internet, I think
that business, they had the right vision.
The implementation didn't pan out for whatever reason.
Maybe was timing, maybe was, you know, whatever, but
they folded and they thought, this vision has lags.
I think the amount of companies that need
this kind of technology support is a lot.
But I think I can come with my own spin of
what they were doing and take my own direction and hopefully
succeed in taking the vision of providing small and mid sized
business with high NBI technology without breaking the bank and without
having to hire a team of data geeks.
And that was how I founded DataSelf.
So your experience there led you to start DataSelf.
It's really interesting you said
something that jumped out.
The vision that the founders
of your previous company had.
It sounds like you were totally bought in.
You saw it and you carried that forward.
How different is your vision now
than what their vision was then?
I think the foundation of the vision is
the same, because it's the idea that even
today we are almost 25 years.
Well, yeah, 23 years after I
was exposed to initial vision.
The problem between the data being in places where
are not easy to get and decision making needing
that insight, they don't want the raw data.
They want the insights on the raw data.
This problem is much more complicated
than it was back then.
So the problem continues worse today
than it was 20 years ago.
There's a lot more data silos back then, you
had three, four different systems to run your business.
Nowadays, my business, we have almost three dozen,
and we are a 35 people operation.
We have to go to multiple systems to get the job done.
So today is a lot more complicated data wise.
And if you are a small, medium sized business and you
need this kind of insight back then and today, it continues
to be a nightmare if you don't have the people, the
money and the resource to get it done.
So the foundation of the vision is
still the same, just the tool set.
The journey to get to where
we are today has changed dramatically. Yeah.
So tell me if I'm way off here, but
the what and the why really haven't changed, but
the how has is that a fair statement?
And back then, cloud was just barely becoming a thing.
It would probably be cloud was water in the sky.
Cloud pretty much started in 2008 and nine as
a concept, I usually tell 2010 is when cloud
was established, like, you know, really mainstream.
A buzzword until then was just
people putting servers in data centers. It was not a.
Cloud was just a data center. Right. Yeah.
Well, so let's talk about those early days.
So you start this in, what, 2004, 2005?
Five. Okay.
And what was that conversation like with your wife
when you said, hey, I think I want to.
This thing that didn't work for somebody else,
I want to try my hand at it.
Yeah, it was scary, right?
Because the company folded.
I could be out of job.
And where he had a.
He was two years old.
My first son, my wife, she was working
in a kind of low paying job.
She wouldn't be able to sustain us, you know,
if we had to be only on her salary.
And I'm a very focused person and assertive,
even though sometimes, many times I shouldn't.
But when I put something in my mind, you know,
I usually go all in, you know, either I go
where I don't, there's no maybe, no, no.
I use either I go or nothing.
And when I put something in my mind, I have a vision.
I believe until I get my all, I
believe I need to just go deeper.
So I'm very assertive in that sense.
And again, many times I failed.
But that's the way that I go.
I go deep into things that I decide to go.
When that company folded, we had a small
number of customers that were still using the
old technology, the product companies technology.
And I thought that I made a deal with the
owners that I would take over the client base, I
would spin off DataSelf company, I would take on
the ownership of these customers, I would keep their system
alive, and it would eventually transition them into a new
solution that would start from scratch.
In exchange for that, I would be paying their bills.
They had some debt they have carried over the years.
And then that was the exchange to I
got the client base with my own business,
and I think I can make it happen.
So when they told the story to my wife,
I put in an angle that I could continue.
I would struggle financially for some time
because the company was no more with
funds to pay actual salary, whatnot.
We had to fire most people, but I believed,
I strongly believed that I would be able to
actually take those small customer base and using the
old product, maintain them, make some money out of
the process, and eventually come up with something new
that would make real money out of it.
And she bought it into the idea.
And for quite a while, compensation wise, my
compensation went down significantly, but it was still
enough for us to keep on going.
Yeah, that was the main.
So it was somewhat of a soft transition.
You were able to start with
some revenue already built in.
Obviously, you already had an expense base,
though, that you were responsible for.
Did you go out and did you have to
go get additional funding, or did you just bootstrap
and operate from the cash flow that you had?
In my career at that point, I was involved
with two companies that ran out of money.
Was the first company and then the second
company here in Silicon Valley, that they ran
out of money because investors sorry out and
just, you got to kill the whole business.
And luckily or not, it's disputable thought.
My perception is to fix or to
address some very hard technology problems.
Quite often it's not a matter of throwing money at it,
it's really to finding the right angle to solve it.
And sometimes it can take a lot
of time to figure it out.
And if you put investor money in it and
you don't deliver in the timeframe, many times you
might have the right vision, the right path, but
you're going to have to kill the idea because
you're not returning quick enough for the investors.
And there's no way around that
process if you go with investors.
So I decided at that point that I don't want external
funding money until I figure out a model that can scale.
I don't want to be begging for money one
day if I'm going to be asking for money
from investors when they have to beg me, because
I can make your money go faster, much quicker.
I think the good side of this vision
is many problems really require time to fix.
So it's good to have this vision for
those problems and eventually you can fix it.
The downside is speed.
Without proper money, many times it takes much
longer to figure out how to solve it
because you have more people that you can
invest, you probably could fix, you know, faster.
Anyhow, I decided that, you know, I'm not
going to get investors money until I'm in
a position where I want investors money.
So it was no money, no external money.
Again, I come from a family and from a
world where I didn't have cash to help me.
Everything was self funded.
From the beginning it was self funded.
And I, we had a small number of customers that to
me, they helped us get enough paid to keep the basics
in place until eventually things start to get better.
But it was probably three years
of very tough financial journey.
But going back to your childhood, I'm
thinking about you building that tennis net.
Like you're scrappy and resourceful and you're just the
kind of person that a business like that needed
to be able to get that to go.
But you said something in there that its kind of like
almost a chicken and egg, like, whats the right path?
You talked about how the investors arent
patient enough, but theyll provide the funding.
But on the flip side, this was something that was
going to take a long time and its going to
take even longer without money to do it.
What gave you the courage to do it that way?
Sometimes I mentioned that am I stubborn or persistent?
Two sides of the same coin? Yeah.
When I mentioned that I'm very focused in
assertive in certain things and sometimes I'm wrong.
Right.
But until I don't try all the possible variation
and realize, yep, okay, give up sometimes takes me
too long to realize it's the wrong path.
I know that sometimes when I see some peers
that they are a lot less patients or they
give in quicker and move something else.
Some of them, they're much better than I am
now because they found better paths more quickly.
But you never know.
If you were to make different choices,
what would happen with your life?
So I don't regret today when I look at where I
am and where my business is today, even though it's taking
20 years to get to where I am from.
That vision, and I remember that
was, I think was 2000, 910.
Something like that was when I started to get
some vision of how big this problem is worldwide.
Back in 2009 or ten, we found out that
in US and Canada, about 250,000 companies they use.
When we look at how many companies use
mass, 90 back then was already Sage, 100.
How many companies use Sage?
300 they use back then Sage Pro.
There's a bunch of Microsoft.
Well I think it was not Microsoft yet, but
you know, the Great Plains and the vision, all
of these products, they were mid market URP systems.
When you put all of the client base together based
on what the vendors were claiming, how many users they
have in US and Canada alone was 250,000 companies.
So a massive market.
It's a huge market.
I mean a huge number of companies using those systems.
And when you think about management reporting out
of those systems, they all are complicated.
And if you think worldwide,
that number probably is millions.
If you go worldwide, the number of companies in
the whole world that does mid sized stuff with
the same challenges that we have in the US,
it's a huge number of companies.
And the successful bi companies, if you look
at nowadays, the Microsoft with Power Bi and
Tableau, with Salesforce and the domos, they don't
put much resource in the mid market.
They go to the big boys to make a lot of money.
So it's an underserved, very expensive framework.
And I thought when we find a model that we
can bring top notch technology that is usually only affordable
for big companies, make it cheaper, simple, faster for medium
sized companies, take advantage of this and make management making
from decisions without a sweat in a lot of money
and a lot of people.
When we scale this model internationally, there is probably
millions of companies that can benefit from it.
Finally now, through interactions and iterations of different
technology, different combinations in the cloud and APIs,
nowadays we have cracked the model.
Technically speaking, we already have found
a model that can scale dramatically.
Now we're more finding the business model.
You know, what is the business model?
That we can actually reach out a large number
of companies and get them to benefit from this.
And it's been a 20 year work in progress, but to
me now we are with the technology that now can scale.
If I go back, let me give an idea
that is interesting on why now is so different
than let's say, seven years ago, 2017.
We were in a pivotal moment of our company,
company SataSelf, that is starting in 2005.
We were working with cloud systems, but we were
using the technology that was designed in 2005 and
six, which was before the cloud, the real cloud
as a buzzword was about 2010 APIs and really
distributed environments in the cloud and whatnot.
So we realized that in 2017 that our technology that
was working the cloud, but it was just clunky.
It was using technology from 20 years ago
or plus, and it was a nightmare.
Sometimes we run into errors working with cloud system
that we couldn't figure out what was wrong in,
probably because we're using old technology in the new
technology and nobody knows what the error is.
There's just no way to figure it out.
It was unstable.
So we thought, should we keep on band
dating this Frankstein and keep on working with
this old technology and struggling, right?
Or should we just scratch it?
You know, let's design something from scratch using
the experience we learned in the last twelve
years doing this, but designing from scratch, everything
using modern technology with zero backwards compatibility.
So let's forget about the old, let's live behind not
forget, let's live behind the old code and write something
for the future, because our business growth is in the
future, not in the past, even though we have a
lot of clients that are using the old technology.
And that decision was a hard one.
And pretty much we started from scratch all
over in 2020 from a technology stack.
And why I started this whole thread.
Oh, back then, in 2017, every new deployment of
DataSelf was primarily a client would have to
invest 30 grand and wait for 30 days for
my team to get the basics in place.
And we thought, 30 grand, 30
days doesn't scale in this market.
If you tell someone you need
some reports, give me 30 days.
In 30 grand, you're going to say,
I mean, we're getting some money.
So we were in business, but most
businesses would say, are you crazy?
This is too much money, too much effort.
And then part of our discussion
that we decided to redesign Washington.
We need to find in this new
modern technology something that dramatically reduces the
time and money to get started.
Nowadays, the result of our deployment, which is way better
than in 2017, and we can deploy in 30 minutes
what was taking 30 days, and it's not zero minutes
because we don't have the bandwidth to automate the last
step, but 30 days to 30 minutes.
And right now, what we're seeking 30 grand
now we can do for free if we
see it's worth to do a free deployment.
And without this changing technology, it
would be impossible to do.
The vision, which is part of the vision to get this
technology all over the place is making super simple to deploy
it, which we are not far from making pretty much self
service and making the cost even free trial technology wise, let's
say if a company that uses Akumatica Netsuite or intact or
Salesforce, all of these cloud based systems, once they give us
the credential to deploy data set for their system, pretty much
in less than 30 minutes, we do what we have to
do on our side.
Once the system refreshes their data, clients
have thousands of reports and dashboards, amazing
insights into their data with that effort.
So its a huge improvement from 2017.
And without this ability, it would be impossible to
scale the way that we want to scale.
So theres something really interesting in there that
I want to dig into a little bit.
You went from a much higher price
point to a much lower price point.
Obviously, youre not giving it away for free forever.
Maybe theres a trial, but I assume its not 30
grand today, or maybe some of them larger customers are.
When youve built up a business where youre used to a
larger transaction size, how do you bridge that gap from a
cash flow standpoint of going from those big things to where
ive got to have much higher volume at a lower price
point in order to make the same amount of money?
The devil is in the details.
Im making an assumption here that
that was a challenge for you.
Maybe it wasnt a, but as we've evaluated certain models
in our company, like that's been, part of the calculus
is how do we go from an average sales price
of this to an average sales price of this and
bridge the cash flow until the volume picks up?
We probably will appreciate the answer.
So back then again, 30 days was the normal engagement.
So small volume, right.
What we have now, because things are
so fast to get the ball rolling,
we actually created a multi tier approach.
If you are a small company, you go with the
entry level solution and the entry level solution, the price
once the company starts to pay the lowest cost of
data, self is dollar 100 per month.
Most clients that go to the entry level, they actually
go for the dollar 400 per month, which is the
dollar 100 per month is just a tool.
You still need to do a bunch of things using the tool.
It's an amazing tool, but it's just a tool.
The $400 per month is actually plug
and play to plug and play. And you get a lot of
reports and dashboards ready to go.
You don't have to build anything, you just plug and
play, and you got managers to make better decisions.
So most of our entry level clients, they pay
dollar, 400 per month now because this technology has
multi tiered Lego block kind of approach.
Our biggest clients, they pay us
about 200 grand per year. Wow.
So in the past would be impossible. Well, I don't know.
But back in 2017, we didn't have any client
paying us more than 30 $40 per year recurring.
It was much smaller recurring revenues because
it was still perpetual back then.
You pay big at the beginning, then small after. Right.
Nowadays, because of this new model, our
volume has gone up dramatically since then.
But one of the best things is we still
have very large clients with very sophisticated data problems
that they pay us a ton of money.
There's a lot of consulting that goes
on to get them what they need. Yeah. Yes.
We have some clients that heavily rely on our data
geek wizardry and resources to complement their bi needs.
So we worked closely with many clients, but we also have
some clients that we just give them the tools, we give
them the credentials, and they just run with it, because what
we give them is really, I tell these clients, if you
know how to chat or Google for technical problems, a lot
of the support for DataSelf is out there.
Just learn how to google Chat, Chpt, and
it's SQL, it's the blob, RBI, excel.
And you can do a lot with little support from us. Man.
Do you ever think about how different your business
would be today if you hadn't made that decision
back in 2017 to make the change?
I think we'd have folded.
Really?
I really think back then, one of the drivers that, to
me, pushed us over the edge to make the change was
because the old platform was not stable in the new world.
Was just too many times the amount of time
we're spending debugging things that nobody had the answer.
It was insane.
It was just insane.
And to me, as I was looking, the kind
of problem that we're solving, data analysis, there is
always a ton of companies with a ton of
money, throwing money at it, trying to solve it.
If you don't improve, you die.
There's no way around if you don't improve,
if you don't stay current or ahead of
the competition, you're going to die.
And to me was that old product is going to kill us.
We would not be able to keep
up with what would be happening.
I know many of our competitors, they have
not done that change in my opinion.
They are band aiding.
They continue to band aid more successful than
what we were band dating back then.
So credit to them doing really well.
I know many mid sized bi vendors that are
still with the technology design, I don't know, 2030
years ago, and they are doing well.
And to me, they're band aiding bandaid better than me.
I tell my clients and prospects that when they ask about
the competition, and I know fairly well many of the competitors
that are in my market, I usually tell my clients, ask
each one of us to open the hood and show how
we're going to be supporting the next 510 20.
Who knows how many years we're going to
be in the business with this technology.
And most likely, if you know what you're
looking when they open the hood, right?
Sometimes people open the hood, you have no clue.
It all looks pretty similar.
But if you know what you're looking at,
I think you're going to be running back
to me quickly because we completely redesigned all
our technology as industry standard.
It's clean, it's modernization.
Because it has been redesigned, it's
still new in a way.
We haven't been 20 years with this
code, so there are some missing features.
But usually the way we designed is there are complements
to our functionality that even today, if something is missing
in my framework because it's open, there's usually something Microsoft
or in AWS or some other tool we can plug
to it and then live with this add on until
eventually we can take it out.
So it's been a fun journey to since
we redesigned to be a fun journey.
And pricing.
Our pricing is super modular.
We usually can look at the clients pains and use a Lego
block approach to be sure we can come up with an offer
that if we're a good fit, I usually tell people, if we're
a good fit, it's hard to beat our offer.
At least know if you're being unbiased.
There's no bias decision towards this vendor because
I know the people, I trust them well.
We cannot beat that.
But if it's unbiased and looking technology wise, we
are in a very good position right now.
Thinking back to the customers that you had prior to
the big rewrite, did you guys tell them at some
point like, hey, there's an end of life, we're not
going to provide updates past this certain date.
We've got this new product if you want to move over.
How did that go with your existing customers?
Was that well received?
I can tell you've been around asking these questions.
Yeah.
No, the decision of not making
backwards compatible bite us, right?
Because many dear clients that have been partnered with us
for a long time and we've been helping each other,
we help their problems and they give us money. Right.
We strategically decided, no, sorry, we
cannot make this backwards compatible.
We have to be completely forward compatible.
And hopefully in the future at some point
we can find a technical pathway to move
you over to the new framework.
So we pretty much had to tell
people we don't have the bandwidth.
And strategically we decided to.
We will continue to support you with the old technology for
as long as you want to keep up with it.
We're going to keep it up, we're
going to keep on making work.
If it fails, you pay our support. We'll make it fix.
We'll make it happen, we'll fix it.
But in the old technology, with the new
one, it's so different than even today.
We still have some clients with the old
technology that we have to move them over
and it's still fairly time consuming.
And it sucks.
It sucks because the conversion of
the old technologies is so time.
If we were to be building a conversion tool, it
will be probably a couple of years of effort.
And to me so far, every time they think
about putting my programming resources towards developing, I want
to develop towards the future, not towards the past.
Especially because nowadays we have a very small number
of clients that are still with the OTEC.
Over time, either we found a way to migrate them
over through labor, or they left us most of them.
Well, I don't have the precise number, but many
of them, they kept with us for quite a
while and eventually found a way to move them
over to the new platform, slowly but surely, manually.
Eventually everything was turned over.
But it was painful for everyone.
And I'm sure that some of the dark clients, they
were very frustrated with our decision, but we had to
do it with the money that we had available.
We decided to make that way.
Yeah, sometimes, I mean, it stinks, but sometimes you
have to make the best decision for the business.
And we've been through one of those in the last couple
of years ourselves, and a lot of people got frustrated.
But had we not done that, there may not have
been a business to continue to support the customers.
And so it's unfortunate, but sometimes that happens.
Just a comment to close this topic we worked in
a way that the old product is officially supported.
The end of life is December this year.
In the end of life doesn't
mean, you know, it stops working.
From a professional service standpoint, we want them
to move away from it, either move to
the new one or move it out.
And we know that some clients will continue to go beyond
that because for them it makes no sense to change.
And we're not going to let them, you
know, run dry and be in trouble.
I mean, we will in a way do our
best, because again, even though financially we're not investing
any money at all in that product, as long
as the product works and we can, through reasonable
effort, fix when there are issues, we'll continue to
keep our clients, you know, moving forward.
You talked about the level of investment
required to build the tool to go
do the backwards compatible migration utility.
We were having a conversation about something just this
morning about how much effort this thing was going
to be to go reconfigure all this stuff that
we had built out for our internal use.
We had to ask ourselves, what do we get if we
invest all this time to go reconfigure and do all this?
What do we get?
And it came down to we were trying to save
one user license per year for this thing that was
going to take us probably 80 hours worth of work.
And it was the sort of thing that
it could unravel some critical business processes.
And we just said, you know what, it doesn't make
sense for us to spend two full weeks and run
the risk of something breaking to save $1,500 a year.
And so sometimes you got to go through those decisions.
And yeah, I'm going to be paying for this
license for who knows how long, but it's worth
doing that and not having this other potential cost
and problem that comes with it.
Yeah, in a way, this was also the rationale.
At the end of the day, even we
look today when we decide in what we're
going to be investing our program resources.
To me, as always know two things is
we have to always fix bugs, right?
We need to make the current
platform as stable as possible.
So fixing bugs is always top priority.
But then new features, what new features are the
most important to sustain to go moving forward, right?
And when you look at that perspective, usually things
from the past, you don't want to go back
to five years ago and fix something.
The old product, not at all.
Even something interesting, even the new product.
When we designed, we actually, we
took like in three waves.
We made a first wave, which was primarily
now, was just reallocating our programming resources from
this old platform to the new platform.
So the first wave, we pretty much would
trash it eventually, everything, because it was such
a experimentation from the old to the new,
the second wave was solidified.
And then it took us for about three years.
We have this platform with all
the system, everything modern, whatnot.
But then we realized that the second wave,
we also had a lot of design decisions
that were, that would be limiting our future.
So when we created the third wave,
primarily, we redesigned again from scratch.
But because we're using object or in programming and
architecture, we were able to pretty much go from
wave one, two, and three without client disruptions.
Client barely know that something
completely changed behind the scenes.
But decision around product development is always
difficult, without a doubt, whether it's product
or hiring or something else.
What were some of the other, like,
really pivotal or difficult decisions that you've
had to make over the years?
Pivotal.
On the business side, one of our focus from the
beginning is, let me give this vision, because to me,
it's an era where we're still spinning it, and we
might have a pivot as part of this life of
the vision going back to mid sized companies, right?
When a mid sized company today, any place
in the world, they're frustrated with their reports.
You know, it's complicated, and it's always expensive.
You gotta wait, blah, blah, blah.
Those issues, usually what they do is
either they search for a solution, right?
Or, and usually the or is usually part of
the path is they call their trust technology advisor,
how can we get this done better?
In the trust technology advisor is usually a
reseller of the software that they are using.
Like, you know, if it's an ERP, is an erpental reseller
or a CRM reseller or payroll, whatever it is, right?
In most of these companies, this ERP and CRM and
whatever, resellers, they make money out of services, right?
That's the main focus.
So typically nowadays, when someone calls them and tell, I
want this, and it sucks, usually they say, don't worry,
I can do it for you, I can fix it,
then just give me more money, and we'll keep on
doing, and we know how to do it. And then I.
They are successful that way because they
get the money from the clients, but
it's still slow, expensive, right.
So to me, part of my vision of going
and taking over the world mid market to get
that vision going is how to get mid market
ERP, CRM, payroll resellers to realize that when the
client is frustrated with reporting, don't write another report.
I mean, if it's just another report, sure.
But if the client is always frustrated because
it's always a pain, it's always low.
There is a better way for them, which is, you
know, using DataSelf now you can give them a
tool that they can be more independent, they can do
this faster, and they're going to grow faster, and they're
going to buy more of your software.
So don't worry, you're not going
to be running out of work.
There's going to actually accelerate more work.
But there is a hunt to get over.
The challenge is these ERP vendors.
As technology has evolved, if you look at the ERP
market, which you're very ingrained as well, for these ERP
vendors to be just keeping up with what their preferred
ERP publisher provides, it's a nightmare for them to just
to keep up with all of those tools evolving whatnot.
So they have a full plate, right?
So telling them to embrace a bi tool and be self
sufficient has proven to be a big friction in our business.
We want them to learn it, they have the
resources to learn it, but they're just too busy.
And there aren't many ERP, CRM whatnot vendors
out there that have a bi practice.
And to me, this is one of the things going to
feed into the whole pivoting thing for quite a while, I
was hoping and pushing in a way to train ERP and
CRM consultants to the Bi because they have the technical expertise,
the business knowledge to do the transition.
Yes, they do. They can.
The problem is they're too busy.
And especially now, we're having a problem that there's not
enough ERP and CRM consultants to do the job.
If you're one of them, you have a
full time job, guaranteed with what you know.
So you just run in that lane.
So it's been proven very difficult for us to actually,
in that vision that I told you, that if we
get these vars to bring DataSelf when the client
is frustrated, boy, we can fly very quickly.
The problem is these erps, they usually
too busy to actually open that initiative.
They can sell sideways, but it's not a focus yet.
So the last few years, we're starting to get
better talking with this Vars, getting more strategically.
Many of them are using internally, many of them,
at least internally, they are understanding the value of
Bi, but only a few are positioning DataSelf
the way that my vision is.
One of the things we started to think recently
for us to scale more quickly and eventually get
this part of the vision more properly fulfilled is
we have resisted to go after bivars.
We have just focused on ERP CRM and
other Vars to put behind in their portfolio.
But then recently we actually noticed that the Bi
vars, they have similar challenges, that when they're trying
to sell their BI offers, power bi tableau.
If you go the sisense domos and other companies, when
they go to a client that is looking for something
better than the reporting that they have, then there is
a competition with other vars of BI offers.
Maybe comes a tableau var and then comes
a power bi var, another power bi var.
And all of them are trying why their
offer is better and everyone is doing the
same thing is what are your problems?
Let's make an sow.
And they spend sometimes dozens of hours to come
back with an sow that eventually become usually sometimes
hundreds of hours to get the job done.
And then I thought, well, probably for us to
scale one side of our channel more quickly, as
let's start tell this Vars this bi Vars that
we can actually make their offer.
If you're working with taboor power bi, which is
the two tools that we provide the feed, very
quickly, we can make your offer significantly better than
the alternative, the other competitors, and then we can
scale our channel at least would be Ivars first.
So right now, we are actually the beginning
of this, I'm not going to say pivot,
getting out of ERP VARs, not at all.
To me, the ERP CRM Vars, they have the reach
to the majority of our client base, future client base.
But the bivar new initiative add on to our
channel, I believe has the potential to help us
grow more quickly in the bi universe.
And as we even get more funding, then
we can continue to push forward the vision
of refining the european CRM VAR eventually.
All right, you just mentioned funding, and that's something
I was actually wanting to jump back to.
So talking about those early days, and you didn't want
to go take the funding too quickly, you wanted to
really get your legs under you and actually have something.
So it sounds like at some point you
did go and look for that funding.
Is that accurate? Not yet.
I have been exposed to many companies interested in
investing DataSelf, but because the business side, we
haven't yet found a way to scale.
To me, let me give you the vision of when
funding will make sense, when our volume get to a
point x that we already have some ideas.
The idea is if a client or a VAR, let's say URP
varum Var decides to add DataSelf to a new company.
They go to our website, they go to that
page, let's say Netsuite, Akumatica, whatever it is.
They click order.
Now they go through like a menu process
that you can pick whatever you want.
You want to prepackage, plug and play everything.
You can select big packages that have everything, or
you can go, no, I want this module.
This module, you can just select what
you want and then you go.
At the end you put your credit cardinal and
then you put your credentials to your source systems.
Assuming it's cloud, let's say you
press finish and automatically everything happens.
This vision, technically we are probably a couple
of months from fulfilling the self service thing
on the web, maybe three months.
But to me, until we start to see that, it becomes
we have a self service drive for this kind of ordering.
Until we see self service drive,
we're not going to invest.
Right now, the majority of our sales people
knock on our door, through the channel or
directly, and they want to have a discussion.
They want to see us sow.
There's usually hours, you know, from one to 10 hours,
usually of, you know, back and forth until they sign
the contract and then we run with it.
And I believe that the way we have structured our
business and our technology is once we teach third parties
like VARs, you don't need to call us. This is it.
You just order now you got data warehousing, SQL,
you know SQL, you have your own SQL people.
You're using power, Bi or tableau or Excel as the UI.
You know how these tools work.
We just give you the automatic plumbing, the refresh,
the deltas, the templates, and you just send us
the money and call us if there's a problem.
So we'll fix it.
That's the dream, right?
Just send us the money. That's the dream. That's great.
I think we are getting closer, but the business
model of them third party is not my team
being able to do it without calling us.
We only have a very small number of
partners that they do this sometimes because they
already know how to do it.
It's not yet their main focus.
But to me, the pain of management
needing what we have is obvious.
I mean, when I was telling you that the conference that
we came back from where we resonated with a bunch of
clients and they told us, I don't know why the VaR
didn't tell about data, self is obvious that we need it.
The pain is there.
It's just, you know, you know that story that
you probably heard about it or something similar, that
in the nineties, a company decided to see what
is the market for sneakers in Africa.
So they sent this person to do that.
Have you heard about this story?
I haven't, no.
So they sent this person to the
market researching sneakers in Africa, and then
months later, the guy came back.
Nobody uses shoes, no market competitor had
the same idea and decides to do
the same research with another company.
A few months later came.
The other person came back.
Nobody's used it.
There's a huge market, right?
Two ways of looking at the same thing.
Same thing can be no market or huge market.
And I am in the belief that there's
a lot of management frustrated that they have
bought the new cloud based, whatever system is.
They show me the demo.
That is easy.
And boy, when I try to get my data
do that I want, it's not, call me.
I have the solution.
Talk me through your first few hires.
What was that like?
Did you bring people over from the other company, or were
you running it by yourself in those first few years?
People, yeah.
Until 2017, when we pivoted, we were a very small team.
We started with three people, three that were working for
the prior company, and then we started them DataSelf
business, and we kept the team fairly small.
We were about 15 people in 2017.
For most of my journey with data
self, until very recently, every new hire
was someone from our personal network.
Initially, we were all here in the Silicon Valley, in
the South Bay area, all physically, we were here.
We had an office and whatnot.
Bay Area has been a nightmare to drive.
So it didn't take much for some people
to start work remotely, which, by the way,
a funny story a little bit on this.
Working remotely in my DataSelf journey, Webex started
to the business, and they were the first main
vendor that would be able to do web based
conferences, right, or demos and whatnot.
And because I have an accent, as you
probably can tell, many times, people will not
understand my english over a phone call.
So I thought, well, if I do presentations using
the web camera where people can see me, hopefully
between my charm and my accent, it will help
a little bit to get the communication across.
And Webex was pretty expensive, so
we started to use Webex consistently.
I started to use Webex
consistently in my presentations.
And back then in early 2005 and so
forth, nobody was using web cameras, right.
I mean, was very rare in my industry.
And I remember two scenarios that
happened that were so funny.
The first one was the first event that I went,
after about a full year of doing presentations, I went
to this event, and then a bunch of people came
back to me, hey, Johnny, how are you?
Who are these people?
And remember who they were.
And what happened was, back then, when I was doing my
webex, I was looking at the camera when I was talking
to people, so they thought that I was looking at them.
And we humans, we make a much deeper connection when we
look eye to eye if we're only on the call.
So they had me as a close person because
they were seeing me looking at their eyes through
the camera, but they had no webcam on their
end, so we had no clue who they were. That's amazing.
Like, today, we've got kind of
a rule internally at our firm.
Like, hey, we're on camera for any remote
call, and I think most people are.
We'll get on some calls, and occasionally the person
on the other side won't have theirs on.
But now that's totally commonplace.
But you were kind of a pioneer in doing that,
and it sounds like it served you really, really well.
You were able to build that connection even
though you didn't know who they were.
They knew you, which is more important, probably.
Yeah, yeah, it was interesting.
Many times I had this kind of
situation, and I would say, no problem.
Then I would usually tell people, no,
hey, I'm sorry, who are you?
Because probably, no, you have seen me looking
eye twice, but I have not seen you.
And then it becomes a funny story to talk about.
So it has served me really well.
In the second story, that was also funny, with a similar
angle, I called this lady, which was one of our clients,
and the first time that I called her with the webcam,
back then, I just called, look at the camera, talking with
her for about half an hour, blah, blah, blah.
Anyhow, all good.
Next day, one of my consultants called me.
Johnny, did you talk with that lady? Yep.
Did you tell her that you could not see her? No.
I mean, why should I say so?
Well, you know, the consultant told me.
She called me.
She was so embarrassed that you call her, and
for half an hour, you talk with her with
a poker face, and she had something.
Maybe she was self conscious about something, right?
Maybe she was without make. I don't know.
You know, she was very uncomfortable because
I was looking at her, talking with
her, and she felt very embarrassed.
So, Mike, remember to tell people beforehand that they
can see you, but you cannot see them.
You know, we've got a peloton.
And I think about, like, it would be really weird if
the instructor could see me while I'm riding the bike.
But I get why somebody years ago might think that
going back to those early days, you were able to
have that soft transition with a few customers.
Man, what was that like?
Do you remember the first few customers
that you landed on your own?
Yeah, what was that like? The first one?
We never forgot the first.
Right, right.
The first one with the new product.
You know, to me, we already had a certain reputation
because back then, bi was not known at all.
In this market, it was really novelty.
And there's always the early adopters, you know, people
that see something new, and sometimes it's crazy new,
sometimes it's good new, and they go for it.
And I remember the first client
that bought our new product.
I was kind of scared because it was new.
And, you know, I'm, as I told you, I'm very.
By the way, I don't sell smoke.
Sometimes it's not, you know, nowadays, I mean, we
have evolved a lot, but, you know, I remember
in the past, sometimes I would sell, I wouldn't
say half baked, you know, 80% baked.
And because I know the last 20%, I can do it.
And actually, in 2017, when we made the whole
thing, I remember that my first in road into
the cloud with the new cloud, that I sold
two, three different systems in December.
And then when I told my team that I did it.
You're crazy.
We're not ready for production.
And I knew in my confidence, you know, know we are.
They just don't know.
My team doesn't know yet.
What I know is just, you know,
some effort and we'll get it done.
And remember that was December.
And then I went to Brazil for a couple of weeks.
There was, you know, many times I go
for New Year's and Christmas for Brazil.
Then I was thinking, should I go
back and get it done or not?
Can I actually do it?
So just going back to the first client,
I remember that because it was my real
first time with my business, right.
It was completing my business.
And failure or success would be
now is a watershed, right.
If this customer just fails, all of my
self consciousness might go down there downhill.
It might just fall apart.
So I remember I was excited because I got someone
to buy into the vision and what we're selling.
But I was also concerned, will this really
pan out as I believe it will?
I was very confident.
I'm very conservative in the sense of until I
feel very confident that either it's being done what
I already have done, all the pieces that now
is just a few extra steps.
I don't move forward selling what
I don't have in my hands.
We live and we learn.
A lot of owners that I've talked to over the
years, they shed more and more of their responsibilities.
They delegate things.
How different does your job, how different does your
day to day look today than it did five
years ago, ten years ago, 15 years ago?
Have there been these significant moments where you've
experienced a big change, or does today look
a lot like it did back in 2005? No, thank God.
It doesn't look like the same.
Yeah, no, I mean, it's an interesting question.
Until I feel. Yeah.
That someone is ready enough to take over, I
tend to look over the shoulder, and some people
say that I kind of know, don't trust. I micromanage.
And to me is, no, no, I
don't until I feel that you can.
But once you do, oh, my God, I just give it to you.
And don't just call me when you need me.
Otherwise, I don't want to be in the middle
because you already have crossed the hump that I
already know that you can take care of yourself.
So there are the people that we've been
with me from the beginning, I trust them.
You know, it's always give to them, get back.
And I was very trust from the beginning.
People that I've been hiring over the years, many times
it took them a while for me to build a
trust for eventually not looking over the shoulder all the
time, you know, I'm kind of perfectionist.
And over time, I kind of have to learn
to be less, because usually good is enough.
Perfect sometimes is too much effort, and
nobody sees the difference, which sucks.
But, you know, many times, perfect is not good.
Good is great.
And nowadays there is a lot
of functions, a lot of function.
The company that I barely touch, that I have
people that are completely capable and do a great
job, and without them, I wouldn't be able to
be what I am today without them.
Many people nowadays, I interact very little
because we are about 35 people.
So there's already like a structure that, you
know, many people reach out to others.
And a big challenge in our industry is you
need to hire people that have knowledge in whatever
that you need, technical business, whatever it is, and
people that are willing to learn.
Because every business nowadays, even us, that we use
a lot of industries and technology, it's amazing.
We hire people.
And usually the beginning, many people, they drown because
we're in a different pace, in a different.
They have all the checkboxes, if you look at
technically they should be hitting the ground running.
They don't.
It takes a while for people to go into new business.
And if you are innovating like we are,
right, we're not just doing the same thing
as someone else, just with different data. No, no, no.
The data is different as well.
But we have processes and
technology that make things better.
And it always takes a while for people to
learn how to get the novelties that you have
added to the process for them to also succeed.
So it is very challenging.
And, and recently we've been hiring very fast
and hiring now has become a challenge with
the whole AI AI on both sides.
When you're hiring, it's faster
to write the job description. Awesome.
But then let me tell a story that
to me it was amazingly frustrating at first.
In one of these processes, we have an interview
process first that is very high level just to,
without people that are not a good fit.
And once people pass the first high level, then we ask
a bunch of questions to see how they articulate tech, let's
say if it's a technical job, right, to see how they
articulate to, again, without people that are not going to give
us some checkboxes that we want to throw a question that
is not, have you have experience? No, no, no.
That's just some example of problems to see how they articulate,
to weed out people that are not ready for us.
So one of these candidates in this, the
second wave, the answer was like, was perfect.
I was thinking, oh my God, this
person, like me, they know everything and
exactly and articulated amazingly well each question.
And I thought, I need to talk to this
person now because if this person is like this,
we need to have it right away.
So eventually I called the person
I said to call myself.
Usually go to multiple people
to interview before I interview.
I'm usually the last one, at least
in the, the sequence of people.
No, no, I called this person right away.
So I scheduled the call.
The call was like with someone else.
It was completely not what the answer.
That was a sheet that she gave me.
And I hung up, like, you know, after,
I don't know, 15 minutes, like, no, just
disconnect, you know, like, no, what the heck?
And then it's like, wait, wait.
I took my questions, I dropped into chat
GPT, and her answer almost verbatim, what I,
what she wrote, you know, like, wow.
I talked to somebody recently, another business owner who had hired
a guy, seemed like he was just going to be absolutely
amazing and he was on vacation, like the first week or
second week that this guy worked for him.
And when he got back, he just
kind of knew something was, was off.
And they have monitoring software on their computers and
they can keep track of what's going on.
And come to find out this guy actually had multiple people
offshore that he was farming his work out to paying them
pennies on the dollar and he's then taking what they've got
and then just going and dumping it in.
And he said the code that we
got in his interview was incredible.
And then what we got, once he
started working, it didn't match up.
It's a different world today with
those kind of offshore nearshore things.
You hear people about having, you hear stories
regularly about people having multiple full time jobs.
And now with these AI tools, people can represent themselves
one way, but in reality be very, very different.
Yeah, I'm an optimistic with AI, I think there
is, especially my specific market, there are so many
things that AI is going to help us become
significantly more productive and help a lot more companies.
So there's a lot of value, but there's also a lot of
noise that's going to come with it, a lot of friction in.
One of the things that I'm very optimistic is I
think as a business, our business as a whole, and
our more senior people that really know the problems and
how difficult data problems are, many problems are to solve.
I think the wisdom that you kind of, you grow over
time of seeing problems, solutions, challenges, friction, you need to know
so many things in so many different areas to actually get
the magic done, that my bet is as we learn how
to use and incorporate AI into our way of our vision
as we learn how to properly put it, not too fast,
not too slow, the right pace, which is tricky.
But I think the amount of people we're going to
be able to help, it's to me is mind boggling.
I mean, we started already an AI initiative very
slowly in an area that the current AI wave
has a high level probability that's going to help.
And I've been looking at AI
for already, for a year plus.
When is the right time?
No, not yet, maybe 2025.
But then we hit a certain part of our
vision where apparently AI can help our client base
now in future, probably even this year.
But it's not about the marketing, it's
not about putting your brochure now.
You have AI. Yes. No.
I don't want to go for the fluff.
I don't want to go for the fluff.
If it has a tangible benefit for
us or for them or for both?
For us or for the clients and varsity.
Unless there's this obvious business benefit, I
don't want to do the marketing.
I want to really find solution to problems.
And boy, there's a lot of things
that can be helping in this.
One of my employees that is going
to affect his job in a way.
He called me, know, John, you know, I'm thinking about buying
a house, but are you going to be firing me because
you're going to be putting AI in my place?
And I laughed.
I said, no, no, I actually think
it's going to be the opposite.
This is going to actually going to
grow our client base even more.
And when I need more of you, so I don't see AI.
There's so many companies that need our
product that the problem is we're having
a hard time finding people to hire.
If you think I'm going to be firing
people that I love, that are trustworthy, and
that are already trained, absolutely not.
Your future here to me is bright.
So he was relieved. Sure.
Well, you may have already answered it.
Our closing question is, what's next?
What's next?
That's so many things to answer.
It's not only one.
What's next?
I'm going to split the answer in
two or three buckets, technology wise.
To me, when they look at the data problems that
we're trying to solve, in how hard they are, the
next is a never ending investment in technology and people
to find ways to gather freaking raw data from whatever
it is, clean it, push it through, and find a
way to get people that need insights out of it.
So technically, there's a lot of investment, a
lot of partnership with companies that can help
us make this vision more successful.
So technology wise, to me,
it's a never ending evolution.
So that's, you know, it's, what's next is
a big journey that would be helping a
lot of companies on the business side.
To me, part of our future is, I think the
whole thing that I told you about, the bi vendors,
the bi professional services companies, is a big way for
us to grow more quickly and eventually feed back into
the other vars that are not data geek focus, which
I believe those VArs, they reach most clients where most
of the bi vendors, they only reach the 5% of
the clients that really need our technology.
So I think on the business side, my main
what's next is focusing some effort on the bihe
vars to eventually feed more the other vars.
And third, to me, is people, even though technology is
all of these amazing things and blah blah blah.
But in the enterprise software, mostly people
buy from people that they trust.
So being able to hire more people, the
right people, build relationship with the proper companies,
being trust advisor, education, how people can understand
where they are and how they can solve
problems is a lot of people, connections, networking,
partnerships, friendships and ultimately, hopefully AI will never
take over our position as people, right?
We'll always be just like the spark, right?
Give you the answer to your questions, but hopefully
humans will have our future guaranteed in life.
Well said.
Johnny, thanks so much for joining us.
Scott was a great pleasure.
Thank you for all the insightful questions and
I was looking forward to this interview.
Even though we canceled a few times. We made it.
That means business is good for you.
Absolutely.
That was Joni Girardi, founder and CEO of DataSelf.
To learn more, visit dataself.com.
If you or a founder you know would like
to be a guest on In The Thick of It
email us at intro@founderstory.us
