Redefining Enterprise IT: Creating New Categories

The guests argue that category creation in enterprise IT is not just about changing how companies operate, but about setting the price and defining the value proposition. To achieve this, startups need to:

• Create the concept in people's minds
• Define the value of the new category
• Set the rules of the game

Navigating the Transition: IT is Dead?

While the idea of "IT is dead" and lines of business becoming software-empowered is gaining traction, it is still a transition. Startups must navigate two phases:

• The present, where they cater to direct lines of business and IT
• The future, where IT's role evolves

Overcoming Challenges in Enterprise Software

Startups face several challenges when trying to create new categories in enterprise software:

• Moving beyond internal champions to broader adoption
• Navigating the build vs. buy debate within enterprises
• Dealing with mixed signals about product-market fit

The Long Game: Signals of Success

Creating new enterprise IT categories is a long game, but certain patterns can reveal if a startup is on the right track:

• Identifying key moves early on
• Teasing apart the signals of product-market fit
• Leveraging founder charisma effectively

Case Studies: Software-Defined Networking and Technology Business Management

The guests share insights from their experiences in creating the categories of:

• Software-defined networking in the enterprise (Martin Casado, Nicira/VMware)
• Technology business management (Michel Feaster, Apptio)

The Evolving Role of IT

As the role of IT evolves, startups must adapt their strategies to cater to both traditional IT and lines of business empowered by software. This includes:

• Understanding the internal debates around build vs. buy
• Moving beyond early internal champions
• Navigating the transition to a more software-centric enterprise

Defining Value and Setting Rules

Ultimately, category creation in enterprise IT is about defining the value proposition and setting the rules of the game. Startups must:

• Create the concept in people's minds
• Set the price and define the value
• Establish themselves as the leaders in the new category

Leveraging Founder Charisma and Mixed Signals

While founder charisma can be a powerful tool in the early stages, startups must eventually move beyond it. They must also learn to navigate mixed signals about product-market fit as they establish their new category.

The Long Game: Perseverance and Key Moves

Creating a new enterprise IT category is a long game that requires perseverance and strategic moves. Startups must:

• Identify key moves early on
• Tease apart signals of product-market fit
• Play by the current rules while redefining the game