SaaS Status Pages and “Trust”

logo_okta@2xOkta has a status page called Trust, and because I compete with them I pay attention to it. At Ping Identity we also have a status page on our IDaaS service and our team makes this a focal point for the service, ensuring that we have realtime data and that it is broken down into the component services along with response times. It is this level of automation and granularity that I think is the underpinning of “capital T” trust.

okta mistrustIn reviewing the Okta page last week I noticed something interesting, well 2 things actually. The first is that the minutes of uptime didn’t correlate to the number of minutes in the year to date, it was off by 6 days. I didn’t think much about it until I went back to the page this morning and noticed that the number had jumped up by a large amount.

With the help of EpochConverter, I calculated the number of days in the year to date, multiplied by 24 and then by 60 to establish the number of minutes. Today is Day 251 in the year and that translates to 361,440 minutes will have elapsed at the midnight tonight… which is pretty far off the “minutes up” reported by Okta today, at 393,120.

Reversing the math on the 393,120 number gives me 273 days, and EpochConverter dutifully reports that day to be September 30, 2014. In other words, Okta is reporting the full month of September as being 100% uptime even though we are only on September 8th. So we know they aren’t automating the calculation of uptime, which also means the number is only as good as the incidents that are reported.

Which brings me to the second observation, there are no definitions of what each unit of measure means. Okta reports “100% global service uptime” for 2014 (rolling forward to the end of the month), but in the “infrastructure” and “features” uptime there are incidents that have impacted uptime.

For 2014 there are 770 minutes of infrastructure and features incidents that affected uptime, which calculates to almost 13 hours of service time (12.83 hours to be exact). How can you acknowledge you had 13 hours of incidents this year and then confidently assert that your service was 100% available and therefore meeting SLA promises? That’s just playing lawyer-ball using a synthetic measure of the service being reachable for 100% of the customers as opposed to the reality of that at various times during the year the service was not available for at least some of the customers.

Where this gets meaningful is that 770 minutes of incident time against the actual minutes to year of 361,440 means the service was 98% available and that is a material amount off the 99.9% SLA guarantee.

Trust is a truth between a company and a customer and when that truth is impaired, so goes the trust. Realtime data is a wonderful thing and in the world of on demand systems there is no reason for not offering a realtime perspective on system status.

UPDATE: I called them dishonest but have since deleted that because it was unfair. I really don’t know what their motivation is, and it could well be that they simply put up a page that doesn’t have the necessary systems connected in the backend.

About Me: I work at Ping Identity, a competitor to Okta. Obviously that means I’m not an objective observer here but math is a stubborn thing nonetheless. Hopefully you will read this objectively and make up your own mind… but needless to say, this is my personal blog and these are my personal opinions. 

Retooling Marketing in a B2B Company

Ping coporate logo 2014Ping Identity has gone through a top to bottom transformation in marketing over the last year. A successful organization that fed impressive growth, reaching growth and revenue records year over year, the marketing organization relied on a proven B2B outbound marketing model that precisely measured lead capture rates.

My interest for the last decade has been in inbound marketing models that rely on content to drive business opportunity. More significantly, I follow the advice of many friends who I would call contemporaries in B2B marketing, like Steve Mann at Lexis-Nexis and Chris Selland at HP-Vertica, who align their marketing demand gen efforts to account-based scoring… opportunities instead of leads.

When you combine inbound marketing with account-based scoring, you get a very potent combination of predictable opportunity funnel that also benefits from lower customer acquisition costs. The latter is essential for on-demand subscription models where customer acquisition costs (CAC) has to be recovered in a short upfront time period, and the former increases the volume of business funnel to work through, again essential in any business that has a wide range of pricing options, from free to enterprise license agreements.

When I took over the team in the 4th quarter of last year I made a couple of quick changes, most significantly breaking up the demand gen team into distinctive task teams focused on net new customers, base expansion, and retention outcomes. The demand center teams would respond to product & solution marketing, as well as partner marketing to drive campaigns, content, events, and interactive (SEO/SEM) for the specific outcome being targeted. We roll this up with a range of sales and marketing operations activities to drive opportunities, which are companies who buy our stuff as opposed to discrete contacts at companies.

I am fortunate to have a data scientist on my team, a PhD in statistics no less, who also has a keen ability to aggregate data from many different sources, from Salesforce to Splunk. We know from this data that there are tipping points that occur in the opportunity (account) scoring that should and do cause additional sales activity. I won’t share the specifics here because they represent hard won intelligence that is a form of IP for us, but I also believe that much of this is actually not easily transferred to another company like us. In other words, each company needs to learn the unique attributes and dynamics of their sales and marketing model rather than simply copying what another company is doing.

Underlying all of our marketing strategy is the notion that we, as a business, have grown in size to the point that we are beyond the point that generalists, high bandwidth people who can do a lot of things well, will serve our growth. We have made a number of changes in the team composition in order to achieve a high degree of specialization in each function… I want the best people at each position in the team. The equation is simple, we use people and systems to feed a data model that we constantly iterate to explain and then predict our performance. 

I saw this fascinating video of a Ferrari F1 pit stop that reminded me of what we are striving to achieve. Each pit crew member has a job and there is no confusion about who is doing what. Notice how the crew members responsible for removing the front wheels know exactly where to place their hands in order to capture the approaching race car… this is the level of specialization that we are building.

Identity and The Rise of Borderless States

I had this conversation with @andredurand a few weeks ago. What services does a government provide?

- Identity
- Central bank-backed currency
- Law-and-order (optimally in equal proportions)
- Defense

Of course there are more but many of the things we associate with government, e.g. social services, are in fact choices that a citizenry has made rather than a core obligation of government as a necessary means to govern. So the question now is whether or not we are entering a phase of a pseudo-borderless form of governance where people self-associate according to fluid social preferences and needs. The reason I am inclined to think this is not only possible but probable is that two of the core services that government provides are being undermined, the first by their own actions and the second by technology.

Currency is increasingly disconnected from economic conditions and central banks are demonstrating on a daily basis that their ability to affect currency is tenuous at best. The rise of Bitcoin is presenting a viable alternative currency that has many of the attributes of central bank backed currencies, namely a liquid market to trade. Games and social networks have similarly organized and promoted virtual currencies that can be arbitraged against non-virtual currencies.

Identity, on the other hand, is increasingly being driven by technology and at CIS the various talks about 3rd party verification services really stimulated my thinking on this. What if government-backed identification is no longer the gold standard for proof of identity? What this would mean is that the ability for governments to authenticate identity for transactions and contracts would be undermined and we would be one step closer to borderless states.

I have no way of assessing probability to any of this but the one certainty is that the pace of technological evolution is accelerating and with it comes dramatic social change that has implications well beyond the product and service capabilities by themselves so if I were to think about what the world looks like in 30 or 50 years, I am not sure I would discount any of this.

Speaking of 50 years, this article in American Banker really drives home the point about how identity is informing future businesses in ways that are entirely disruptive to traditional business models.

Fifty years from now? In her excellent and thought-provoking Long Finance report on the future of financial services, Gill Ringland rather memorably said that the citizen of the future would need the critical resources of an identity, a credit score and a parking place in order to function. If that’s true – and I certainly believe it to be the direction of travel – the bank’s critical role will be built on the customer identities, not their deposits. The vaults will not be stuffed with material valuables, but with the most valuable asset of all: personal data.

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