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| Home - CEO Spotlight - Sep 03 Issue |
CEO Spotlight: Gerald Cohen, Information Builders
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Angel Mehta: Many analysts and market watchers continue to hype wireless as the next big wave…the trend that will open up huge opportunity and drive growth for the tech sector. Surely that applies to the business intelligence space as well… what do you think? For example, what are customers telling you about the demand for business intelligence over mobile devices?
Gerry Cohen: Forget wireless. I mean, wireless in the sense of mobile wireless versus wireless enabling enterprise applications, they're two different market places. We built a whole series of products to deliver information to Palm Pilots and hand-held devices – it didn't go anywhere. It was a big fiasco.
Angel Mehta: Why?
Gerry Cohen: Because it wasn't necessary. We were trying to market a 'gee wiz" technology that people didn't need. I don't need to know my sales figures when I'm on the golf course. We're showing them, “Look you can get your sales figures anywhere”. Customers were like, “Who cares? I don't need it”. It was a solution chasing a problem.
Angel Mehta: What has IBI's strategy been with regards to the integration marketplace? How are you positioned in that segment?
Gerry Cohen: Our business is all about the handling of information. On the BI side, we deliver information to human beings. On the integration side, we deliver information to other processes, to other programs. So in 2001, we created a brand new image for what we called an 'outward facing company', around 'iWAY" Software. Our integration business was put into the iWAY software marketplace and we did several things to make it go. First, we built a whole new setup, new suite of products, primarily Java products and Java adapters. Today we have the largest suite of adapters in the world and we're the largest supplier of adapters in the world. Not just data adapters, but application adapters, technology adapters, etc. We have five different kinds of adapters. And then we have a large number of OEM's who resell our adapters under their names, as well as our direct channel. That has been a very successful business for us because we did it on a large scale. We have more adapters than anybody else and the value of that to customers is that, as a customer, the last thing you want to do is buy two adapters from two different vendors. You want to get one vendor who gives you everything because otherwise you've got to maintain both. Companies don't want a lot of vendors, in general. So having all the adapters was a great strategy. It took a huge investment from us.
Angel Mehta: Did you find any correlation between the end of the war and customer interest in new technology projects?
Gerry Cohen: I can't say. The market has certainly picked up a bit, but I think what we're doing is we're trying to do is show a cause and effect connection which I just don't see. Yes, we're drifting up, but is that really because the war ended? You can only hold back from technology spending so long. Even today, a great deal of technology spending is for real reasons. It's cost reduction…or maybe you have a competitive disadvantage so you have to do something. You can only hold back so long.
Angel Mehta: How has the recent consolidation in business intelligence affected you? What were the drivers?
Gerry Cohen: Well, with the Business Objects deal…they really weren't in the information delivery business – they were in the analytics business. Therefore, we were killing them in the general information delivery business. Them buying Crystal was a clear admission that they didn't have a product in that category, which is just the basic information and delivery product – a basic Internet-based product that you get information on. What these guys had was really a fancy client server product that just happened to work on the Internet, but it really wasn't the kind of thing you would use for reporting.
In terms of Hyperion buying Brio…well, Hyperion was reselling Crystal and I guess they didn't want to re-sell Business Objects…so it was more of a response to competitive forces.
Angel Mehta: Does it put any additional pressure on IBI to make similar moves to just have a bigger footprint?
Gerry Cohen: No, that doesn't matter to us. No one doesn't buy from us because we're not big enough. There is a point where you can be big enough – and we are.
You don't buy a car from General Motors because it's the biggest. You buy a car because it's a better car and you like it. In our market, there are three major players: Information Builders, Cognos, and Business Objects.
We're just going to fight it out and divide up the marketplace. In every marketplace you usually have three main players I had mentioned automobiles; General Motors, Ford and Chrysler in the U.S. That's what we have now in BI. The marketplace has consolidated down to three major players.
Angel Mehta: At this point in your career you're probably in a position to stop working if you want. What keeps you going?
Gerry Cohen: Angel, do you know anyone who really wants to stop working? REALLY?
Angel Mehta: I know people who certainly claim they want to stop working...
Gerry Cohen: Is your father working still?
Angel Mehta: He is indeed.
Gerry Cohen: Okay, why doesn't he stop working?
Angel Mehta: No clue. Just sheer boredom, I suppose.
Gerry Cohen: Exactly. Once a guy stops working, he starts to die. A lot of people have tremendous hobbies and they go off on a second career with that hobby. But if you're not lucky enough to have a second career, you better stick with your first one.
Gerald D. Cohen is President and CEO of Information Builders, Inc., the leader in Web-based business intelligence and the largest software manufacturer in New York City. He also serves as CEO of iWay Software, an Information Builders company and leader in enterprise integration. Feedback on the interview can be sent to: gerald_cohen@ibi.com
Angel Mehta is Managing Director at Sterling-Hoffman, a retained executive search firm focused on VP Sales, VP Marketing, and CEO searches for enterprise software companies. He can be reached for feedback at: amehta@sterlinghoffman.net
 
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