A question is can we change the
Speaker:nature of work? Can we make work
Speaker:faster? Can we make work simpler?
Speaker:Can we make work more enjoyable?
Speaker:Can we get people out of the
Speaker:challenges that we're so used to,
Speaker:which is, how hard it is to find
Speaker:information to collaborate in
Speaker:real-time, to make decisions
Speaker:with other people, to get
Speaker:everybody organized in your
Speaker:company?
Speaker:That's Aaron Levie, CEO of Box,
Speaker:the content management and
Speaker:collaboration platform that
Speaker:reaches more than 95,000
Speaker:businesses around the world.
Speaker:Aaron started Box out of his
Speaker:dorm room at USC, and then
Speaker:dropped out of school to run the
Speaker:company full-time with his co-
Speaker:founder and childhood friend,
Speaker:Dylan Smith. At just 20 years
Speaker:old, they made the bold move to
Speaker:cold email, Mark Cuban and
Speaker:brought him on as their first
Speaker:angel investor. In 2015, they
Speaker:took the company public and Box
Speaker:is now worth more than $3
Speaker:billion. Aaron was named
Speaker:Entrepreneur of the Year in 2013
Speaker:by "Inc. Magazine" and is an
Speaker:industry veteran with over 2.4
Speaker:million followers on Twitter.
Speaker:Aaron's story and mission have
Speaker:always been an inspiration to me.
Speaker:It's an honor to sit down with
Speaker:him and decode his vision for
Speaker:building products that enable
Speaker:people to achieve their greatest
Speaker:ambitions. This is Daniel Saks,
Speaker:Co-CEO of AppDirect, and it's
Speaker:time to decode viral enterprise
Speaker:growth. Welcome to "Decoding
Speaker:Digital," a podcast for
Speaker:innovators looking to thrive in
Speaker:the digital economy. I'm your
Speaker:host, Daniel Saks. I'll sit down
Speaker:with other founders, CEOs, and
Speaker:changemakers to decode the
Speaker:trends that are transforming the
Speaker:way we work. Let's decode.
Speaker:Aaron, welcome.
Speaker:Hey, thanks, man. Thanks for
Speaker:having me.
Speaker:Great to catch up. In a lot of
Speaker:ways, you have the classic
Speaker:Silicon Valley founder story.
Speaker:You started Box in your dorm
Speaker:room at USC, dropped out of
Speaker:college, then 10 years, later
Speaker:took the company public. Looking
Speaker:back, did you always know that
Speaker:that was the path you wanted to
Speaker:take?
Speaker:We started the company...
Speaker:It was born out of our own
Speaker:personal challenges that we were
Speaker:running into in college around
Speaker:sharing files and collaborating.
Speaker:We ended up doing some research
Speaker:and identified that there was a
Speaker:much bigger market that we could
Speaker:go after. This was back in 2004.
Speaker:If you think all the way back
Speaker:then, the way that most people
Speaker:commonly shared their files was
Speaker:you would email yourself files,
Speaker:you had USB thumb drives, you
Speaker:had to set up lots of server
Speaker:infrastructure to be able to
Speaker:manage data. We felt like there
Speaker:had to be a simpler way to be
Speaker:able to work from anywhere, be
Speaker:able to access files from
Speaker:anywhere. We built this
Speaker:application. Fortunately, it
Speaker:struck a chord in the market.
Speaker:People started signing up and
Speaker:using it more actively. We then
Speaker:were able to raise some early
Speaker:angel investment from Mark Cuban,
Speaker:and that led us dropping out of
Speaker:college. Then 15 years later,
Speaker:this is where we're at. The
Speaker:idea was really, "Let's go and
Speaker:solve a really big problem," one
Speaker:that we personally were running
Speaker:into but ultimately one that
Speaker:ended up being much bigger than
Speaker:we even imagined as we were
Speaker:getting started.
Speaker:You've been legendary when it
Speaker:comes to building a brand, Box
Speaker:is always the SaaS service that
Speaker:I always called out as being the
Speaker:leader in building a brand and
Speaker:driving clarity of purpose for
Speaker:enterprise software. Can you
Speaker:explain? Was that done
Speaker:deliberately? How did you think
Speaker:about it?
Speaker:I appreciate that. Maybe it's
Speaker:working. When we started Box, it
Speaker:was very early in the evolution
Speaker:of SaaS -- software as a service --
Speaker:and cloud computing in general.
Speaker:What we realized was, we had to
Speaker:find a way to get enterprises to
Speaker:rethink what they define as
Speaker:enterprise software and what the
Speaker:future of work was going to look
Speaker:like. We realized that we were
Speaker:competing against these massive
Speaker:incumbents and became this that
Speaker:competing with us was much
Speaker:greater distribution, much
Speaker:larger sales teams, a large
Speaker:incumbency in terms of the
Speaker:customer-based that they had.
Speaker:We realized that the only way we
Speaker:were going to turn that around
Speaker:was by trying to get people to
Speaker:imagine a different way that we
Speaker:could look in the future.
Speaker:Effectively how we thought about
Speaker:building our brand was, "Let's
Speaker:go and redefine what the future
Speaker:of work looks like, especially
Speaker:the end users and the business,
Speaker:not just IT. Let's get the users
Speaker:excited about what the future
Speaker:can look like in terms of how
Speaker:work can become much simpler,
Speaker:and people can work together and
Speaker:collaborate much more
Speaker:effectively." That's where we
Speaker:built our brand from. Now, we're
Speaker:excited because there's many
Speaker:other players in this ecosystem
Speaker:broadly of companies like Zoom
Speaker:and Slack. Other companies have
Speaker:entered the sphere to help
Speaker:accelerate this message of work
Speaker:doesn't have to be complicated.
Speaker:Software doesn't have to suck.
Speaker:You can have simple end-user
Speaker:experiences. We can make it
Speaker:easier to get work done in the
Speaker:enterprise. That was the origin
Speaker:of the company. It was to try
Speaker:and bring that kind of consumer-
Speaker:grade disruption to enterprise
Speaker:software. It's been exciting to
Speaker:see that that has taken on a
Speaker:life of its own at this point.
Speaker:It's incredible. In 2005, if you
Speaker:think back to work software, we
Speaker:were both still young, but it's
Speaker:clunky and tough. You look at
Speaker:how many companies have been
Speaker:built around your ecosystem.
Speaker:It's truly amazing as well.
Speaker:It's been fun. I do consider it
Speaker:very unfair that I'm the only
Speaker:one that seemed to get gray hair
Speaker:out of this whole thing, but it
Speaker:has been a fun journey. It's
Speaker:great that enterprise software
Speaker:has gotten so much better for
Speaker:users. That was the whole intent
Speaker:of business to begin with. We
Speaker:consider it mission accomplished
Speaker:on that dimension. Now, when we
Speaker:look out at the market, there's
Speaker:still so much more opportunity,
Speaker:especially when you look at
Speaker:things like, unfortunately,
Speaker:COVID, from a health standpoint,
Speaker:has been the catalyst for this.
Speaker:Ultimately, this new era of work
Speaker:where we know that businesses
Speaker:are going to be more distributed,
Speaker:more remote, collaboration's
Speaker:going to look very different in
Speaker:the future. Even though we're
Speaker:15 years into this, we recognize
Speaker:how early we are in the broad-
Speaker:scale transformation that's
Speaker:going to be happening in
Speaker:businesses.
Speaker:It's incredible that you've lead
Speaker:the charge of transformation to
Speaker:SaaS. With your thoughts around
Speaker:the future of work, early days,
Speaker:where in the next 15 years do
Speaker:you think Box is going to be,
Speaker:and where do you think SaaS is
Speaker:going to be?
Speaker:I'm glad that you're giving me
Speaker:full credit for all of that.
Speaker:I'll take as much of it on this
Speaker:podcast as I can get. Certainly,
Speaker:we're collectively amongst a
Speaker:broader ecosystem of players
Speaker:that have been creating the
Speaker:landscape that we got to go play
Speaker:in, like Salesforce and Workday,
Speaker:others. When we look at the
Speaker:next 10 or 15 years, if I look
Speaker:at the past 10 or 15 years in
Speaker:software, it was much more about
Speaker:the delivery model of technology
Speaker:being modernized. What we were
Speaker:doing is fundamentally bringing
Speaker:software from on-premises
Speaker:systems and technologies to the
Speaker:cloud. If you look at the next 5,
Speaker:10, 15 years, the delivery model
Speaker:is now well understood. It's
Speaker:going to cloud. The question is,
Speaker:can we change the nature of work?
Speaker:Can we make work faster? Can we
Speaker:make work simpler? Can we make
Speaker:work more enjoyable? Can we get
Speaker:people out of the challenges
Speaker:that we're so used to, which is
Speaker:how hard it is to find
Speaker:information, to collaborate in
Speaker:real time, to make decisions
Speaker:with other people, to get
Speaker:everybody organized in your
Speaker:company? The exciting
Speaker:opportunity is if we can go from
Speaker:the disruption being about the
Speaker:delivery model of software to
Speaker:the disruption being about what
Speaker:work looks like and how we can
Speaker:go change it, that's the 6Holy
Speaker:Grail. We're excited that when
Speaker:we look out at our product
Speaker:roadmap, it's very much around,
Speaker:can we bend the curve of what
Speaker:work should look like going
Speaker:forward? When we look out at
Speaker:the partner ecosystem that we
Speaker:have, again, when you take into
Speaker:consideration companies like
Speaker:Slack, and Zoom, and others,
Speaker:work is going to look very, very
Speaker:different in even next 12 months
Speaker:than it has for the past 20
Speaker:years. That's what's extremely
Speaker:exciting for us.
Speaker:How do you bend the curve of an
Speaker:industry?
Speaker:Usually, through the will of the
Speaker:users and the people. It turns
Speaker:out, if you go to most companies
Speaker:and you say, "What still kind of
Speaker:sucks about work?" I think you'd
Speaker:get a long list of answers, and
Speaker:some are very pertinent to a
Speaker:particular company. In general,
Speaker:usually what you'll hear are
Speaker:things like, "It's too slow to
Speaker:get things done. I'm not
Speaker:empowered to make decisions. I'm
Speaker:spending too much time trying to
Speaker:find information, or recreating
Speaker:work, or spending too much time
Speaker:dealing with software." The
Speaker:question is, can we go and solve
Speaker:that problem generally across
Speaker:industries? That could be in a
Speaker:retailer trying to get new
Speaker:products out to market faster.
Speaker:It could be a technology company
Speaker:trying to innovate in a new
Speaker:product launch. It could be a
Speaker:government agency trying to
Speaker:better serve their citizens. It
Speaker:could be a life sciences company
Speaker:trying to go and drive a new
Speaker:discovery, whether it's
Speaker:something urgent like responding
Speaker:to COVID or long-range R&D going
Speaker:after niche diseases. When you
Speaker:look across all these different
Speaker:industries, what is propelling
Speaker:the world forward? It's
Speaker:information, it's people
Speaker:collaborating, it's people that
Speaker:are making decisions faster on
Speaker:leveraging data. It's being able
Speaker:to collaborate across boundaries,
Speaker:in continents, between
Speaker:institutions. The potential of
Speaker:all of that is for software to
Speaker:get better to go solve those
Speaker:problems. When you go and talk
Speaker:to users and you go talk to
Speaker:people and you say, "What are
Speaker:the big difficult things in your
Speaker:way for moving your business
Speaker:forward?" It usually has to do
Speaker:with speed, usually has to do
Speaker:with bureaucracy. It usually has
Speaker:to do with how the lack of
Speaker:agility in their company.
Speaker:That's where we think the big
Speaker:opportunity is, can software go
Speaker:solve those types of problems?
Speaker:That is ultimately what bends
Speaker:that curve is people looking for
Speaker:better, faster, simpler, cheaper
Speaker:ways to do things, and then
Speaker:bringing software in that can go
Speaker:and power that.
Speaker:Now, there's so much software
Speaker:everywhere that it's hard to
Speaker:decide what is going to make
Speaker:sense for your business and how
Speaker:do you adopt it. You talked
Speaker:about the challenges around
Speaker:bureaucracy. How does a person
Speaker:inside a business choose the
Speaker:right software and ultimately
Speaker:use that for more agility and
Speaker:speed?
Speaker:The great thing is, certainly,
Speaker:for both of us, there is so much
Speaker:more innovation, so much more
Speaker:software in the world that
Speaker:people are leveraging. It's
Speaker:interesting, because if you look
Speaker:back 10 or 15 years ago, there
Speaker:maybe was, I don't know, 20 or
Speaker:30 SaaS companies that you could
Speaker:list if you were forced to,
Speaker:maybe 20 at best. Today, if you
Speaker:sat down with a piece of paper,
Speaker:you could probably remember a
Speaker:couple hundred. Then, as soon as
Speaker:you start to look in any
Speaker:category of software, you'll
Speaker:instantly find that there's
Speaker:thousands of software companies
Speaker:today, all effectively working
Speaker:on your behalf to try and make
Speaker:your company, or your business
Speaker:process, or your team, or your
Speaker:particular function more
Speaker:efficient. That's what's
Speaker:amazing is 15 years ago, when
Speaker:you said, "OK, I want my finance
Speaker:team to be more efficient,"
Speaker:maybe you could build some
Speaker:macros inside of Excel. Maybe
Speaker:you could get them onto the new
Speaker:version of Oracle or NetSuite,
Speaker:and there was maybe 5 or 10
Speaker:pieces of software you could use.
Speaker:Today, if you said, "I want to
Speaker:get my finance team more
Speaker:efficient," you have to ask the
Speaker:question, what part do you want
Speaker:more efficient? Do you want
Speaker:procurement more efficient? Do
Speaker:you want financial planning more
Speaker:efficient? Do you want M&A
Speaker:transactions to be more
Speaker:efficient? Do you want how you
Speaker:transact with your customers and
Speaker:collect their revenue more
Speaker:efficient? What's amazing is
Speaker:that you have software that has
Speaker:been created for every single
Speaker:function of every single role in
Speaker:every single organization in
Speaker:every single industry. On one
Speaker:hand, that's a lot of software.
Speaker:That means you have a lot of
Speaker:work to do to navigate in an IT
Speaker:organization, be the arbiter of
Speaker:what software should come in and
Speaker:out and deciding what makes
Speaker:sense for your industry and your
Speaker:business. The amazing thing is
Speaker:that you have thousands and
Speaker:thousands of companies that are
Speaker:all working to try and make your
Speaker:organization move faster,
Speaker:generate more revenue, save
Speaker:money, automate more of the
Speaker:business, and that's an
Speaker:incredible thing. Now, it's all
Speaker:about making great judgment
Speaker:decisions of what software you
Speaker:bring into your enterprise and
Speaker:having the right kind of tools
Speaker:available to your employees.
Speaker:When you speak to your power
Speaker:users, is there certain things
Speaker:that you recognize that makes an
Speaker:incredible user or adopter of
Speaker:software versus someone who
Speaker:hasn't? A lot of people botch
Speaker:the adoption of software, and
Speaker:the people who get it right can
Speaker:effectively transform their
Speaker:industries. Those who get it
Speaker:wrong can fail. What do you
Speaker:think?
Speaker:I totally agree. Most of this, I
Speaker:put the blame on the vendor's
Speaker:side. Software vendors make it
Speaker:harder than necessary a lot of
Speaker:the time. I still think most
Speaker:software is harder to use than
Speaker:it should be. We still have a
Speaker:wholesale industry problem that
Speaker:enterprise software could be
Speaker:made simpler, it could be made
Speaker:more delightful. While I think
Speaker:we all generally agree that
Speaker:software should all look like
Speaker:the best consumer technology in
Speaker:the enterprise, not all software
Speaker:is there yet. We all, as an
Speaker:industry, have more work to do
Speaker:on that front. The best way to
Speaker:create power users, the best way
Speaker:to enable users to adopt
Speaker:technology is making it simple,
Speaker:making it easy to bring in, easy
Speaker:to solve immediate problems.
Speaker:This whole idea of training, and
Speaker:change management, and all of
Speaker:those kind of things, in a
Speaker:perfect world, we should all be
Speaker:building software that doesn't
Speaker:require training. That doesn't
Speaker:require change management,
Speaker:because it's either so dead
Speaker:simple, so delightful, or so
Speaker:obviously necessary that it's a
Speaker:better way to do things that we
Speaker:want to adopt it right away.
Speaker:That's the Holy Grail I think we
Speaker:all are striving to get to.
Speaker:You've always, obviously, done a
Speaker:lot, in terms of virality in
Speaker:your product, in your business,
Speaker:scaled users. I remember in the
Speaker:early days, you used to have
Speaker:billboards talking about how you
Speaker:power a percentage of the
Speaker:Fortune 500. From the outsider's
Speaker:perspective of Box, I've always
Speaker:seen you've had this viral magic.
Speaker:Was that intentional, and how do
Speaker:you create that virality?
Speaker:We've definitely tried to make
Speaker:our software be able to spread
Speaker:as easily as possible. Part of
Speaker:this is just the nature of the
Speaker:product category when we build
Speaker:software that makes it easy to
Speaker:share files and collaborate.
Speaker:It's almost by definition,
Speaker:you're using our product to
Speaker:spread information to other
Speaker:people. We do think that the
Speaker:virality of software is very
Speaker:important. Beyond making a
Speaker:simple product that's easy to
Speaker:spread between teams and
Speaker:organizations, the rest is the
Speaker:demand of the market and trying
Speaker:to follow that demand.
Speaker:In the early days, you were
Speaker:visionary about competition and
Speaker:ensuring that you can beat
Speaker:SharePoint, beat Dropbox. You're
Speaker:probably one of the people that
Speaker:I've seen that's faced a lot of
Speaker:competition but also had a
Speaker:unique approach to it. How do
Speaker:you live in the world of
Speaker:competition, and what lessons
Speaker:would you have learned along the
Speaker:way?
Speaker:I prefer to not have any
Speaker:competition. I haven't yet been
Speaker:lucky enough to choose a market
Speaker:that is lacking competition.
Speaker:It's also probably a sign of how
Speaker:big the market you're in, based
Speaker:on how much competition you're
Speaker:going to be dealing with. In
Speaker:general, we want to try and do
Speaker:things that we don't think our
Speaker:competition can do, and so we've
Speaker:attempted to build a strategy
Speaker:that we don't think is easily
Speaker:replicable by another company.
Speaker:Our investment in data security,
Speaker:our investment in simple user
Speaker:experiences, our investment in
Speaker:really, really powerful software
Speaker:that helps our customers with
Speaker:their workflows and manage
Speaker:unlimited amounts of data inside
Speaker:of their organization. Our job
Speaker:is if we can build something
Speaker:that the competition can't build,
Speaker:not because we somehow have all
Speaker:the world's best engineers. We
Speaker:know that we're going to compete
Speaker:with great engineering teams,
Speaker:but because the decisions we
Speaker:make are hopefully going to be
Speaker:decisions that are in the best
Speaker:interest of the customer, in the
Speaker:best interest of either long-
Speaker:term data architecture and
Speaker:technical architecture. We are
Speaker:very, very religious about how
Speaker:we design our software to ensure
Speaker:that we don't introduce any
Speaker:complexity into the technology.
Speaker:When you add all that up, we
Speaker:think that's the sustainable
Speaker:approach to how we're going to
Speaker:be able to outcompete in a very,
Speaker:very competitive landscape.
Speaker:That's always been our approach
Speaker:and we'll be maintaining that
Speaker:going forward.
Speaker:What's the code, the rigorous
Speaker:approach to easy design and
Speaker:interface? What do you do at Box
Speaker:specifically that gives you and
Speaker:the company the focus on
Speaker:rigorous design and easy user
Speaker:interface?
Speaker:We just put the time into it,
Speaker:frankly. Unfortunately, every
Speaker:time I try and describe design
Speaker:processes, it ends up sounding
Speaker:more inane than it's meant to.
Speaker:The reality is that it's very
Speaker:straightforward of what to do.
Speaker:The reason why companies don't
Speaker:do it is because you end up
Speaker:making compromises and trade-
Speaker:offs that prevent you from doing
Speaker:it right. The kind of
Speaker:compromises that tend to happen
Speaker:is you start out with a simple,
Speaker:amazing design. Everybody loves
Speaker:it, it's great. Then, you go ask
Speaker:customers about it and they say, "
Speaker:Well, could you add this button
Speaker:or this feature? Or can you move
Speaker:this thing around? Can you add
Speaker:this capability?" You start to
Speaker:say yes, and yes, and yes, and
Speaker:yes. Over time, you end up
Speaker:having scope creep in the
Speaker:software that at some point, the
Speaker:software becomes too difficult
Speaker:to use. A simple example is like
Speaker:if you look at Microsoft Excel,
Speaker:or Word, or PowerPoint, that's
Speaker:25 years of features getting
Speaker:added. Nothing getting
Speaker:subtracted, just getting baked
Speaker:into that technology. It's no
Speaker:wonder that when you look at the
Speaker:next generation of employees or
Speaker:students, they're like, "Hey, I
Speaker:just want to use a Google Doc,
Speaker:because it's instantaneous, it
Speaker:has just the base features that
Speaker:I need, and it's easy to
Speaker:collaborate with others." It's
Speaker:a classic challenge that any
Speaker:company has to deal with, which
Speaker:is you almost know too much
Speaker:about your customers, so you're
Speaker:packing too many of the features
Speaker:that you suspect they need into
Speaker:your technology. Making it more
Speaker:and more complicated and not
Speaker:having the discipline to hold
Speaker:the line of what, ultimately,
Speaker:you're going to deliver, what
Speaker:you're going to make available
Speaker:to your customers, what you're
Speaker:going to say no to. The reality
Speaker:is the only way that I know, at
Speaker:least, to build simple software
Speaker:is to be hyperfocused, saying no
Speaker:to more things than you say yes
Speaker:to, and then hold the line when
Speaker:you start to see that you're
Speaker:losing that focus or that
Speaker:simplicity. What can happen
Speaker:sometimes in organizations is --
Speaker:I've heard this line within Box,
Speaker:but I think it happens a lot
Speaker:everywhere -- you end up having
Speaker:your own internal employees --
Speaker:product managers, engineers, or
Speaker:whatever -- effectively
Speaker:rationalize the complexity that
Speaker:they've introduced. You'll
Speaker:start to hear things like, "Well,
Speaker:this is what the customer asked
Speaker:for." Or, "It's not that hard to
Speaker:use." Or, "People will get used
Speaker:to it." Or, "If they just do
Speaker:this training experience,
Speaker:they'll understand it." The
Speaker:moment you start to hear those
Speaker:types of things, you know that
Speaker:you've effectively lost the plot,
Speaker:and you got to go back to basics
Speaker:and really rethink, "Are you
Speaker:building the right kind of
Speaker:simple experience?" That can be
Speaker:painful because it can take
Speaker:longer. You have to be much more
Speaker:intentional about the software
Speaker:you're building, but that's the
Speaker:only lessons I know from doing
Speaker:that.
Speaker:Whose role is that in the
Speaker:organization?
Speaker:Hopefully, it's everybody's role.
Speaker:Now, at some point, what ends up
Speaker:happening is you do get to a
Speaker:point where there might have to
Speaker:be effectively tradeoffs or
Speaker:somebody has to make that
Speaker:ultimate vote one way or another.
Speaker:Ideally, product managers,
Speaker:designers, engineers are able to
Speaker:get to that conclusion
Speaker:themselves. Occasionally,
Speaker:that's not possible.
Speaker:Occasionally, you need to be
Speaker:able to, in some cases, give
Speaker:permission to those teams.
Speaker:There have been situations where
Speaker:a team has said, "We want to
Speaker:build the software like this,
Speaker:but the market is giving us
Speaker:feedback that they really need X,
Speaker:Y, Z features." It might take
Speaker:somebody like the CEO or head of
Speaker:product to basically say, "You
Speaker:know what? In the best interest
Speaker:of our broader user base over
Speaker:the long arc of our business,
Speaker:we're going to say no to the
Speaker:customer for now, and we're
Speaker:going to do it the simple way.
Speaker:That is going to be actually
Speaker:what we go and drive." We've
Speaker:had to make those decisions
Speaker:occasionally. It can be annoying,
Speaker:because you might have a
Speaker:customer that's like, "I really
Speaker:will pay you more money if you
Speaker:just build this one thing," and
Speaker:you're having to say no to that
Speaker:customer. That can be super
Speaker:difficult.
Speaker:We met, you cold emailed me, it
Speaker:was like 2:35 AM or something
Speaker:like that. It was maybe a two-
Speaker:liner being like, "Hey, I'm
Speaker:Aaron Levie, CEO of Box. I want
Speaker:to chat about this." Is that a
Speaker:strategy you use a lot,
Speaker:and who do you cold email?
Speaker:That sounds like me, 2:30 in the
Speaker:morning. I'd say that's
Speaker:authentic email that you got. As
Speaker:we were both very early in this
Speaker:industry, it was important to
Speaker:find peers and colleagues that
Speaker:we're similarly scaling
Speaker:businesses, ways of partnering
Speaker:and working together on growing
Speaker:the industry. What's been
Speaker:exciting about the software and
Speaker:tech space is that there's so
Speaker:much innovation, so many
Speaker:different companies having lots
Speaker:of approaches that you can
Speaker:benefit by partnering up with
Speaker:companies, learning from each
Speaker:other's experiences. Figuring
Speaker:out different distribution
Speaker:models, different partnership
Speaker:approaches, different ways to
Speaker:grow. This industry is rich
Speaker:with those types of experiences.
Speaker:That was certainly how we got to
Speaker:know each other early on, and
Speaker:what's been so exciting about
Speaker:the cloud industry.
Speaker:When you do outreach to people,
Speaker:it seems like you have this
Speaker:great network. You angel invest
Speaker:a lot, you've built a great
Speaker:ecosystem of partners. What
Speaker:drives that? To wake up in the
Speaker:morning and say, "Who am I going
Speaker:to reach out to today? Who do I
Speaker:want to meet?"
Speaker:Certainly, since the pandemic,
Speaker:I've been a little bit less
Speaker:focused on expanding the network.
Speaker:There's been not enough hours in
Speaker:the day to even do the basics,
Speaker:but in general, there's just so
Speaker:much exciting innovation
Speaker:happening. Some of that draws
Speaker:me in from an investor
Speaker:standpoint, where you see an
Speaker:interesting trend or a company
Speaker:emerge that might have a
Speaker:disruptive approach to a
Speaker:particular industry or category.
Speaker:That's exciting to go and get
Speaker:involved in. Again, the
Speaker:industry is great because of how
Speaker:hyperconnected. Everybody is
Speaker:online 24/7, and so that makes
Speaker:it easier to be able to stay
Speaker:connected with peers and friends,
Speaker:and that's just always been my
Speaker:approach.
Speaker:One of the things I found really
Speaker:hard is you have to manage your
Speaker:own psychology and running a
Speaker:company. There's times when
Speaker:you've been here on the cover
Speaker:magazine, other times when
Speaker:people probably are giving you a
Speaker:hard time. How do you deal with
Speaker:that personally?
Speaker:We've been through every roller
Speaker:coaster there is. We've had
Speaker:funding rounds that fell through.
Speaker:We had to get bridge rounds from
Speaker:investors. We've been through
Speaker:now to economic crises. We had
Speaker:an IPO that was delayed. You
Speaker:are constantly hearing bad news
Speaker:about lost a deal or an employee
Speaker:going off to do something
Speaker:different. This is not a
Speaker:business for the faint of heart.
Speaker:In terms of the kind of stuff
Speaker:that we run into, it's a very
Speaker:fast moving, very dynamic
Speaker:industry. The only thing I
Speaker:found that gets me through any
Speaker:of those difficult moments or
Speaker:challenges is trying to step
Speaker:back, but the current situation
Speaker:and perspective, and really
Speaker:remember the long arc of the
Speaker:strategy and the vision the
Speaker:mission that we're on. That's
Speaker:helped me get through most
Speaker:difficult events was you step
Speaker:back and you said, "OK, that was
Speaker:brutal news. We just lost this
Speaker:deal. We're spending a lot of
Speaker:time on it. That really sucks.
Speaker:That would have been game
Speaker:changing for this industry or
Speaker:whatnot." Then, you zoom out,
Speaker:you say, "OK. 5 years from now
Speaker:or 10 years from now, if you
Speaker:look at our what our mission is
Speaker:to go out and do, is this really
Speaker:going to be the defining moment
Speaker:of the company?" You setback,
Speaker:you realize, "No, we're going to
Speaker:be able to get through this.
Speaker:We're going to be able to charge
Speaker:through this one," and that
Speaker:recharges me think about the
Speaker:future. The cool thing about
Speaker:this industry is that because
Speaker:we're in the new third or fourth
Speaker:cycle of the industry itself,
Speaker:there's great lessons in history
Speaker:that you can learn from a wide
Speaker:range of companies. The thing
Speaker:that's always exciting -- and
Speaker:obviously you can tell these
Speaker:stories for yourself -- to the
Speaker:point of becoming delusional,
Speaker:but you have companies like
Speaker:Oracle, where they were quarters
Speaker:away, maybe even sooner from
Speaker:bankruptcy in the early '90s.
Speaker:This is a company that has,
Speaker:depending on the day, worth $200
Speaker:billion. They could have gone
Speaker:bankrupt because of a massive
Speaker:business and financial
Speaker:restatement issue that they had
Speaker:to deal with. You look at Apple.
Speaker:They lost maybe 5 to 10 years of
Speaker:relevance, where they were not
Speaker:considered to be the future of
Speaker:technology, the future software,
Speaker:the future of hardware, and a
Speaker:very, very niche, small player
Speaker:in the technology industry. Low,
Speaker:low, low single digits in market
Speaker:share in the '90s from all of
Speaker:their products. Now, it's the
Speaker:world's largest company. It's
Speaker:like holy crap, in this industry,
Speaker:if you have the patience and you
Speaker:have, hopefully, the vision, you
Speaker:can ultimately get through
Speaker:almost any difficulty that
Speaker:you're dealing with. Probably,
Speaker:the only difficulty that we've
Speaker:seen to be fairly unrecoverable
Speaker:is if you create a toxic culture,
Speaker:if your company blows up from
Speaker:internal issues. For the most
Speaker:part, the external environment,
Speaker:even though it's
Speaker:hypercompetitive, even though
Speaker:it's hyperdynamic, doesn't tend
Speaker:to ever be the final factor for
Speaker:most companies. You can usually
Speaker:pull off being able to reinvent
Speaker:yourself or build something for
Speaker:the future, assuming you've got
Speaker:a strong culture and a strong
Speaker:vision of where things are going.
Speaker:What do you do to protect your
Speaker:culture?
Speaker:We spend a lot of time owning it.
Speaker:We spend a lot of time making
Speaker:sure to reinforce our company's
Speaker:values, reinforce what we want
Speaker:our company to continue to look
Speaker:like going forward, invest in
Speaker:the internal community itself as
Speaker:well as the external community.
Speaker:It means you have to ensure that
Speaker:you're continuing to live by
Speaker:your values, which means that
Speaker:any time that something is an
Speaker:affront to whatever the core
Speaker:values are of the organization,
Speaker:you have to make sure that
Speaker:you're either firing people that
Speaker:maybe are not living up to those
Speaker:values, or, doing your best to
Speaker:hire people that fit that mould
Speaker:but can continue to shape the
Speaker:culture in positive directions
Speaker:going forward. It is something
Speaker:that the moment you stop paying
Speaker:attention to your culture for
Speaker:even a month, you can see a
Speaker:degradation of decision-making,
Speaker:of talent, of community, of
Speaker:alignment. We spend a lot of
Speaker:time on that.
Speaker:Who are some of the tech leaders
Speaker:or business leaders that you
Speaker:look up to?
Speaker:The cool thing is that there's a
Speaker:plurality of cultures that are
Speaker:in the tech community. There's
Speaker:one of everything in this
Speaker:industry. There's a hyper-
Speaker:secretive approach to building a
Speaker:business, and that's Apple.
Speaker:There's a hyper-transparent, and
Speaker:I'd say relatively collaborative
Speaker:approach, which is Google.
Speaker:There's a hyperdata decision-
Speaker:oriented type of culture like
Speaker:Amazon. There's a very values-
Speaker:driven-oriented culture like at
Speaker:Salesforce. You try and pick
Speaker:and pull different parts of
Speaker:those cultures that you respect
Speaker:for you that you think align to
Speaker:who you are as an organization.
Speaker:We've learned a lot over the
Speaker:years from Marc Benioff or Tim
Speaker:Cook on the value-oriented
Speaker:nature of building a business.
Speaker:We try and live up to having a
Speaker:culture that cares, again, about
Speaker:the values of the employees and
Speaker:of the organization. At the
Speaker:same time, we probably are not
Speaker:as hyperdata-driven as Amazon.
Speaker:We're probably a bit more like a
Speaker:Facebook or a Google, where
Speaker:we'll make a bet on a market and
Speaker:we're going to go and drive to
Speaker:build the best product or
Speaker:experience in that market.
Speaker:You're always trying to connect
Speaker:the dots between different types
Speaker:of cultures and different types
Speaker:of business models to create
Speaker:something that works for your
Speaker:organization.
Speaker:I remember I visited you at your
Speaker:office a few years back, and
Speaker:there was such a feeling of this
Speaker:being the headquarters. It's the
Speaker:center of Silicon Valley. I
Speaker:remember you said, "I'd never go
Speaker:up to the city. This my spot."
Speaker:Now, we have this remote,
Speaker:diverse world. How did your
Speaker:culture evolve through that?
Speaker:I don't think I could've been
Speaker:less remote-oriented as a
Speaker:founder. My ultimate dream was
Speaker:if you could have a gigantic
Speaker:warehouse as an office, where it
Speaker:was completely flat. You could
Speaker:see everybody get to everybody,
Speaker:talk to everybody, having
Speaker:hundreds of thousands of people
Speaker:in that type of setup. That
Speaker:would've been my dream state.
Speaker:Now, we're in the exact opposite,
Speaker:where you're on a computer all
Speaker:day long. You don't leave your
Speaker:little room and you're on Zoom
Speaker:calls all day. We've had to
Speaker:adapt. We've been like everybody
Speaker:else, that this has been a
Speaker:curveball that was thrown on us.
Speaker:Two things that prepared us -- I
Speaker:think well, I don't know if
Speaker:better than most, but certainly,
Speaker:well -- one is the way that we
Speaker:operate as a business was well
Speaker:set up for this. Everybody's on
Speaker:Slack. Everybody's on Zoom.
Speaker:Everybody already works in this
Speaker:type of modern way. We have a
Speaker:culture that is built on
Speaker:collaboration, is built on being
Speaker:agile and responding dynamically
Speaker:to events in the market. It's
Speaker:been fairly smooth in unleashing
Speaker:the energy of the organization,
Speaker:pointing it in the right
Speaker:direction, and going out and
Speaker:executing on our mission, even
Speaker:though we've had to adapt to
Speaker:this environment. I don't
Speaker:totally love the remote-only
Speaker:nature of this situation. I
Speaker:would much more prefer that
Speaker:there's more of a hybrid
Speaker:approach, and that's ultimately
Speaker:what we think the future looks
Speaker:like. One where you'll go back
Speaker:to the office for certain things,
Speaker:but you'll have more flexibility
Speaker:to work remotely when you so
Speaker:choose. For now, obviously,
Speaker:we're heads down, trying to get
Speaker:through the health pandemic.
Speaker:If you were to close your eyes
Speaker:and visualize 15 years out
Speaker:future of work with a day in the
Speaker:life of the average worker, 15
Speaker:years out, how's it different?
Speaker:I'd say that 15 years exceeds my
Speaker:ability to predict these things
Speaker:because it could either be
Speaker:everything looks exactly the
Speaker:same, or we're all wearing VR
Speaker:goggles and looking at it at AI
Speaker:dashboards with augmented
Speaker:reality. Let's say timeline
Speaker:aside, post-health pandemic,
Speaker:what we do imagine is that
Speaker:offices are still going to be a
Speaker:pervasive part of workplace
Speaker:culture. People want to get
Speaker:together. They want to work with
Speaker:their colleagues in person. They
Speaker:want to see their colleagues and
Speaker:be able to work on projects or
Speaker:get mentorship. Even just
Speaker:frankly, it's a social fabric
Speaker:that a lot of people are
Speaker:attached to. I don't think the
Speaker:office goes away, but I do think
Speaker:that remote has shown us is that
Speaker:you can be very productive. You
Speaker:can be incredibly effective as
Speaker:an organization with a
Speaker:distributed workforce. There are
Speaker:some companies that have always
Speaker:done that. Now, the rest of the
Speaker:economy, let's say, the 90
Speaker:percent of companies that didn't
Speaker:operate that way previously are
Speaker:now realizing, "Oh, wow, this is
Speaker:actually an effective way that
Speaker:we can run our business." I do
Speaker:think that we're going to enter
Speaker:a hybrid world. Maybe you come
Speaker:in for three or four days a week.
Speaker:Maybe you're able to work
Speaker:remotely. You have longer
Speaker:weekends. You have more flexible
Speaker:hours. I probably think that
Speaker:things don't change as much as
Speaker:we're picturing, because right
Speaker:now, the way that we're working
Speaker:is so much more catalyzed by
Speaker:necessity as opposed to it being
Speaker:voluntary. Once it's voluntary
Speaker:and not being unnecessary, it'll
Speaker:be interesting to see where
Speaker:things settle out on a rolling
Speaker:basis.
Speaker:You're like a Twitter power user
Speaker:extraordinaire. Do you think
Speaker:that's critical as part of the
Speaker:work fabric in the future? How
Speaker:do you think that platform will
Speaker:change?
Speaker:No, I do not think it's critical
Speaker:to that in the future. Twitter
Speaker:is a fantastic medium for being
Speaker:able to get your message out.
Speaker:I've had a lot of fun with it as
Speaker:a platform. It's questionable
Speaker:for our democracy. I think it
Speaker:has some challenges. We've seen
Speaker:how it can be exploited for
Speaker:negative outcomes. I consider
Speaker:Twitter to be almost entirely a
Speaker:personal use case.
Speaker:What other personal things you
Speaker:try to do for fun?
Speaker:I don't have a long list of
Speaker:hobbies, but I do have 18-month-
Speaker:old kid that we're having a lot
Speaker:of fun with. That's where most
Speaker:of my discretionary time is
Speaker:going into. That's been a blast
Speaker:at this point. Other than just
Speaker:working and trying to grow the
Speaker:business, I'm not doing too much
Speaker:else right now.
Speaker:How's your magic coming?
Speaker:I'd say that there's
Speaker:been fewer audiences for magic
Speaker:during a pandemic. I've sold out
Speaker:in my skill level.
Speaker:Do you have audio-only magic
Speaker:tricks?
Speaker:I don't. I'm not a big fan of
Speaker:number. I guess you can have
Speaker:somebody guess a word or
Speaker:something, but I don't think I
Speaker:can pull it off right now.
Speaker:Nice. Aaron, this is fantastic.
Speaker:I really appreciate you spending
Speaker:the time discussing the future
Speaker:of work and sharing your passion.
Speaker:Thanks so much, man.
Speaker:Awesome. Thank you.
Speaker:On the next episode of "Decoding
Speaker:Digital."
Speaker:Anybody can be a change maker.
Speaker:It's really remarkable when you
Speaker:see the power of the individual,
Speaker:the impact that an individual
Speaker:can make on the planet in their
Speaker:community. You can be a
Speaker:changemaker that uplifts you,
Speaker:uplifts people around you, and
Speaker:build a better society, a better
Speaker:community.
Speaker:CEO of LightSpeed, one of the
Speaker:fastest growing commerce
Speaker:companies, Dax Dasilva. Thanks
Speaker:for listening to Decoding
Speaker:Digital. Make sure you never
Speaker:miss an episode by subscribing
Speaker:to the show in your favorite
Speaker:podcast player. To learn more,
Speaker:visit decodingdigital.com. Until