Pete Grillo: Magic! He puts on the old robes and the pointy hat – the chicken runs around… There are sort of different approaches to this in business. When you come into a business a little bit late and you’re doing it in software often times they’ll provide 80 percent of the value for 20 percent of the price. And you think boy the world is going to just beat a path to your door. That goes up against that perception that if it’s 20 percent of the price it can’t possibly be something of value. But the other side of that is I think the consumer is confused by this wide spectrum of prices.

DMR: Because you can’t immediately put a finger on the benefit that you receive.

Pete Grillo: Yeah. So we’re sort of our own worst enemy with these Cloud services.

DMR: Who are generally your customers? Is it the CIO or the CTO of the media company, is it an employee that signs up ad-hoc? Is there a governing Umbrella over it from corporate management?

Pete Grillo: Oh no. Right now there’s some IT person or marketing person who’s craving this information. It’s not a CEO.

DMR: It’s a department decision which says wouldn’t that be great so we just do it?

Pete Grillo: Yeah. At the price point it’s easy to justify. And we’ve seen that in Wieden + Kennedy where they’re using it on one campaign and then all of a sudden they’re using it on another and now they’re using it in one of their European offices, as I understand. All this stuff is very cool so you want to get into an organization and be viral so everybody is paying $99 or $199 a month, but you’re doing it across ten groups, but everybody is happy, and everybody is getting what they want.

I think a lot of what you’re seeing is expenses versus capital. Operating versus capital, it’s just been done that way for a long, long time, since the dawn of time. There’s a certain level of security in it.

So, amazingly – perhaps reverse of what you think – we’re actually toying with the idea of an archive appliance that we could sell. Google has Google Search Appliance, now in version 6. I don’t have any market numbers nor would they tell me how successful that’s been. But the idea is if we could put a box behind the firewall or a set of boxes and a rack and blade servers or something where we could do everything that we do and it was sort of in an old wrap with a ribbon on it – that could be attractive. So we’re looking at the feasibility of that and starting to talk to some resellers we’re starting to work with and trying to open the government area.