Having a culture of yes

Key to fostering a company wide culture of innovation is management’s willingness to say ‘yes’ says AWS CEO Andy Jassy

One of the biggest impressions from the AWS Re:Invent conference is the company’s rapid innovation with the firm’s executives boasting how they have offered over a thousand features on their services this year.

That sort of rapid change requires a fairly tolerant attitude towards new ideas and risk, which was something AWS CEO Andy Jassy explained at the media briefing.

“In a lot of companies as they get bigger, the senior people walk into a room looking for ways to say ‘no’. Most large organisations are centrally organised as opposed to decentralised so it’s harder to do many things at once,” he observed.

“The senior people at Amazon are looking at ways to say ‘yes’. We don’t say ‘yes’ to every idea, we rigorously assess each on its merits, but we are problem solving and collaborating with the people proposing the idea so we say ‘yes’ a lot more often than others.”

“If you want to invent at a rapid rate and you want to push the envelope of innovation, you have to be unafraid to fail,” he continued. “We talk a lot inside the company that we’re working on several of our next big failures. Most of the things we do aren’t going to be failures but if you’re innovating enough there will be things that don’t work but that’s okay.”

While Amazon’s management should be lauded for that attitude, they are in a position of having tolerant investors who for the last twenty years haven’t been too fussed about the company’s profits. Leaders of companies with less indulgent shareholders probably can’t afford the same attitude towards risk.

There’s also the nature of the industry that AWS operates which is still in its early days, sectors that are far more mature or in declines – such as banking or media respectively – don’t have the luxury of saying ‘yes’ to as many ideas as possible.

Jassy’s view about encouraging ideas in the business is worth considering for all organisations though. With the world changing rapidly, having a workforce empowered to think about new ideas is critical for a business’ survival.

Regulation and technology

It’s often easy to underestimate the effects of regulation on the development of industries and innovation.

It’s often easy to underestimate the effects of regulation on the development of industries and innovation.

Around the world jurisdictions are struggling with balancing regulation and innovation, last week in the UK Uber lost an employment tribunal case 0ver the employment status of its employees . While in Switzerland the country is struggling with rules over Blockchain as the nation tries to build a ‘Crypto Valley’.

Striking the right balance in regulation isn’t trivial. As the development of Silicon Valley’s finance models shows, government rules were critical to how the venture capital sector has evolved.

The US Small Business Investment Act of 1958 was the first step in the sector’s development with the creation of “Small Business Investment Companies” (SBICs) to fund and manage smaller enterprises in the United States. In 1978 the sector received a greater boost when pension funds were allowed to invest in the sector.

We’re now seeing a similar thing happening in the US where the Digital Millennium Copyright Act – a law passed to protect the Twentieth Century business models of record companies and movie studios – is being softened to allow end users to examine and maintain the software on the devices they own.

If the trial is allowed to become permanent, it will almost certainly see a far freer and innovative software environment which may even help overcome some of the security problems with the Internet of Things.

Often though that balance isn’t correctly struck and recently we’ve seen many poor decisions that have concentrated power, particularly in the financial and airline industries where governments have allowed huge conglomerates to dominate their markets which stifles innovation and growth.

Those innovation stifling regulations though don’t guarantee companies’ survival as the taxi industry discovered. Despite reams of laws and regulations protecting their licenses, Uber effectively blew up the business as they offered travellers a far better option to the often poor services provided by local cab companies.

Regulation is always going to be a balancing act between protecting the community’s interest and allowing business and society to evolve. It’s one reason why as citizens and taxpayers we need to be demanding our governments are open and transparent in their dealings and law making.

Building a billion dollar business

Therese Tucker, founder and CEO of accounting automation service Blackline, has some useful lessons on building a new business

Last week accounting automation service Blackline listed on the NASDAQ stock exchange with a valuation of over a billion dollars.

The listing was a triumph for the company’s founder and CEO Therese Tucker who started the company in 2005 after a client asked her to find a way to manage the ten thousand spreadsheet their firm used for accounts reconciliation.

We spoke to Therese last year during a visit to Australia where she described some of the challenges of building a business.

Therese’s journey is an interesting, and inspiring, tale of how you don’t have to be a twenty something white guy to build a billion dollar tech business. Her story is worth listening to.

An entrepreneur’s journey – a conversation with Muru-D’s Ben Sand

From a scrappy and underfunded inner Sydney startup to Silicon Valley and back, Muru-D’s Ben Sand has a fascinating entrepreneurial journey

As part of Telstra’s Muru-D business accelerator opening its latest startup intake this week, Annie Parker and Ben Sand, the organisation’s co-founder and Entrepreneur in Chief respectively, spoke to a small group of journalists on Tuesday about what they were looking for in the next batch of applicants and how the tech startup sector is changing.

Ben’s entrepreneurial journey from a scrappy, underfunded Aussie startup to a hot Silicon Valley property and back to a corporate incubator is an interesting tale in itself.

His first venture, an edu-tech startup called Brainworth founded in 2010, operated out of a dilapidated inner city Sydney terrace. The business acheived traction and Ben’s team won a ScreenNSW interactive media grant two years later.

Failing the Kickstarter test

Ultimately Brainworth petered out after missing a Kickstarter round. As Ben says, “I focused on getting out the maximum viable model rather than the Minimum Viable Model and the money ran out.”

As Brainworth withered away, Ben joined former university friend, Meron Gribetz at his Augmented Reality startup Meta which went onto join the Y Combinator program. The company went on to attract $23 million dollars in investment, primarily from Hong Kong and Chinese investors, and now has 150 employees.

Earlier this year, Ben returned to Australia after seeing Mick Liubinskas’ blog post about moving to the United States. In that article, his predecessor put out a call out for those interested in replacing him at the Sydney office which Ben answered.

Australian advantages

Now firmly settled into his Sydney role, Ben sees computer vision as one of the biggest opportunities in the tech sector. Bringing together disparate technologies like virtual and augmented reality, artificial intelligence and smart sensors, computer vision allows machines such as autonomous vehicles, drones and medical diagnostic equipment to pull together sources of data that lets machines see what is going on in the world around them.

Computer vision is a field where Australia has an advantage, Ben believes. “Adelaide is the second most funded city in the world in computer vision,” he points out with investments like Cisco’s into South Australia’s Kohda Wireless driving the local industry.

Ben and Annie don’t see the next group of Muru-D applicants being restricted to any one field despite Ben’s background in AR and interest in machine vision. “It’s more the psychology of the founders,” he says.

Mentoring the next wave

Three years of experience is also delivering dividends, observes Annie. “I’m starting to see the early cohorts starting to mentor and support the newer ones. That’s part of what Muru-D is part of, creating the ecosystem.”

Over the three years, there’s also been quite a few adjustments to the Muru-D process, Annie observes. “We change the model each year by about thirty percent.” she says.

Another thing that has changed is that later stage startups can apply for the program which will be open until November 4.

“I’m excited and I’m very confident we’re going to get great outcomes for these people,” says Ben of the next Muru-D cohort. “We’ll be working on getting the most confident founders on board and hopefully helping them to aim high.”

ABC Nightlife – building the businesses of the future

What can we do to build the next generation of businesses?

This Thursday night join Dom Knight and myself on ABC Nightlife to discuss what tools you can use to start or improve your business and how can we encourage more people to have a go.

Last week the last Australian car making jobs finished and a survey of the Geelong Ford workers found only one percent were interested in starting a new business.

If you missed the spot, you can listen to the podcast through the Nightlife website.

Despite the reluctance to start new businesses it’s never been easier to do so with a range of tools making it simpler to run one. Tonight on the Nightlife we look at some of those tools and what we can do to encourage more people to have a go at running their own companies.

For the program, I’ve a compiled a list of tools businesses should be using. It certainly isn’t exhaustive or definitive and if you have any suggestions on better or newer tools, I’ll be happy to add them.

Some of the questions we cover on the program include;

  • who ran the survey of motor industry workers?
  • what were most of them going to do?
  • so what sort of businesses can these workers go into?
  • what programs are being offered to these workers?
  • how has starting a business changed over the past twenty years?
  • is the focus on tech startups intimidating people who might want to start a business?
  • what are the basic tools every business should have?
  • a few years ago social media was all the rage, does it matter any more?
  • what’s the number one advice for anyone thinking of starting a business?

Join us

Tune in on your local ABC radio station from 10pm Australian Eastern Summer time or listen online at www.abc.net.au/nightlife.

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

You can SMS Nightlife’s talkback on 19922702, or through twitter to @paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.

Speaking American – learning the language of Silicon Valley

While the business cultures of the US and Silicon Valley may look familiar, they are very different to other communities warn Australian startup founders

This is the last of four stories I did for The Australian on why entrepreneurs are making their way to the United States’ Bay Area.

“It is a very good time to be Australian in America,” says Dr Catriona Wallace , the Sydney based founder of Flamingo Customer Experience. Despite that goodwill she and those who’ve made the move to the US have found the ways of doing business in the two countries can be quite different.

US decision making processes are one trap, Wallace observes. “Americans will say ‘yes, yes, yes then no’, whereas Australians will say ‘no, no, no then yes,’“ she told The Australian. “I had to learn that an enthusiastic “Yes” from an American is an expression of their interest and intention, not necessarily an action that can be followed through.”

Swinging for the fences

Casey Ellis, who relocated his Sydney security startup Bugcrowd to San Francisco in 2013, finds the scale of ambitions are a key difference between the two countries. “Americans are comfortable with those who swing for the fences whereas Australians aren’t.

“I had a million dollars committed already but people weren’t buying my execution because the way I was selling it was that I had it all figured out, which is what I’d been taught what to do in Australia – we’ve figured how to make sausage machine then the key to making more money is to build a bigger handle and crank out more sausages.”

The reality though is different in the United States warns Ellis. “If I’m pitching like that to VCs over here they’re like ‘we like what you’re doing but your vision is too small.’ I always had a big vision for Bugcrowd but I’d been taught not to put that at the front. In the US you put the vision first and the execution follows.”

Figuring out the differences

“I spent some time trying to figure out why it is different,” Ellis reflects. “If you think about it Australia is a country was formed by a bunch of people who were thrown out for stealing stuff, dropped on a rock and told to figure it out, so we’ve got this incredible culture of troubleshooting and innovation but we’ve also got this tall poppy syndrome of ‘don’t stick your head out too far.’ That’s a very strong cultural feature of Australians and how they interact.”

“If you bring that over to America you will fail because this country was formed by entrepreneurs who set out to find a new land,” Casey concludes. “It’s not about saying Aussies are meek, they’re not, but Americans are completely comfortable with swinging for the fences and Australia’s aren’t.”

Peter Grant of Safesite warns not to overplay the Paul Hogan persona. “Coming from Australia is a novelty but you can’t play the dinky di Aussie card, you have display professionalism and represent you are serious about being a US company and serving the US environment,” he told The Australian. “Americans are a lot more accepting of risk and have a fear of missing out on the next big thing.”

“The country is founded upon going out and doing your own thing and being a maverick, so they are a lot more accepting of risk and have a bit more of a fear about missing out on the next big thing, “ Grant explains. “We’ve developed a strategy of saying ‘we’re working on this, this is going to happen and we’re talking to your competitors.’ That seems to work.”

Watching the clock

One respect where Australians’ laid back attitudes come unstuck is in time keeping warns Flamingo’s Wallace, “Americans are super punctual. Conference calls typically start 5 mins before the hour rather than 10 minutes after as it would in Australia. Meetings finish at quarter before the hour so people can get to the next meeting 5 minutes early.”

“If people are delayed and get to a meeting a few minutes late they will apologise profusely for several minutes and then apologise again at the end of the meeting. American’s will warn of the need to finish a meeting at a certain time by saying, “I have a hard stop at quarter before”

Humour lapses

Another difference is the sense of humour, Dr Wallace warns. “Americans typically are not funny in business as we Australians are. There is not much joking in meetings. I once used the enormously funny expression of, ‘That customer experience would have been like having a hot chicken blood enema!’.”

“Instead of this being outrageously funny I was surrounded by a group of 10 executives whose mouths hung open in shock that I had just said something like that. The meeting tanked from there on….”

“All this being said, the American business community love Australians,” Wallace concludes. “They find us hard working, great at relationships, good at navigating politics, honest, authentic and transparent. In some ways they aspire to be more like us. We cut through the bollocks – although they don’t understand that word – or bullshit and get things done. Americans like that. We are generous. They like that too.”

California dreaming – following the startup trail

The flow of startups to Silicon Valley is a modern gold rush. Why are entrepreneurs making their way to the Bay Area?

Earlier this year I did a series of four stories for The Australian on why startups see Silicon Valley’s Bay Area as the best base for their businesses.

From the interviews there were a number of reasons for that migration and it was a fascinating exploration of what drives the development of today’s tech industry along with how a global industrial hub maintains its position.

The stories feature a diverse bunch of founders and businesses which in themselves are interesting tales.

  1. A gold mine in your backyard – why entrepreneurs make the move
  2. Just doing it – the road to Silicon Valley
  3. Maintaining the home base – why many startups don’t fully move to Silicon Valley
  4. Speaking American  – understanding the Silicon Valley language

Just doing it – the road to Silicon Valley

For business founders thinking about moving to Silicon Valley the advice is ‘just do it’ from those who’ve done it.

This is the second of four stories I did for The Australian on why entrepreneurs are making their way to the United States’ Bay Area.

“Get over here as quickly as you can. Don’t worry about being ready, feeling fully baked or whatever,” says Bugcrowd founder Casey Ellis. “Do whatever you can to get a ticket over here, stay in a hostel and do whatever you need to be here and experience the place.”

Casey Ellis was speaking in the company’s converted warehouse offices just off San Francisco’s Embarcadero waterfront. “Half the price of SoMA,” he smiles while explaining what intending expats should prepare for when moving over to the United States.

Ellis has plenty of reasons to smile as a few weeks earlier the crowdsourced security testing service had announced a successful $15 million fund raising with Australian investor Blackbird Ventures leading the round.

Getting a US base

While he was delighted an Australian investor had lead the funding round, Ellis believed the company had to have a US base from its early days. “One of the reasons for that is if we’re not here, we’re going to be competing with someone who is,” he says.

“When I started going full throttle into BugCrowd, the logic I applied to it was this is either going to fail as an idea or it’s going to move very quickly,” he told The Australian. “If it moves quickly we need to be in a position where we are resourced as well as possible. The place to do it is here.”

“What blew my mind when I got here. I had blinkers on and the move took them off and I’m like ‘there are opportunities here that I hadn’t dreamed of. The reason I didn’t know that was because I hadn’t seen it first hand.’”

Being social

Peter Grant of construction safety service Safesite found social media was a good tool to prepare for the shift to the United States. “If you’re looking at moving at over, but generally speaking you need to make sure there’s a good product and market fit. You need to establish your networks over here, even when I was back in Australia at Muru-D, Twitter was a good way to establish communications.”

“Don’t wait until you get to America, engage with your community and your market as soon as you possibly can. Go onto the webinars, know the language, know the language, know the players – it’s a big country so there’s lots of players. Just start to get involved as soon as you possibly can.”

Founded in Brisbane after Grant found most construction businesses monitored site safety with pen and paper systems, Safesite first moved to Sydney to be part of the first round of Telstra’s Muru-D program. In 2015 he moved to the US as most of the platform’s users were American based and has since set up a network of distribution agents across the nation.

Staying local

“If you’re an organisation like us that needs to be in the US to survive then get over here as soon as possible,” Grant points out. “We have a year on our competitors. If it’s going to be too complex or you already have a profitable business in Australia you may not need to come to the US, you have to be realistic about it. It might make sense to find a local partner.”

Should it make sense to move to the US then it’s important to capitalise on those initial contacts and market research, Grant believes. “When you get over here establish your product market fit and your face-to-face relationships, the dynamic factors that will influence your growth over here.”

The move though doesn’t come without costs he warns, “it can be expensive to set up a business over here so make sure your investors and your legal representation have a full understanding of the implications of what you’re doing and the processes.”

Just do it

Jindou Lee of HappyCo also warns startup founders have to be prepared for some changes when moving to San Francisco. “If you really want to change the world and see your company succeed, get closer to your customers, you need to make sacrifices.“

The founder of real estate inspection app Happy Inspector, Jindou moved from Adelaide to the United States in 2012. After raising three million dollars in funding and being accepted onto the 500 Startups program, the company expanded into general business documentation and renamed itself to HappyCo. “My advice specific to moving to the US is… do it,” he says.

Connecting with the existing networks is also important, “the other piece of advice is to hook up with the different groups that are around,” says Bugcrowd’s Ellis. “The Startmates, the Blackbird folk – figure out who you can get in touch with. People like me who can sherpa you a little bit.” He says “Don’t rely too much on them as you won’t succeed as an entrepreneur if you do, but get a good solid start.”

A goldmine in your back yard

Accessible capital, a huge market and a collaborative culture are why startup founders are making their way to Silicon Valley and San Francisco

This is the first of four stories I did for The Australian on why entrepreneurs are making their way to the United States’ Bay Area. 

A combination of accessible capital, a huge market and a collaborative culture are why startup founders are making their way across the Pacific to Silicon Valley and San Francisco.

Despite their government’s ideas boom and an easier funding climate, Australia’s startups still see San Francisco and Silicon Valley as being the promised land. In this four part series we spoke to Aussie entrepreneurs about why they’ve made the move across the Pacific Ocean.

In a noisy coffee shop just off San Francisco’s Market Street, PixC founder Holly Cardew explains why she moved to the city. “It’s a place you fall in love with straight away – it’s the people and the attitude,” says Cardew. “You can do anything, people don’t look at you as if you’re crazy if you want to do something big.”

Wider horizons

Cardew made the relocation to San Francisco to find funding for Pixc, a photo editing service that in 2014 was one of the first group of startups accepted into Telstra’s Muru-D accelerator program. In moving to the US she found American investors have far wider horizons than Sydney’s business community.

“Investors ask ‘what’s next?’” Cardew enthused, “in Australia, you don’t even think about that. Americans tend to think a lot bigger. Australians aren’t trained to think about it.” Another aspect Cardew highlights about the Bay Area business culture is how individuals are always happy to help out, “people always ask ‘how can I help’ she says.

One of those credited by Cardew and by many of the people interviewed for this is Temando founder Carl Hartmann. In an archetypal open plan shared office in San Francisco’s Financial District Harmann explains why he’s quick to help, “I’m here today because people who were kind enough to pay it forward.”

Being there

Temando, a logistics service founded in Brisbane, was started to address the difficulties retailers had in fulfilling customers orders across Australia. Hartmann moved to the United States at the beginning of 2015 to access North American customers and to tap local capital markets. “When you talk to the SV funds it’s very hard to raise money if you aren’t here,” he says. “In Silicon Valley it’s where the action is. If you’re not here you are out of sight and out of mind.”

“It’s difficult to build those sort of relationships from the other side of the world. When you’re here, things can move along quickly because it’s easy to collaborate on things. It’s easier to work face to face. For us it makes sense to be here,” Hartmann says. “There’s a unique energy where everyone has come from all over the world.”

Jack Gonzales of location mapping service MapJam is an example of how fast things can move for companies in the Bay Area. “Last year we were approached by some of the big players who asked if we had our own map tiles,” he recalls. “We realised we had an opportunity.”

Gonzales was speaking at the somewhat chaotic San Francisco campus of 500 Startups across from the city’s Moscone Convention Center. Mapjam was accepted onto the prestigious startup investment and acceleration program last year.

A goldmine in your backyard

“You have a goldmine in your local backyard and you have to capitalise on that. Sometimes it’s really spontaneous, ‘hey can you guys come in on Friday?’ You can’t do that when you’re overseas,” Gonzales says. “Our main customers are here and I really want to conquer the backyard before I conquer the globe, just within walking distance from here there are thirty major players.”

Australia does have some advantages for startups, particularly in labor costs for skilled developers. “It’s three times more expensive to employ staff in the Bay Area,” says Affinity Live’s Geoff McQueen in explaining why he’s kept the company’s technical team in the firm’s home town of Wollongong

McQueen, who moved to San Francisco in 2011 to seek funding for his venture believes “Australia is a good place to do a minimum viable product or proof of concept” and warns budding entrepreneurs to have more “than just just a PowerPoint pitch” when they decide to make a permanent move.

In McQueen’s view it’s important to at least visit the Bay Area early in the process of developing a business. “Come over as soon as you can – even if you only have a light idea,” he says. “Anchor your visit around a conference, whatever is relevant to your target industry.”

Achieving your aims

Despite not finding gold on San Francisco’s grubby streets, most of the entrepreneurs The Australian interviewed were all happy they’d achieved their aims in moving to the US which vary from easier funding availability, access to bigger markets and a more vibrant ecosystem than those in Sydney, Melbourne or the smaller centres.

Ultimately though everyone mentions the supportive nature of the Bay Area’s startup culture, “people ask what can I help you with,” says Pixc’s Cardew. “You can do anything, people don’t look at you as if you’re crazy if you want to do something big.”

Breaking the small business drought

The small business sector is essential to the broader economy’s health and diversity but in many countries it’s shrinking. How do we reverse the trend?

In most developed countries the small business community is shrinking. What can governments and communities do to grow what should be the most vibrant sectors of their economies?

What happens when a whole industry shuts down overnight? Australia is about to find when its motor industry effectively comes to an end this week.

The fallout for the workers is expected to be dramatic with researchers reporting the soon to be laid off staff being totally unprepared for their predicament.

So worrying is the predicament of those auto workers that Sydney tech incubator Pollenizer is offering small business workshops for laid off workers.

Those workshops will be needed. One of the striking things about the research is just how few of the workers are interested in launching their own ventures despite their poor employment prospects in other industries.

australian_ford_workers_employment_intentions

While the auto workers are a group with relatively low levels of education and work experience, their reluctance to starting a business is shared by most Australians with the nation’s Productivity Commission 2015 enquiry on business innovation reporting the number of new enterprises is steadily falling.

australian-business-exits-and-entries

Despite Australia’s population increasing twenty percent since 2004, the number of new business is falling. The country is becoming a nation of risk averse employees, something not unsurprising given the nation’s crippling high property prices which puts entrepreneurs at a disadvantage.

Australia’s reluctance to set up new ventures isn’t unique, it’s a worldwide trend with most countries not having recovered since the great financial crisis.

The tragic thing with this small business drought is that it’s never been cheaper or easier to set up a venture as  Tech UK and payment service Stripe show in their list the software tools being used by ventures.

Accessibility of tools or even government taxes and regulation isn’t the barrier in Australia. As the World Bank reports, the country is the eleventh easiest place in the world to start a new venture.

In United States experience shows there’s a range of other factors at work dissuading prospective small business founders – interestingly the United States comes in at a mediocre 47th as a place to start a venture in the World Bank rankings.

A healthy and vibrant small business sector is important to drive growth and diversity in the broader economy. The challenge for governments and communities around the world is to find a way that will spark the small business communities, in a world awash with cheap capital that shouldn’t be impossible but we may have to think differently to the ways we are today.

Tools for new businesses

What are the basic online tools for business? Here’s a quick list on what small and startup businesses can use to get online quickly and cheaply.

What are the basic online tools for business? Here’s a quick list on what small and startup businesses can use to get online quickly and cheaply. This list will be updated regularly and please let us know if there’s anything we should add.

Email

Gmail

Documents

Google Docs

Microsoft Office 365

Open Office

Storage

Google Drive

Dropbox

Box

Websites

Blogger

Wix

WordPress

Accounting

Xero

Saasu

MYOB

Social media

Google My Business

Facebook

LinkedIn

Collaboration

Slack

Trello

Jira

Basecamp

Messaging

What’s App

Workplaces @ Facebook

Google Hangouts (being depreciated)

Analytics

Google Analytics

KissMetrics

Tableau

Customer support

Zendesk

Desk.com

Payments

PayPal

Stripe

 

 

 

 

Data and the modern movie producer

WETA Digital shows the way on how other businesses will have to manage data in coming years.

Dealing with the massive wave of data flowing into businesses will be one of the defining management issues of the next decade. One company that is already dealing with this is New Zealand’s Weta Digital.

Wellington based Weta that’s best known for its work on Lord of the Rings and is part owned by director Peter Jackson employs 1400 staff for its movie special effects work and has won five visual effects Academy Awards over its 23 years of operations.

Kathy Gruzas, WETA Digital’s CIO, spoke to Decoding the new Economy at the Oracle OpenWorld forum in San Francisco this week about some of the challenges in dealing with the massive amount of data generated by the movie effects industry.

“We have some very heavy loads.” Kathy states. “We push our systems to the limit.”

Applying powerful systems

One challenge is the sheer computing power required, ‘the render frame processes one frame per server until you have four seconds of footage. Sometimes that takes over night or even longer and for that we use a lot of storage,” Kathy says. “The render farm being six thousand servers will write 60 to 100 terabytes of data a day and read a quarter to half a petabyte each day.”

“We need systems that will be very large to handle the volume of data we generate but also be very quick to handle those read and writes.”

“One render could use a thousand computers, sometimes more, and all of those will be reading and writing against the same block of storage so we have our own software layer that directs those loads but we try to minimise the load on our storage but we have the worst work load you can imagine with lots of servers, lots of small reads and writes and many of them random and concurrent with pockets of hot files.”

Despite the automation, the business is still extremely capital intensive. “In visual effects you probably need at least three hundred artists to work on one film, it’s a very labour intensive process to do the artistry and much like a production line.”

Going mobile

The nature of modern movie production means the effects teams are now part of the shoot which adds another level of complexity for Weta. “Although we are visual effects which is largely post-production we do go out with crews when they’re shooting the movie so we can do reference photography,” says Kathy.

“We do 3D scans so if we need to do something digitally and we do motion and facial capture as well,” she says. “There are 240 muscles that we tweak individually to get the expression. That’s a huge amount of data to capture.”

To do this, Weta created their own ‘road case’ that contains everything they need to grab the shots and store the data they need, “you can’t ask the director retake the shot because we missed something.”

Into the forest

“We have to take the case into the forest and into the rain and everywhere. It’s good having that roadcase that has storage, networking and servers in it.” The case, which was self assembled by Weta’s team is “probably the most travelled Oracle system on the planet,” laughs Kathy with “lots of data capture and sub-rendering.”

Weta’s story illustrates just how managing data is becoming a critical issue for companies. While movie special effects is very much a specialised field that’s far ahead of the curve in its technology use than most businesses, they do show the importance of managing and securing their data.

For other businesses, lessons from Weta is understanding your company’s – including staff and customers’ – needs then investing in the right tools to deliver is essential.

One important difference between technology intensive businesses like Weta and most other organisations is the New Zealand company is doing most of its processing and storage in house. Those without the same needs will almost certainly be shifting these tasks onto the cloud.