Well we’ve nearly come to the end of 2013 – a *crazybusyrollercoaster* of a year.
As is customary, here are my highlights of the year just passed…
It’s been over three years now since the first Canterbury earthquakes and there are clear signs now of a new city emerging from the rubble. Since Memia’s been based inside the CBD over the last year we have been witnessing high rise after high rise being “nibbled” away at and leaving flattened rubble or just a hole in the ground. At the same time, the first new buildings are nearing completion and signs of life are showing as businesses slowly return to the city centre. There’s a sense of optimism that things will get back to a “new normal” over the next few years – and clear signs that the local economy is starting to crank forward a few gears.
On a personal level, my family completed our house repairs in the first quarter of this year – we’re some of the lucky ones and my thoughts go out to the many people who are still in the queue to be repaired or even to resolve their insurance issues. The waiting and uncertainty takes such a sustained, heavy psychological toll which the rest of the world just can’t understand. Living through these years of earthquake recovery has been life-defining for me.
But…. I’m still confident that the end result will be a city which attracts the best, brightest entrepreneurial talent from around New Zealand and the globe to work hard and play hard. We can be the Boulder of Asia Pacific if we do things right.
One exciting development was Ian Taylor’s spontaneous unveiling at the CECC AGM of a new concept for Christchurch Cathedral Square – although this debate has since been shut down by the landowners (the Anglican Church, jeez) – we absolutely need non-boring iconic architecture to gain global mindshare. So: If this concept doesn’t make it into the central square, why not put it up over Victoria Square as part of the proposed market place, or central to the new Innovation Precinct.
EPIC is Christchurch’s new central city Innovation Campus and Memia’s home – it was great last week to see founders Wil McLellan and Colin Andersen celebrate EPIC’s first birthday in style. The building has lived up to many of its aims and in particular has become the collaboration hub for the city’s innovation, technology and entrepreneurial communities. EPIC’s central location has meant that every week there are regular events held by Ministry of Awesome, Canterbury Software Cluster and many others. This EPIC investment in the city’s young innovators and entrepreneurs will pay off long term.
Christchurch Startup Scene – Class of 2013
The greatest change I’ve seen this year has been the emergence of a new class of startups based in Christchurch. In hindsight I think the earthquakes just pulled the rug out from under any early stage startup activity – this year a cohort of entrepreneurs has emerged which is plain exciting to watch. Here are just a few of the “Class of 2013” startups to watch out for next year.
2013 has seen the continuation of three core technology trends which have been driving the direction of the IT and Software industry for the last few years. A few major developments that I’ve been watching:
Cloud services are now ubiquitous in all areas of consumer and enterprise IT- and has now reached the tipping point that on-premise solution deployment is becoming a rarity. Even the recently published New Zealand Government ICT Strategy ensures that all ICT should purchase IaaS rather than invest capital. The implications of this on corporate IT are raising their heads now with many IT departments needing to rise to the challenge of operating hybrid on-premise and cloud based solutions, maintaining common authentication, security and service levels across a broad application portfolio spread across the internal datacentre and various SaaS / cloud providers. Expect these challenges to get harder before they get easier!
Meanwhile major industry analysts like Gartner will now only include Enterprise ISVs in the Magic Quadrant if they offer On-Premise and SaaS deployment options. Those ISVs who don’t have a core SaaS multitenant architecture and operational capability need to acquire these rapidly to stay competitive in the markets.
Mobile and BYOD
Likewise for ISVs who are still tied to the Windows Desktop, Silverlight or other technologies which don’t translate to iOS or Android: keep up or be prepared to lose share rapidly. While the market share for PC-devices running Windows seems to be holding up, there is a growing demand to provide responsive web applications and native mobile user experience for BYOD users which is just plain hard to do with a legacy codebase. Rearchitect now, before it’s too late.
Everything as a REST API
SOA is dead. Long live REST. From now on, everything is an API – the RESTful HTTP / JSON stack has proven itself to be sufficiently robust, flexible and secure in many consumer, SME and enterprise use cases and from now on these REST APIs rule. Application Management vendors like Apigee and Apiphany provide great capabilities to wrap your enterprise APIs publicly and/or privately APIs and accelerate integration efforts. Still problems with latency for mission critical high usage apps but these will be ironed out over the next few years…
2013 was the year when wearable technology took off. All sorts of bio monitoring, productivity enhancing, lifelogging devices hit the market or pre-launched. The key point to appreciate here is that all these wearable devices are actually just sensors attached to your Personal Cloud – how to store and what to do with all this data are the next big questions.
Kickstarter Launches In NZ!
Towards the end of the year Kickstarter launched in New Zealand.
Really impressed by the team at Quebee from Auckland – their mobile digital camera offering has been getting lots of coverage and they’re nearly there on their Kickstarter campaign.
Also, Scott and the team from Linewize had a brief foray into Kickstarter earlier this month.
I’m looking forward to seeing more Kiwi startups using this funding platform to get off the ground next year. If anyone’s interested in “how” – let us know and let’s see if we can get some of the early pioneers and the Kickstarter team themselves to do a presentation in early 2014.
Understanding the SaaS Industry
Perhaps the biggest advance for me personally this year has been the rapid maturing of a common understanding of the core metrics of the worldwide SaaS industry – and recurring revenue businesses in general. This year I’ve put out a few posts on the online literature in this space, but to repeat myself here are the best resources for your Christmas reading!
David Skok – For Entrepreneurs SaaS Metrics 2.0 – (Rewritten Jan 2013) A Guide to Measuring and Improving What Matters
Bessemer Venture Partners – 10 Laws of Cloud Computing
Kissmetrics – The 5 “Must Have” Metrics for Your SaaS Business.
Dave Kellogg – What Drives SaaS Company Valuation? Growth!
Christoph Janz – A KPI dashboard for early-stage SaaS startups – new and improved!
Canterbury Software Summit
Another highlight (as part of my erstwhile role as Chairman of the Canterbury Software Cluster) was to hold yet another successful Canterbury Software Summit event. This year we had to close down registrations once we’d hit the venue limit of 530(!) – over 20 speakers in four streams and great keynotes from Claudia Batten and Wynyard CEO Craig Richardson, a new trade show and it was just great to see our local tech industry in such fine shape! I’m looking forward to serving on the Cluster committee in 2014 under new chairman Geoff Brash – let’s see what the next year holds.
The New Zealand ICT Industry is Booming
And not just in Canterbury but across the whole of New Zealand the ICT industry is booming. The latest TIN100 report reveals that NZ’s IT Export sector is now worth over $5Bn per year – and growing at >3% per year.
This year’s inaugural New Zealand Tech Innovation Week conference in Auckland was fantastic – look forward to the repeat in 2014.
Check out the superb stock market performances of Xero, SLI Systems, GeoOp, Wynyard Group, Snakk Media (and even Diligent once they sort out their accounting systems….). Also other privately held high flyers like Vend and Vista.
Who’s next? Plenty of new talent coming through but my pick for next year would include ARANZ Geo, makers of the Leapfrog 3D geological modelling system: stellar growth over the last couple of years has led to revenue growth of 42% to nearly NZ$12M in FY13 – with more to come I expect. Also watch out for Christchurch software development superstars Trineo making it into the top rungs of the Deloitte Technology Fast 500 Asia Pacific.
Best Science Fiction of 2013
OK so that’s enough about work. In between it all this year I managed to get stuck in to some great books – mostly sci fi as usual, here are my recommendations.
Nexus by Ramez Naam – great near-future action novel about what happens when you can hook into a group mind…
The Owner Series – Neal Asher. Believe me this is not for the faint hearted – a dark, dark future vision of humanity’s near future, but gripping from start to finish.
2013 also saw the sad departure of literary genius Iain [M.] Banks, a local to my previous hometown Edinburgh. Banks spanned both contemporary fiction and science fiction, and has left a huge legacy with the Culture series. His last Culture book, The Hydrogen Sonata, replays common themes and explores the mysterious concept of “Subliming” (basically when an entire galactic civilisation in the Real decides to migrate en masse into the Sublime (the hidden dimensions of the universe…) . Mind expanding.
Best Science Fact
Some may argue with the “fact” bit, but Ray Kurzweil’s book How to Create A Mind which he released this time last year is pretty thought provoking. Do you think of yourself as a massively redundant hierarchical pattern recognition machine? Maybe you will after reading this…
Best TV Drama
Also managed to enjoy some superb TV Drama this year, including:
(but READ THE BOOKS first!!!)
And from my wife’s descendant homeland Denmark comes this high quality political drama (although it takes itself slightly too seriously…) based on the country’s (fictional) first female Prime Minister. Currently just starting Series 2 – Series 3 to come…
Best Movie of 2013
Hardly got to see any films this year, *too busy*. Gravity wins by default.
Coolest Quadcopter Juggling
OK this is one of the coolest things ever – juggling a fleet of quadcopters using a Microsoft Kinekt.
Coolest Johnny Depp Movie about the Singularity coming in 2014
And I just saw the first trailer for next year’s Transcendence movie come out. Bring it on.
Have a totally relaxing holiday break and we look forward to seeing you refreshed and ready in 2014!
I’m off to the beach. 🙂