Fireside Chat With Sequoia Capita's Jim Goetz | Summary and Q&A

Summary

In this panel discussion, Jim Goetz and Nir Zuk discuss the potential of enterprise companies and why they believe there is a great opportunity for disruption in the enterprise space. They talk about the advantages that enterprise companies have compared to consumer companies, such as their well-established business models and the ability to focus on active usage and design. They also highlight the importance of innovation and disruption in the enterprise market and how smaller companies are better positioned to disrupt the industry. They also discuss the benefits of going public and the potential for future IPOs in the enterprise space.

Questions & Answers

Q: What do the panelists think about the title of the panel, "Revenge of the Enterprise"?

Jim Goetz believes that the title of the panel is interesting and believes that the enterprise space is often overlooked by entrepreneurs. He points out that there have been more IPOs in the enterprise space than in the consumer space in the last 10 years, indicating the potential and opportunities in the enterprise market.

Q: What advantages do enterprise companies have compared to consumer companies?

Enterprise companies have several advantages, according to Nir Zuk. One advantage is their well-established business models, which make it difficult for legacy incumbents to compete. Enterprise companies also have the advantage of being able to focus on active usage and design, taking best practices from consumer companies. Additionally, enterprise companies often have fewer competitors compared to consumer companies, making it a more open market.

Q: How do the panelists view the IPO market for enterprise companies?

Jim Goetz believes that the IPO market for enterprise companies will be robust in the coming years. He highlights the recurring business model of enterprise companies and the predictable revenue stream, which makes them attractive to investors. Nir Zuk also believes that there will be a healthy IPO market for enterprise companies due to the value created after going public, as seen with other successful enterprise IPOs.

Q: What makes Palo Alto Networks successful as an enterprise company?

Nir Zuk attributes the success of Palo Alto Networks to their disruptive approach. He believes that only small companies can disrupt a market, and Palo Alto Networks was able to disrupt the network security market by focusing on securing applications beyond just email and web traffic. He also mentions the importance of creating a culture that allows for innovation and building new products.

Q: Are there any markets in the enterprise space left for disruption?

Nir Zuk believes that there are still many opportunities for disruption in the enterprise space. He mentions storage, Bring Your Own Device (BYOD), next-generation data centers, and cloud delivery as some of the areas that are ready for disruption. He believes that there is always a place to disrupt in any market and that entrepreneurs should find a big market that is ready for disruption and create a new market out of an existing one.

Q: Is Palo Alto Networks afraid of being disrupted?

Nir Zuk acknowledges the risk of being disrupted as a public company. However, he believes that Palo Alto Networks has built a culture of innovation and embracing disruption. He mentions that they have created a product and company that allows for new innovation to be built on top of existing ones, which helps them stay ahead of potential disruptors.

Q: Are there any public enterprise companies that continue to innovate like startups?

Nir Zuk mentions that Palo Alto Networks and F5 Networks are examples of public companies that continue to innovate like startups. He believes that these companies have been able to remain innovative due to their culture and focus on building new products. He also mentions other public enterprise companies that he admires for their business innovation.

Q: Do the panelists think it is important to have a college degree in order to succeed in the enterprise space?

Nir Zuk, who did not graduate from college, believes that having a college degree is not necessary to succeed in the enterprise space. He points out that it is more important to have the right knowledge and skills. He mentions his own experience in the military and how he learned more there than he would have in college. Jim Goetz adds that it depends on the individual and their expertise and experience.

Q: How did Nir Zuk teach himself programming?

Nir Zuk taught himself programming when he was in fifth grade, using a computer that his friend had. He started by programming on a Spectrum ZX computer and continued to learn and develop his programming skills from there.

Q: What inspired Nir Zuk to start Palo Alto Networks?

Nir Zuk was inspired to start Palo Alto Networks because he wanted to continue building products and innovate in the network security market. He had previous experience at checkpoint and net screen, but he felt that the market was ready for disruption and that there was a need for a network security solution that focused on securing all applications used by enterprises, not just email and web traffic.

Q: What keeps Nir Zuk up at night now that Palo Alto Networks is a public company?

Nir Zuk mentions that he has a great CEO and management team who take care of the day-to-day operations of the business. He mentions that his main focus is on not being disrupted and staying ahead of the competition. He believes that by acquiring startups that align with their roadmap and acquiring disruptive technologies, Palo Alto Networks can accelerate their innovation and distance themselves from their competitors.

Takeaways

In this panel discussion, it becomes clear that the enterprise market presents significant opportunities for disruption. The advantages that enterprise companies have, such as established business models and a focus on active usage and design, make this an appealing space for entrepreneurs and investors alike. The panelists believe that the IPO market for enterprise companies will be robust in the coming years, thanks to the recurring business models and the potential for value creation after going public. They also emphasize the importance of innovation and disruption in the enterprise space, and the need for smaller companies to take on the incumbents. Overall, the panel discussion highlights the potential and untapped opportunities in the enterprise market.