The "Rock" of Enterprise Software
SandHill.com speaks to CEO John Chen about how Sybase has managed to not only hold strong but to thrive in the rapidly evolving software ecosystem.
By Maryann Jones Thompson, SandHill.com
Apr. 14, 2008
When John S. Chen took the helm as CEO and president of Sybase in 1998, the enterprise software business was a very different world. Through the past 10 years, Sybase has maintained a low profile as it steadily grew its business to a billion dollars in revenue last year and outlived many of its former rivals as a successful independent vendor.
SandHill.com spoke with Chen about Sybase's strategies for growth, innovation and customer relations, why the company aims to raise its profile in the industry, and why it has not jumped into SaaS with both feet.
SandHill.com: How has Sybase remained independent in the rapidly consolidating software landscape?
John Chen: Everything at Sybase is done with a long-term plan in place which ensures profits, strategic gains and innovation. In the early days, we needed to generate enough cash and profit to seed growth. We then shifted to internationalization and expanding channels - it was all part of the master plan.
Too many companies these days are caught up in the rapid cycles of new technologies and business models and work towards a short-term horizon. Companies should not change for the sake of change or from influence from external forces. Our customers rely on us to keep their interests in mind and to continue to innovate. They aren't going to buy from someone who doesn't have considerable expertise and thought leadership in the market. We recently had a party for employees that celebrated Sybase reaching its goal of a billion dollars in revenue, so our customers must think we're doing things right.
When you see a doctor, the doctor doesn't give you a bunch of choices and ask you to pick the one that sounds best. He or she gives you a diagnosis and a treatment because you're paying for expert advice. Software companies need to be experts for our customers. We absolutely listen to them and work to address their needs but we don't let them drive our business.
SH.com: How does Sybase's domain expertise translate to innovation?
JC: We have never stopped investing in our products and our people. We spend a lot of time in those two areas.
The spirit of innovation continues here. We had to follow our instincts with our enterprise mobility business seven years ago. Critics panned the move and said it would take down the company. In the early days, Sybase's total revenue from embedded mobility software and services amounted to less than $10 million. Now it is at $300 million. Clearly, our expertise helped us realize the opportunity and we pursued it to success.
We also value our employees very highly. Sybase's turnover is low compared to other technology companies. We win a lot of awards for being one of the industry's best employers. We invest in our employees and treat them respectfully.
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SandHill.com spoke with Chen about Sybase's strategies for growth, innovation and customer relations, why the company aims to raise its profile in the industry, and why it has not jumped into SaaS with both feet.
SandHill.com: How has Sybase remained independent in the rapidly consolidating software landscape?
John Chen: Everything at Sybase is done with a long-term plan in place which ensures profits, strategic gains and innovation. In the early days, we needed to generate enough cash and profit to seed growth. We then shifted to internationalization and expanding channels - it was all part of the master plan.
Too many companies these days are caught up in the rapid cycles of new technologies and business models and work towards a short-term horizon. Companies should not change for the sake of change or from influence from external forces. Our customers rely on us to keep their interests in mind and to continue to innovate. They aren't going to buy from someone who doesn't have considerable expertise and thought leadership in the market. We recently had a party for employees that celebrated Sybase reaching its goal of a billion dollars in revenue, so our customers must think we're doing things right.
When you see a doctor, the doctor doesn't give you a bunch of choices and ask you to pick the one that sounds best. He or she gives you a diagnosis and a treatment because you're paying for expert advice. Software companies need to be experts for our customers. We absolutely listen to them and work to address their needs but we don't let them drive our business.
SH.com: How does Sybase's domain expertise translate to innovation?
JC: We have never stopped investing in our products and our people. We spend a lot of time in those two areas.
The spirit of innovation continues here. We had to follow our instincts with our enterprise mobility business seven years ago. Critics panned the move and said it would take down the company. In the early days, Sybase's total revenue from embedded mobility software and services amounted to less than $10 million. Now it is at $300 million. Clearly, our expertise helped us realize the opportunity and we pursued it to success.
We also value our employees very highly. Sybase's turnover is low compared to other technology companies. We win a lot of awards for being one of the industry's best employers. We invest in our employees and treat them respectfully.
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