Joshua Feinberg discusses the viability of starting a cloud hosting or cloud company, emphasizing the importance of targeting narrow, underserved niches that large providers like Microsoft, AWS, and Google are missing.
He advises against direct competition with these incumbents due to their substantial resources, suggesting instead a strategy of vertical focus to avoid commoditization.
Feinberg highlights the necessity of thorough product and user research to identify market gaps and tailor offerings.
He also stresses the importance of strong product management and technical leadership before engaging in marketing and sales. This ensures that resources are allocated effectively to R&D and engineering to succeed in the competitive market.
This video is excerpted from the podcast Ep. #59 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast.
Action Items
- Conduct in-depth product and user research to identify underserved cloud hosting/services niches.
- Determine the product roadmap and service capabilities to deliver a differentiated offering in the chosen niche.
- Create a strategy to build awareness, consideration, and decision-making among the target customers in the selected niche.
Outline
Niche-Focused Cloud Hosting Strategy
- Joshua Feinberg discusses the argument on LinkedIn about the viability of starting a cloud hosting or cloud company, emphasizing the need to focus on a narrowly defined niche.
- He advises targeting underserved niches that large incumbents like Microsoft, AWS, and Google are missing, to avoid direct competition with well-established players.
- Feinberg highlights the importance of becoming the expert in a niche's specific cloud services and digital transformation.
- He mentions the necessity of substantial capital to compete horizontally with large providers, suggesting a more strategic approach to avoid commoditization.
Vertical vs. Horizontal Colocation Strategies
- Joshua Feinberg introduces the concept of horizontal colocation companies (holos) and vertical-focused colocation companies (volos) from a previous webinar.
- He explains that without significant venture backing, it is wiser to focus on vertical niches where there is dissatisfaction with incumbents.
- The discussion includes the importance of product and user research to identify gaps and tailor offerings to meet specific user needs.
- Feinberg emphasizes the need for strong product management and technical leadership before engaging in marketing and sales efforts.
User Research and Product Development
- Joshua Feinberg stresses the importance of understanding user needs through extensive product and user research.
- He advises using user interviews as part of the product development process to identify what users cannot get from large providers.
- The conversation highlights the need for a focused approach to creating a compelling value proposition for user needs.
- Feinberg mentions the importance of having a clear product roadmap and service capabilities to differentiate from incumbents.
Focus on User Journey and Marketing
- Joshua Feinberg discusses the importance of staying engaged with users throughout the entire buyer's journey.
- He emphasizes the need for a product management and technical team to understand user needs to succeed.
- The conversation includes the idea of combining user interviews with marketing efforts like podcasts to gather user feedback.
- Feinberg highlights the importance of focusing on user needs to create a successful cloud hosting or digital infrastructure company.
Investment in R&D and Engineering
- Joshua Feinberg advises investing in research and development, developer dollars, and engineering to succeed in cloud hosting.
- He emphasizes the need for a strong technical team to understand user needs and drive product development.
- The conversation includes the importance of having a clear strategy for R&D and engineering investments to stay competitive.
- Feinberg highlights the need for a focused approach to user needs to create a compelling value proposition and differentiate from incumbents.
Resources
Watch the full podcast Ep. #59 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast
- Connect with Joshua Feinberg, CEO at DCSMI, on LinkedIn
- Follow DCSMI on LinkedIn
- Follow the Data Center Go-to-Market Podcast on LinkedIn
- Learn About DCSMI
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