Archive
Mossberg's feeling Smug
Walter Mossberg recommends SmugMug in last weeks Mossberg’s Mailbox. There’s a lot of pain with many online photo-sharing sites, especially because many of them will hold your original photos hostage and delete them with little-to-no notice. I’m honored that he would recommend us to anyone feeling the pain from sub-par photo-sharing sites.
You see, Walt Mossberg is the world’s premiere technology journalist because he’s different. Instead of approaching technology from a geek’s point of view, where the technical specs, the buzz, and what the technology is supposed to accomplish is king, he approaches it from a consumer’s point of view: how well does it work, how easy is it to use, and how reliable is it. And then he tells you how it really is, no holds barred.
Pillars of the tech world such as Steve Jobs and Bill Gates hang on his every word. AFAIK, he’s the only one to actually get them on stage together at the same conference. For the record, he doesn’t pull any punches at D, either – he asks the hard questions that actual consumers would ask if only they could get their hands on Steve or Bill for a few minutes.
I remember sitting in his office last year, watching him nod his head and resonate with much of what we had to say. It was thrilling. But the best part came when he asked us the really hard questions. The kind that make me want to rush back to the office and feverishly work on improvements right that second. The one I remember most was “Are my photos stored in multiple locations?” I was honest – we kept multiple copies of each photo, but only in one location. Clearly, he wasn’t buying it. And his point was a valid one – every year we have customers who are overjoyed to find out the photos they lost in the hurricane/earthquake/fire were safe and sound at SmugMug. Our data is extremely valuable to our customers.
We’re a customer-focused, customer-driven company. I’m afraid to say we don’t have much time to do competitive research because we’re too busy acting on customer suggestions and feedback. I wish I could say that I give every customer’s input the same weight I gave Walt’s, but it just isn’t true – the double-whammy of being a journalist I respect greatly and a customer gave him an edge. We put multiple locations high on the list, and we now have it – our photos are stored in multiple datacenters, in multiple states, at multiple companies. And one of those companies is worth billions.
For many other journalists, singling us out like he did would take courage. Afterall, we spend all of our time and energy answering customer emails and making the product better while our competitors are from huge companies with huge PR departments who go to all the trade shows, conventions, and call the journalists non-stop to sell their wares. But for Walt, I’m sure this didn’t pose a problem. He and his assistants actually use the products rather than just listening to the company’s pitch. His only criteria is the quality, reliability, and accessibility of the product, not the amount of PR dollars you spend.
We’re honored to be on his radar.
Quickies: Chicken Soup & free photo-sharing
If you follow my father’s blog, you’ve probably already read these entries, but in case you haven’t, they’re great reads:
Chicken Soup – The SmugMug story has been published and we’d like you to have a copy! Our story is in the newly-released Chicken Soup for the Entrepreneur’s Soul and my father, the author of our chapter, has more info about it and how to get your copy.
Free photo sharing? – Not for us, and here’s why. It’s taken us awhile to really understand the difference between a pay site like ours and a free one like some of our competitors, but we get it now and thought we’d share. The short version? You get what you pay for. 🙂
Shutterfly buying SmugMug? Say it ain't so!
It ain’t so.
Some of our customers are worried that we might be selling, based on Bambi Francisco’s latest newsletter at MarketWatch.
Bambi is a great journalist, and I’m flattered that we’re on her radar, but I’m afraid we’re not for sale.
We love our business, we love our customers, and we love the people we work with. Not only that, but it pays the bills – we’re profitable, with no debt and no investors! Why mess with a good thing?
Besides, I’m still trying to wrap my head around why anyone would want to invest in Shutterfly in the first place. Alan Meckler, CEO of JupiterMedia, has a write-up that resonated with me. Let’s take a quick look at their business (I’ll be the first to admit I haven’t really paid that much attention to the whole thing, being buried in our own business, so fact-check my stuff before quoting me):
- Devoured a massive (I believe >$100MM over multiple rounds) investment.
- Has trouble turning a profit ($24M of their $28M last year was apparently a one-time tax benefit)
- Incredibly competitive marketplace, complete with a nasty price war ($0.12 4×6 prints) and deep-pocketed competitors (Kodak and HP)
- First quarter loss increased by nearly 2.5X this year compared to last year
- HP’s Snapfish seems to have the best product, marketing, and awareness in the online photo printing space. (In other words, they seem to be winning)
We’re small, fun, happy, and profitable. Best of all, our customers love us. Does it get any better than this?
Apple + Movies = They don't quite get it (yet?)
By now, you’ve probably heard – Apple is finally providing DVD resolution full-length movie downloads. Better yet, they have a set-top box arriving in Q1 2007 and it sounds like it’s close to perfect. It’s not going to try to be some crazy media-center that replaces your DVD player and your TiVo and everything else. Instead, or so we hope, it’ll just focus on finally bringing downloadable content into your home theater.
But there are a few gotchas in the picture. The biggest one is so obvious, I can’t believe Apple hasn’t thought of it. Let me break it down, even though you probably already get this. Everyone gets it – but Apple.
- Most people like to buy or subscribe to music, not rent it. Why? Because you listen to your favorite songs hundreds and thousands of times.
- Most people like to rent their movies. Why? Because you don’t watch the average movie more than once, and even the above average movie more than a few times. Only an exceptional few really get watched over and over again (Disney, luckily for Apple, happens to generate a ton of these with their children’s movies.)
So where on earth is the humongous-rental-store-in-the-sky that’s open 24/7 for us?
People love pay-per-view because they get instant gratification. People hate pay-per-view because the selection sucks.
People love Netflix because the selection rocks. People hate Netflix because they don’t get instant gratification.
Does it really take a rocket scientist to see what Apple’s pre-announcement today should have been? Apple’s codename iTV should really be the “$299 24/7 gigantic rental store in your living room” device. Hopefully Netflix does it right and then Apple will see the light.
Oh, and what’s up with Dolby Surround in the downloads? Dolby Digital has been around a long time and it’s the de-facto standard. Why go with an ancient surround format?
PS – I know this is shameless, but if anyone from TiVo reads my blog, I’d dearly love to beta test the Series 3. We’d like to get SmugMug working on it. 🙂
EDIT: Wow, what timing. Series 3 is available for purchase today. Already ordered mine. Thanks TiVo!
Flickr doesn't suck.
Kord Campbell, CEO of Zoto.com, seems to think Flickr sucks. It doesn’t. His point is that the rest of us didn’t get enough credit when Flickr finally introduced geotagging. He mentions that Zoto, SmugMug, and Zooomr have had geotagging for years. He’s right, but who cares?
The Flickr wannabees are always screaming about how they don’t get any recognition and that Flickr steals all the press. One of the Webshots founders recently said ‘Pound for pound [Flickr] is certainly the greatest PR machine in net history.’ That’s very true, but again, so what?
Flickr isn’t even the market leader (Webshots is, and Yahoo! Photos is much larger even at Yahoo), but they’re still an incredibly cool site with a very low barrier to entry – no fees, simple signup, and a great community.
The press and people who don’t really understand business always latch on to a market leader or a company with a ton of momentum and declare victory. Remember when Google couldn’t get any respect because AltaVista had “won” the search engine wars? What’s their market cap? Remember when fatbrain.com was dismissed because Amazon owned bookselling online? So how’d they become a $100M-in-sales, profitable company? For decades, pundits have been speculating that one of the car companies will own the market and we’ll all drive the same make.
It’s not gonna happen. There’s plenty of room for everyone to play – you just have to find your market, find your business model, and go for it. Google’s approach was anti-portal with a little PageRank mixed in. fatbrain.com went after the technical and business market, and provided in-house bookstores for the likes of IBM and Sun. And duh, we’d not all driving the same car. There’s room for BMW alongside Toyota.
At SmugMug, we have a lot of respect for Flickr and what they’ve been able to achieve. They deserve all the credit in the world. Personally, I wish their innovation rate hadn’t slowed way down when they got acquired by Yahoo – but I can’t think of a single ‘large company buys small company’ event that hasn’t caused that. Can you?
We have no desire to play in Flickr’s market, and never have. It costs money to use SmugMug – we have no free offering. We launched years before Flickr did, and we were profitable before Flickr even entered the market. We still are. We have a very different approach to the business and to our customers than Flickr does. Does that mean Flickr’s wrong and we’re right? Of course not. Do we wish we got more press coverage? Of course we do, every company does. But we’ll buckle down and earn it.
Companies triumph over market leaders all the time. They do it by innovating and executing brilliantly. If Flickr is stealing your customers or your press, it’s your own fault. Victory is there for the taking – but I think the first thing to do is to acknowledge that your competition doesn’t suck. Once you realize they’re talented and aggressive, you can fight them on their own turf.
Duke Nukem's fate in question? 'Come get some.'
In a former life, I was lucky enough to make video games (actually, SmugMug is a happy accident based on what was a video game company – but that’s another story for another time). And the way I got into making video games was by hosting Duke Nukem 3D’s internet launch on my servers. It went so well, I did the same thing for Quake a few months later. The rest, as they say, is history.
Now, my old friends at 3DRealms are under fire. Duke Nukem Forever has taken an awfully long time to make (9 years at least), and Shacknews has a rather breathless article on the loss of some talent on the game. Now, Shacknews is my absolute favorite gaming site, and I love the addition of Chris Remo to the staff there – but come on people!
Every game developer I know loses people constantly – and on much shorter titles than Duke Nukem. We lost plenty of people making SiN, and that was a 2 year project, not 9. Losing people from time to time on a project this long is going to happen – people get bored, burnt out, want to do something new, etc. Big deal – it wasn’t the entire team that left.
I’m sure 3DRealms misses some of these people. Knowing some of the ones who left personally, they certainly lost some very talented people – but Duke’s fate isn’t in question. Even mentioning a phrase like that is ridiculous and silly. They’ll continue with the rest of the team (a game like Duke doesn’t get made with 7 people) and hire replacements as necessary. My understanding is that they didn’t all leave en-masse anyway.
Anyone can see that 3DRealms is doing fine financially (look at all the console Duke titles over the years, the Max Payne franchise, and now Prey) and they’re gonna take their time. Remember all the whining and moaning about Half-Life 2? How’d that turn out?
One of my biggest regrets (and I know I speak for lots of the other SiN team members here, too, some of whom are on the list of those who left 3DRealms) is that we didn’t have the money and time to make SiN truly great. We were forced by market pressures to ship the game before it was done – and as a result, we had an average title that had clear glimpses of greatness. Imagining what life would have been like if we could have polished it like Valve and 3DRealms get to do is a fantasy – but a beautiful one.
True game fans should stop whining about Duke and instead laud developers like id, Blizzard, Valve, and 3DRealms for taking the time to do their games right and ship them when they’re done. The wait can be worth it – just look at HL2 and WoW.
Take a peek inside our datacenters
Our customers often ask us what sort of hardware we use. I’ve meant to put up a page detailing all of the stuff we love (like Apple’s XServe RAID arrays and Rackable servers), but I’m a big procrastinator. 🙂
In the meantime, you can watch a video of me describing a portion of our storage infrastructure here, both our physical local storage, and little bit about Amazon’s S3.
Also on CNet is a video interview we set up with Equinix, the people who provide our datacenter space, power and cooling.
Take a peek inside, see what you think.
Lessons from the Ritz-Carlton
At SmugMug, we pride ourselves on our customer service. We think it’s one of the key things that sets us apart from our competitors and we spend a lot of time focusing on it. Every SmugMug employee works a customer service shift every week. Think about it – how many web properties can you think of that provide over-the-top customer service?
I was lucky enough to stay at the Ritz-Carlton Half Moon Bay over the weekend for my 6th wedding anniversary (and first overnighter away from the twins!). I had heard of the Ritz’s reputation for service, of course, but I’ve stayed at nice hotels before. Just how great could it be?
Boy, was I in for a wakeup call.
A few days prior to our arrival, I received a phone call from the Ritz Guest Relations Supervisor wondering if there was anything special they could do for me since it was our anniversary. I hemmed and hawed for a minute, thinking, and she took the opportunity to suggest a few wonderful things such as having ‘our song‘ playing when we got back to our room after dinner. Together, we came up with a few more great ideas and she made it happen – after dinner, my wife was in tears and I had earned major bonus points.
When we arrived and I pulled up to the guardhouse down the road from the hotel, the gentleman manning it wished us a “Happy Anniversary”. Before we’d even driven up or checked in, everyone already knew! The valets knew, the doorman knew, the front desk knew. Everyone wished us a “Happy Anniversary” and even correctly pronounced my last name (it’s difficult for most people, and we’re very used to a variety of pronunciations – but clearly, they knew at the Ritz).
The valets gushed over my car when I pulled up, asking if it was turbo-charged (they could hear the whine – but it’s a supercharger), complimenting me on my rims, etc. Ok, so I’m car-obsessed and a sucker for people realizing that my car is unique and wanting to talk about it. Now, remember, this is the Ritz – there was a Bentley next to a Rolls-Royce next to a Ferrari 360 next to a Laborghini Murcielago out front. I love my car, but it pales in comparison – but they knew it was my car and that I’d appreciate the compliments.
I could go on-and-on, but I think you’re getting the point. From service at the spa (best. massages. ever.) to dining, everything was on par with what I’ve already described. The next day, Ritz employees were still greeting us in the halls by our name and wishing us “Happy Anniversary”.
The bottom line: We felt special. We felt pampered. We felt like the Ladies and Gentlemen of the Ritz-Carlton knew us personally and really cared about making sure we were happy. They’ve earned a customer for life.
Things we can learn from the Ritz and their approach to service:
- Attention to detail. Knowing how to pronounce my last name properly doesn’t sound like a big deal – but it is to me, and it’s but one small example. Everything was like that – no detail overlooked.
- Proactive service. Calling me a few days ahead of time, prepared with suggestions, was over the top and greatly appreciated.
- Warmth and caring. Every Lady and Gentleman at the Ritz seemed to genuinely care about us and our well-being.
- Communication. Everyone there seemed to know it was our anniversary, and that put a smile on our faces each and every time we heard “Happy Anniversary”.
- Understanding the customer. When I drove up in my car, they realized that I was into cars and reacted accordingly. Adjusting your game to be “just right” for every given customer is a diffcult but laudable goal.
- Every customer is special. I’m not a regular, I’ve never stayed at a Ritz, and I wasn’t well-dressed or anything – I was wearing my typical cheap, comfy Old Navy from head-to-toe. It didn’t matter – at the Ritz, everyone’s special.
We need to take our game to the next level. We provide excellent customer service, possibly the best on the web, but that’s no reason not to improve – and what better place to learn than from watching the gold standard.
Sun Fire 'CoolThreads' T1000 review
Ever since they first announced the Niagara processors at Sun, I’ve been excited. Could Niagara change my business? Who wouldn’t want tons of physical cores coupled with tons of virtual cores? At every tech conference I’ve tried to get hard data from the people manning Sun’s booths. At MySQL User’s Conference they were hyping MySQL performance, for example – yet there’s a huge MySQL bug where performance degrades with more CPUs, so that’s clearly not a great target for us (yet).
Nonetheless, the geek in me remained intrigued – I’ve believed for years that scaling # of CPUs, rather than purely speed of CPUs, was the future. One of the great parts of my job is that I get to play around with new toys and new technology, like Amazon’s S3 and Niagara, that can enhance our business or change it in some way. And every geek wants to dream that there’s some hot new CPU around the corner that’ll solve all their problems, right?
Sun has a great 60-day Try & Buy program. They make it basically as painless as clicking on the server you want, and a few days later it arrives. Very cool. Unfortunately, I haven’t used Sun gear since 1994, when I was using SunOS 4 (remember when SunOS was BSD-based?), so it would likely be time-consuming to try out both new hardware and new software. No thanks, I’m a busy guy.
Enter Jonathan Schwartz and his famous blog. Jonathan probably doesn’t remember me, but when I was 12 years old, I’d haunt the halls at NeXT every second I got and crashed NeXTWorld every year. I remember him. He was NeXT’s most important developer, and my father got the thankless task of buffering Steve Jobs and Jonathan. Both of them needed the other, but they couldn’t stand each other. Fun fun. 🙂
I’ve been meaning to touch base with Jonathan and see how he’s doing at his new job – and to see if a small web company like ours can shed any light on Sun’s direction. I think he’s got a very tough endeavor ahead of him – he’s gotta turn a massive company with lots of inertia around to compete in a whole new ballgame. For more than a decade now, datacenter computing has been shifting more and more rapidly towards free operating systems coupled with commodity hardware, and Sun nearly missed the boat. Now they’re scrambling to catch up. I believe Jonthan “gets it”, but we’ll have to see if he has the time and energy to really make the shift.
On June 16th, Jonathan posted a blog entry where he announced that Ubuntu Linux ran on Niagara, and that anyone who writes a thorough review would get to keep the box in question. Fantastic idea – I get to run Linux, which I know like the back of my hand, play with some hot new technology, and I get to keep the hardware for my time. Sold! So here we are, 60 days later, with a thorough review.
UPDATE: Jonathan has a new blog entry this morning about Niagara’s power savings. Pretty cool that you can get a rebate for using lower-power servers – but it doesn’t materially impact the conclusion of this review.
UPDATE #2: The comments here and on digg are pretty clear – you’d like to see Solaris results. Me too. Here’s an open call for help from Sun.
digg_url = ‘http://digg.com/hardware/Amazing_comparison_of_a_32_core_Sun_running_Ubuntu_versus_4_core_AMD’;
Amazon S3 = The Holy Grail
I should have posted this a few weeks ago, but better late than never. We now use Amazon S3 for a significant part of our storage solution. We’re absolutely in love with it – and our customers are too (even if they don’t know it).
As you probably know, SmugMug has been profitable since our first year, with no investment capital. We’ve had a great track record for keeping our customers’ priceless photos safe and secure using only the profits we’ve accrued to purchase our storage (yes, I said purchase. We have no debt – we own all of our storage, we don’t lease). And every SmugMug customer gets unlimited storage – so that’s no mean feat. (Currently, unlimited means ~300TB of storage and nearly 500,000,000 images. To put that into perspective, that’s more than 65,000 DVDs or 480,000 CDs).
But Amazon’s S3 takes our storage architecture to the next level:
- Your priceless photos are stored in multiple datacenters, in multiple states, and at multiple companies. They’re orders of magnitude more safe and secure.
- We’d already built a custom, low-cost commodity-hardware redundant scalable storage infrastructure. Nonetheless, it’s significantly cheaper to use S3 than using our own – especially when you factor multiple states & datacenters into the equation.
- Perhaps even more importantly, our cash-flow situation is vastly improved. Instead of paying $25,000 for a handful of terabytes of redundant storage up-front, even before they’re used, we now pay $0.15/GB/month as we use it.
- When we have some sort of internal outage with storage, it doesn’t matter – Amazon’s always on. They eat their own dogfood – S3 is in production use on dozens of Amazon products. We’ve had storage-related internal outages a few times already, and our customers haven’t been able to tell. We’ll still have rare outages on our site, unfortunately, (everyone does), but storage is now vastly less likely to be part of the cause.
- I started writing our S3 interface on a Monday, and by that Friday, we were live and in production. It really is that simple to pick up and use, and it was basically a drop-in addition to our existing storage.
- It’s fast. I don’t mean 15K-SCSI-RAID0-fast, but I do mean internet-latency-fast. It’s basically as fast as our internal local storage + the roundtrip speed of light to Amazon. I can measure the difference with computer timing, but in blind tests, humans haven’t been able to tell the difference. Everything we serve from Amazon feels fast.
I hate to admit this, but Amazon has built a playing-field leveler. It’s now much much easier for a competitor of ours to spring fully-formed from two guys in a garage than it was. Anyone who doesn’t get on board with Amazon S3 (or the inevitable S3 competitors) may get left behind. I’m glad we’re first, but I doubt it’ll last.
Tim O’Reilly, technology visionary extraordinaire, recently said of Sun’s new ‘Thumper’, the Sun Fire X4500: “This is the Web 2.0 server.” While I think Tim has perhaps the clearest vision in the industry, and the Thumper does truly look awesome, this time I think he may have missed the mark. The Web 2.0 server is *any* cheap Linux box coupled with utility storage like S3.
Initially this post had a lot of technical detail (I am the ‘Chief Geek’, afterall), but I removed it since it was probably getting boring. So this is the quick-and-dirty ‘Business Case for Amazon S3 and How it Helps our Customers’ post. If there’s enough interest, I can write up a detailed post about exactly how we use S3, how it works in conjunction with our own local distributed filesystem, and post our S3 library (which was derived from someone else’s). Post in the comments if that’s of interest.
Also, we’ll be presenting at a storage conference in Florida in late October (I’m sorry, I don’t have the name of the con with me, but I’ll update this post when I do), and have had a few other people request conferences talks on the subject. Comment if that’s of interest, too, so we know where to go speak.
Finally, one last geek thought: Anyone using the SmugMug API is now actually using multiple APIs through ours (depending on what you’re doing, you may be using Google and/or Yahoo, but you’re almost certainly using Amazon). The stack continues to grow.
UPDATE #1: In response to a comment below, I don’t feel like we “bet the company” on S3 – every photo our customers entrust us with, we keep local copies in our existing distributed storage infrastructure. We use S3 as redundant secondary storage for use in cases of outages, data loss, or other catastrophe.


