Zoli Erdos asks the question Would You Rather Be First to Market or Better? in reference to the early history of Zoho, when we were attacked as copy-cats (OK, it was really one guy who raised a ruckus, a competitor, no link love for him!)
To be honest, we never thought of ourselves as fast followers. The history of Zoho dates back to the telecom/dotcom nuclear winter. In the late 1990’s AdventNet emerged as a key supplier to the telecom equipment industry, a position we proudly hold today. Along with that status came the pain during the downturn. Being a prudent company, we never were at risk of going out of business or anything like that, but it was definitely painful. And we found ourselves with a lot of free time too.
It was sometime in 2003 that a couple of engineers asked me “Why not do something different, like an online office suite?” I said “Come on guys, tell me something more obvious”. They were persistent. Finally I gave in, and we started a small project. We had some false starts, with yours truly implicated in some key technical decisions that proved, ahem, a bit unwieldy - never trust your CEO to make technical decisions
- particularly if you want to ship a product. But our engineers being smart, they recovered, and we ended up shipping Zoho applications eventually.
Actually only one of the Zoho products, Zoho Planner was inspired by the competitor-I-won’t-name. It started out as a fun project, in response to the take-it-or-leave-it attidue they exhibit (to this day), and the explicit challenge “If you don’t like our attitude, go build your own”. We come from a different philosophical approach to business, where Customer-is-God, so we decided to build our own - that was the real story behind the copy-cat label. By the way, customers seem to love our alternative-without-the-attitude.
In hindsight, it is obvious that the idea of online office applications occurred to a lot of other people, and some of them even got to market ahead of us. That meant we did seem like fast followers, but I wish we could follow that fast!
About the copy-cat label? Initially I was a bit defensive about it, but later just developed a thick skin. If Zoho is a copy-cat, we are in some glorious company, as Zoli points out. What matters to customers is how good the overall product is and how it is priced. We are focused on delivering great products at affordable prices. Everything else will take care of itself.
Thanks, Zoli!