Jive Software Announces Management Team Changes

This entry was cross-posted from Meanders: The Dow Brook Blog

Jive Software has just announced that Christopher Morace will become SVP of Business Development. Morace will retain product marketing oversight and responsibility, but step aside from product management duties. He will be replaced as SVP Product Management by Patrick Lin, who is leaving VMware to join Jive.

These changes to the management team are important because they suggest two things:

1. Jive is still moving quickly toward an Initial Public Offering (IPO) and, perhaps, accelerating their pace toward that goal. By creating a new position (SVP of Business Development) and assigning a proven executive team member (Morace) to the post, Jive is signaling that it is making a serious investment in building partner and reseller channels.

Most enterprise software start-ups do not work to build out their channels until they’ve scaled revenue gained through direct sales to a point necessary to successfully make a public offering. By Jive’s own estimates, the direct sales amount necessary to trigger an IPO is $100 Million. Their creation of a new management team role focused on business development is a clear sign that Jive is nearing that IPO trigger revenue target.

2. The hiring of Patrick Lin reflects the increasing importance of cloud delivery to Jive (and all enterprise social software providers) moving forward. Lin, who had been at VMware for just over 6 years, has deep knowledge of infrastructure and application virtualization technologies and practices. His leading-edge experience will help Jive optimize its social business software offerings for private cloud deployment by customers. Lin’s  virtualization management expertise will also guide Jive in any attempt to build a version of the Jive Engagement Platform that can be hosted in a public cloud (Jive already offers and hosts a SaaS version of its platform.)

Lin is a great addition to the Jive team and not only for his virtualization experience. He has served in product management roles at other companies (VERITAS, Invio) prior to his stint at VMware. In addition, has held product marketing (Invio, Intuit) and business development (Katmango, WebTV) roles, which make him a well rounded executive who can contribute to Jive’s success on many terms.

Considered together, the management changes made by Jive today are a strong indicator that the Enterprise Social Software (ESS) market has reached a new level of maturity and that Jive is pushing it forward. The market continues to expand quickly and customer requirements continue to evolve. Other ESS providers should consider initiating or increasing  investments in channel development. They should also realize that cloud deployments of enterprise software will continue to increase and make appropriate changes to virtualize and optimize their offerings.

Today’s announcement makes me wonder if Jive will be ready for an IPO in the first half of 2011, rather than the later dates previously held as conventional wisdom. What do you think?

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