Ozonetel Innovates Voice Cloud in India

Editor’s Note: Serial entrepreneur Murthy Chintalapati left Silicon Valley, returned to Bangalore and launched Ozonetel in 2007 with a cloud telephony platform for voice apps development. As founder and CEO, he shares insights on growing a company and presents advice for entrepreneurs.

SandHill.com: What inspired you create Ozonetel?

Murthy Chintalapati: Being a serial entrepreneur, I always look for opportunities to build ventures rather than work for a paycheck. My first venture, Intoto, was built in Silicon Valley and later was acquired by Freescale Semiconductor.

When I moved back to Bangalore in 2005, I started assembling a core team with strong telecom and web technologies backgrounds. We had experience in implementing and deploying solutions around Avaya. We looked at the market opportunity of addressing 50 million small and midsized businesses (SMBs/SMEs) and 800 million mobile/landline voice users and connecting them over a platform.

Looking at India’s SME market, we realized they couldn’t afford the branded solutions, and they couldn’t own a team internally to maintain and manage the solutions. SMEs needed someone to host and manage various enterprise-class voice services. We created our own hardware and the telecom stack to host the service, and launched Ozonetel, a cloud telephony services provider. Fortunately we were able to self-fund the venture, so there was no need to convince an investor.

Read the complete Post at Sandhill.com

What makes a product “fit” a market? Or how to achieve product-market fit?

A relatively young term in an entrepreneur’s vocabulary is “product-market fit” (PMF). Attributed to Marc Andreessen in 2009, this term, has a relatively simple meaning but one that’s hard to really get a sense of:

Product/market fit means being in a good market with a product that can satisfy that market.

If you go after an awesome market – growing fast, has excellent demand and a great growth curve, then you’ve got 90% product-market fit, even though technically 50% of the challenge in any startup is coming up with a good product.

Lets assume you are going after a great market.

How do you know its a great market? Besides the fact that its large (obvious) the speed of adoptionis tremendous.

What then makes a product “fit” a market?

First there are 3 important assumptions I make:

1. The best team does not necessarily create the best product.

2. The best product does not necessarily win in the market.

3. It is rare for startups or entrepreneurs to create markets.

A product “fits” a market when

1. Your metrics for adoption of your product exceed adoption of all your “competitors” combined (Instagram had more downloads in 1 week than other competitors did in 6 months)

2. There are so many missing features in your product but its still being sought after (HotorNot had no other features except an upvote and downvote)

3. The problem you solve for the user is such a big one that they are willing to forgive the lack of “nice to have” capabilities (during its early days, Twitter kept crashing daily)

The first point (metric) answers the question – What should I measure to know when I have achieved PMF?

The second point (features) answers – How can I tell?

The third point is the most important. To know about problems that are painful and large there’s one thing you need to learn, i.e. Learn how to ask the right questions!

Relevant links that I would highly recommend you read:

1. Jeff Bussgang on why early in the product cycle entrepreneurs should be hunch and not data driven.

2. Andrew Chen on “When” has a product-market fit been achieved?

3. Ash Maurya on the 3 stages of a startup and why problem-solution fit comes before product-market fit

4. Patrick’s perspectives on steps to product-market fit.

Cross Post – BestEngagingCommunities.com Contributed by Mukund Mohan.