This interview was originally aired on M&A Daily

This interview was originally aired on M&A Daily

For almost everyone, if they didn’t receive a call on Tuesday, they missed a signal that might’ve led them to discover your business.

Phones, no matter how old they are, are light bulbs attached to silicon chips, processing data. The first such phone went out on January 1, 1957, and opened the door to smartphones and all other technologies that can “talk” in electronic form to each other.

There are so many businesses out there employing people that need to send data, generate a bunch of opportunities and then manage data coming off those mobile phones that there’s a fairly captive market for the cloud right now. There are business lines, in marketing, accounting, customer service, running all kinds of businesses, that’s how they are generating revenue for their financials, and that will always continue.

One of the first few businesses that embraced the Internet was Amazon. They get an instantaneous referral – if you had your house on fire, and you have photos and videos and this is what you were doing before the fire and this is what you were doing after the fire. We are trying to gain more such sources of revenue to mine for trend analysis.

Entrepreneurs are having an enormous impact on the way the economy works. There are hundreds of thousands of start-ups right now. I give myself a high probability of becoming an Internet millionaire, because the default cost for launching a tech business will now come from the world of Amazon or Apple, which is zero.

All of this information that’s available electronically, and all of the data that flows over the road on networks, represents a unique set of skills and knowledge. These might be your best friends, or they might be your competitors.

My research has showed that all that information in the cloud is very powerful, and it gives the traveler. The traveler is always moving from place to place, and it’s like a global village. I have always felt that having human capital in the cloud from co-workers to loyal clients, who now view me as their best friend, it leads to better decision making.

To answer your question, the fact that we can connect virtual companies to their own property takes away the vast majority of the startup and the startup burning the candle at both ends, doing a ton of hiring, covering all their bases. That’s why it took so long, when they were trying to do that on their own.

Look at how many successful companies we have now, everything from Uber to Zappos to Land Rover. They have all come in the last 10-15 years from the same sort of outsourced, outsourced jobs process, because it was becoming harder and harder to do those things without tremendous labor costs. It’s hard to understand all that data. I call it plain boring data, and it takes away all those holes. It starts with a problem – “OK, how do we figure out the CPG industry?” A good question. To be able to do it, you need to have a unique one-source solution. Then you merge that with all of the other sources of data that might be available.

It has to be easy to manage, and these guys are in the vanguard. If I have an idea for a meeting, or for a piece of legislation, I call their CFO. They call back and say, “OK, you never called us before, but today, let’s sit down and discuss this.” It may take five minutes, or it may take 10 minutes. It’s “this one-percenter in the sky that’s got the lion’s share of the data,” that’s going to make a very profitable business. Their internal software is capable of integration with all of those data sources.

If they really take the initiative, they start getting users. And users in the corner of their office with a laptop with a Google account, might be a billion. That’s the era we are looking at now, where they could start doing business and make a whole bunch of money.

This interview originally aired on the M&A Daily podcast. Bern Marr is CEO of Mellanox Technologies, a supplier of innovative InfiniBand and Ethernet interconnect solutions.