Data Robotics announced on Dec 14, that the role of CEO had passed on to Tom Buiocchi. Tom takes over from Geoff Barrall who as founder of Data Robotics was responsible for developing the IP on which the DroBo products run.
The announcement of a founder stepping down as CEO, is not unusual, but the way Geoff was replaced has raised speculation. And the announcement left the impression that the succession was not well planned. Instead it appeared abrupt.
Which leaves the following reasons to speculate about:
- Growth projections. That the owners probably believe that stronger growth can be achieved. It has been mentioned before that the current recession generated favourable conditions for DroBo, which consequently grew its unit shipments and revenues. Maybe the perception was that there was more revenue left on the table.
- Product plans. The DroBo is Geoff’s baby and was carefully developed to fit the market it occupies. It seems unlikely that the owners have any intentions to mess with the core IP or to take it in a different direction.
- Sales & Marketing. Marketing is a key message in the press release. Tom Buiocchi’s background lies in marketing and expectations speak loud and clear to growth in revenue and market share. Tom’s experience in sales should not be ignored.
Geoff has several serial entrepreneurial achievements to his name and is not expected to settle down any time soon. Recent conversations showed that Geoff relished his role as CEO. However, if the board has decided differently then Geoff would be expected to contemplate his next moves soon. He is of course already actively involved on several boards. Tom conversely, is capable and ambitious. With his experience in sales & marketing, Tom’s focused efforts at Data Robotics could well raise turnover at a time when DroBo is finding favour in its market.
#1 by cegge on December 17, 2009 - 15:42
The storage space has had its fair amount of consollidation and the array companies aimed for either acquisition or IPO depending on their lifecycle. Data Robotics appears to be left in peace by competition, which makes me think it can go it alone for a while. Many recent ‘newish’ companies have certainly fluctuated in staff numbers depending on the outlook. Currently Exanet and Copan are both rumoured to be on the way out. Back to the question; engineer-founders in my view mostly remain ideas-people, happy to take the CTO title. Business-founders brought in to take the new entity forward may subsequently be side-lined, but with less controversy. In Geoff’s case he was very much seen as the ideas man as well as heading up the organisation. Now watch out for the storage software space being consollidated into a set of fewer vendors.
The Israeli angle http://bit.ly/4xkrRL has been blogged by Steve Duplessie at ESG http://www.esg-global.com/.
#2 by George O'Connor on December 17, 2009 - 13:55
Hi Claus – good spot – who would have guessed another technology company having issues with succession planning. What is your experience and guidance for other tech companies moving from 1st generation founder to organisational guy?