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Starting NetApp | 29<br />

sales; when you buy corn at the grocery store, that’s indirect<br />

sales.) Charlie’s experience launching and running Sun’s indi-<br />

rect sales program in Japan felt like a perfect fit. He was a big<br />

boost to our business credibility, so we made him a retroactive<br />

founder, even though we had already raised some money and<br />

hired an additional programmer.<br />

••<br />

With angel money coming in, we needed a hiring plan. Fortunately,<br />

we had the benefit <strong>of</strong> hindsight. At Auspex, James was<br />

the twelfth employee and I was seventeenth; Mike had been<br />

involved with several start-ups. We sat down and went through<br />

Auspex’s hiring order, writing down job titles and reporting<br />

lines up through about fifty employees. I also tried to remember<br />

the size <strong>of</strong> different groups when I’d been at MIPS with<br />

one hundred employees. Soon we had a respectable organization<br />

chart to take us through our first growth period.<br />

Even though we had done the normal seed-round tasks—<br />

fleshed out our business plan, interviewed potential customers,<br />

hired key people into our team, even built early prototypes—the<br />

VCs still weren’t impressed enough to reach into<br />

their pockets. Mike’s past CEO experience had been in Canada,<br />

so he wasn’t a known quantity in Silicon Valley, and they<br />

still couldn’t get their heads around our “we do less” strategy.<br />

Later, a VC who rejected us told me it was one <strong>of</strong> the biggest<br />

mistakes in his career. After our success, he funded several<br />

other computing appliance companies.<br />

One VC asked what had changed in the industry that<br />

made our idea possible. It was like he thought, If this was such

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