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Copyright © 2009 by Dave Hitz Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741—www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Hitz, Dave. How to castrate a bull : unexpected lessons on risk, growth, and success in business / business Dave Hitz / Dave with Hitz Pat with Walsh. Pat Walsh. p. cm. Includes bibliographical references and index. ISBN 978-0-470-34523-8 (cloth) 1. Business planning. 2. Success in business. 3. Risk. I. Walsh, Pat, 1968- II. Title. HD30.28.H588 2009 658.4'01—dc22 2008043471 Printed in the United States of America first edition HB Printing 10 9 8 7 6 5 4 3 2 1
Contents 0 Chapter Zero 1 Part One Beginnings 5 1 Before NetApp: On Computers, Colleges, Castration, and Risk 7 Interlude: What NetApp Does 21 2 Starting NetApp: On Toasters, Angels, Resellers, and Ferraris 23 Interlude: Redundant Array of Pyramid Hieroglyphics (RAPH) 41 3 CEO Lessons: On Pixie Dust, Decision Making, Candor, and Going Public 43 Interlude: Tom Mendoza's Lessons on Public Speaking 57 Part twO turbulent adolescence 59 4 Hypergrowth: On Goals, Doubling, Ancestors, and Pain 61 Interlude: How to Fail in Executive Staff Presentations 79 v
Page 3 and 4: More Praise for How to Castrate a B
Page 5: How to Castrate a Bull Unexpected L
Page 9 and 10: chapter zero I am the product of a
Page 11: Chapter Zero | 3 more details in
Page 15 and 16: 1 before NetApp On Computers, Colle
Page 17 and 18: Before NetApp | 9 the reason for th
Page 19 and 20: Before NetApp | 11 tions. One was f
Page 21 and 22: Before NetApp | 13 Years later, the
Page 23 and 24: Before NetApp | 15 After Princeton,
Page 25 and 26: Before NetApp | 17 and developed th
Page 27: Before NetApp | 19 curious about wh
Page 30 and 31: 22 | Beginnings visits your company
Page 32 and 33: 24 | Beginnings it faster and more
Page 34 and 35: 26 | Beginnings People were spendin
Page 36 and 37: 28 | Beginnings seed-round investme
Page 38 and 39: 30 | Beginnings a good idea, someon
Page 40 and 41: 32 | Beginnings We had a lucky disa
Page 42 and 43: 34 | Beginnings In July 1993, we sh
Page 44 and 45: 36 | Beginnings it in. The customer
Page 46 and 47: 38 | Beginnings We hired Tom for Am
Page 49 and 50: Interlude Redundant Array of Pyrami
Page 51 and 52: 3 CEO Lessons On Pixie Dust, Decisi
Page 53 and 54: CEO Lessons | 45 equals, in the sen
Page 55 and 56: CEO Lessons | 47 ceremonial clock.
Page 57 and 58:
At the first board meet- The Waywar
Page 59 and 60:
CEO Lessons | 51 The difference in
Page 61 and 62:
CEO Lessons | 53 and-a-half. Dan di
Page 63 and 64:
CEO Lessons | 55 NetApp went public
Page 65 and 66:
Interlude Tom Mendoza’s Lessons o
Page 67:
Part two •• •Turbulent Adoles
Page 70 and 71:
62 | Turbulent Adolescence • •
Page 72 and 73:
64 | Turbulent Adolescence most mon
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66 | Turbulent Adolescence on board
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68 | Turbulent Adolescence short wa
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70 | Turbulent Adolescence bought t
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72 | Turbulent Adolescence we grew
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74 | Turbulent Adolescence organiza
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76 | Turbulent Adolescence the way
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78 | Turbulent Adolescence shifted
Page 88 and 89:
80 | Turbulent Adolescence have an
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82 | Turbulent Adolescence before N
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84 | Turbulent Adolescence only wor
Page 94 and 95:
86 | Turbulent Adolescence talking
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88 | Turbulent Adolescence as your
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90 | Turbulent Adolescence Brian do
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92 | Turbulent Adolescence Hope. To
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94 | Turbulent Adolescence people c
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96 | Turbulent Adolescence neighbor
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98 | Turbulent Adolescence My new s
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6 Managing Engineers On Development
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Managing Engineers | 103 250—four
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Managing Engineers | 105 A friend o
Page 115 and 116:
Managing Engineers | 107 On the oth
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Managing Engineers | 109 Other time
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Managing Engineers | 111 As near as
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Managing Engineers | 113 They say w
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Managing Engineers | 115 I’ve see
Page 125 and 126:
Interlude Scientific-Truth and Usef
Page 127:
Scientific-Truth and Useful-Truth |
Page 131 and 132:
Two books deeply influenced my stra
Page 133 and 134:
Grown-Up Company | 125 dors like IB
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7 Customers On Love, Enterprise, Si
Page 137 and 138:
Customers | 129 which produces even
Page 139 and 140:
Customers | 131 to what you know br
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Customers | 133 it happened too oft
Page 143 and 144:
Customers | 135 company. I gave my
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Customers | 137 ered many nonproduc
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Customers | 139 I was being technol
Page 149 and 150:
Customers | 141 think that his far
Page 151:
Customers | 143 was that Oracle won
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146 | Grown-Up Company The problem
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148 | Grown-Up Company Initially SA
Page 158 and 159:
150 | Grown-Up Company computers? I
Page 160 and 161:
152 | Grown-Up Company Now my chall
Page 162 and 163:
154 | Grown-Up Company debate about
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156 | Grown-Up Company In the early
Page 166 and 167:
158 | Grown-Up Company You might co
Page 169 and 170:
9 Vision On Whining, Eras, Future H
Page 171 and 172:
Vision | 163 started writing in the
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Vision | 165 tion in a way that a n
Page 175 and 176:
Vision | 167 At Deep Springs Colleg
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How to Castrate a Bull Vision | 169
Page 179 and 180:
Vision | 171 they can’t access th
Page 181 and 182:
Vision | 173 data stewardship is th
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Vision | 175 picked the weeds, but
Page 186 and 187:
178 | Appendix A 1-800-SERVERS Busi
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180 | Appendix A The distribution s
Page 190 and 191:
182 | Appendix A It is unlikely tha
Page 192 and 193:
184 | Appendix A NFServer: Prelimin
Page 194 and 195:
Create a Model Company by: 186 Appe
Page 196 and 197:
AI (Artificial Insemination) A tech
Page 198 and 199:
190 | Glossary staffs, security lik
Page 200 and 201:
192 | Glossary operating system The
Page 202 and 203:
Axelrod, Robert. The Evolution of C
Page 204 and 205:
196 | Acknowledgments Varun Mehta,
Page 206 and 207:
198 | The Author a cowboy, where he
Page 208 and 209:
200 | Index Doubling: as goal, 62,
Page 210 and 211:
202 | Index S Sales: of both NAS an
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