The man behind Google Docs on the opportunities in the cloud - Reuters

By Jonathan Blum to Entrepreneur.com

Sun, March 20, 2011 8 pm EDT

From left: Jonathan Rochelle, Micah Lemonik and fuzzy Khosrowshahi

Jonathan Rochelle, 47, knows what Google can do for a small business. As leader of the group for Google Docs product, it is responsible for the development of some software to small businesses most innovative of the giant of the Internet. Google Docs is a spreadsheet Web company he started and sold to Google in 2005. Rochelle also plays an advisory role to the discrete process of Google for the acquisition of the startups.

We spoke with la Rochelle for his advice for the use of Web tools - in your small business and what it takes to get noticed by a business more cools the world. Here are excerpts of our conversation edited.

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Contractor: Many small businesses are not taking full advantage of cloud computing, despite its low cost and a greater convenience. Why?
Rochelle: There is still a lack of awareness on the difference between the computer and installed software locally clouds. With cloud computing, that you can access your documents from anywhere, you don't get a new computer. If you open an Office and you have three employees, there is always a traditional approach to the purchase of three computers and networking at all. With cloud computing, you will necessarily need to buy new computers or their network. Instead, everyone can use their own computers and access to the shared online documents. The old approach will change, but there is a legacy that is making it difficult. One of the things holding computer Web return to become dominant is the plateau. You don't go in a store to buy. People don't know where to go to "buy" cloud computing.

Contractor: What are some tips for small businesses to buy cloud-based software?
Rochelle: After other companies who are using proven solutions is one of the most important things. And, don't use combinations of programs that don't fit well together. So, where you can, you want to paste with a unique company that offers most of what you are looking for. In addition, do not try to match the product exactly to your processes. It's really expensive. If you are ready to change your process somewhat to correspond to a technology that has trusted and credible and working, you can save even more money. It should be little pain to change your process so that you use standard technology.

Contractor: What opportunities business you see for potential entrepreneurs of software?
Rochelle: Niche applications. Management software through a movement of the platform on the Web. As this occurs, all prior software can be re-questioned. There are opportunities for the guy who wrote the application that contributes to a dentist's Office, the guy who wrote the application that you run your hardware, or contributes to a journalist be more effective. The greatest opportunity is offering the best software in these classes of niche on the new Web platform. Web-based software are much cheaper for buyers that traditional software and programmers can be much more innovative, it is useful for a contractor to say, OK, we'll start from scratch.

Contractor: When sizing for potential acquisitions for Google, what you look for - something unique?
Rochelle: We are certainly looking for a kind of secret sauce that it would be difficult for us to start from scratch, but the team is probably the most important thing. People should be passionate about what they do. It is the driver.

Contractor: Tips on the best way to show that you have a good idea and the right team?
Rochelle: Not to present what you think of the buyer or the partner wants to hear. It is just a bad thing to do. A completely honest conversation about where you are directed is a must.

Contractor: How Google come to acquire your business?
Rochelle: In 2003, I was running a business, I started called ITK Solutions that created the management software for major financial services companies. Financial spreadsheets were kind of a little magic, because they gave the business people who were not of the technicians of the ability to deliver cool, automated things like complex formulas, graphics and lots of data. But spreadsheets were inherently locked in a box-, they were on a desktop computer. My partner Farzad "Fuzzy" Khosrowshahi found this idea of conversion from a spreadsheet Web code. There was a very specific financial model at the time where we estimated would take about six months to put on the Web. But he was able to convert a worksheet code in the code on the Web in almost no time. This time, we knew that we were in business together.

Contractor: You addressed Google immediately?
Rochelle: Step exactly. At the same time, we have someone we knew contacted for some tips on one of our other products. And it turns out, it is to Google. Therefore, we define a meeting, but not with the intent to sell. In fact, it is very clear that our product was not something that Google was interested in, but he was happy to help us, on a personal level. So he looked at the concept, we drew pictures of the Board of Directors for him, and it was a good conversation. But not good enough.

If we then showed him the fuzzy logic produces our Web worksheet prototype. And he literally fired computer laptop away. He tried a few complex formulas. And he said, "Wow, this thing works." And then he said: "I changed my mind." I think that interested Google. "And, from this moment, it turns into a conversation about the acquisition.

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