A little history... Before ArcGIS Online, it was ArcData Online (ADOL), ArcWeb Services (remember arcims?), and Geography Network. My career arc at Esri included all of them. Main focus was always providing web access to maps and data. Might depend how you define "cloud" to say which of the above was first.
There's also something else that ESRI and their country subsidiaries do quite well regarding the community part. Patting on their clients backs. During the UCs hundred of awards are issued to their best clients, even for very entry level projects. Again, this enforces the slow moving organisations to keep the "good work", aka keeping loyal to the products. This, together with free licences and materials for education are, IMHO, their bigger marketing weapons.
2. This article makes it clear to me (after months of murkiness) why my graduate program requires the study of ArcGIS, while also pushing a newer thread of courses in R/Python + public policy data viz. Jobs are jobs, I guess!
3. I do think it's kind of awesome that the Dangermonds decided to settle in Redlands, CA, and could give a damn about your concerns about that decision. My introduction to Esri came through the book "Our Towns" (James and Deborah Fallows). I couldn't find that blurb online, but did find this interview (posted on Esri's website, interestingly enough): https://www.esri.com/about/newsroom/publications/wherenext/growth-insights-getting-ahead-of-the-countrys-changes/.
Thanks, Noah! Sometime I’ll expand on why I think a graduate degree in GIS is super valuable, but only if your plan is to apply it to a field other than GIS!
That is The Big Question™. My suspicion is that it won't be very dramatic. Part of the reason Esri "can't be stopped" is that their client base is largely composed of prehistoric sloths that won't churn for decades (even if it makes sense to). That gives them an enormous cushion to figure out succession. In my opinion, the best thing Jack and Laura could do now is look at an ESOP or similar employee-owned option for the business after their departure.
I'd not underestimate what a pivotal and singular role Jack plays keeping ESRI's big money ELA's happy and sitting on the bus facing forward. That among several other capabilities I'm not sure are ever replaceable.
Huh, that's an interesting thought. I know they're close. The primary value of Esri as an acquisition target is their footprint in government. So it would need to be someone that strategically values that.
Microsoft, Autodesk, Oracle all offered to buy Esri at some point. Jack will not do the employee ownership because his wife owns half the company. Do not assume the two of them are in sync or even have the same values. Laura wants her family to control it, Jack wants a university/government to take it over (think ThinkTank). Jack is insecure. Laura is easily manipulated. Now dump a bunch of greedy people around them and mix in a CIA agent working directly for Jack and you have some bad things happening.
There is no mention of how badly their products suck to use. ArcGIS Desktop hasn't had a stable release since about 2006, with ArcMap 9.1. Since then, every release has major bugs (like not being able to deleted a field in a table) that never get resolved. Their desktop software is actually slower and less reliable now than it was 20 years ago. ArcGIS Online is a total drag to learn and use. Simple things like adding a KML overlay are nigh impossible, and managing data and projects online is a nightmare. ArcGIS Pro has been out for 5 years and still feels like a buggy beta version. Basically unusable. #fuckesri
Former Esri here, specifically in the services side. FWIW I never saw Professional Services given away. I'd also question the idea of them unfairly competing. It's a bold thing to put in a write-up like this with nothing at all that substantiates it. Lastly, I see a pretty obvious person to take over for Jack when he decides its time (or if time decides its him). I imagine the ownership structure ends up more in a trust/foundation that funds causes he cares about rather than an ESOP.
Thanks Nate, that's a fair critique. Twice I've competed with Esri in an non-profit or multilateral RFP situation where Esri's offer was: free professional services up to $XXX,XXX amount and licenses thrown in. I think it doesn't in for-profit situations, to your point.
I hadn't considered a charitable trust model. That sounds good on paper, but I can't think of any examples of that in practice--something for me to research.
Of course Jack gives Professional Services away. He does not like to lose. I have seen it many times. Amazingly enough, he even gives away his best Partner's service. Take the rose colored glasses off, Jack is not a billionaire because he played fairly.
Lemme also add that you have to think about it from a cost perspective. Services have a not-insignificant incremental cost to them, where as complimentary software doesn't.
I had a line about "mental accounting" in there, but I can assure you from an Esri perspective that is not what is considered "free".
When you start offering free professional services you misalign customer expectations and destroy their value. So if they're being presented as free EAP credits, the sales guy is doing it wrong.
A little history... Before ArcGIS Online, it was ArcData Online (ADOL), ArcWeb Services (remember arcims?), and Geography Network. My career arc at Esri included all of them. Main focus was always providing web access to maps and data. Might depend how you define "cloud" to say which of the above was first.
Interesting, thanks for the extra background, Dave! Hadn’t heard of any of those.
There's also something else that ESRI and their country subsidiaries do quite well regarding the community part. Patting on their clients backs. During the UCs hundred of awards are issued to their best clients, even for very entry level projects. Again, this enforces the slow moving organisations to keep the "good work", aka keeping loyal to the products. This, together with free licences and materials for education are, IMHO, their bigger marketing weapons.
Those awards are hilarious. Very clever way to incentivize documented case studies.
That is exactly how Jack thinks of them.
Joe - thanks for this!
1. Dynamite logo for your Substack.
2. This article makes it clear to me (after months of murkiness) why my graduate program requires the study of ArcGIS, while also pushing a newer thread of courses in R/Python + public policy data viz. Jobs are jobs, I guess!
3. I do think it's kind of awesome that the Dangermonds decided to settle in Redlands, CA, and could give a damn about your concerns about that decision. My introduction to Esri came through the book "Our Towns" (James and Deborah Fallows). I couldn't find that blurb online, but did find this interview (posted on Esri's website, interestingly enough): https://www.esri.com/about/newsroom/publications/wherenext/growth-insights-getting-ahead-of-the-countrys-changes/.
Thanks, Noah! Sometime I’ll expand on why I think a graduate degree in GIS is super valuable, but only if your plan is to apply it to a field other than GIS!
And need I mention oil and gas industries!
Urban planning is another. Large branches of the profession rely on ESRI products.
Civil engineering immediately comes to mind (former land surveyor here—I left the industry in 2008 when the commercial real estate market tanked).
Great piece Joe! Something I've wondered about: What's going to happen when Jack dies? No-one I know at Esri has any idea what the succession plan is.
That is The Big Question™. My suspicion is that it won't be very dramatic. Part of the reason Esri "can't be stopped" is that their client base is largely composed of prehistoric sloths that won't churn for decades (even if it makes sense to). That gives them an enormous cushion to figure out succession. In my opinion, the best thing Jack and Laura could do now is look at an ESOP or similar employee-owned option for the business after their departure.
I'd not underestimate what a pivotal and singular role Jack plays keeping ESRI's big money ELA's happy and sitting on the bus facing forward. That among several other capabilities I'm not sure are ever replaceable.
That's why I've heard some speculation about Jeff Peters as a successor. He's a sales leader who sits in DC. Incidentally, he came from Microsoft.
I agree. I think employee-owned would be a really good fit. I also think it would be an interesting purchase for a company like Microsoft.
Huh, that's an interesting thought. I know they're close. The primary value of Esri as an acquisition target is their footprint in government. So it would need to be someone that strategically values that.
Microsoft, Autodesk, Oracle all offered to buy Esri at some point. Jack will not do the employee ownership because his wife owns half the company. Do not assume the two of them are in sync or even have the same values. Laura wants her family to control it, Jack wants a university/government to take it over (think ThinkTank). Jack is insecure. Laura is easily manipulated. Now dump a bunch of greedy people around them and mix in a CIA agent working directly for Jack and you have some bad things happening.
There is no mention of how badly their products suck to use. ArcGIS Desktop hasn't had a stable release since about 2006, with ArcMap 9.1. Since then, every release has major bugs (like not being able to deleted a field in a table) that never get resolved. Their desktop software is actually slower and less reliable now than it was 20 years ago. ArcGIS Online is a total drag to learn and use. Simple things like adding a KML overlay are nigh impossible, and managing data and projects online is a nightmare. ArcGIS Pro has been out for 5 years and still feels like a buggy beta version. Basically unusable. #fuckesri
I disagree. Esri will be stopped it is just a question of how long will it take.
Former Esri here, specifically in the services side. FWIW I never saw Professional Services given away. I'd also question the idea of them unfairly competing. It's a bold thing to put in a write-up like this with nothing at all that substantiates it. Lastly, I see a pretty obvious person to take over for Jack when he decides its time (or if time decides its him). I imagine the ownership structure ends up more in a trust/foundation that funds causes he cares about rather than an ESOP.
Thanks Nate, that's a fair critique. Twice I've competed with Esri in an non-profit or multilateral RFP situation where Esri's offer was: free professional services up to $XXX,XXX amount and licenses thrown in. I think it doesn't in for-profit situations, to your point.
I hadn't considered a charitable trust model. That sounds good on paper, but I can't think of any examples of that in practice--something for me to research.
Of course Jack gives Professional Services away. He does not like to lose. I have seen it many times. Amazingly enough, he even gives away his best Partner's service. Take the rose colored glasses off, Jack is not a billionaire because he played fairly.
You wouldn’t consider EAP credits in an enterprise agreement effectively thrown in for free?
Lemme also add that you have to think about it from a cost perspective. Services have a not-insignificant incremental cost to them, where as complimentary software doesn't.
I had a line about "mental accounting" in there, but I can assure you from an Esri perspective that is not what is considered "free".
When you start offering free professional services you misalign customer expectations and destroy their value. So if they're being presented as free EAP credits, the sales guy is doing it wrong.