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You take your best guess, and you always hit somewhere (hopefully) close to the target Your Beta testers will tell you where you ve missed the mark If you pay close attention to the first few Beta testers, they will refine your aim and score a bull seye for you A note of caution with Beta testers It is a rare Beta tester who will deliberately go through each function of your program just to see if it works Most testers will set up the program for just the functionality they need, and that is all that gets tested If you have five testers and they all test the same two functions of the program, they have been a big help, but the job is not done.

Livingston: Take me back to the weekend in 95 when you built the WebTV prototype. How did you get the idea Why did you decide to do this Perlman: For many years, I ve been interested in making television interactive. What I mean by interactive is something beyond just changing channels up and down, to get it where people can have access to content that s more interesting to be able to find what they want and then to be able to view it on demand. For example, what we now consider to be DVR, or what you do with your TiVo. At the time, it was considered something you d only do in an editing suite. If you were a network professional, you might have a disk-based digital editing system. I wanted to do all those things, and I even did a lot of the work at Apple. In fact, just a month ago on the History Channel they showed some of the early stuff I did at Apple. It was 1989. I was showing a system where we had video on

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Note You can use the Curve class included in the XNA Framework to script complex camera paths, but

Livingston: Was this difficult to manage, especially in a startup environment Davis: Yes, it was very hard to manage. It s only a short plane ride from Boston

to Pittsburgh, but it was almost the equivalent of oceans between us, because you re not able to walk down the corridor and say, Hello. What can we do next This added a substantial burden for the company.

business model, getting customers, servicing the customers, finding office space, scaling the company, staring down competitors, going public, raising money, satisfying shareholders. That s all in the first 9 months.

It is still up to you to spend your time to exercise every input, every calculation, and every report in your Alpha testing process Recruiting Beta testers can be a tricky business In return for putting up with the inevitable bugs and lack of operational polish in your program, they ll.

Livingston: Did you know from the beginning that your goal was to go public Davis: No. When we started, I felt we could make a big business, but I didn t think it would be quite to the extent that it became. The week after we had started the company, Dan Nova said to me, This will never be a people-intensive business. But when I finally left the company, we had 3,500 employees. We also joke about the fact that we once said, At some point, if we re lucky, maybe we ll get up to a million users of Lycos. I think at the time, we had maybe 50,000 or 100,000. When I left the company, we had about 110 to 120 million, monthly. Livingston: What were the big turning points Davis: There was no turning point per se. It was a complete evolution and there

was a new opportunity and a new challenge every day. As you mow down one obstacle, there s always another one waiting. We d be fighting six or seven fires at any given point in time on any given day, and you re fighting all these fires at the same time you re trying to construct the blueprint of the house. So you re dealing with emergencies du jour while you re trying to build a business. But that s the nature of the entrepreneur and that s the nature of a young business. We d be hard-pressed to find a company in the history of business that has laid out a blueprint and been able to follow that blueprint chapter and verse throughout its life. It just doesn t happen. It s a changing environment out there. So there were many issues we faced. Staffing was a huge challenge. Lycos became sexy after a few years, but early on, no one had heard of Lycos, and those that had thought it was this crazy idea that wasn t destined to continue. Never mind the company people didn t believe in the medium then, so recruiting employees was a challenge. Getting good people on board was tricky because we had no proof points for employees in the sense that there was no demonstrable success.

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