Category Archives: Automattic

The company behind WordPress.com, Tumblr, WooCommerce, Pocket Casts, Day One, Beeper, and more.

Starting a Bank

Automattic, Essays

I often get asked something along the line of, “If you weren’t leading Automattic, what would you work on?” There’s not a single answer to this question; the answer changes day to day. But I think if you asked me today, I’d say I would like to start a bank.

There are very few people who really love their bank. We’ve all dealt with overage fees that stack up, brain-dead fine print, and a general malaise. There’s also a unique opportunity in that mainstream contempt for financial institutions has never been higher, while at the same time there is an incredible amount of government backing that essentially makes it a no-risk environment. People are hungry just for anything different, something contrarian. A David to the Goliath banking industry.

The name of my bank would be something supremely boring, like SafeBank. The idea behind it is that bad behaviour in the banking world has been largely inevitable because their compensation structures incented people to do overly risky things. SafeBank would maintain a reserve level 2-3x higher than Fed requirements and any other bank. SafeBank would have no bonuses. Critics would say this would make it impossible to attract top-shelf talent. Every time the bank gets attacked we’d turn it into an advertising opportunity to emphasize why we’re different. “We can’t attract top-shelf talent? We take your money and put it in a vault. We don’t need the million-dollar bonus geniuses on Wall Street to do that. SafeBank. Bank, safe.”

In fact, the first few years of SafeBank would be largely focused on acquisition through every trick in the book. At the very beginning pull a Gmail/WordPress.com and make it invite-only, which will create a buzz and also allow you to give amazing white-glove service to the initial customers, who will in turn tell their friends and make a ton more buzz. (You can also target certain profitable segments and ultra-safe depositors at first, like Gmail users in San Francisco (using Firefox with an ad-blocker) who make six figures a year.) There would be only one style of checks and debit cards and they’d need a distinctive design so if you saw one you’d say, “What’s that?” which would then start the whole conversation again about how SafeBank is different.

For the first two years you could also do things like not allow accounts larger than the FDIC-insured limit. No one has ever heard of a bank turning away money! But you’d say that although everything SafeBank does is risk-free, it’s still a startup and if people have more than the insured limit (250k for single, 500k for couples) in an account, they should put the extra somewhere else. Again, this will impact a very low percentage of customers, but everyone will think it’s remarkable. This can be phased out after a few years; in fact, it would be a PR opportunity. “We’ve been in business now long enough that we feel comfortable with larger accounts.” Boom, free coverage.

I’m a tech guy so of course a lot of focus would be on the website. Imagine an old-time vintage design aesthetic combined with a Google-like simplicity and attention to speed. All logins would be two-factor, with the default being it’d SMS you a one-time code to log in when you gave your email address. A big part of the website would be the blog, of course. It would have a strong Ben Franklin-like common sense voice, and in addition to giving a few cool saving or home tips each week, it would cover at least one financial industry story a day.

  • “Bank of America spent $40,000,000 dollars on airplanes last year. We spent $40,000 to develop an iPhone application so you can check your balance from anywhere.”  (Hmm, the iPhone app should cost like $2.99.)
  • “Here’s how to block advertising when you browse the web with Firefox; it makes the web faster and less annoying.”
  • “Goldman Sachs just paid out 16 billion dollars in bonuses to their employees. If we had an extra 16 billion dollars lying around, we’d put it in the bank for a rainy day. (If Goldman had never paid out bonuses they never would have needed government intervention.)”
  • “So-and-so Bank’s website requires you to use Internet Explorer. We beg that you don’t, because there are way cooler and faster browsers. Here are 3 open source browsers you can switch to today.”
  • “68 Million Reasons Your Bank Sucks. That’s the amount BoA collected last quarter in needless ATM fees.”

(That’s all made up.) The headlines would almost write themselves, and every time a financial institution is in the news it’d be an opportunity to contrast why SafeBank is different and what the underlying philosophy is behind why it’s different.

All of the marketing would be on the web and viral, because it’d be an online-only bank like ING Direct. No storefronts where people have to wait in line or risk a bad interaction with a teller, or that get robbed and need insurance; basically a lot of the historical risk of running a bank could be eliminated. When you sign up it would have a “tell your friends about SafeBank” address book feature that would connect you to them if they signed up for an account, give you both money (Bank of America has something like this), and also make it easy to send them money, PayPal-style, if they have an account.

How would the bank make money? I think it wouldn’t touch anything risky on the financial side — it would be a data company. The first 3 years the focus would be entirely on customer acquisition, marketing, PR, and building a world-class tech team building a rock solid infrastructure. SafeBank would make way, way less money than banks currently do, but it would be more than enough to build an amazing product in a sustainable way, like Craigslist did with newspaper classifieds. After a certain milestone, say 100 billion in deposits, I would buy or clone Mint. SafeBank would have more (and more accurate) data about its customers than almost any other company in the world other than credit card companies, so the online interface would have Mint-like lead generation offers based on that information. For example, you spend $140 a month on electricity, but if you switch to this new solar provider you’d save $200 a year. Think of it like Gmail contextual advertising but based on where you spend your money rather than the words in an email. There also might be aggregate data opportunities for economic research or targeting, but I’m not sure if I like the privacy implications there.

SafeBank couldn’t raise VC or anything like that because having any sort of exit expectations would completely kill the safety story, but I think it could be bootstrapped and after a few years would be hugely profitable. Its existence would also put huge pressure on existing banks because depositors would be leaving in droves, putting pressure on their reserve requirements. Existing banks couldn’t compete in a traditional way because they have such a sordid history of customer apathy and bad PR. SafeBank wouldn’t be trying to capture their profits, it would largely be destroying them and making much smaller amounts of money in non-traditional bank ways. It would be somewhat like a credit union, but for the masses.

Anyway, this is just how my mind wandered this morning while brushing my teeth. Tomorrow I’ll think the last industry I’d every want to be in is banking. 😉

Would you trust your money to SafeBank?

The Way I Work, annotated

Automattic, Essays, Meta, WordPress

pna I was fortunate enough to be featured in the July issue of Inc. magazine’s “The Way I Work” column. (Page 114, the one with Paul Graham on the cover.) The article is great and the photography very flattering, but it’s a little misleading. All TWIW articles are written in the first person, but not directly authored by the subjects, and we’re not allowed to see them before they’re published. These bizarre rules have some unexpected outcomes, and I’ve taken the liberty of rewriting the article in my own words and with lots of extra links. (You can read the original here.)

On a good morning there’s no alarm clock. I wake up with the sun and do my best to resist the instinctive urge to look at the computer or check email for at least an hour.

My vice of choice isn’t coffee, but the Kindle. Its electronic shelves are filled mostly with the business books  I read in order to grow up to be a real businessman (before someone figures out I’m not). At any point in time I have about 120 books downloaded. Interspersed between Drucker, Godin, and Buffett are classics like Seneca, which I wish I could read more often but only get to a few times a year.

Automattic, the holding company behind WordPress.com, finally got an office late last year at Pier 38, a beautiful open-floorplan space right on the Embarcadero. It’s about a five-minute walk from my apartment, but my preference is to work from home. We’re very much a virtual company where everyone primarily works from home (or their coffee shop of choice). The half dozen of us in the Bay Area will go in on Thursdays to have a little company, but six days out of the week the space is usually empty. But we throw some great parties there.

The team communicates mostly via P2, something a little like Twitter but password-protected, with real-time updates and threaded inline conversations. P2 is almost like a chat channel, but structured like a blog, and we’ve evolved to have almost a dozen across the 40 people at Automattic – serving a variety of purposes. We fill any gaps in communication by IRC, Skype, and, in a pinch, email.

In my home office there are two 30-inch monitors — a Mac and a PC. They share the same mouse and keyboard using Synergy so I can copy and paste between them. The Mac is mostly used for email and chat, while web stuff and coding happen on the PC. The keyboard is, of course, Dvorak, a more efficient keyboard layout that I switched to 10 years ago. I also have a Sony Z90 laptop with me all the time, whether I’m going overseas or just to the doctor’s office. I’m pretty rough on laptops, sometimes going through two a year. At home I like to geek out with home servers and networking, and sometimes find myself doing IT support for family, friends, and colleagues.

One of my favorite programs that we didn’t make is RescueTime, so much so I invested in the company. Hackers all know that you have to profile before you can optimize, and RescueTime runs in the trap of my computers and tracks how much time I spend on different things, sometimes with surprising results. My biggest time-suck is email, and to help out I wrote a WordPress plugin that filters people into folders based on their email address and priority settings which helps keep my inbox relatively clean. Tim Ferriss, author of The 4-Hour Work Week, advocates checking email only twice a week but that’s too severe for me. I’m currently trying Leo Babauta’s approach from The Power of Less, which suggests small steps like checking email five set times a day instead of constantly. It’s like dieting: People who binge diet gain it all back. That happens to me with email.

Music is my muse and I listen to it all day. There’s a lot of jazz — Dexter Gordon and Sonny Rollins — but I’m also a big fan of Jay-Z, Beyoncé, and Method Man. I have an analog Shindo stereo that was hand built in Japan and the aural experience is mind-blowing. When you’re coding you really have to be in the zone so I’ll listen to a single song over and over on repeat, hundreds of times. It helps me focus. The other best way to focus is to turn off email and instant messenger. The moment that little toaster pops up and says “you’ve got mail” you’re taken out of the flow. You’re juggling variables and functions and layouts and the moment you look away it all falls to the ground — it takes you 10 minutes getting it back in the air again.

A big part of my job is to manage the support, usability, and product development people who are scattered all over the globe, from Alabama to Ireland to Bulgaria. My management strategy is centered on hiring: find extremely self-motivated and curious people and then give them the autonomy to succeed. There’s no manager looking over anybody’s shoulder, so everyone needs to be self-directed. For every person we hire there are hundreds of applications. We always start people on a contract basis first; that way we mutually understand what it’s like to work with each other. One of the most important things I look for in résumés is a history of contributing to Open Source projects, because I know these people will understand our ethos.

For four years I was the only developer on Akismet, our anti-spam service. It started because my mom had wanted to start a blog but I was scared she’d be bombarded by spam for Viagra and worse, think that’s what I looked at all day. We finally added a second engineer to the project at the end of 2008, which was weird for me but was necessary for growth, especially as I’m pulled in more and more directions.

I go out for lunch whenever I can, which fits well with my preference for no meetings before 11 AM. There’s something very personal about sharing food with someone; it’s a deeper connection than shaking hands in a boardroom. Often when I’m in town I’ll have lunch with Toni Schneider, my CEO. He and I get along super well which is one of the reasons I think the business has worked. He brings gravitas because he’s a digital native but also has great startup experience including being the CEO of Oddpost, a webmail company Yahoo acquired in 2004. Sometimes we’ll go to lunch at 12:30 and stay until 5.

In general, I’m pretty darn disorganized, late as often as not, and really bad at keeping a schedule. My PA is now focusing on office and event tasks so I’m in the market for someone new. Last year I was on the road 212 days and clocked 175,000 miles, which is seven times around the globe (according to Dopplr, a great travel journal I use). The bulk of my travel is to WordCamps, which are educational and networking events that celebrate blogging. Automattic held our first annual WordCamp in San Francisco in 2006, thrown together just a few weeks before the event happened. Now they’ve exploded all over the world and I’ve been to over 30 community-organized events from South Africa to the Philippines. I say they’re a great bargain: a full day of quality speakers, BBQ lunch, a cool t-shirt, and a party for $25. We just wrapped the largest WordCamp ever here in San Francisco with over 700 people.  Though I’d love to, if I went to every WordCamp I wouldn’t have any time to actually build WordPress, so I’m cutting back and trying to go to every other one. They are great fun, though; it’s a chance to be a rockstar for a day. In the Philippines after the conference was done I stayed almost two hours afterward taking pictures and autographing badges and laptops. I’ve even been asked to sign body parts. Really.

To document my experiences when I travel I use my Nikon D3 camera. My photos are autobiographical — my memory is so bad (and the travel pretty grueling) that I’ll forget everything about a trip, and the photos help trigger my memories. On the plane ride home I’ll process and edit the photos as a narrative of each day, a visual diary. On my trip to Vietnam last February I took 2-3 thousand photos. I’ve heard that the difference between an amateur photographer and a pro is that the amateur shows you everything they shoot. I’m somewhere in between — I’ll post maybe a quarter of what I take.

I used to think constantly about building an audience for my blog but now my attitude is that if I’m not blogging for myself it’s not worth it. I don’t force myself to post once a day, I just do it when it feels natural. Sometimes people complain — “Write more about WordPress; we don’t want to see photos of kids in Vietnam” — but I don’t really care. For my 25th birthday in January I published a list of 2009 goals on my blog. It included learning Spanish, learning how to cook, and posting 10,000 photos. Cooking has been a total fail so far; I go out for every meal. If you open my refrigerator you’ll find Girl Scout cookies and barbecue sauce. Photos are blazing along, half-way through the year and I’ve taken 20,000 photos and posted about 4,000 of them.

My blog is fortunate enough to get lot of comments and I read and manually approve each one. I think the broken windows theory — a broken window or graffiti in a neighborhood begets more of the same — applies online. I’ll happily approve a comment from someone who completely disagrees with everything I believe in, but if I get a positive comment with a curse word in it I’ll edit it out. My blog is like my living room: If someone was acting out in my house, I’d ask that person to leave.
I look at our numbers every day, usually after 5 PM PST when GMT goes into a new day. We have an internal dashboard where we track 500 to 600 statistics about everything from how often people are logging in to WordPress.com to how many words they’re pressing per day. Almost all of the numbers are real-time.

I do my best work mid-morning and super late at night, from one to five in the morning. Some people don’t need sleep, but I actually need a ton. I just sleep all the time, catching naps in the afternoon or a 20-minute snooze in the office. Our business is 24 hours — folks in Australia start their day around 4 PM my time and our guys and girls in Europe get going around midnight. Sometimes I’ll go out at night, come home from the bar at 2 or 3 AM, and then go back to work.

For WordPress we’re trying to set up a community that will be around 10 to 30 years from now, one that’s independent from the whims of the market. My role is somewhat like Linus for Linux or Shuttleworth for Ubuntu, affectionately referred to as BDFL, and it’s my responsibility to meet as many users as possible and direct the software in a way that reflects their interest. Last year I probably met 5,000 or 6,000 WordPress users, about half of them who make their living from it. We want to be like Google, eBay, Amazon — they all enable other people to make far more money than the company captures. That’s ultimately what we’re trying to do, we’re trying to create a movement.

My Mom started a blog a couple of months ago. Six years into this, and we finally made it easy enough for my Mom to use. (She hates it when I say that.)

If you ask questions in the comments, I’ll do my best to answer them.

WordCamp Developer Day

Automattic, WordPress

I have some cool news: On Sunday the day after WordCamp San Francisco we’re going to host a WordPress developer day at the Automattic office on Pier 38. It will be Barcamp-style with no pre-announced schedule, but expect more hardcore geek content like heavy WordPress performance optimization, BuddyPress internals, an intro to Erlang, a guide to secure coding, WordPress-as-CMS discussions, and more. If there’s a topic you’d like to lead start thinking about it now, there should be plenty of room for everyone to connect. (Try to keep things local though, we’re not sure how the internet will hold up.)

How P2 Changed Automattic

Automattic, Essays, WordPress

If you haven’t heard of P2 yet, check out this quick video:

Almost everyone at Automattic is a blogger, but for the first couple of years of the company we didn’t blog much internally. Everything happened over IRC, Skype, and email. (In that order.) Eventually we started a blog that worked like a traditional blog did with long posts and comments, but everyone forgot to visit it until I wrote a quick script on cron job that would email everybody summaries of new posts and comments.

There was a disconnect we couldn’t reconcile: even though our internal blogs didn’t work out most of the company was active on Twitter every day. (WordPress users are some of the most passionate adopters of micro-blogging.)

We found a solution in Prologue which added a posting box to the home page and gave it a Twitter-like feel. Now Automattic had a pulse, a place where the incredible amount of activity was chronicled and captured. It was low-friction and hassle-free, we all started using it more.

But there was still a problem, Prologue was great for status updates but terribly awkward for conversation. P2 solves all this by moving the conversation inline on the homepage. Conversations can be fully threaded using 2.7’s new comment features. Finally the blog started to get so busy we made it real time so you can just leave the page open and new stuff will come in. (It’s hard to describe, so watch the video above.) Seemingly simple changes have increased engagement many-fold: our main P2 now has over 4,700 posts in it with 1,100 of those in the past 60 days.

It completely transformed how Automattic works internally and I think is one of the most valuable things we’ve adopted in the past year. I’m on the road a lot, and sometimes my only connection is checking the mobile-optimized P2 on my iPhone.

I’m excited about P2 partly because blogs provide an incredibly robust infrastructure on which to build more advanced apps and this is a good example of that. I’d love to see more themes that transform what WordPress can do top-to-bottom.

You can get P2 for your WordPress.org blog here, and it’s available for all of WordPress.com too.

Blo.gs Lives On

Automattic, Essays, WordPress, ,

Do you guys remember Blo.gs? In addition to being a cool domain, it’s a ping-update service like Ping-O-Matic that was started by Jim Winstead and acquired by Yahoo in June of 2005.

Some exciting news today: Yahoo! is transferring blo.gs to Automattic for safekeeping and further development. I’ve been a long-time fan of the service, and it even inspired the early WordPress feature which reordered your blogroll based on update times.

We’re looking forward to beefing up the service and giving it a refresh, while continuing its reputation for reliability. It makes me nostalgic to hear the name “blo.gs” again, I even still have the t-shirt they made for a Feedmesh meetup years ago. (For a big blast from the past, check out the discussion around feedmesh and real-time, distributed updates. Everything old is new again.) Major kudos to Yahoo! for giving us the chance to do so — I think most companies would have just shuttered it.

Toni has a few more thoughts.

Sun, Oracle, WordPress, and MySQL

Automattic, Essays, WordPress

It’s magically beautiful outside in San Francisco today, but instead everyone is talking about the $7.4 billion acquisition of Sun Microsystems by Oracle. (More on Techmeme.) A number of people have contacted me with questions to the effect of “Oracle is evil, they now own MySQL, WordPress runs on MySQL, OMG! What’s next?” In addition to the millions of WordPress blogs all using MySQL, all of the projects Automattic contributes to are MySQL-based and we run more than 250 servers dedicated to MySQL.

Last Thursday at The Next Web I talked about how we need an Internet Bill of Rights to protect our data and the countless hours we pour into complex online services, such as Facebook and Last.fm, and that the foundations for this were laid down 20 years ago by Richard Stallman and the GPL.

Today our servers are running various versions of MySQL, tomorrow they’ll be running the same thing, and if need be ten years from now they can run the exact some software. Because of the GPL every WordPress user in the world is protected — we’re not beholden to any one company, only to what works best for us. Today that’s MySQL, tomorrow that’s MySQL, a year from now we’ll see.

Most importantly whatever happens will happen on our timeline. That’s the definition of Freedom.

Here are few other reasons not to be worried, and a bonus at the end.

  1. Oracle bought Innobase, makers of the InnoDB engine that most large users deploy as their main storage engine, in October 2005. The sky has not yet fallen.
  2. As a company Automattic has never really needed the support services that MySQL provides and even if we did there are plenty of third parties also providing support.
  3. Most of the useful updates for MySQL have been coming from outside, to quote Jeremy Zawodny:

    The single most interesting and surprising thing to me is both the number and necessity of third-party patches for enhancing various aspects of MySQL and InnoDB. Companies like Percona, Google, Proven Scaling, Prime Base Technologies, and Open Query are all doing so in one way or another.

    On the one hand, it’s excellent validation of the Open Source model. Thanks to reasonable licensing, companies other than Sun/MySQL are able to enhance and fix the software and give their changes back to the world.

  4. In terms of innovation, the most interesting developments have been from outside as well, in projects like Drizzle. (I would not be surprised if this moment is for Drizzle what Movable Type changing their licensing was for WordPress, even though in this case they’re both Open Source.)
  5. I’ve met a number of people at Sun who are incredibly smart, and if they stick around I expect cool things to continue to come out.
  6. There are some new developments in the WordPress world, namely that I think it would be possible to add support for databases other than MySQL without changing every $wpdb call or breaking any plugins or themes. It won’t be easy, but the coolest stuff seldom is.

Anyway, I now really wish I had agreed to keynote at the MySQL User Conference starting today. 🙂

WordPress Party Tonight

Automattic, Events, WordPress, Yahoo

Tonight (Monday March 30) at 7 PM we’re opening up the new Automattic space at Pier 38 for the first time because so many of our friends will be in town for Web 2.0 Expo and all their fun events. Come by our spot (on Embarcadero in between Brannan and Townsend) starting at 7 PM and enjoy good music, free booze, and geeky friends. We’re on the left corner and there’s a bunch of circles in the window and an Automattic sign over the door. (Sorry for the late announcement, if you could help us get the word out I’d appreciate it.) You can RSVP on Facebook here.

Tune in to WordPress.tv

Automattic, Essays, WordCamp, WordPress

Today we’ve switched on WordPress.tv, a new space to geek out and learn about all things WordPress.

WordPress.tv is home to tutorials for both WordPress self-installs and WordPress.com to help you get blogging fast and hassle-free.

We’ve also aggregated and organized all that awesome WordCamp footage from around the web, on WordCampTV. There you’ll find videos and slideshows of presentations made by Automattic employees and other WordPress gurus, plus interviews I’ve done with the media and fellow bloggers.

Tune in regularly for fresh content and updates to the WordPress.tv blog.

As always, community comes first. You have a say in shaping the future of WordPress.tv. Just drop us a line and let us know what you’d like to see added next.

Intensely Automattic Change.gov

Automattic, Interview, Tech,

Everyone is honored and excited today that Change.gov, the website of President Elect Barack Obama, has turned on IntenseDebate comments to discuss things like health care.

Micah Sifry has an excellent write up of the topic.

Imagine what happens if those numbers–on not just any “centralized site” but the one that symbolically and perhaps literally has the attention of the President-elect–start climbing into the five- and six-digits. Before our eyes, we are witnessing the beginning of a rebooting of the American political system. [emphasis added]

[…]

By using IntenseDebate (and the OpenID framework), the Obama transition is actually enabling a lot of interesting community development to start happening beneath the surface of a threaded discussion. Users get their own “commenter profile” on IntenseDebate, along with reputation points, and they can carry those profiles onto other sites that use the same system. Users can also choose to follow other IntenseDebate users, so if someone is really diligent they could start to gather a group or a crowd around them.

It has even started to make the cable news, as evidenced in this clip.

Pretty exciting! And it’s also a reaffirmation of Automattic’s platform-agnostic approach to Akismet, Gravatar, PollDaddy, and IntenseDebate that although Change.gov uses Expression Engine for their CMS they’ve chosen IntenseDebate for their comments.

PollDaddy Goes Automattic

Automattic, Travel, WordCamp, WordPress

It’s another exciting day here at Automattic. Today we finally get to announce that we’ve acquired the market-leading poll and survey service PollDaddy.

For a year or two now, I’ve been minorly obsessed with polls and surveys as a method of lightweight interaction that engages casual users of your website and also can get you some really fun data to play with. I’ve also mentioned at a few WordCamps that a polling plugin is one of the top 10 WordPress plugins in the world. Polls are really popular with WordPress users.

As we started to look at building out our own service for this, it became more obvious that, while on the surface it’s a very simple problem, there’s a lot of hidden complexity and opportunities for some really powerful features under the hood. There are probably a dozen companies addressing this space right now, but as we started to survey the space I was struck by how often I’d see this “PollDaddy” thing pop up.

Two guys in Ireland with a quirky company name were cleaning up with some of the largest and most respected websites using their service on a daily basis. They weren’t the biggest, but they had the high end of the market. It seemed to be the WordPress of the polling space.

I took a secret trip to Sligo and put back a few pints with the team and we decided to make things work. They went to bed every night and woke up every morning thinking about polls and surveys, and were iterating at a great pace. By plugging into Automattic’s experience at creating internet-scale services and the distribution of WordPress.com, I knew we could take Polldaddy to an entirely new level in a relatively short amount of time.

Today we just enabled PollDaddy integration with 4.4 million blogs on WordPress.com and have released the first version of their .org plugin.

You can read more about the acquisition on the PollDaddy blog, Toni’s blog, and the WP.com blog. I’m super excited to have Lenny and Eoin as part of the Automattic family, and I’m looking forward to seeing the service flourish with its newfound resources.

Intense Debate Goes Automattic

Automattic, Politics, WordPress, , ,

Some cool news today — Automattic is acquiring Intense Debate. You can read more on Jon’s blog on Intense Debate, or on Toni’s blog, or on VC Mike’s blog.

For those of you who aren’t familiar with the product, Intense Debate supercharges the comment section of WordPress blogs and other sites with cool features like threading, reply by email, voting, reputation, and global profiles. There are a few companies tackling this space right now, but I was impressed with how much ID (Intense Debate) has been able to do with a small team, and happy to find that their common platform (PHP and MySQL) would make integration a lot easier.

Going forward, the plan is to keep Intense Debate available as a platform-agnostic independent service, much like Akismet. We’ll start to integrate its features into WordPress core, WordPress.com, and Gravatar as appropriate. For example, comment threading is going to be in WordPress 2.7, but reply by email is a lot easier to implement on a hosted service like WordPress.com. We’re also going to be able to lend our expertise in scaling to the ID team to make sure their users enjoy the same hassle-free speed and bulletproof availability as users of other Automattic services.

Long-term, I think that comments are the most crucial interaction point for blogs, and an area that deserves a lot of investment and innovation. Comments really haven’t changed in a decade, and it’s time to spice things up a little.

We were early in the space with investing in Akismet to solve the spam problem, but now I think the real growth opportunities are in the user interaction and social features across comments. There is a huge opportunity to increase the traffic and engagement of blogs significantly. WordPress.com alone already gets about three legitimate comments every second — more than a quarter of a million every day. I’m excited to see what the Intense Debate team can do to make things more interesting.

Act Two

Automattic, Ideas, Press, , , , , ,

You’ve probably seen the news on GigaOM, Automattic has raised a new “series B” round of funding. We’re entering what I consider Act II of the Automattic story. I’ll talk about where we’re going, but first some history.

In 2005 Automattic was small. Through some miracle I had convinced Donncha O Caoimh, Andy Skelton, and Ryan Boren to leave their safe jobs, join a company with almost no money in the bank run by someone with no experience, and whose core idea was to give away and open source all our core IP. There were more questions than answers. Would a hosted version of WordPress move beyond the geek appeal the OS project had? How would the virtual company with no office work? Could we develop a service alongside an OS project without screwing both of them up? Should I raise money? Most importantly, would it scale?

In 2006 we developed a series of answers (sometimes hard-learned) to those questions. WordPress was obviously limited by its installation requirements — when it was added as a one-click to web hosts and when WordPress.com (and other MU hosts) made it simple to get a blog the popularity grew beyond what I could have ever imagined. In the WordPress.org world it wasn’t perfect — I consider the long period between versions 2.0 and 2.1 a personal failure — but after that initial bump the development really picked up and the community and usage exploded. There have been 5,880,790 downloads of WordPress.org since Automattic started. (3,852,554 in the past year alone.)

We ended up raising a small amount of money (1.1 million) to allow the company to take some risks without worrying about payroll but we ended up using very little of that capital because revenues grew quickly, allowing us to remain break-even even as the team scaled to 18 full-time folks and a number of contractors. Toni Schneider left Yahoo to join as CEO, a partner I couldn’t imagine getting along better with, and we started to look like a real company despite having no office and some of us never meeting in person.

Fast forward to 2007: many of the seeds planted started to really bloom. On WordPress.com 1.8 million new users joined, they created 25 million posts, we served 3.2 billion dynamic pageviews, and grew to reach over 100 million unique users worldwide. Akismet blocked billions of spams from reaching blogs. Nearly every major media organization, from the NY Times, WSJ, CNN, Fox, Time, People, and more, have embraced WordPress. Finally the approach of serious acquisition or majority-stake investments brought up the biggest question we’d faced so far: should we sell, or build out Automattic to be an independent company for many years to come.

That decision actually wasn’t hard. I couldn’t stop thinking about the opportunities and it became clear that the road ahead was much longer than the road behind us.

That brings us to today. The New York Times, the flagship of media, is joining our existing investors Polaris, True, and Radar in expanding their minority stake in the company. Automattic is now positioned to execute on our vision of a better web not just in blogging, but expanding our investment in anti-spam, identity, wikis, forums, and more — small, open source pieces, loosely joined with the same approach and philosophy that has brought us this far.

See also: GigaOM, Toni Schneider, New York Times, Techcrunch, Wall Street Journal, Mark Jaquith, Jackie Danicki, Mark Evans, Mathew Ingram, Michael Bazeley, Venturebeat, Lloyd Budd, Raanan Bar-Cohen, bu.blicio.us, VC Mike.

P.S. I’ve moved to a new domain, ma.tt, but more on that later. You can subscribe to my feed here.