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Joe Schmidt

A16z's Joe Schmidt and Andy Mccall**lighthouse Vs**existing Budget as Land Grab Signal**poc Discipline — Two Non-negotiable Rules**land Grab Hiring Profile
2episodes
1podcast

We have 2 summarized appearances for Joe Schmidt so far. Browse all podcasts to discover more episodes.

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2 episodes

AI Summary

→ WHAT IT COVERS a16z's Joe Schmidt and Andy McCall break down two enterprise AI go-to-market strategies — Lighthouse (winning high-profile logos for credibility) versus Land Grab (capturing existing budget markets at speed) — using frameworks built from scaling Meraki and Samsara, applied to today's AI startup landscape. → KEY INSIGHTS - **Lighthouse vs. Land Grab Matrix:** Map your market on two axes: buyer exposure (regulatory risk, reputational stakes) on the Y-axis, and whether proof travels in your market on the X-axis. High exposure plus proof-travels equals Lighthouse. Low exposure plus established budget equals Land Grab. This framework determines your entire sales motion before you hire a single rep. - **Existing Budget as Land Grab Signal:** If customers already pay for a workflow you're replacing — whether software or human labor — pursue Land Grab immediately. Stue (accounts receivable AI) won mid-market deals by showing CFOs the math: their AI outperforms existing collections teams on working capital metrics, bypassing any need for social proof or category education. - **POC Discipline — Two Non-Negotiable Rules:** AI proof-of-concepts become indefinite science projects without structure. Set a hard end date (30–45 days maximum) and define binary success criteria upfront with the customer. Decagon executes this by committing to specific customer support benchmarks before deployment, then hitting them within the agreed window every time. - **Land Grab Hiring Profile:** Early-stage Land Grab companies should hire for attitude and aptitude over experience, skewing toward earlier-career sellers. Quota attainment should target near 100% of the team — if only 50% hit quota, quotas are too high or the hiring profile is wrong. Sales operations should be hired earlier than most founders expect, even as a single person. - **The Platform Moment Argument:** The current AI cycle mirrors enterprise software circa 2000–2008, when large platform categories were first built. The prior 15 years favored PLG wedge products because switching cloud-to-cloud wasn't worth it. AI now enables full workflow reinvention, creating conditions to sell large platforms again — making traditional enterprise field sales more relevant than at any point in the past decade. → NOTABLE MOMENT Andy McCall revealed that neither Meraki nor Samsara consciously chose their go-to-market strategy — they simply called prospects, got rejected by large enterprises immediately, and defaulted to mid-market by necessity. Strategy emerged from customer feedback, not planning sessions. 💼 SPONSORS None detected 🏷️ Enterprise Sales Strategy, AI Go-To-Market, Land Grab vs Lighthouse, SaaS Sales Playbooks, AI Startup Growth

a16z Podcast

Workday’s Last Workday? AI and the Future of Enterprise Software

a16z Podcast
29 minPartner on the Enterprise Team at a16z

AI Summary

→ WHAT IT COVERS a16z partner Joe Schmidt argues that Workday — a 20-year-old HR platform with 97% gross dollar retention — faces its first genuine displacement threat from AI-native competitors. The same platform shift logic that let Workday unseat PeopleSoft in 2005 now applies against Workday itself, across HR, CRM, and ITSM categories. → KEY INSIGHTS - **Platform shift timing:** Enterprise software incumbents get displaced during technology transitions, not between them. Workday beat PeopleSoft by rebuilding for cloud in 2005. AI now creates the same window — the first moment a CHRO or CIO can be shown a fundamentally different system architecture, not just a point solution layered on top of existing infrastructure. - **Brownfield over Greenfield:** Startups like Gusto pursue Greenfield customers not yet locked into enterprise platforms. The AI-era opportunity is Brownfield — targeting existing Workday customers who have 97% retention not from satisfaction but from switching costs. Enterprises report willingness to replace Workday if a feature-equivalent, AI-native alternative existed and could be deployed in 30–60 days. - **Deployment compression as unlock:** Legacy enterprise HR implementations take 12-plus months and significant consulting spend. AI-native coding and migration tooling can compress deployment to 30–60 days. This timeline reduction is the structural prerequisite for rip-and-replace to become viable — without it, switching costs remain prohibitive regardless of product quality or pricing advantages. - **AI revenue skepticism:** Workday reports $400M AI ARR growing triple digits, but Schmidt characterizes this as procurement innovation rather than genuine product transformation. Flex credits still require $25,000 licensing fees plus consultants to build anything. No agentic experiences are actually deployed inside customer Workday instances — enterprises are spending AI budgets without receiving AI-native functionality. - **Agent permissioning as next battleground:** As companies deploy more AI agents, those agents need role-based permissions and tracking tied to HR data — the same data Workday holds. CIOs are already asking how to manage agent permissioning at scale. An AI-native HR system becomes the identity and permissions layer for the entire agentic enterprise, expanding its strategic value well beyond payroll and benefits. → NOTABLE MOMENT Schmidt reveals he logged into Workday only three times in the past year despite being an a16z employee, and spent six and a half minutes locating his own compensation data. He used this personal experience as evidence that the core user experience has not meaningfully changed since 2005. 💼 SPONSORS None detected 🏷️ Enterprise Software, AI Disruption, HR Technology, SaaS Displacement, Agentic AI

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