You might be surprised to learn that the complex file encryption software used by organizations like the Department of Defense is not developed in some government laboratory, but by contract development teams and freelance programmers distributed across the globe.<\/p>\n\n\n\n
Even with clients like banks, government agencies, hospitals, and law firms, AlertBoot is able to build secure encryption software with remote developers. We interviewed AlertBoot\u2019s founder and CEO, Tim Maliyil, to find out how he used a distributed model to help his company reach $7 Million Annual Recurring Revenue.<\/p>\n\n\n\n
With AlertBoot now encrypting over 400,000 devices, Tim shared with us the lessons he\u2019s learned through founding two SaaS business \u2014 namely, how to effectively manage distributed teams, keep contract engineers motivated, and ensure product quality.<\/p>\n\n\n\n
Looking for top talent fast? See how <\/em>Arc<\/a> can help you:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Find developers, designers, marketers, and more Hire top talent with Arc risk-free \u2192<\/strong><\/a><\/p>\n\n\n\n Armed with some key lessons, human resources, IP, and capital from a successful partial exit from his first SaaS, Tim launched AlertBoot as a semi-distributed company in 2009.<\/p>\n\n\n\n From attempts to scale operations with remote developers during his first business, Tim learned it\u2019s not enough to just recruit the right talent overseas.<\/p>\n\n\n\n \u201cWe learned from the challenges and overcame the hurdles of how to manage a remote team with that first business. In 2006, we started scaling up our outsourcing arrangement. We had tried it prior to that, but we didn\u2019t have a man on the ground overseas \u2014 [someone] in the same time zone and culture who could travel to the office.\u201d<\/p>\n\n\n\n Once Tim brought on direct hires to manage overseas contractors, he discovered the utility of remote engineering teams.<\/p>\n\n\n\n Part of Tim\u2019s formula is to find and hire senior engineers overseas to serve in a CTO role. Once the right person is onboard, they are flown to headquarters in the United States where they spend several months learning the product and the business. They then go back to oversee the team abroad.<\/p>\n\n\n\n Once in place, Tim works with the senior engineer to build up the local contract development team. \u201cI do a lot of the initial screening myself. I try to make a point of seeing if I can communicate with them.\u201d Ease and clarity of communication are vital to productive workflows, especially among distributed engineering teams.<\/p>\n\n\n\n In addition to communication ability and technical skill, it\u2019s important that the engineers are able to understand the product from a business perspective:<\/p>\n\n\n\n I need people who are able to understand the business need for the product. Some engineers get caught up in their work and think they can solve the world\u2019s problems, and just take things too far. If they are able to understand the business need, they will be more proficient as engineers executing our goal.<\/p>Tim Maliyil, AlertBoot founder and CEO<\/cite><\/blockquote>\n\n\n\n Hiring developers that understand the business end comes down to efficiency and building the product right. Engineers should understand the product, the related regulations, and the specific pain points customers expect the product to solve for them. If you end up working with developers who are unable understand these things, or are unable to align their work with your business objectives, they might not build what you need. This will cost you time, money, and quality, or, most likely, all of the above.<\/p>\n\n\n\n With the right contract developers brought onboard, AlertBoot\u2019s human resources situation is highly agile \u2014 some engineers work only part-time on short-term projects while others stay on for several years or become full-time hires as needed.<\/p>\n\n\n\n Read More<\/strong>: On-Site vs Remote vs Distributed Engineering Teams: How to Choose?<\/a><\/p>\n\n\n\n \u201cWe are not big enough that we need a full-time graphic designer or full-time high-end C++ engineer \u2014 we don\u2019t have enough work to keep them busy,\u201d says Tim.<\/p>\n\n\n\n That\u2019s why\u00a0AlertBoot\u00a0turns to freelance platforms when they need to add new functionality, require certain expertise ahead of product launches, or need general part-time consultants.<\/p>\n\n\n\n With a highly complex file encryption product, AlertBoot needs to hire experienced developers at the top of their field. \u201cThe tech is so complex that sometimes you may need a Ph.D. to work on it,\u201d Tim says. Recruiting this caliber of talent for short-term projects can be extremely difficult, especially if you don\u2019t have an astronomical budget.<\/p>\n\n\n\n You can find this type of talent in the U.S., but they may ask for 40-50k per month. Instead, Tim used online talent sourcing to find the right people for the job while cutting costs.<\/p>\n\n\n\n \u201cMath education and the cyber skillset are pretty strong in, for instance, Germany, and Western Europe. We hired a small team in Germany led by a CTO there. At 20K per month, he is still not cheap, but this was a key person to help make the product bulletproof.\u201d<\/p>\n\n\n\n Keeping remote engineers engaged and performing to their potential is also very important for successful product development. As mentioned earlier, to build their encryption software, AlertBoot has to contract some cr\u00e8me de la cr\u00e8me engineers.<\/p>\n\n\n\n \u201cWhat matters most to this type of engineer,\u201d Tim explains, \u201cis that their mind is always piqued, their intellect challenged, and that they are always learning.\u201d It just so happens that working out the most secure code to protect the data of governments, law firms, and other sensitive information tends to provide a natural drive.<\/p>\n\n\n\n However, you shouldn\u2019t only rely on the developer\u2019s love of learning and programming to solve problems. People instinctively want to receive feedback and validation to find value in the work they do.<\/p>\n\n\n\n \u201cThey have to find a purpose in what they are doing,\u201d Tim tells us, \u201cso I make it a point to share some war stories from the field on a weekly basis.\u201d As a hands-on CEO, Tim regularly does sales demos and keeps abreast of incoming support issues. Being technical himself, he can bring specific feedback to the engineering teams on customer requirements, customer integration, complaints, and other support updates.<\/p>\n\n\n\n While engineering teams need to hear constructive feedback so they can perfect the product, it’s also important to share wins. After a successful beta trial with a (foreign) government agency, Tim shares the response with the team:<\/p>\n\n\n\n \u201cThe reaction was very enthusiastic from not-so-enthusiastic folks (government bureaucrats). I can bring that back to the team and let them know \u2014 what we are building, the ideas we had, they are tangible and they are needed.\u201d<\/p>\n\n\n\n This is great feedback to get during product development and proves to the team the value of what they are building. Sharing market validation, customer feedback, and customer success helps remote engineers feel like they are part of the product improvement process and keeps them engaged in their work.<\/p>\n\n\n\n Read More<\/strong>: 31 Y Combinator Application Tips to Successfully Snag a YC Spot<\/a><\/p>\n\n\n\n As an information security company catering to banks and government agencies, it is necessary to separate codesets during product development. Distributed teams operating independently is a natural solution.<\/p>\n\n\n\n It may seem counterintuitive, but using contract developers in remote locations actually results in more secure software. Tim explains why it makes perfect sense:<\/p>\n\n\n\n \u201cThe guys who build our encryption code have no idea what our web services or APIs look like, and the guys who build the APIs have no idea what the encryption looks like \u2014 or even have access to it.\u201d<\/p>\n\n\n\n For these two product segments, there is limited-to-no cooperation between teams. \u201cFrom a security perspective, it\u2019s a way to ensure a low likelihood of any security breaches from our staff.\u201d When designing an information security product for organizations trusted not only to keep information safe, but to keep us<\/em> safe, this is a pretty important point.<\/p>\n\n\n\n Of course, teams don\u2019t always work in isolation. There are times when cross-team collaboration is more important than others. When bigger projects are underway, or new features are being integrated, team collaboration will be key.<\/p>\n\n\n\n \u201cIf it\u2019s for the core of the product, it\u2019s good if the team is together. You get those brainstorming sessions and those \u201caha\u201d moments that push product development forward,\u201d says Tim.<\/p>\n\n\n\n Read More<\/strong>: How to Manage Developers on a Remote Engineering Team (6 Tips)<\/a><\/p>\n\n\n\n With team members in Seoul, Sydney, South Asia, the U.S, and Germany, AlertBoot is a truly distributed company.<\/p>\n\n\n\n Tim engages his remote teams by staying in constant contact. \u201cUnless I\u2019m sleeping, I\u2019m pretty much available. Just ping me on Skype.\u201d Key managers spend time at headquarters or meet up with Tim in Singapore, Taipei, or wherever he may be traveling. He keeps in touch with the rest of the team via frequent video conferences.<\/p>\n\n\n\n When we asked him why he chose this model to build his company, he cites the ability to be \u201cagile\u201d and \u201ccost-effective.\u201d<\/p>\n\n\n\n We are not wasting money on office space, and we are not pinning ourselves down to a certain geography, or the related limitations of a talent pool within that given geography. Second, it has allowed us to find talent when we need it, wherever it\u2019s available.<\/p>Tim Maliyil, AlertBoot founder and CEO<\/cite><\/blockquote>\n\n\n\n Tim even connects his product\u2019s quality with the flexible hiring and team structure that a distributed model allows. He argues that top engineers are sharpest when tackling new problems, before the work becomes mundane and stale. For AlertBoot, this has been one of the benefits of working with contract developers and freelancers.<\/p>\n\n\n\n The distributed model also enables the team to be more responsive to customer needs. \u201cI end my day escalating issues to engineering, who is then working on it overnight. For small issues, we can turn it around in a day or two,\u201d Tim tells us. In this manner, work can be passed off between time zones \u2014 and no one is pulling an all-nighter.<\/p>\n\n\n\n Read More<\/strong>: Freelance Web Developer vs Dev Agency: Which is Best for My Project?<\/a><\/p>\n\n\n\n Although AlertBoot has successfully made use of distributed teams, contractors, and freelance developers, Tim recognizes the risk of outsourcing product development. When building a new business, understanding the technology and product ownership should not be underestimated.<\/p>\n\n\n\n That\u2019s why Tim encourages other founders to either know the tech behind their business or find a partner who does. \u201cYou need a technical co-founder to understand both the business and the tech technology \u2014 if that\u2019s not you.\u201d<\/p>\n\n\n\n \u201cIf you hire an overseas shop, you are putting too much faith in a stranger to design the product properly. You can\u2019t always trust third parties to build certain parts of your product \u2014 they may just not know the business.\u201d<\/p>\n\n\n\n Tim also shared the hard-learned lesson of building with scalability in mind. With his first business, after his product started gaining traction and the user base began to grow, he found that certain product components were built inefficiently. <\/p>\n\n\n\n This resulted in exorbitant server fees. He, therefore, had to invest heavily in rebuilding those components to scale down their server footprint and reduce costs in the long run. While cloud computing and AWS reduces hosting costs, building smart is always the way to go.<\/p>\n\n\n\n If you plan to be successful and grow, which you probably do, Tim offers this advice: “Build from the very beginning with scalability in mind \u2014 this will lead to a more linear cost base as you grow.”<\/p>\n\n\n\n Read More<\/strong>: How Data Science Managers Can Effectively Lead the Team to Production<\/a><\/p>\n\n\n\n Tim is on a mission to bring his bootstrapped company to 20 million in revenue, organically, before he considers an exit. With some potential big-name customers already expressing interest in a next-generation beta product, things are looking promising.<\/p>\n\n\n\n Successfully using distributed teams takes careful planning, intentional communication, and synchronized objectives, underwritten by trust. Still, the distributed model may not be right for every business venture.<\/p>\n\n\n\n For Tim and AlertBoot, the benefits are clear: \u201cremote dev teams have allowed us to be very agile and responsive to our customer needs \u2014 not to mention cost-efficient.\u201d<\/p>\n\n\n\n You can also try <\/em>Arc<\/a>, your<\/em> shortcut to the world’s best remote talent:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Access 450,000 top developers, designers, and marketers <\/a>Try Arc and hire top talent now \u2192<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Alertboot’s Tim Maliyil explains how he makes file encryption software for governments and law firms with remote developers and freelancers.<\/p>\n","protected":false},"author":4,"featured_media":1243,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies"],"yoast_head":"\n
\u26a1\ufe0f Freelance or full-time remote + fully vetted<\/em>
\u26a1\ufe0f Save up to 80% with global hires<\/em><\/p>\n\n\n\nAlertBoot Beginnings<\/h2>\n\n\n\n
Hiring Remote Engineers<\/h3>\n\n\n\n
Scaling With Freelance Talent<\/h3>\n\n\n\n
Keeping Remote Engineers Motivated<\/h2>\n\n\n\n
Separation for Security<\/h2>\n\n\n\n
Why the Distributed Model Works for AlertBoot<\/h2>\n\n\n\n
Advice to Other Founders<\/h2>\n\n\n\n
A Growth Trajectory for AlertBoot<\/h2>\n\n\n\n
\u26a1\ufe0f Vetted and ready to interview<\/em>
\u26a1\ufe0f Freelance or full-time<\/em><\/p>\n\n\n\n