Digium founder hangs loose

Sunday, November 25, 2007

Huntsville Times

Spencer focuses on performance, not dress code

Mark Spencer founded Digium Inc. in 1999 as Linux Support Systems while still a computer engineering student at Auburn University. Now, at the ripe age of 30, Spencer serves as chairman and chief technology officer of Digium.

He's billed as a pioneer of open-source telephony. For those who may stumble over that terminology, Spencer explains Digium's business in layman's terms:

"We make hardware and software that allow you to take a PC and turn it into a phone system for a business, and then we build products around making that easier."

Business is booming. Digium, which employs about 120, moved last month into a new 60,000-square-foot building in Cummings Research Park.

Times Business Editor Steve Byers interviewed Spencer last week in his cluttered corner office. Spencer, wearing a red T-shirt, tan cargo shorts and tennis shoes, discussed Digium's culture, Huntsville's entrepreneurial climate and other topics from his favorite spot in the office - the hammock. Here's a transcript of the conversation, edited for space and clarity:

A hammock?

"I went to a Renaissance festival in Maryland, and I got a couple of these for my house, and I sort of jokingly asked, 'What do you think if I, uh, hung a hammock in my office?' ... People come into the office, and they can sit here and swing around. ... It's kind of different."

Digium's Web site describes the culture here as "energetic and hip." How do you foster that?

"You try to create an atmosphere that people are really excited about, and I think when you see most people here, they are excited about coming to work. That's all kinds of things about the environment, from some stuff about the way we built the building - we put everybody in window offices - and other things just about the nature of trying to keep people having fun."

What do you look for in a prospective employee?

"We try to hire people who are very passionate about what we are doing. That means we try to make our compensation built in such a way that it is heavily on stock options versus normal cash compensation, so that everybody is here because they believe in the long-term success of the company and not because they are trying to get to the next highest-paying job.

"Similarly, I think it's about being relaxed about things that aren't really directly performance-related, like how people dress. So you'll notice on the engineering floor, most people will come to work in shorts and a T-shirt, weather permitting. ... A few weeks ago, I did this e-mail that said Friday is going to be Casual Day, without any explanation. We had people come in pajamas and people come dressed up like Harry Potter, whatever. It was pretty funny."

Do you ever feel out of place in such a buttoned-up town?

"I think people understand this kind of release a lot more than they used to - this idea that the tie is not such a practical invention. ... In general, dress is not so important. Focus on people's performance and the stuff that's most important."

If Digium were in Austin or San Jose, this laid-back style would be no big deal, right?

"There are so many companies here that are so opposite of the way that we work that it is a great environment ... and a great recruiting tool. ɠSome people like that structured environment. You come to work every day and know exactly what you have to do. Whereas here you come to work, your day could be a total surprise. We're much more like the only game in town here than we ever would be in San Jose or San Francisco."

Are you afraid of losing that culture as Digium keeps growing?

"It is certainly challenging to maintain. It feels like there are all these little steps along the way that you go through. The first meeting that I wasn't invited to, that was the first little step. Then recently when someone got hired in the technical area that I had not met, that was another big milestone."

Tell me about the role Mark Smith, the late co-founder of Adtran, played in your life.

"Mark Smith was the most significant mentor, but there were several others that have played a role. Adtran's initial investment in Digium obviously helped us get established in Huntsville and move up from Auburn. He always had a great deal of vision and a great deal of appreciation for entrepreneurship.

"I have found that when entrepreneurs are successful, they just can't help but try to help other entrepreneurs. One of the most rewarding things for me now is that there are people asking me for advice about entrepreneurship."

What do you tell them?

"The first thing I ask is, 'Why do you want to be an entrepreneur?' One person said, 'I want to be an entrepreneur because I want to be my own boss.' That is absolutely the wrong answer. You will never succeed with that because when you are an entrepreneur, your customers are your boss. If you don't believe that, you are in trouble."

There's already speculation about Digium going public or being sold. Is either route part of your strategy?

"I have always thought if you build the company to be successful, the rest will follow. If you build something you are hoping to sell or take public, then you are always dependent on somebody else for what's going to happen. With Digium we have been profitable since 2002. Having that as the way we operate is important for giving us a better set of options. Likewise, we have tried to build out with everybody having options with the company such that whatever exit is likely to be attractive for any of us would be very beneficial to the people who work here, too."

Still, you read about all these dot-com entrepreneurs cashing out for millions and millions. Don't you envy that?

"It's not really about me anymore. It's about 119 people plus me. So these decisions really have to be driven by what's going to be best for the people here, not driven by what's going to be best for Mark Spencer. Whatever happens, hopefully I'll be all right."



Digium founder hangs loose Sunday, November 25, 2007 Huntsville Times Spencer focuses on performance, not dress code Mark Spencer founded Digium Inc. in 1999 as Linux Support Systems while still a computer engineering student at Auburn University. Now, at the ripe age of 30, Spencer serves as chairman and chief technology officer of Digium. He's billed as a pioneer of open-source telephony. For those who may stumble over that terminology, Spencer explains Digium's business in layman's terms: "We make hardware and software that allow you to take a PC and turn it into a phone system for a business, and then we build products around making that easier." Business is booming. Digium, which employs about 120, moved last month into a new 60,000-square-foot building in Cummings Research Park. Times Business Editor Steve Byers interviewed Spencer last week in his cluttered corner office. Spencer, wearing a red T-shirt, tan cargo shorts and tennis shoes, discussed Digium's culture, Huntsville's entrepreneurial climate and other topics from his favorite spot in the office - the hammock. Here's a transcript of the conversation, edited for space and clarity: A hammock? "I went to a Renaissance festival in Maryland, and I got a couple of these for my house, and I sort of jokingly asked, 'What do you think if I, uh, hung a hammock in my office?' ... People come into the office, and they can sit here and swing around. ... It's kind of different." Digium's Web site describes the culture here as "energetic and hip." How do you foster that? "You try to create an atmosphere that people are really excited about, and I think when you see most people here, they are excited about coming to work. That's all kinds of things about the environment, from some stuff about the way we built the building - we put everybody in window offices - and other things just about the nature of trying to keep people having fun." What do you look for in a prospective employee? "We try to hire people who are very passionate about what we are doing. That means we try to make our compensation built in such a way that it is heavily on stock options versus normal cash compensation, so that everybody is here because they believe in the long-term success of the company and not because they are trying to get to the next highest-paying job. "Similarly, I think it's about being relaxed about things that aren't really directly performance-related, like how people dress. So you'll notice on the engineering floor, most people will come to work in shorts and a T-shirt, weather permitting. ... A few weeks ago, I did this e-mail that said Friday is going to be Casual Day, without any explanation. We had people come in pajamas and people come dressed up like Harry Potter, whatever. It was pretty funny." Do you ever feel out of place in such a buttoned-up town? "I think people understand this kind of release a lot more than they used to - this idea that the tie is not such a practical invention. ... In general, dress is not so important. Focus on people's performance and the stuff that's most important." If Digium were in Austin or San Jose, this laid-back style would be no big deal, right? "There are so many companies here that are so opposite of the way that we work that it is a great environment ... and a great recruiting tool. ɠSome people like that structured environment. You come to work every day and know exactly what you have to do. Whereas here you come to work, your day could be a total surprise. We're much more like the only game in town here than we ever would be in San Jose or San Francisco." Are you afraid of losing that culture as Digium keeps growing? "It is certainly challenging to maintain. It feels like there are all these little steps along the way that you go through. The first meeting that I wasn't invited to, that was the first little step. Then recently when someone got hired in the technical area that I had not met, that was another big milestone." Tell me about the role Mark Smith, the late co-founder of Adtran, played in your life. "Mark Smith was the most significant mentor, but there were several others that have played a role. Adtran's initial investment in Digium obviously helped us get established in Huntsville and move up from Auburn. He always had a great deal of vision and a great deal of appreciation for entrepreneurship. "I have found that when entrepreneurs are successful, they just can't help but try to help other entrepreneurs. One of the most rewarding things for me now is that there are people asking me for advice about entrepreneurship." What do you tell them? "The first thing I ask is, 'Why do you want to be an entrepreneur?' One person said, 'I want to be an entrepreneur because I want to be my own boss.' That is absolutely the wrong answer. You will never succeed with that because when you are an entrepreneur, your customers are your boss. If you don't believe that, you are in trouble." There's already speculation about Digium going public or being sold. Is either route part of your strategy? "I have always thought if you build the company to be successful, the rest will follow. If you build something you are hoping to sell or take public, then you are always dependent on somebody else for what's going to happen. With Digium we have been profitable since 2002. Having that as the way we operate is important for giving us a better set of options. Likewise, we have tried to build out with everybody having options with the company such that whatever exit is likely to be attractive for any of us would be very beneficial to the people who work here, too." Still, you read about all these dot-com entrepreneurs cashing out for millions and millions. Don't you envy that? "It's not really about me anymore. It's about 119 people plus me. So these decisions really have to be driven by what's going to be best for the people here, not driven by what's going to be best for Mark Spencer. Whatever happens, hopefully I'll be all right." © 2007 The Huntsville Times © 2007 al.com All Rights Reserved.