How to Build a Profitable IT Company: Three Questions with Laplink CEO Thomas Koll

“Upgrade Assistant” feature in PCmover in conjunction with the release of Windows 7. This allowed customers with Windows XP computers to easily perform an in-place upgrade from XP to Windows 7— even though this scenario is not supported by Microsoft. Since then, customers have purchased many copies and PCmover has received numerous favorable reviews and endorsements from the press.

And no, we are not unique in many ways. Business goals are to create profitability, serve the customers as best we can, maintain employee satisfaction and have high integrity and morals. Most companies of our size don’t just chase the Internet bubble, the wireless nirvana or the ultimate adaption in social networking. Most follow business principles to create sustainable business. So are we.

X: What kinds of lessons does Laplink hold for IT companies?

TK: After 27 years in business we have certainly shown continuity and customer focus. We have always concentrated on current customer needs. In retrospect we have—unlike the first 10 years where everything was cutting edge—not concentrated on the “cool stuff” of future technologies, but what gaps exist with PC usage and filling those gaps with easy-to-use product.

Our motto has always been “to make the everyday life of the PC user easier,” and customers could always turn to us to find useful “utilities.” By doing that we created a worldwide brand and products of high recognition.

Not sure if it is a lesson, but certainly we proved that “small and focused” can create a sustainable business.

X: So how are things looking in terms of growth and profitability?

TK: Over the years Laplink has had good times and challenging times. In recent years Laplink restructured its product focus, renewed the product line and has regained profitability. 2009 was a challenge, but 2010 shows healthy growth rates.

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.