Kim Ngo: Hi Enlai! Thank you for meeting me on a Saturday morning. Tell us about 3jam—specifically, what are you are trying to solve or accomplish?

Enlai Chu: Hi Kim. When my co-founder Andy Jagoe and I started 3jam in January 2006, we decided to focus on new and better ways for people to stay in touch with their friends. SMS was already huge in Asia and Europe, and growing rapidly in the U.S. as well.

The 3jam Team

However, SMS was designed to be a person-to-person communications medium. Unlike e-mail, there was no easy way to send a message to a group of people and have replies go back to everyone instead of just the sender. Because SMS had more immediacy and reach than e-mail, group messaging seemed so fundamentally useful for coordination and collaboration that this is where we focused our first product.

Kim Ngo: Why do you think it’s been an issue? Why wasn’t group text-messaging available prior to your product?

Enlai Chu: Until a few years ago, the mobile ecosystem was relatively inaccessible to third party developers. This meant that the addition of telephony features could only be undertaken by carriers through the purchase of new network and handset equipment – a cycle that takes six to eighteen months.

As SMS use began skyrocketing, carriers were busy promoting and coping with the growth of 1-to-1 SMS. For group SMS to be available to everyone, each carrier would need to agree on new protocols, upgrade equipment and phones, as well as interoperate with all other carriers – a non-trivial endeavor that carriers have been discussing for years but still do not have a solution for.

Kim Ngo: So what’s the solution? Is a reply-all, group messaging function for all phones even feasible?

Tom Purcell, Thad White, Enlai Chu

Enlai Chu: Yes. Because our product did not require carriers to upgrade any existing equipment, we were able to roll out a product immediately. We used existing SMS infrastructure like short codes – which are the 5 or 6 digit numbers you see advertised by SMS companies today. The result was a service that works on any handset, in any country in the world. We now have nearly 4 million users from all over the world, echoing the global demand for SMS services.

Kim Ngo: How do you guys make money from this product?

Enlai Chu: Back when most users in the U.S. were on per-message rather than bucket SMS plans, margins on each message were high. As a result, our main goal became driving SMS usage and then getting revenue-share from carriers. Our first carrier deal was with Virgin Mobile .

Kim Ngo: Where can I find your application? Which phones/services?

Enlai Chu: Today, you can initiate a group conversation by 1) purchasing a group phone number from us, 2) by using our web interface (http://www.3jam.com) or 3) by our J2ME, Palm and BlackBerry apps. Our BlackBerry app (http://www.3jam.com/bb) also does threaded SMS messaging, which is something the BlackBerry lacks today.

Kim Ngo: What are you working on now?

Thad, Enlai and Tom at DemoFall

Enlai Chu: Our newest product is called “3jam Numbers.” It’s a lifetime phone number that you can manage, and have all of your voice and SMS communications going through that number.

While there are many one-number voice solutions out there, voice plus SMS is our key differentiator. If you think about it, both have to be supported in order for your number to work with our primary form of communications today – cellular phones. Without SMS, it wouldn’t be a one-number solution.

You can pick a 3jam phone numbers from anywhere in the United States or port in any landline or mobile number.

Kim Ngo: How is this different from Google Voice?”

Enlai Chu: We’ve been compared to Google Voice pretty often because we are the first company to have a competing voice and SMS cloud-number product. Just to give you some background, Google Voice grew from an acquisition of a company called Grand Central, which had a “one-number” solution with voice only, and then added SMS functionality before re-launching as Google Voice.

Our product has similar basic voice and SMS functionality such as ringing multiple phones, voicemail, transcriptions, a threaded SMS inbox etc, but we also have features that differentiate us.

Kim Ngo: How does your product differ from Google Voice?

Enlai Chu: For one thing, number portability is a pretty big one. This means that our customers don’t have to get a new number. We have users consolidating their phones, moving and keeping their numbers, or simply going all-wireless. With 3jam, they can continue receiving voice calls and SMS to any phone, the web, or e-mail.

We’ve been compared to Google Voice pretty often because we are the first company to have a competing voice and SMS cloud-number product. Our product has similar basic voice and SMS functionality such as ringing multiple phones, voicemail, transcriptions, a threaded SMS inbox etc, but we also have features that differentiate us.

Kim Ngo: What happens when Google Voice starts to offer number portability as well?

Enlai Chu: Google has said that they may offer number portability at some point. It will be a major logistical and cost challenge for anyone trying to do this without the appropriate systems. We have that technology from Number Networks, my previous company.

While we stay aware of the competitive landscape, we continue to focus on developing new features that keep us unique and ahead. For example, we allow our users to save money by answering their calls on Skype or other IM clients.

We were also the first to offer SMS to e-mail so you receive and reply to SMS messages without a phone or roaming charges while traveling. There are other things we are innovating on that will keep us unique!

Kim Ngo: How does group texting fit in with your new virtual number product?

Enlai Chu: Group texting is still a major differentiator for us. With virtual numbers, you can now assign a phone number to your group so any group member can send a message to the entire group easily. We already have many work groups, sports buddies, coaches, church groups, etc. using our group messaging service on a regular basis.

Enlai and Friends

Kim Ngo: So I can have many 3jam numbers?

Enlai Chu: Yes, that’s what is cool. 3jam numbers extend beyond a one-number service. We’re saying “why not have a consolidated number for you, one group number to coordinate your tech support team or fantasy football league, one for your game’s virtual character, one for your Craigslist or anonymous classifieds listing, one for international work or family members, all easily managed on your interface? With our SMS-to-IP and voice technology, the applications are limitless.

Companies have decided to build their applications on top of our platform because it represents years and millions of dollars of engineering development saved for them. One such partner is Peek, which sells dedicated e-mail and SMS devices.

Kim Ngo: Where do you think the industry is heading?

Enlai Chu: Virtual numbers are going to enable some really cool products and applications, thanks to SMS and voice connectivity. First, “Unified Communications” products will finally include a missing piece of the puzzle, SMS. Also, IM clients could have a voice and SMS-enabled number to be reached via phone and text. Social network sites could offer each user a number that connected to a web client and message inbox, but also reach into the offline world to drive daily engagement with users outside the network.

You’ll also start to see businesses using SMS-enabled numbers. Customer service reps will be able to handle multiple text-message support conversations compared to one phone call at a time. Users can request information like business hours, location, etc. by texting keywords like “INFO” to a restaurant’s number. Doctors and dentists can send out automated appointment reminders via SMS and ask for confirmations from patients, etc.
Really cool stuff is happening in our space right now and I think we’re well positioned with our products and helping our partner companies.

Enlai Chu (Left) with His Brother (Right)

Kim Ngo: You must have a lot of faith in your product to be giving it so much of your time and energy.

Enlai Chu: Yes, I think this is the start of a very exciting space. That being said, I’m like this with everything I do. I give everything 110%, no matter who or what company I work for.

Kim Ngo: Even if you’re not passionate about it?

Enlai Chu: I probably wouldn’t be spending my time doing things that I’m not passionate about. I know from past experience that if I’m not doing something that is challenging and rewarding, I end up feeling unfulfilled. That’s why I started 3jam. If I know I work hard at everything I do, why not focus the time and energy on something more difficult but with a greater potential outcome?

It’s easy for me to say that now because as we progress in our careers, we get better at what we do, so our career options also increase. Whether it’s the knowledge and confidence to start your own company or the ability to select the companies and jobs that excite us, it’s like any learning process – more difficult at the beginning but easier the better you get.

I’d say pick jobs that you like, do things that excite you, but keep in mind what your long term goals are and stay on track. I work 16-hour days not because I have to but because I’m passionate about my company and enjoy what I do. Whatever you do, do a good job, because that’s ultimately what your success depends on.

Kim Ngo: What are you afraid of?

Enlai Chu: I’m afraid of wasting time. The older I get, the more I realize that there are so many things I want to do, but so little time. So I’m always conscious about how to make the best use of time.

For example, if I were at a job where I wasn’t learning from nor contributing to as much as I could, I’d feel like I was wasting time – time where I could be accomplishing more. I don’t want to waste time. I want to build something and leave behind something. If I’m not going to give it my all now, it will only get harder with additional responsibilities over time. That and all-nighters just start getting harder and harder to pull off!

Enlai Chu Having a Good Time

Kim Ngo: Do you think 3jam will win?

Enlai Chu: Yes!

Kim Ngo: Be honest. =)

Enlai Chu: Well that’s a very broad question. I wouldn’t be giving my all to something I didn’t think could be big. The key is to strategize well, provide something of value and help consumers eliminate pain. I view win-win as winning as well, and the market is large enough for everyone to do well.

Kim Ngo: The success rate in entrepreneurship is very slim.

Enlai Chu: Success comes from trying, and trying again and again and again. If you work smart and hard enough, ultimately it’s a numbers game unless you are a) perpetually unlucky, b) don’t want to listen to advice, or c) don’t learn from your previous experiences. It’s like the Bart Simpson’s “Ow Ow” episode – where he sticks his finger in a power socket and gets shocked, but does it again and again. Haha. If you don’t adapt, you’re minimizing your chances.

Kim Ngo: How does someone know when to move forward? When and how should someone make the decision to start something on their own?

Enlai Chu: Anyone who feels that they’re not fulfilled working a 9 to 5 job should do it. Anyone who wants to retire before 65 and is willing to work extra hard should do it. But think it through and be prepared before embarking. Have a good idea and plan before you quit your job. Don’t quit your job and spend three months trying to figure out what you want to work on.

Be smart about it. Give yourself some time to save money so you’re able to continue if you’re not going to get funding for six months or even a year. Take a part-time consulting gig, cut down on eating out and spending, and no more buying gadgets you don’t really need!

Enlai in Vietnam

Kim Ngo: So it’s doable.

Enlai Chu: It’s very doable. People do it all the time. Maybe it seems so commonplace because we’re in Silicon Valley, the land of startups. Everyone seems to be at a startup or starting something up!

Kim Ngo: Here’s a scenario: A kid graduates from college and is immediately interested in getting into mobile/voice. What does this kid need to know?

Enlai Chu: As a new grad, the best thing you can do is to learn as much as you can. While I think the kid can definitely try to start a company with no little or no experience in the field, his or her chances of success increase the more he or she knows. You get a chance to watch how others have brought about success, see what works and what doesn’t at a company, learn new skills, and network and build relationships, all while getting a paycheck!

Always do your job well, and don’t do just the minimum asked of you. Make use of the opportunity to take on new tasks and roles, because the best time to learn is when the risk to you is low. If you’re learning, you’re not wasting your time. Also, don’t forget to work backwards.

Kim Ngo: What do you mean?

Enlai Chu: You want to always make decisions that will lead you closer to your long-term goal. So think about where you want to be 5, 10 and 25 years from now, and then work backwards to see if you’re taking the right steps to get there.

When I was faced with the decision to take business or engineering as an undergrad degree, I thought about what I wanted to do ultimately, and worked backwards. I knew I wanted to start my own tech company. If I took the business-degree route, it would be hard for me to learn engineering afterwards, whereas if I took engineering first, I could go back and do an MBA to get business skills. That’s how I decided on my undergrad degree, and I think I made the right decision for what I wanted to do. But everyone is different, so adapt the work-backwards process for your own goals.

Enlai Chu (Sitting Down)

Kim Ngo: Where do you want to be in 5 years?

Enlai Chu: Retired! And catching up on sleep.

Kim Ngo: Really? I think, “When you retire, you expire.”

Enlai Chu: Haha. I don’t see retirement as sitting in a rocking chair, staring into blank space. To me, retirement means having the freedom and ability to do whatever I want. If I want to start another company, I can. If I want to spend time with my family, I can. Having the freedom to choose how to spend your time, without constraints, is what the ability to retire truly is.

Kim Ngo: What drives you?

Enlai Chu: Fear and aspiration. Fear of not living up to my potential and not doing all that I can with my life. Aspiration to create and build substantial things. In this case, products and companies.

Kim Ngo: Is there anything that keeps you up at night?

Enlai Chu: Yeah. It’s the question of “how does a small feisty start-up compete with the bigger guys?” I’m occupied with coming up with solutions – what we can do that they can’t, and who else would benefit from working with us. And when I’m not thinking about work, I think about how I can help make the world a better place with technology or just by promoting positive attitudes in business leadership and in the way people live their everyday lives.

Kim Ngo: What is your ultimate goal? What are you working towards?

Enlai Chu: I want to affect positive change in the world during and after my time here. There are many ways may ways to go about this, but my ultimate goal is to create the resources to enable change on a mass level – Bill Gates Foundation type of positive effects. Haha. I have lofty goals. But hey, I’ve always believed that if you aim high, you may miss the mark and still do well. However, aim low and if you miss the mark, you’ll fall even lower.

Kim Ngo: Thanks for your time today, Enlai.

Enlai Chu: Thanks Kim – my pleasure!