#StartupsEverywhere: Doug Standley, CEO, niolabs.
This profile is part of #StartupsEverywhere, an ongoing series highlighting startup leaders in ecosystems across the country. This interview has been edited for length, content, and clarity.
Enabling Users to Build Interoperable Systems of Intelligence
Broomfield-based startup niolabs provides a platform for users and companies to create, design, and deploy their own distributed computing systems. We recently spoke with niolabs’ CEO, Doug Standley, to learn more about the startup’s work, the importance of application programming interfaces (APIs) and interoperability, and how policymakers can work to reduce unnecessary administrative burdens on early-stage companies.
What in your background made you interested in becoming an entrepreneur?
I started working for Deloitte in 2004, around the time they began reintegrating consulting services back into the firm. I was building practices around mobility and digital, which led to me creating the firm’s tech strategy practice. We spent a lot of time considering what a hyperconnected society would look like and ultimately realized that no one was prepared with the tools or technology it would take to really enable such hyperconnectivity. So my team began to work on building what we could imagine in this space when it came to the Internet of Things and distributed computing software platforms. Eventually, I decided to retire from Deloitte to go off and start my own company focused on distributed computing and interoperability.
Tell us a little more about niolabs and the work that you’re doing. How are you working to make distributed computing more accessible?
We’ve built tooling that enables users to easily operationalize all data and build interoperable systems, particularly when it comes to the Internet of Things, and pioneered distributed computing in a way that is agnostic to the source of the data or the location of computation (e.g., enabling computation from the cloud to the edge). The analogy I use for our technology starts from the recognition that many of us still have multiple remote controls in a drawer. Those remotes, in isolation, do not work well enough to control all our devices. We saw that sort of phenomena and thought, why can’t software make those disparate things work efficiently within a system? And that is what our software does. We enable anything connected to become interoperable with anything else.
With our n.io platform tooling, the logic or computing can occur anywhere in a system, from cloud to edge. This means, for example, that we can collect data from a soil moisture sensor, and at that location in the system, near the sensor, we can analyze it. Instead of having to transport the data to some central location to assess irrigation needs, the computing happens next to the sensor and automatically triggers the irrigation system to respond. Similarly, our technology is also agnostic to the platform—whether it’s silicon, mobile, or cloud—which allows our tooling to run wherever the solution design is optimal.
Likewise, our solutions are agnostic to the source or type of data. We view everything as content, and we want to take that content, whatever it may be—whether it comes from sensors, databases, etc.—and contextualize it in an easy and effective manner. In the farming application, for example, we can factor in data from sensors, information about the weather, and the farmer's own observations to control irrigation. Overall, this means our technology can be used to grow fine wine grapes in arid regions of Arizona.
You’ve mentioned interoperability. Have you been following the long-running dispute between Google and Oracle over the permissible use of software interfaces—known as application programming interfaces (APIs)? What would it mean to niolabs if the Supreme Court were to rule in Oracle’s favor and extend copyright protections to APIs?
It would not bode well for us at all if the Supreme Court were to rule in favor of Oracle and determine that you can copyright APIs. Such a result would completely violate our design ethos at niolabs, where we have focused on keeping everything “openable.” We want to be able to give away the work that we have done, when the cause is right—for example, we may someday want to partner with universities to use our tools to improve agricultural science, and do not want a lot of complex licensing models to get in the way of that.
More generally, I am concerned about the ramifications of the Supreme Court deciding this issue, and am concerned that without more technical background, the justices—considering a fight between two large tech companies—may not be equipped to understand how large the consequences would be for software developers across the globe. The notion that all software will be built from scratch in the command line sets innovation back so far. I am not sure how developers would be able to operate—and how we would be able to do it—if you could get a copyright on an API. It is that big of a decision.
In addition, companies would see an onslaught of litigation were the Court to treat APIs as copyrightable. Right now, there are a whole lot of businesses hurting, and some of them are going to see litigation over APIs as a new tool they can use to get a lot of cash. On the flip side, of course, is the fact that a lot of companies on the other side will not have the resources to defend numerous lawsuits.
We went through a licensing review on every single software accelerator that we decided to leverage within our team. But now I look at our 246 certified building blocks out there, and think about how many companies would be able to put a toll on them after a Supreme Court decision. We think patent trolls are bad now, but if APIs become protected and licensed then all of this becomes open to litigation. This would bring out the worst in technology citizenship. If the courts rule in favor of Oracle on this, my gut and experience tells me it would be a bad thing for us.
How has niolabs been affected by the coronavirus pandemic, and are there any steps that you believe policymakers should take at this time to further support startups?
Right now, we’re focused on surviving. Everything is taking longer as a result of the pandemic, and the lack of leadership at the federal level is not helpful. We received $50,000 from the Paycheck Protection Program and used the entire amount on our payroll expenses, so we’ll get the loan forgiven. It meant we did not have to furlough anyone on our four-person team, but it took around 12 weeks to receive the relief. The application process was also a nightmare because we could not easily walk into an existing Small Business Administration lender. We had to jump from our existing bank to another to get the application handled. We were still fortunate to get the application done within 24 hours. While the loan didn’t go very far, it was still a big help—and even another $50,000 in PPP loans would be helpful. If the government were to renew the program, hopefully there will be more clarity about the application and loan forgiveness process the second time around, and perhaps there are ways to expedite the process, like fast tracking small loans.
What are some of the other startup-related policy issues and concerns that you believe should receive more attention from local, state, and federal policymakers?
As a Colorado-based company, it’s difficult having team members in California, for example, because of the administrative overhead associated with operating in some states. We are all going virtual right now as a result of the pandemic, and the state of remote work certainly is not just going to revert to the way things were before. Moving forward, if there could be a more standardized federal policy for remote workforces, that could alleviate some administrative burdens—such as reducing the amount of filing, taxes, and fees.
I also think lawmakers need to better differentiate startups from larger corporations. Just because a company can file as a C-Corp does not mean that model, and the filings, fees, and taxes associated with it, are a good fit for small businesses. Small startups, especially those without significant financial backing, should be treated as a different class of business. Those small startups should have greater access to grants and research funding, and there should be different treatment administratively, recognizing that few startups can afford to navigate all the administrative burdens. Most inventions happen at the startup level, and lawmakers need to be aware of that and set up structures to enable this type of innovation to occur.
What is your goal for niolabs moving forward?
We knew the perils of building a horizontal platform going into this, but you don’t become horizontal by being narrow at the beginning. So we’re now expanding out into special purpose entities and working on showcasing the power of distributed computing across the board.
Right now, we’re looking at a variety of different markets. We’re working on building the tooling and support to help the deaf community. And we’re also entering the agricultural sector to help with things such as plant-demand-based watering. We have an agreement, in principle, with a university to launch NioEarth—a special purpose entity just for food and natural resource conservation.
Finally, we are looking at opportunities to incorporate our work and tools into university curricula. The knowledge and skills engineers will need to really advance IoT does not fit neatly in current academic disciplines, so we look forward to partnering with universities to think about training engineers of the future.
All of the information in this profile was accurate at the date and time of publication.
Engine works to ensure that policymakers look for insight from the startup ecosystem when they are considering programs and legislation that affect entrepreneurs. Together, our voice is louder and more effective. Many of our lawmakers do not have first-hand experience with the country's thriving startup ecosystem, so it’s our job to amplify that perspective. To nominate a person, company, or organization to be featured in our #StartupsEverywhere series, email edward@engine.is.
