Neil Patel

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Rami Tamir is no stranger to the startup world. A seasoned entrepreneur with multiple successful exits, he has honed his ability to build, scale, and navigate acquisitions like a veteran baseball player hitting home runs with each venture.

Rami’s latest venture, Salto, has attracted funding from top-tier investors like Bessemer Venture Partners, Accel, Lightspeed Venture Partners, Salesforce Ventures.

In this episode, you will learn:

  • Rami Tamir’s success stems from his ability to pivot quickly when market conditions or product viability change.
  • Without a solid go-to-market strategy, even the best innovations can fail.
  • Sustainable companies attract acquisitions, but focusing solely on an exit leads to short-term thinking.
  • Long-term partnerships based on trust and complementary skills are crucial for startup success.
  • Overconfidence can lead to failure, but maintaining a sense of urgency ensures continuous innovation.
  • Choosing investors and board members who align with your vision fosters long-term success.
  • Sharing challenges openly empowers teams to contribute solutions and build resilient companies.

 

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About Rami Tamir:

Rami Tamir is a seasoned technology executive with extensive experience in leadership roles across multiple companies. He has served as Co-Founder and CEO of Salto since January 2019.

Previously, Rami held significant positions at Oracle as VP of SW Development and at Ravello Systems as Co-Founder and CEO. His engineering expertise was further demonstrated at Red Hat as VP of Engineering and as Co-Founder and President at Qumranet, which was acquired by Red Hat in 2008.

Rami also held the role of Director of Engineering at Cisco and was Co-Founder and Head of Software at Pentacom, which Cisco acquired in 2000.

Rami holds dual MBA degrees from Northwestern University’s Kellogg School of Management and Tel Aviv University and a BSc in Electrical Engineering from Technion – Israel Institute of Technology.

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Connect with Rami Tamir:

Read the Full Transcription of the Interview:

Edited Version
Alejandro Cremades: Alrighty, hello everyone, and welcome to the DealMakers show! Today, we have a really fantastic founder—someone who has done it multiple times with great success. Every time he starts a company, he delivers a hit with a strong outcome.

Alejandro Cremades: I would say he has become an expert baseball player when it comes to being a startup founder.

Rami Tamir: Thank you.

Alejandro Cremades: Every time he gets the ball, he hits it out of the park. Today, we’re going to talk about building, scaling, financing, and exiting—everything we love to hear.

Alejandro Cremades: We’ll also discuss how to jump into an opportunity when larger corporations are looking for solutions, how to create something out of a problem you identify, and how to establish the foundation of a truly meaningful business. Get ready for an inspiring episode! Without further ado, let’s welcome our guest, Rami Tamir. Welcome to the show!

Rami Tamir: Thank you, thank you. Thanks for having me.

Alejandro Cremades: You were originally born in Startup Land—Nasareth, to be precise. Take us on a walk down memory lane. What was life like growing up for you?

Rami Tamir: It’s a small city—the same one where Jesus was born, so that’s a good starting point. But in reality, it’s a small town up north, a very quiet place to grow up.

Alejandro Cremades: As is the case with everyone in Israel, you had to serve in the army. For you, it was five years. What do you think the army gave you in terms of discipline? I’ve seen military experience work well for many people. What were the key positive takeaways for you?

Rami Tamir: That’s a great question. I can see it even more clearly today with younger people. You enter the army straight out of high school as a young person, but within a year, you’re commanding others and responsible for people’s lives. It gives you instant maturity and responsibility.

Rami Tamir: In the army, responsibility is absolute. There are no excuses—you either get the job done, or you don’t. That forces you to grow up quickly. You have to make decisions in split seconds, optimizing for decision-making rather than just worrying about being right or wrong. Of course, it’s better to be right, but the key is to make timely decisions because nothing waits.

Rami Tamir: The combination of all that, plus working with incredible people—because in the army, you meet the best and brightest—makes it an amazing experience. It’s tough, but you go from zero to 100 in a few months, which is incredible.

Alejandro Cremades: That fast progression from zero to 100 also applies to software—thinking about scale and solving problems. That’s what you studied. Why software, out of all things?

Rami Tamir: To be honest, it was random. At the time, I didn’t know what I wanted to do. I had just left the army and was figuring things out. My brother was going into software, so I thought, “Hey, maybe it’s for me too.”

Rami Tamir: I applied to the hardest program to get into at university, thinking that if I didn’t like it, I could always switch to something else. But I ended up loving it. It was like a match made in heaven. I enjoy solving problems, and software is all about solving problems every single day. That’s what I do to this day. It was instant love for me.

Alejandro Cremades: In the venture world, solving problems is key. Your first gig was working for a startup that grew from five employees to 200 in no time. What piqued your curiosity about smaller companies instead of pursuing a larger corporation?

Rami Tamir: Back then, there weren’t many large corporations in Israel. Coming from the army, I liked small teams because you can have an impact, you can learn quickly, and you can see what’s happening around you. It’s not hard to understand your role. So I naturally gravitated toward small companies.

Rami Tamir: My first job came through someone I knew. They asked if I was interested in joining, and I said, “Yeah, sure!” We started working out of a basement in a small town near Tel Aviv. It was amazing—we grew from five to 200 people because the technology was groundbreaking.

Rami Tamir: But while our technology was amazing, our business knowledge was lacking. We didn’t know how to turn our work into a sustainable business. I wasn’t a founder there—I was an engineer—but I got promoted quickly. I had no experience managing people, but I found myself doing it anyway.

Rami Tamir: As fast as we grew, we also shrank down. We realized we had no clue how to build a lasting business. That lesson still sticks with me. Interestingly, we were trying to do something very similar to what YouTube is today, but at a time when only modems were available and bandwidth was limited.

Rami Tamir: We had to develop incredible technology to make it work, but ultimately, the market wasn’t ready for it.

Alejandro Cremades: After that experience, you moved into consulting. How long did you do that before realizing there was an opportunity to serve companies like Cisco?

Rami Tamir: I went into consulting after that gig to clear my head and figure out whether I was ready to start something on my own or if I should join another company. I had a lot of skills from my previous job, so I spent six months working with companies, coding, and helping them with video networking. That was my strength.

Rami Tamir: It was great but boring. As a consultant, you usually get assigned non-core projects that companies want done quickly. You work on something for six months and then hand it off. It was lucrative—I made a lot of money—but I realized it wasn’t for me.

Rami Tamir: That’s when I met my business partner, Benny Schneider. We started our first company together, focusing on networking.

Alejandro Cremades: I love the Richard Branson quote: “Ideas are like buses—you’ve got to make sure you’re getting on the right one before the door closes.” You and Benny seized an opportunity with Pentacom, and it was a very fast cycle from start to exit. How did that journey unfold?

Rami Tamir: We initially set out to do something different—packet processors, which were all the rage at the time. We pitched the idea to people, gathered feedback, and iterated. One of the places we went for feedback was Cisco, which was then as dominant as Apple or Google is today.

Rami Tamir: They said, “This is interesting, but we have something even more compelling. If you’re interested, you could develop a component for us instead.” It was daunting because it meant developing an entire hardware chassis, multiple line cards, and speeds that weren’t common at the time.

Rami Tamir: Cisco was launching a product line in a year, so we had 12 months to deliver. If we missed the deadline, they would have to find another solution. So we went all in. Towards the end, we worked in shifts to meet the deadline. Two quarters after we shipped the product, we had already covered all the costs of the company. It was a massive success, and Cisco acquired us.

Rami Tamir: Interestingly, the original idea we put aside was later picked up by another founder, who built a company around it and sold it to Cisco as well.

Alejandro Cremades: Wow. So this was your first rodeo on the M&A side, right?

Rami Tamir: Yeah.

Alejandro Cremades: Getting the company acquired—how was that moment when you guys received the phone call from Cisco and had to develop everything all the way to the finish line, leading to the acquisition crystallizing?

Rami Tamir: It was nerve-wracking because everything can go wrong. But back then, Cisco was highly proficient in acquiring companies and assimilating them.

Rami Tamir: I haven’t seen such efficiency since. It’s something they built and mastered over time.

Alejandro Cremades: Thank you.

Rami Tamir: So that was a learning experience for me. Later on, when I was at Cisco, one of my roles involved helping other acquired companies integrate, understand what it means, and walk them through the process.

Rami Tamir: There are a lot of lessons to be learned from acquisitions—how to do them properly on both the acquiring and acquired sides. Many things can go wrong, and most acquisitions fail.

Rami Tamir: It’s easy to mess things up. However, if you do a few things right, you have a better shot at making it work. But it’s tough—really tough.

Alejandro Cremades: Just to close the loop, it was rumored that the deal was around $118 million. While not officially disclosed, that’s what people can see on Crunchbase—an amazing outcome. Based on your experience at Cisco, what are the three main ingredients that founders should keep in mind when considering an acquisition?

Rami Tamir: The first thing—don’t think about getting acquired. If you focus on that, you’ll always think short-term and won’t fully develop your company.

Alejandro Cremades: You mean the company isn’t sold; it’s acquired?

Rami Tamir: Exactly. If you have something valuable, someone will be interested, and they’ll reach out to you. If you build a company just to get acquired, you’ll likely fall short. You won’t develop your marketing, go-to-market strategy, sales, and all the key elements of a proper company. But if you build a strong company, good things will happen.

Rami Tamir: You can decide to make technology your competitive moat, which might make you more attractive for acquisition, depending on the stage. You can optimize things slightly, but at the end of the day…

Rami Tamir: If you want an opportunity for liquidation—any kind of liquidation—build a strong company. Build it from the ground up as a proper business, and good things will follow.

Rami Tamir: Once you’ve done that, you can decide whether you want to pursue an early-stage exit or build for the long term. But the main thing is—don’t focus on acquisition.

Alejandro Cremades: After five years, that was quite a long vesting and resting period, as they say, following your acquisition. But once an entrepreneur, always an entrepreneur, and you went at it again with Qumranet. I’d love to hear how you created something from the problem you identified. How did that next chapter unfold?

Alejandro Cremades: One thing I always say is that the beginning should start with the end in mind—understanding the path and direction, then reverse-engineering the process from where you are. Given your experience with Pentacom, the Cisco acquisition, and five years on the acquiring side, you saw what worked and what didn’t. So why go at it again, and why was this problem meaningful enough for you to take action?

Rami Tamir: It’s not just about identifying a problem—it’s about what you want to do. As I mentioned earlier, I love solving problems. In an early-stage startup, you solve more problems in a day than a corporate employee solves in a month or even a year.

Rami Tamir: It’s not easy—you have to make a lot of decisions, and most of them fail because you’re working against all odds.

Rami Tamir: But I love that atmosphere—working against the odds, sitting in a room with brilliant people, tackling tough challenges. That’s what I thrive on. That’s what I enjoy.

Rami Tamir: So for me, it was obvious—I wanted to do it again and again. There was never any question.

Alejandro Cremades: That’s incredible. So how was the journey with Qumranet?

Rami Tamir: Like before, we started by trying to solve an I/O solution for modern servers. It took us about two to three months—actually, six months—to realize the market wasn’t there. It was too fragmented to build a coherent go-to-market strategy.

Rami Tamir: At that point, every startup faces a crucial decision.

Alejandro Cremades: Thank you.

Rami Tamir: It depends on how honest you are with yourself, your co-founders, and your board. The easiest thing is to say, “Let’s keep trying, let’s push a little more,” but at some point, it becomes too late to pivot.

Rami Tamir: Benny, my co-founder, and I have always been brutally honest. We sat down and said, “Hey, there’s a problem here.”

Rami Tamir: We needed to be upfront with ourselves and our investors and determine if there was something else we could do with what we had built so far.

Alejandro Cremades: You had to go back to the drawing board?

Rami Tamir: Exactly. It was one of the hardest things we had to do—going to our investors and saying, “We were wrong. We need some time to develop a new idea.”

Rami Tamir: But you can’t be open-ended about it. Investors don’t want uncertainty. So we presented a thoughtful plan: here’s our timeline, our approach, and our existing assets. We had to be structured in how we moved forward.

Alejandro Cremades: Thank you.

Rami Tamir: The best thing we did was involve our employees. At the time, we had about 15 people—the smartest minds you can imagine.

Rami Tamir: Many founders, when faced with a pivot, keep everything secret. They’re embarrassed or afraid their team will leave. We took the opposite approach. We said, “Here’s the situation. Here are our assets. Let’s figure out what we can do with what we’ve built. Let’s brainstorm together.”

Rami Tamir: Through these discussions, we came up with KVM—Kernel-based Virtual Machine. It became the standard virtualization technology for Linux, powering Amazon Cloud, Google Cloud, Oracle Cloud, and every major cloud provider today.

Rami Tamir: We developed it because, in our conversations, we identified a growing trend. We had the core technology, and we realized it could fit perfectly into this emerging need.

Rami Tamir: We were very naive about open source. We submitted our patch to the Linux kernel community, and to everyone’s surprise, it was accepted within two weeks—a process that typically takes much longer.

Rami Tamir: That technology remains in the Linux kernel today. A year and a half later, Red Hat acquired our company to strengthen its virtualization capabilities.

Rami Tamir: We took what could have been a failure, identified a strong market trend, and pivoted into something powerful.

Rami Tamir: But ultimately, it wasn’t about Benny or me—it was about the incredible engineers who built the technology.

Alejandro Cremades: That acquisition was announced at $120 million. One thing I want to ask is about co-founder dynamics. You and Benny have built multiple companies together with great outcomes.

Alejandro Cremades: What makes your relationship work so well?

Rami Tamir: It’s a bit like marriage. You need to know each other’s strengths and weaknesses, when to listen, and when to step back. It’s a dynamic that works because we both commit to making it work.

Rami Tamir: Founders often have big egos—we do too—but when we walk into a room to solve a problem, we leave our egos at the door. We focus on building a structured framework for making decisions.

Rami Tamir: And it helps a lot that we are both engineers. Engineering culture is about the merits of the idea, not about who suggested it or who did what.

Alejandro Cremades: Thank you.

Rami Tamir: It’s about that. So it’s always easy—think of it as a prolonged design review. We go over things and solve problems. There are always ups and downs, but the fact that we’ve been through hardships and successes together helps. We know our strengths and weaknesses, and we complement each other. We’re not the same person.

Rami Tamir: That helps a lot. And yeah, I think it’s unique. I’ve been on boards and made angel investments. I’ve seen companies go under because the founders couldn’t get along.

Rami Tamir: They failed to solve their problems and put their issues ahead of the company’s success. The first thing that will drive a company into the ground is founders who struggle to work together. That’s a bust.

Alejandro Cremades: Now, obviously, at this point, two companies, two exits. As they say, once you’re lucky, twice you’re good.

Rami Tamir: Yeah.

Alejandro Cremades: The problem is that when you realize that, your confidence can go through the roof, and you can start drinking your own Kool-Aid, right? With your next company, Ravello, which was rumored to have had a $500 million outcome, that was another amazing success story. The company was acquired by Oracle.

Alejandro Cremades: How did you guys manage not to become overconfident? How did you approach that next chapter? Walk us through that journey.

Rami Tamir: For me, overconfidence is not an issue. Once you start a startup, you’re paranoid for a reason—you’re going up against so many things that can go wrong. By the way, with Ravello, we chose to develop technology that IBM and Cisco had both tried and failed to build.

Rami Tamir: We knew they had tried. But we thought we could do it—not out of overconfidence, but because of our approach. The way we start a company is by putting our own money in and spending six months figuring out if we understand the market, the technology, and how we want to build it. We did that with Ravello. After three to four months, we realized, “Hey, there’s something here. We think we can do this.” Of course, we underestimated the effort, as always, but it worked, and it worked well.

Rami Tamir: So it’s not about overconfidence. As an entrepreneur, you remain paranoid for good reason. I think the biggest risk for repeat entrepreneurs is not being on edge anymore. You’re no longer panicked by problems because you’ve seen them before.

Alejandro Cremades: Thank you.

Rami Tamir: When you’re not panicking, sometimes the whole organization falls into a lull. Everyone thinks, “It’ll be fine; they’ll figure it out.” That’s the biggest risk for repeat entrepreneurs—the sense of comfort.

Rami Tamir: So it’s less about confidence and more about comfort, which can be dangerous. It’s something I constantly think about. I remember the adrenaline rush of panic in the early days.

Rami Tamir: Today, I don’t panic anymore. I try to create that sense of urgency, but it’s not the same. So I find ways to generate that energy—the feeling that things need to change, that we must act now. It’s like keeping electricity in the air.

Alejandro Cremades: Tell us about Ravello. How was that experience for you guys?

Rami Tamir: It was amazing. There’s an interesting story there. Ravello was a cloud virtualization technology. It was built at a time when companies were seriously looking into the cloud, but they didn’t have cloud-ready enterprise applications. Everything was still on-premises.

Rami Tamir: We created a way for these applications to live in the cloud without knowing they were in the cloud.

Alejandro Cremades: Thank you.

Rami Tamir: It took a lot of technology to get there. Our first customer was a million-dollar-a-year customer right out of the gate. We thought, “Hey, we’re amazing! We cracked the go-to-market. Now let’s duplicate this.”

Rami Tamir: But for a year, we couldn’t replicate that success. We analyzed verticals, technology, everything—but we couldn’t.

Rami Tamir: It turned out that customer was a unicorn—uniquely suited to our technology. Meanwhile, our sales team started finding other use cases. Salespeople go after the path of least resistance, so they found smaller applications that didn’t match our initial numbers.

Rami Tamir: But in the end, they created a real business, and that business grew.

Alejandro Cremades: Thank you.

Rami Tamir: After a year of trying to replicate that first customer, we abandoned that use case and focused on what our sales team found. That’s what led to our success.

Rami Tamir: Then Oracle approached us, and it made sense to join their cloud business unit.

Rami Tamir: We were acquired by Oracle.

Alejandro Cremades: And the rest is history. Now, let’s talk about Salto—your latest venture.

Rami Tamir: Yeah.

Alejandro Cremades: Let’s spend some time on your latest company. I can see your face light up when you talk about Salto. Tell us about its origin story.

Rami Tamir: That’s an interesting one. Ravello was a SaaS product connected to Salesforce, Marketo, and a few others. With SaaS, you release software often—weekly, maybe even several times a week.

Alejandro Cremades: Thank you.

Rami Tamir: On the software side, we were doing great. Mistakes happen, but you fix them quickly because you always know what’s going on.

Rami Tamir: But with Salesforce and Marketo, we struggled. Everything we did there felt broken. It was slow and unpredictable. We didn’t know how to work with these platforms.

Rami Tamir: I assumed large enterprises had it figured out. But after leaving Oracle, I looked into it. I spoke with industry experts and realized it wasn’t just our problem.

Rami Tamir: SaaS applications rely on configuration. Hundreds of changes happen in these platforms daily, yet they’re managed manually, in an error-prone way, with no systematic approach. The cadence doesn’t match modern software delivery.

Alejandro Cremades: Thank you.

Rami Tamir: So as engineers, we thought—what if we built a solution for this? We started the company, funded it ourselves, and spent time developing the technology.

Rami Tamir: That became Salto—a way to extract configurations, structure them in text format, and apply modern software delivery principles to SaaS applications.

Rami Tamir: We aimed to support all SaaS platforms. We built an engine that could handle multiple platforms, invested heavily in technology, and today we support 20+ SaaS applications and counting.

Alejandro Cremades: So for those listening, how do you make money? What’s the business model?

Rami Tamir: We target departments. We support three types of SaaS applications: business applications (Salesforce, NetSuite, etc.), IT applications (Jira, Zendesk, Google Workspace), and security applications (Okta, Microsoft Entra, JumpCloud, Intune, and others).

Alejandro Cremades: Thank you.

Rami Tamir: Security applications are particularly exciting because they require proper change management. If you track changes in security SaaS, you know who made which changes, can revert them, create backups, and maintain full monitoring and audit trails.

Rami Tamir: That’s the first stage of security. From there, we analyze configurations, understand relationships, and fix misconfigurations before they become security holes.

Alejandro Cremades: Thank you.

Rami Tamir: Our revenue comes from IT departments. We help them improve efficiency, reduce tech debt, and increase feature velocity. It’s hard because it’s a new category, but once customers see the value, they always come back—even if it takes months or years.

Alejandro Cremades: How much capital have you raised to date?

Alejandro Cremades: With all your previous exits and successes, investors are probably throwing money at you. How did you filter the right people?

Rami Tamir: If you look at Salto’s employee list, you’ll see many from Ravello. We try to maintain relationships. Some investors are new, some are old, like Bessemer. But overall, I know what to look for in an investor.

Rami Tamir: So it’s something that you grow into.

Alejandro Cremades: You mean the way to look at it?

Rami Tamir: Yes. Think of it like a board relationship. Board relationships can be stressful, but you want to be in the room with the right people, making the right decisions—not just appeasing the other side.

Rami Tamir: That’s how I pick them, or rather, how we pick each other. That’s what they’re looking for as well. It’s a combination of old investors and new investors, and we learn as we go along.

Rami Tamir: So that’s how we pick them.

Alejandro Cremades: Obviously, when it comes to raising money, it’s all about the vision, right? So, if you were to go to sleep tonight, Rami, and wake up in a world where the vision of Salto is fully realized, what does that world look like?

Rami Tamir: It’s a world without work for me. It’s a world where you can take a look at your SaaS portfolio and know exactly what’s going on. I keep quoting a CIO I spoke with at the beginning when we only had a slide deck.

Rami Tamir: He was responsible for a major gaming company’s DevOps, core applications, and SaaS. He told me, “With my DevOps, I feel like I’m ready for 2050. I know exactly what’s happening, everything is automated, and it’s like a machine.”

Rami Tamir: But then he said, “With my SaaS applications, I feel like I’m in the ‘90s. I know nothing. I don’t sleep at night. Anything could break tomorrow, and I’d have no idea what’s going on.”

Rami Tamir: So, a world where Salto’s vision is realized would bring IT advancements from the early 2000s to SaaS applications. It would allow businesses to make changes confidently, knowing that even if they make a mistake, it’s okay because they can revert easily.

Alejandro Cremades: That sounds like a beautiful world. Now, let’s talk about the past through a lens of reflection. You’ve had a successful journey with many lessons learned—it’s never a straight line, as we all know.

Rami Tamir: Yeah.

Alejandro Cremades: Imagine I put you in a time machine and send you back to when you were graduating with your software degree—before jumping into the venture world. If you could give younger Rami one piece of advice before launching a business, what would it be and why?

Rami Tamir: Hmm. There are two key things. I apologize in advance because they might sound cliché, but the truth behind them is real.

Rami Tamir: First, as a startup, you are at a disadvantage. You have fewer people, less money, and no established market routes. The only advantage you have over the big players is your ability to make changes quickly.

Alejandro Cremades: Thank you.

Rami Tamir: If you don’t leverage that, if you resist change and don’t evolve your idea to meet the market, you’re giving up your advantage. You end up playing the big players’ game without any of their resources.

Rami Tamir: So you lose. Constantly evolving your idea isn’t easy—it means admitting mistakes. It means telling people who worked sleepless nights that what they built is no longer relevant and that they need to pivot.

Rami Tamir: But you have to keep doing that. If done correctly, you can avoid thrashing. And if you do it well, your chances of success increase significantly. That’s lesson number one.

Rami Tamir: Lesson number two—when I built KummerNet, I recruited the best engineers and people I could find.

Alejandro Cremades: Thank you.

Rami Tamir: And I never compromised. If I have access to that kind of brainpower but don’t utilize it, that’s a problem. To use it effectively, I have to give them all the information.

Rami Tamir: Through the years, we developed a culture of radical transparency. Every customer meeting, every internal discussion—everything is transcribed and made available on an internal tool for everyone to access.

Rami Tamir: I expect people to engage with that information and challenge me. If someone thinks I’m wrong, they should show me why based on the data.

Alejandro Cremades: Thank you.

Rami Tamir: I don’t claim to have ancient wisdom. I’m as smart as everyone else—maybe even less so. I want people to challenge me. If they prove me wrong, we’ll make a change. But for that to happen, I have to be transparent and share all the information.

Rami Tamir: Early-stage founders often keep information to themselves—especially when things aren’t going well. But 90% of startup life is an uphill battle, where things don’t go smoothly.

Rami Tamir: If you keep those struggles to yourself, you’re not utilizing your team’s brainpower. You’re missing out on 80% of their potential contributions.

Alejandro Cremades: I love it.

Rami Tamir: That’s the key.

Alejandro Cremades: I love it, Rami. Thank you for sharing that—very profound. For those listening who would love to reach out and say hi, what’s the best way for them to do so?

Rami Tamir: LinkedIn, probably. Just search for Rami Tamir on LinkedIn and reach out. I always accept invites.

Alejandro Cremades: Amazing. Well, easy enough! Rami, thank you so much for being on the DealMakers Show today. It has been an absolute honor to have you with us.

Rami Tamir: Thank you. Thanks a lot for having me.

*****

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