Archive for August, 2007

Educational Technology in Metro DC

Friday, August 31st, 2007 by Karen Mortensen | No Comments

BlackBerry PDAWe cover a lot of stories about technology companies that provide services for business and government. But there’s also a thriving market in greater Washington DC for tech firms that create educational software and services. Take these three examples. 

Defywire  

It’s official. The PDA has taken over the classroom. Well, maybe not quite. But school administrators in Fairfax County will be carrying BlackBerrys this fall. The coordinated attempt is part of a deal with Defywire, a local company based in Herndon.

Defywire creates wireless software to manage student safety and school security. It’s understandable that a district as large as Fairfax—with more than 230 schools—would invest in this kind of assistance.

Blackboard 

Of course the largest local technology firm focusing on education is a company out of the District called Blackboard. It was founded in 1997 and has a healthy outlook for the future, after riding the dot-com roller coaster; the company is currently advertising 50 open positions.

Blackboard offers five software applications that do a whole bevy of tasks, from improving the learning process, to academic assessment, to file sharing, and everything in-between. It serves a range of customers: elementary schools, colleges, textbook publishers, and more.

K12 

We move the spotlight back to Herndon with a firm called K12. As someone with previous classroom experience, this company really makes my mouth water. It’s enough to make me want to go back and track recess points on the chalkboard.

K12 produces flexible, online curriculum for virtual schools, with more than 11,000 multimedia lessons. Core subjects are math, science, language arts/English, history, art, and music, and additional high school coursework is available as well.

Last month K12 filed plans to go public with a $172.5 million IPO. Their registration is still in the review process. According to company records, the firm’s sales increased 62% from 2004 to 2006.

Primus Puts Its Money on VoIP Expansion

Thursday, August 30th, 2007 by Karen Mortensen | 1 Comment

VoIP ImageWe’ve heard plenty of bad news lately from the world of VoIP (Voice over Internet Protocol). First, there was the SunRocket debacle, where thousands of customers had to scramble to find new Internet phone service providers. Then Skype temporarily blacked out, leaving millions of global users in the lurch. So it’s a relief to get a bit of good news from local VoIP provider Primus Telecommunications Group Inc. of McLean, Virginia.

Primus plans to open two regional sales offices in McLean and Boston, with 20 new employees by the end of 2007. This doesn’t reflect a huge increase in its work force, as the company has more than 1,000 employees. However, Primus stated in the past that it intended to invest further in VoIP and mobile technologies. We can see that it’s certainly hoping to deliver on its intentions.

In addition to VoIP, Primus also provides data, Internet access, e-commerce, Web hosting, enhanced application, virtual private network (VPN), and international and domestic voice services. Founded in 1994, its customers are located primarily in North America, Europe, the United Kingdom, and Australia.

Primus offers VoIP services to both business and residential customers. However, its new regional sales offices will focus on business customers only—specifically small- and medium-size businesses.

The telecommunications company ranks among the Washington DC metro area’s 125 largest public companies when ranked by annual revenue. That’s according to a report compiled by The Washington Post in May of 2007.

Of course revenue alone never guarantees success, and Primus has faced hard times in its long-distance phone and dial-up Internet service sectors as well as tough overall losses. It’s hoping VoIP can help dig them out. I’m sure Chairman and CEO K. Paul Singh would sleep much better at night with earnings in the black.

Are DC Entrepreneurs Disruptive?

Wednesday, August 29th, 2007 by Brian Lustig | No Comments

startup-weekend_logo.gifLast week Business 2.0 unveiled its picks for the country’s next disruptors - 10 start-ups poised to change the game when it comes to their respective markets and industries. Unsurprisingly zero DC-area companies made the list. I say unsurprisingly not because there aren’t highly-promising start-ups in the region poised to disrupt established industries and processes, but because there seems to be a perception among media and influencers who follow the space that most local start-ups aren’t being built to open up new markets, but instead to develop more efficient methods for serving existing ones.

In tracking other editorial features on promising disruptors, DC-area companies are consistently and conspicuously absent, defying a buzzing entrepreneurial climate fueled by a pool of talented executives and innovators that rival any region in the country. The AeA, the nation’s largest technology trade association, reported back in April that Virginia has the highest concentration of technology workers in the nation, many of whom are planting disruptive seeds that will sprout into new companies in the coming weeks and months.

Further evidence that the area is flush with disruptive spirit is the buzz surrounding the upcoming Startup Weekend DC, part of a series of nationwide rolling events bringing together the best and brightest local entrepreneurial minds to start a company from concept to completion - over a single weekend. The attendees identify the concept, break into teams, and develop the product, marketing and revenue model and, in effect, incubate a company over three days.

Startup Weekend DC, slated for Oct. 26-28, is first come, first serve and the wait-list is already growing to earn a coveted slot. The event itself is disruptive, and there is little doubt that a slew of disruptive concepts and ideas will emanate from the 72-hour marathon session.

The October weekend event then dovetails into the ExecutiveBiz Web 2.0 Conference on November 1st in Reston, featuring a host of thought leaders who will discuss and debate disruptive topics and trends.

In addition to highlighting growing and large area businesses in the coming weeks, I’m going to make an effort to pluck out regional disruptors that are in fact changing the game in significant ways. It will be compelling to not only profile the companies and people behind them, but also track the companies as they mature.

Broad Approval Near for NSA’s NetTop Technology

Tuesday, August 28th, 2007 by Karen Mortensen | 1 Comment

NSA SealMy husband and I often chew the fat about what a pain it is to go back and forth between classified computer systems and non-classified systems—even rooms where the systems are housed. He works on government contracts in technology and intelligence, and he constantly accesses data throughout the day.

So my ears perked up recently when I heard that a technology designed to make life easier for folks like him—while keeping the data safe and sound—is nearing broad government approval. Systems based on the National Security Agency’s NetTop technology should be approved by the end of 2007 for a wide variety of applications in homeland security, the military, and law enforcement. Thousands of additional computer systems will be based on NetTop if all goes well, so government contractors working in these fields will want to keep their eyes peeled for possible system changes around the bend.

NetTop architecture isn’t new, of course. The NSA began developing it in the 1990s because they had specific needs regarding classified information. Their desire to develop the technology came partly as a response to security problems within commercial applications. They also wanted to be able to access different networks on the same workstation—networks that were at varying classification levels and that needed to stay safely separated.

NetTop technology accomplishes the goal of letting users simultaneously access domains at different security levels. Operators can also use the system to transfer data from one domain to another. A few more key advantages:

  • It allows users to get rid of the collection of CPUs and tangle of cables they otherwise need to maintain domain security.
  • Its architecture allows for the use of thin clients. These are systems that keep users from introducing security risks through a vehicle like a new software application.
  • It offers robust performance by using the features in security-enhanced Linux.

Both Hewlett Packard (HP) and Trusted Computer Solutions (TCS) licensed NetTop technology and then built systems around it, and these systems are currently going through certification and accreditation. Certain products that use HP and TCS NetTop technology are already in use. These are specifically for accessing—not transferring—data in top secret and below (TSABE) environments, and only in certain conditions. For example, to access the current system, an individual may be required to have a high-level security clearance.

It will be interesting to see how quickly—or slowly—NetTop is implemented in additional government programs. If changes eventually affect most intelligence personnel and much of the military, I see a lot of CPUs going out the window.

Intellipedia Expert to Speak at Web 2.0 Conference

Tuesday, August 28th, 2007 by John Stauffer | No Comments

Chris Rasmussen, Chief Knowledge Officer at the Defense Department’s National Geospatial-Intelligence Agency, will speak at the Web 2.0 for Business conference this November. Rasmussen has spearheaded Intellipedia, the Wikipedia for the Intelligence community. Intellipedia allows for employees across the 16 United States intelligence agencies with classified clearances to edit and publish information.

One of the major differences with Intellipedia, as Rasmussen outlined in webcast presentation available here, is that there are no anonymous edits. This means everyone is accountable for the content they publish and edit.

“In the intelligence business, something that is 80 percent on time, accurate and sharable is much more valuable than a perfectly formatted report that’s over classified, has perfect fonts and comes too late,” Rasmussen said in a recent interview with Federal Computer Week.

Rasmussen will speak on his experiences in developing the intelligence community’s social-collaboration projects as well as his perspective on the web 2.0 world and its impact within the federal government.

If you have a moment, head over to Federal Computer Week to view Rasmussen’s full webcast. The presentation is a great Intellipedia 101.

Click here for a full list of conference speakers.

Cracking Crabs with Local Tech Executives

Tuesday, August 28th, 2007 by Brian Lustig | 1 Comment

images4.jpgThis past Wednesday I attended the Tech Council of Maryland’s 3rd Annual Ultimate Crab Feast and Summer Networking Event at Smokey Glen Farm Barbequers, Inc. And before you get any funny ideas, I was there purely to find out what some of the areas leading technology companies and executives were up to and network a little. The fact that all-you-can eat Maryland crabs were featured, along with Texas Beef Brisket and BBQ Chicken was, in all honesty, a refreshing surprise.

The event started at 4:30, but I figured it would be best to arrive fashionably late at 5:00. After all, how many attendees could possibly be there at 4:30? Well, as it turns out, quite a few. In fact, most of the well over 100 attendees were scattered across three long picnic tables with a mallet in one hand and a Sam Adams in the other. Overall, the event was expertly organized and went off without a hitch - though I did see two slightly inebriated network engineers engage in a heated argument over the best switching technology (just kidding).

In chatting with local tech executives and managers, there is much to be excited about. All pointed to rapidly growing businesses and strong future prospects. Being DC, it wasn’t surprising to hear that many, if not most, of the attendees were working on or counting on big government projects. Even smaller firms spoke of significant pieces of government business, that, according to this recent INPUT research report, may become even bigger as 2007 comes to a close. INPUT estimates that the Federal Government will spend $20 billion on IT in the fourth quarter - which has been the seasonal pot of gold for Federal IT providers.

One of the more interesting firms with a sizable presence - they were the event’s main sponsor - was Mantaro Networks. Mantaro provides product development services to technology companies, (primarily in the telecom, software, semiconductor space) enabling clients to outsource this functionality as needed. The model works well when the sector is going strong, and just as well during leaner times because clients are more apt to outsource product development functionality rather than the far more expensive alternative of building out the capability in-house. And, per my earlier post, they are yet another Germantown-based firm with a big play in the telecom space.

As a native Midwesterner who eats Maryland crabs just infrequently enough to forget the proper technique every summer, I stuck to the beef brisket. But judging by my conversations Wednesday night, it is safe to say the only thing hotter than the steaming hot crabs might just be the prospects of the attendees’ companies.

100 Fastest-Growing Tech Companies: DC Area Results

Thursday, August 23rd, 2007 by Karen Mortensen | No Comments

Eight Local StarsFor the third year in a row, Business 2.0 magazine has come out with their list of the 100 fastest-growing tech companies. The results for 2007 include eight firms right here in Virginia and Maryland. I’ll give you a peek into their financials and a clue as to why they’ve been so successful.

Before you read on, it helps to know how the fastest-growing tech companies were ranked. Zacks Investment Research of Chicago considered the following factors and weighted them as shown:

  • Three-year annualized revenue growth: 40% weight
  • Three-year annualized earnings growth: 20% weight
  • Three-year annualized operating cash flow growth: 20% weight
  • Percentage change from 2006 stock return: 20% weight

All growth figures below are annualized based on the past three years of data.

Digene

Headquartered in Gaithersburg, Maryland, this firm tops off the local list at number 26. While $178 million in revenue and $15.3 million in earnings may not be extraordinary, their operating cash flow growth was a whopping 173%—and that’s how they got near the top of the list. The company had a successful year, following a concerted marketing effort to educate the public about how the human papilloma virus (HPV) can cause cancer. Their efforts resulted in increased sales for their DNA-based diagnostic tests.

USEC

Coming in at number 42 and located in Bethesda, Maryland, USEC is the second fastest-growing tech company in the local area. Like Digene, it boasts an impressive operating cash flow growth of 163.4%. Have you ever wished for the perfect niche business? Digene is a good example, as only a few other companies in the entire world do what they do. They supply low-enriched uranium, and they use gas centrifuge technology for the production of cost-efficient fuel. Now why didn’t I think of that?

ManTech International

Headquartered in Fairfax, Virginia, ManTech focuses on national security and IT, and ranks number 45 out of 100. Once again, cash is king on this list; their operating cash flow growth was 118.6%, even though revenue and earnings growth were below 20%. Last year they secured more than $100 million in contracts to develop technology for detecting explosive devices in places like Iraq and Afghanistan.

CoStar Group

Not far behind ManTech at number 48 is CoStar, located in Bethesda, Maryland. What separates CoStar from other local firms that rank lower on the list is its excellent earnings growth of 104%. CoStar offers reports and listings on commercial real estate, and the firm is beginning to attract larger customers with deeper pockets.

Integral Systems

Integral Systems is a producer of satellite ground systems with headquarters in Lanham, Maryland, and is at number 62. While their earnings growth was fairly strong at 28.4%, it was their operating cash flow growth of 72.4% that helped them land their place on the list. Integral Systems should send a thank you card to the US Air Force, as 55% of their revenue came from them alone.

Orbital Sciences

This rocket and satellite company is based in Dulles, Virginia. Their strong stock return of 44% for 2006 helped them earn slot number 70. I wish I’d had them in my portfolio… Among their accomplishments last year: 16 launches and a $250 million subcontract from NASA.

Argon ST

Argon ST is located in Fairfax, Virginia, and makes weapons-tracking systems. The phenomenal thing about this tech company is that they were able to weather a 30% loss in their 2006 stock return (the US Army canceled an order), and yet they still made it to number 81 on the top 100 list. Their 88.3% operating cash flow and 85.3% revenue growth helped them bounce back, not to mention a Navy contract for torpedo defense.

Lockheed Martin

Ah, yes. The behemoth of our area, with headquarters in Bethesda, Maryland, and 140,000 employees. It’s here at number 84. Some may be surprised to see this giant on a list of fastest-growing tech companies, considering how hard it can be for large firms to expand quickly. However, Lockheed’s earnings growth was quite strong at 59.2%, and their stock return for 2006 was a juicy 47%. Quite respectable indeed. Although they lost some contracts last year, those were more than offset by a $276 billion deal to upgrade F-16 fighter jets.

Micros Systems

Just behind Lockheed Martin at number 85 is this developer of enterprise applications based in Columbia, Maryland. They have a solid financial footing, with earnings growth of 35.7% and operating cash flow growth of 32.5%. Micros focuses solely on the hospitality and specialty retail industries. Along with Verifone, they created a new system that allows restaurant patrons to print their own receipts right at the table. Check, please!

Was your company in this year’s report? Are you positive you’ll be in next year’s report? Was your firm unjustly left out? Send us a reply and let us know.

CIA on Myspace?

Thursday, August 23rd, 2007 by John Stauffer | 1 Comment

The national intelligence agencies have launched a social networking site, A-Space, modeled after the ultra-popular MySpace, further supplying ammunition to those who claim networking sites hold potential beyond teenage users. The government-only site will allow users who voluntarily sign up to access the vast network of federal intelligence agencies.

This move “will generate better analysis by breaking down firewalls across the traditionally stove-piped intelligence community,” said Thomas Fingar, deputy director of National Intelligence for Analysis in a recent interview with Financial Times.

The A-space network will have the traditional menu of social networking features from common networks to web-based email, but will also have a recommended area of interest, similar to Amazon’s “You May Also Like…” section that recommends products based previous purchases. This will allow users to be connected to relevant material and research they may not have otherwise encountered.

In addition to the social networking applications, the site will also allow the intelligence community to access the national intelligence library.

The Director of National Intelligence is also looking to open up the site to foreign intelligence agencies, most of whom have been reluctant to log on to the networking site, citing the potential leaks among their top concerns.

Looking ahead, the DNI and the Intelligence and National Security Alliance plan to hold a conference in September to solicit feedback from both the private section and academia.

Anyone out there have any insight into A-Space, or share any of the same concerns?

Microsoft COO Kevin Turner to Speak

Thursday, August 23rd, 2007 by Jim Garrettson | No Comments

Microsoft COO Kevin Turner to Speak

Kevin Turner
Kevin Turner
   

Continuing a long string of appearances from top leaders, ExecutiveBiz and the Potomac Officers Club announced today that Kevin Turner, Microsoft COO, agreed to speak at a rare East Coast appearance on September 21st at 9 am.

Kevin will speak about delivering innovation to the market and strategically leveraging IT investments among his topics. The event is made possible by Microsoft and Unisys and should sell out quickly. POC members click here to register, ExecutiveBiz members may also register here. register here.

This addition of Kevin Turner completes a knock out line up to begin the fall schedule. Other speakers include Blackboard CEO Michael Chasen on September 12th and former Mexican President Vicente Fox on October 11th.

I Want My Web 2.0

Get your web 2.0 fix at The New New Internet (TNNI): Web 2.0 for Business Conference. New speakers from Amazon, Google and SAIC have been added and new panelists and technology exhibitors are being added almost daily. This is the largest annual Web 2.0 for business event on the East Coast. Don’t miss Web 2.0 for Business on November 1st in Reston, VA.

Hot Tech Gadgets: New MBW-150 Bluetooth Watches From Sony Ericsson

Wednesday, August 22nd, 2007 by Karen Mortensen | No Comments

Three Models

If James Bond lived in the real world, he might be planning to order one of the new Bluetooth watches recently announced by Sony Ericsson. Following up on their oh-so-sexy MBW-100 model from 2006, the company has created the MBW-150 in three new models with watchmaker Fossil: Executive, Classic, and Music. The watches will be available in late 2007.

Here’s what I like about these Bluetooth timepieces:

  • They let you discreetly manage your cell calls and SMS/MMS message alerts.
  • Sleek and professional-looking, they feature an analog face and a digital OLED message display.
  • They are compatible with a wide range of Sony Ericsson cell phones.

When you get an incoming call on your paired phone, the watch sends you a vibrating alert and displays caller ID or an SMS/MMS notification in a small but clear window. Button controls on the watch let you easily reject, mute, or take the call on your phone or headset. (Sorry, Bond-wannabes, you can’t talk directly into the watch.) If you move out of your phone’s range, you get a vibrating alert.

Using AVRCP technology, the watch also acts as a remote control for your music phone. Play and stop your music, go to the previous or next track, and even adjust the volume. Although you may not want to use this feature in the board room, it’s handy for the gym or at home.

The Bluetooth functionality lasts up to seven days, and the watch keeps time for about seven days after that. Just use the included charging clip to keep it juiced up.

All three Sony Ericsson models have a mineral crystal scratch-resistant face, an anti-glare coating, and are water resistant up to 30 meters.

Each Bluetooth watch is a little bit different. My personal favorite, the Executive model features a steel frame and matching stainless steel band. The Classic model also has a steel frame, but with a black leather band. Their Music model sports the most casual look, with orange and black highlights.

The Executive model is a bit hefty at 182 grams (6.4 ounces), while the others are much lighter, at 77 grams for the Classic (2.7 ounces) and 85 grams (3 ounces) for the Music.

“How much?” you ask. Prices range by model, from $349 to $399.