Newsletter -- Week Ending February 21, 2003

InternetAcceleration News Summary

If you didn't catch Cisco's content networking portfolio product announcements on Tuesday you should take a close look. We were inspired by this to write some commentary - Peter's column - "Cisco Turns the Corner with their Enterprise Content Networking Offering" and John's "Memo to Dave Peterschmidt" are at www.internetacceleration.com.

Mark your calendars -- March 11^th -- the day the economy turned around. Ground zero for the upturn will be our NRG N-Square dinner (for Networking Networking or Networking with Your Networking Pals) where we'll all start to lead the high tech business out of this recession. We'll be at The Vintage Room at the California Café at Stanford Barn. Yes, food and drinks will be served but we'll be watching who goes for seconds. Peter Christy will host a panel of experts on 'Why Network Systems Need Web Services.' RSVP to john@netsedgeonline.com.

Recently, RouteScience posted an IBM Alliance Partnership notice on the front page of their Web site without yet putting out a press release explaining the details. IBM has been making quite a bit of progress in autonomic computing (self healing systems) and if RouteScience's relationship with IBM is part of this then that could become really big for the route control market. It's a natural fit and could be a shot in the arm for ramping up demand for this category. Plus, RouteScience could do well by this relationship -- with IBM's massive integration efforts they can design in these solutions into lots of places.

$86M was last week's total for venture investments with six infrastructure companies dividing up the booty. Force10 Networks, developer of high performance Ethernet systems, closed $41M in new funding. This brings the total investment to $209M. Investors included New Enterprise Associates, U.S. Venture Partners, Worldview Technology Partners, Amerindo Investment Advisors, and Pacesetter Capital Group, among others. STSN, provider of wired and wireless high-speed data communications to hotels and conference centers worldwide, secured $15M in new financing. APV Technology Partners, Siemens Project Ventures and lead investor VantagePoint Venture Partners provided the equity funding. Intrusion detection solutions company, Sourcefire, closed $11M in Series B round led by New Enterprise Associates with Sierra Ventures, Inflection Point Ventures and Core Capital Partners. Nominum, IP address infrastructure software, secured $10M in Series C funding. Globespan Capital Partners led the oversubscribed round, with existing investors Bessemer Venture Partners, Morgenthaler Ventures, and Silicon Valley BancVentures. The new funds bring the total equity investment to $26M. Israeli company, Corigin Ltd., developer of data sharing and retrieval solutions, raised $5M. And RASilient, network storage solutions provider, raised $4M in first round funding.

Blue Coat Systems reported third quarter fiscal 2003, revenue was $11.7M, up from $11.2M in the prior quarter. The company reported a pro-forma net loss of $2.5M, a 43% reduction in net loss compared with a pro forma net loss of $4.4M, in the previous quarter.

In other corporate news, Packet Design, a company formed in May 2000 by former Cisco executives, Judy Estrin and Bill Carrico to address Internet infrastructure problems, has spun off two new companies to further develop and market its networking technologies. One of the spin-offs, Packet Design, will offer a family of network appliances that extends the routing control plane to enhance the reliability, performance, scalability and predictability of IP networks. The second spin-off, Precision I/O, will commercialize a new high-speed networking architecture developed by Packet.

Curl Corporation and adisoft AG developed a Web-based version of the insurance agent support and management system from Infora. Kagoor Networks, VoIP border control solutions, signed a distribution agreement with NTT-ME, a subsidiary of NTT. Kagoor's VoiceFlow 2ill be provided to Japanese service providers and enterprise customers. Peribit Networks, bandwidth creation products, signed three global deals with JT International for Peribit Sequence Reducer SR-50s to be deployed in Switzerland, Greece, Turkey, Taiwan, Tanzania, Czech Republic and over 50 other locations. They also signed a multi-site deal with UK Astrium Ltd. RLX Technologies and Network Appliance have teamed to combine Network Appliances' NAS storage with RLX ServerBlades.

In product news, those guys (and gals) at Warp Solutions keep on charging ahead -- announced a new edge appliance, WARP 2063e, said to enable enterprises and service providers to deploy high performance application delivery networks. Persistence Software introduced EdgeXtend 2.0, integrated data services for real-time applications now supporting LINUX operating systems. Array Networks, announced a new version of its Array SP v.6 integrated security platform. Blue Coat Systems introduced their SG400 Web Security Appliance, what they call a remote office and branch office (ROBO) Web ‘traffic cop.' Asante shipped IntraCore 35516 Gigabit Ethernet routing switch. And, Radware announced the Application Switch III platform, built on a three-tiered architecture, 10 Gigabit Layer 4-7 switch. Opsware released version 3.6 of its Data Center Automation software. Inkra's Virtual Service Switch family meets the Virtual Private Network Consortium's IP Security test standard. ITWorx unveiled NetCelera, a WAN capacity expansion appliance. GuardedNet announced that its neuSECURE security event management solution was selected as a finalist in the 2003 Information Security Magazine excellence awards.

Customer wins: Extreme Networks' Ethernet switching technology is connecting Microsoft's Enterprise Engineering Center. Allot Communications', provider of policy-based networking solutions, NetEnforcer has been selected to monitor and mange bandwidth distribution among exhibitors at the 3GSM Congress. Jibe's EdgeBurst technology will be used to deliver video on demand for NDY Media. Completeweb.net selected RouteScience PathControl to enhance its Internet connectivity. The Austrian Broadcasting Corporation has selected Virage's VS Webcasting application to aid in its internal communications with employees. And mBalance, messaging infrastructure for mobile operators and Sun Microsystems have been selected by O2 Netherlands to deliver the mBalance TextPass Intelligent SMS Monitoring, Statistics and Routing solution with real-time traffic stats and instantaneous intervention to maintain Quality of Service.

Executives in the news: RealNetworks appointed Ian Freed vice president, mobile products and services. James Kelly was named vice president of manufacturing at Egenera, developer of solutions to deploy and manage processing capacity. And Crossbeam Systems, provider of open security appliance for deploying network services, appointed Mark Bennett as vice president of channel sales.

See links below for the complete text of those items mentioned above plus other news.

The InternetAcceleration newsletter and www.internetacceleration.com are produced by NetsEdge Research Group. For more information or to keep us updated, contact John Katsaros john@netsedgeonline.com.

Product News

New Edge Appliance From WARP Solutions Provides Capability to Deploy High-Performance Application Delivery Networks
WARP Solutions announced the availability of the WARP 2063e, a new edge appliance that enables enterprise organizations and service providers to distribute applications, transactions, and content across global IP-based networks while maintaining high levels of speed, performance, and availability...more>

Persistence EdgeXtend 2.0--Integrated Data Services for Real-Time Applications--Now Includes Support for LINUX
Persistence Software announced the delivery of EdgeXtend 2.0, an integrated data services product which is said complements and enhances the performance of application servers such as IBM WebSphere, BEA WebLogic, and Microsoft .NET and now supports the LINUX operating system...more>

Asanté Ships Flagship Gigabit Ethernet Routing Switch
Asante announced IntraCore 35516 featuring 16 non-blocking Gigabit Ethernet ports, wire-speed routing, the Open Shortest Path First (OSPF) router protocol, multicast routing, 8 hardware level priority queues, 4000 Virtual LANs (VLANs), double 802.1q VLAN tagging, 2000 multicast groups, and 16,000 routing tables...more>

Array Networks Slashes Network Complexity With New Integrated Security Platform
Array Networks announced the new version of its Array SP (Version 6) integrated security platform that includes a suite of network security and Web optimization applications, including SSL VPN, identity management, application-layer firewall, Port 80 security, compression, and Web traffic management as well as support for legacy applications...more>

Radware Unveils Groundbreaking Hardware Platform -- Application Switch III
The Application Switch III platform introduces a three-tiered architecture that couples enhanced performance and power with 10Gb connectivity said to enable Web Services and IP applications for driving speed and reducing operating costs...more>

Radware Announces the Industry's First 10 Gigabit Ethernet Layer 4-7 Switch
Radware's Application Switch III, is the first hardware platform that facilitates 10Gbps connectivity, enhancing the speed, security and availability of network traffic and is equipped with a 10 Gigabit Ethernet port, 7 Gigabit ports and 16 Fast Ethernet ports...more>

Blue Coat's New Robo-Cop Patrols Network Perimeter
Blue Coat Systems introduced the SG400 Web Security Appliance, a remote office and branch office (ROBO) Web "traffic cop." The newest member of the Security Gateway (SG) family is said to enable corporations to extend Web traffic protection and control to the network edge, while significantly reducing the administration and management costs for securing a distributed enterprise...more>

Opsware Inc. Adds Automated Server Configuration Tracking To Its Data Center Automation Software
New Opsware Release 3.6 automatically tracks And reconciles manual server changes To prevent systems failures and expands platform support for HP UX and AIX...more>

Inkra's Virtual Service Switch Family Meets IPsec VPN Standards
Inkra announced that the company's Virtual Service Switch (VSS) family has passed the Virtual Private Network Consortium's (VPNC's) IP Security (IPsec) tests. The VPNC is an independent organization chartered with providing unbiased information on the VPN industry...more>

ITWorx Unveils NetCelera WAN Capacity Expansion Appliance at DEMO
ITWorx unveiled NetCelera, a WAN capacity expansion appliance that expands network capacity and acceleration of all enterprise applications. The solution accomplishes this by eliminating network traffic redundancy using patent-pending technology. NetCelera operates over line capacities ranging from 64 Kbps to 45 Mbps, delivering up to 10-fold improvements of network capacity and speed...more>

GuardedNet's neuSECURE Selected as a 2003 Information Security Magazine Excellence Awards Finalist
GuardedNet announced that its neuSECURE security event management solution has been selected as a finalist in the Horizon Award category for the 2003 Information Security Magazine Excellence Awards....more>

Could the Theft of Millions of Credit Card Numbers Have Been Prevented?
Ingrian Networks issued a statement regarding the vulnerability of companies doing business over the Internet like the kind of attack affecting millions of Visa and MasterCard users. According to Ingrian, the solution is to ensure complete privacy of all sensitive Web transactions...more>

Agreements/Partnerships

Curl Brings Rich Client Advantages To Insurance
Curl Corporation announced the insurance industry's first rich client application built on the Curl Client/Web Platform. Developed by partner adisoft AG, adisoft used the Curl platform to rapidly develop a Web-based version of EFA, the insurance agent support and management system from Infora...more>

Kagoor Networks and NTT-ME Partner in Japan
Kagoor Networks, Voice-over-IP (VoIP) Border Control solutions, announced that it has signed a distribution agreement with NTT-ME, a wholly owned subsidiary of NTT. NTT-ME will provide Kagoor's VoiceFlow series VoIP border controllers to Japanese service provider and enterprise customers...more>

Peribit Signs Multi-Site UK Deal With Astrium
Peribit Networks, bandwidth creation products, has signed a deal for multiple sites in the UK with Astrium Limited, a joint venture between the European Aeronautic Defense and Space Company and BAE Systems...more>

Peribit Networks Inks Global Pact with JT International to Enable World-Wide SAP Rollout
Peribit Networks, the global leader in bandwidth creation products that boost application performance, today announced that it has signed three global deals with JT International (JTI) for Peribit Sequence Reducer products. As part of this deal, JTI has deployed Peribit SR-50s in Switzerland, Greece and Turkey with further installations pending in Taiwan, Tanzania, the Czech Republic and over 50 other locations to be considered...more>

RLX Technologies First to Integrate ServerBlade and Storage Management Tools Through Its Relationship with Network Appliance
RLX Technologies, scale-out cluster servers and management solutions provider, announced integration of its Control Tower management tool with FilerView from Network Appliance combining Network Appliance NAS storage and RLX ServerBlades...more>

Corporate News

Force10 Networks Closes $41 Million Investment Round
Force10 Networks has closed $41 million in new funding, bringing the total investment in the company to $209 million. Investors in this financing round include New Enterprise Associates (NEA), U.S. Venture Partners (USVP), Worldview Technology Partners, Amerindo Investment Advisors, and Pacesetter Capital Group, among others...more>

STSN Kicks Off 2003 with 70 New Customers Company Momentum Drives $15 million in New Financing
STSN, provider of wired and wireless high-speed data communications to hotels and conference centers worldwide, secured $15 million in new financing from investors, including APV Technology Partners, Siemens Project Ventures and lead investor VantagePoint Venture Partners provided the equity funding...more>

Sourcefire Secures $11 Million in Series B Funding
Sourcefire, intrusion detection solutions, has closed its $11 million Series B round of investment. The deal, led by New Enterprise Associates, also included Series A investors Sierra Ventures, Inflection Point Ventures, and Core Capital Partners...more>

Nominum Secures $10 Million in Series C Funding
Nominum, provider of IP address infrastructure software, completed a $10 million dollar round of series C financing. Globespan Capital Partners (formerly JAFCO Ventures) led the oversubscribed round, with participation from Nominum's existing investors Bessemer Venture Partners and Morgenthaler Ventures, and new investor Silicon Valley BancVentures. The new funds bring the total equity investment to $26 million...more>

Corigin LTD Raises $5M In Financing
Vertex Venture Capital, an Israeli venture capital fund has lead a $5 million financing round with an investment of $3 million in the Israeli company, Corigin Ltd, a developer of Data Sharing and retrieval solutions. Genesis Partners also participated in the round...more>

RASilient Systems Raises $4M in First Round
RASilient, network storage solutions, raised $4M in First Round funding led by Acorn Campus and Intel Communications Fund...more>

Blue Coat Systems Reports Third Quarter Fiscal Year 2003 Financial Results
Blue Coat Systems announced that for the third quarter of fiscal 2003, revenue was $11.7 million, up from $11.2 million in the prior quarter. The company reported a pro-forma net loss of $2.5 million, a 43% reduction in net loss compared with a pro forma net loss of $4.4 million, in the previous quarter...more>

Packet Design, LLC Spins Off Two New Companies
Packet Design, company formed in May 2000 by former Cisco executives and Judy Estrin and Bill Carrico to address Internet infrastructure problems, has spun off two new companies to further develop and market its networking technologies. One of the spin-offs, Packet Design, will offer a family of network appliances that extends the routing control plane to enhance the reliability, performance, scalability and predictability of IP networks. The second spin-off, Precision I/O, will commercialize a new high-speed networking architecture developed by Packet Design that will allow servers to take full advantage of rapidly increasing networking speeds, including 10-gigabit-per-second Ethernet and beyond...more>

RealNetworks appoints Ian Freed vice president, mobile products and services.
Freed has been with RealNetworks since 1997...more>

Egenera names James Kelly vice president of manufacturing.
Kelly formerly served as vice president and general manager at Celestica...more>

Mark Bennett was appointed vice president of channel sales at Crossbeam Systems, open security appliance for deploying network services.
Bennett formerly served as vice president of commercial sales at TippingPoint Technologies...more>

Customer Announcements

Completeweb.net Selects RouteScience PathControl
CompleteWeb.Net has selected RouteScience PathControl to control the cost and enhance the performance of its Internet connectivity...more>

Austrian Broadcaster Selects Virage Webcasting For Internal Communications
The Austrian Broadcasting Corporation, Österreichischer Rundfunk (ORF), has selected the Virage VS Webcasting application to aid in its internal communications with employees. ORF is one of the largest broadcasters in Europe...more>

NDY Media Selects Jibe's EdgeBurst Technology to Deliver Internet Video On Demand
Jibe, peer-assisted content delivery, announced that NDY Media's interactive properties will use EdgeBurst to deliver urban-themed content to African American and multicultural family broadband users. The use of Jibe's EdgeBurst software will enable NDY Media to deliver full-screen, TV-quality video to these rapidly growing markets...more>

Allot Communications Manages Bandwidth at the 3GSM Congress, Cannes France
Allot Communications, provider of policy-based networking solutions, announced that its NetEnforcer product has been selected to monitor and manage bandwidth distribution among the exhibitors of the 3GSM Congress...more>

Extreme Networks' Switching Solutions Connect Microsoft's Enterprise Engineering Center
Microsoft's EEC is being connected by Extreme Networks' Ethernet switching technology. The EEC provides a setting where Microsoft's next-generation of IT software deployments are extensively evaluated and validated with Large Enterprise customer environments...more>

O2 Netherlands Selects MBalance & Sun to Deliver Intelligent SMS Monitoring, Statistics & Routing Solution
mBalance, messaging infrastructure for Mobile Operators, and Sun Microsystems have been selected by O2 Netherlands to deliver the mBalance TextPass Intelligent SMS Monitoring, Statistics and Routing solution with real-time SMS traffic statistics and instantaneous intervention to maintain high Quality of Service (QoS)...more>

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