- Week Ending April 4, 2003

A Compilation of News & Events in the Internet Infrastructure Arena

InternetAcceleration News Summary

Last quarter's results are in for Internet Infrastructure investments and are posted on our portal www.internetacceleration.com and, to use a Sienfeld quote, "They're Spectacular!" During the first quarter, 2003, $811.8M was invested into 62 companies. That makes it almost as big as the two prior quarters combined! Q4 2002's 20 investments raised $346M and Q3 2002's 39 investments raised $550M. With $9M a day flowing into startups in this segment you might not realize there's a recession going on around us!

And this quarter is showing no sign of letting up. NetContinuum announced on Tuesday that they had raised another $20M of new financing from Palomor along with their existing investors to fund their international growth and product development -- you can sure buy a lot of trips to Paris with that kind of money. In addition, six companies received an additional $60.2M in financing last week. Incipient, storage management applications provider, closed $15M in Series B financing led by Globespan Capital Partners with Greylock and Sigma Partners. Silverback Systems, IP-based networked storage provider, completed its Series C financing for $15M led by Excelsior Venture Partners with other investors. Fabric7 Systems, providing solutions for data centers, raised $14M in Series A financing. GoBeam, VoIP service provider, closed $10M. Atempo, backup and recovery services software developer, closed $6.2M and Hitachi and other firms invested an undisclosed amount in Series B funding in Mountain View Data, server management software and network storage software provider.

Every now and them you get a flashback to the good old days when we were living in the bubble. Now that Gores Technology Group (through its affiliate GTG Acquisition Corp.) has completed its acquisition of one of the first "software only" infrastructure companies in the traffic management arena, Resonate, we can close that chapter of the book. In a transaction worth only $54 million. GTG seems to have pulled off a sweet deal considering how much cash was lying around at Resonate.

Less than a week after agreeing to buy IntruVurt for $100 million, Network Associates, a publicly traded provider of network security and availability technology, said it has signed a deal to buy Entercept Security Technologies, a provider of intrusion protection technology, for $120 million in cash. Entercept closed a $33-million round in January 2001. And to top it off, yesterday Network Associates announced weak first quarter results which sent its shares plummeting down 19 percent!

Globix and The Feedroom announced that they served up over 10.5 terabytes of streaming video and audio traffic of Iraqi war coverage in the opening hours of the war. Topspin, Infiniband switched computing company, has entered into channel sales and marketing partnerships with Microway, Promicro Systems, Rackable Systems, Total Tec Systems, Miel in France and Sumitomo in Japan. Paragon Systems and DeepNines signed a worldwide reseller agreement. Paragon will resell Sleuth9 Security Systems. And, Mazu Networks opened a new sales and services office in New York City.

Expand Networks reports they were ranked as the number one vendor of next-generation WAN compression. Traffic management solutions provider, F5, announced iControl Services Manager, tool providing centralized administration of F5 devices. OptiView released SiteCelerate, a Web content acceleration appliance. Speedera Networks, content delivery services, announced SpeedSuite for Site Assurance for online news media and government organizations to manage traffic spikes during political/military crises, disasters, or just bad hair days. Legato Systems announced the availability of DiskXtender 2000 version 5.4 and DiskXtender UNIX/Linux version 2.6, enterprise data migration solutions. Cisco released their new multilayer switch, Cisco Catalyst 6500.

InfiniSwitch joins IBM's ServerProven program and attains IBM ServerProven recognition. Peribit's SR-50 wins the ‘Most Innovative New Product,' at the ICT Expo Awards. NetScaler received two awards: Best Hardware Product for its RS9800 Secure Application Switch system at EnterpriseVision Europe; and VarBusiness selected NetScaler as one of 48 companies to receive a Five-Star Rating. Blue Coat Systems was named a finalist in Network Computing's 2003 Well-Connected Award.

Customer wins include: Edge Web Hosting deployed Sockeye Networks' GlobalRoute service. Euronext.liffe, financial exchange company, chose Equinix to deliver the company's electronic trading platform service. Opsware's System 3.6 software was selected by New Breed to automate the provisioning and operations of its mission critical servers and applications. Speedera is streaming audio content for National Public Radio's Web site, npr.org. SAS selected Network Appliance as its storage solutions provider to power SAS IntelliVisor for financial services, an application service provider offering. Agfa, NY healthcare provider, will be using EMC's Clariion CX series of networked storage systems.

Executives in the News: The Help Desk Institute announced the appointment of Phil Verghis of Akamai, as their strategic advisory board chairperson. Arkivio, automated storage and online data management software developer, appointed Matt Foley as vice president of engineering. Rack mount server and storage solutions provider, Rackable Systems, named Robert Bodnar as vice president of worldwide sales. Andrew Brown was named vice president of North American sales for Consul, security event management software provider. And BayPackets appointed Amol Joshi as vice president of marketing.

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

Expand Networks Named Leading Provider of Next-generation WAN Compression With 87 Per Cent Market Share
According to a report by NetsEdge Research, Expand has been ranked as the number one vendor of next-generation WAN compression with 87 per cent of all units shipped in 2002. Expand also secured 71 per cent of 2002 end-user revenues and a whopping 93 per cent market share in terms of units shipped from 1999-2002...more>

F5 Networks Unveils the Most Comprehensive Management Solution for Local and Global IP Network Traffic Devices
F5 Networks, a provider of Application Traffic Management solutions, announced iControl Services Manager (iSM), a network management tool that provides centralized administration of F5 devices said to make configuring and managing multiple F5 devices easy by allowing administrators to roll-out changes across many devices or objects...more>

OptiView Releases Innovative Web Content Acceleration Appliance
OptiView announced the release of SiteCelerate, a Web content acceleration appliance that optimizes and compresses all images, HTML, and files on a Web site or group of sites, speeding page delivery from 2-10 times. SiteCelerate also applies additional techniques to significantly accelerate Web sites and Web applications...more>

Cisco Sets New Standard for Multilayer Switches
Said to be ideal for enterprise and Metro service provider deployments, the Cisco Catalyst 6500 next generation consists of the Cisco Catalyst 6500 Supervisor Engine 720, high performance two-port and four-port 10 Gigabit Ethernet modules, and two 48-port 10/100/1000 Ethernet modules...more>

Media, Government Sites Prep for Traffic Jolts With Speedera SpeedSuite for Site Assurance
Speedera Networks, content delivery services, released SpeedSuite for Site Assurance to enable the sites of online news media and government organizations to successfully manage large, unexpected traffic spikes triggered by political and military crises, weather disasters, and other unpredictable events such as denial of service attacks...more>

LEGATO Extends Leadership in Enterprise HSM/Archive Solutions with New Releases of DiskXtender
LEGATO Systems announced the availability of DiskXtender 2000 version 5.4 and DiskXtender UNIX/Linux version 2.6 These enterprise data migration solutions automatically move inactive or fixed content data to more cost-effective storage while maintaining seamless user access...more>

InfiniSwitch Joins IBM ServerProven Program Company Attains IBM ServerProven Recognition for eServer Systems
The InfiniSwitch solution, which includes a 12/24 Port Leaf Switch and a dual port Host Channel Adapter, passed compatibility testing for three IBM eServer xSeries platforms: the x335, x345 and x440 and has obtained IBM ServerProven status...more>

Peribit Wins "Most Innovative New Product" At ICT Expo Awards 2003
Peribit Networks' SR-50 won the 'Most Innovative New Product' at the ICT Expo Awards for its method of 'loss-less' data compression that enables companies to speed up the transfer of data over their corporate wide area networks...more>

Network Computing Names Blue Coat Systems 2003 Well-Connected Award Finalist
Blue Coat Systems' SG800 Web security appliance has been awarded finalist status by Network Computing, a CMP Media LLC magazine, for a 2003 Well-Connected Award...more>

NetScaler Receives Best Hardware Product Award at Enterprise Vision Europe for Secure Application Switch
NetScaler, Inc., provider of web application traffic control systems, has been awarded Best Hardware Product for its RS9800 Secure Application Switch system showcased at EnterpriseVision Europe held February 2003 in Cannes, France...more>

NetScaler Receives Five-Star Rating for Netconnect Channel Program from VARBusiness Magazine
In a field of 300 vendors, VARBusiness selected NetScaler as one of only 48 companies to receive a Five-Star Rating in the magazine's ninth annual Partner Guide Survey...more>

Agreements/Partnerships

Globix and The FeedRoom Serve Up Record Amount of War Coverage
Globix Corporation announced that it served over 10.5 terabytes of streaming video and audio traffic in the opening hours of the Iraq War, setting a record for streaming traffic carried by the company...more>

Topspin Introduces Worldwide Channel Partnerships
Topspin Communications, switched computing, has entered into channel sales and marketing partnerships with seven industry-leading companies including Microway, Inc., Promicro Systems, Rackable Systems, and Total Tec Systems spanning the North American market, Miel in France, and Sumitomo in Japan, for its complete Infiniband-based switched computing product line...more>

Paragon Systems to Resell the Sleuth9 Security System to Government Agencies
Paragon Systems and DeepNines Technologies announced the signing of a worldwide reseller agreement. Paragon Systems will market and sell the Sleuth9 Security System, DeepNines' network intrusion prevention solution, to government agencies and vendors...more>

AC Technology Signs on as a Strategic DeepNines Reseller Partner
AC Technology and DeepNines Technologies signed a strategic reseller agreement. Under the agreement, AC Technology will market and sell The Sleuth9 Security System as part of its integrated security solutions and services...more>

Virage Teams With EDS And EMC At NAB 2003 Conference
Virage will demonstrate its latest technology offerings at the National Association of Broadcasters (NAB) 2003 Conference in Las Vegas...more>

Corporate News

Resonate Completes Sale of Corporation to Affiliate of Gores Technology Group
Gores Technology Group through its affiliate, GTG Acquisition Corp., has completed the acquisition of Resonate in a transaction worth approximately $54 million. GTG Acquisition Corp is the parent of Aprisma Management Technologies, Inc., focused on IP Fault and Performance Management solutions...more>

Network Associates to Acquire Entercept Security Technologies for $120 Million in Cash
Less than a week after agreeing to buy IntruVurt for $100 million, Network Associates, a publicly traded provider of network security and availability technology, said it has signed a deal to buy Entercept Security Technologies, a provider of intrusion protection technology, for $120 million in cash. Entercept closed a $33-million round in January 2001 from investors including Dell Computer, Diamondhead Ventures, Intel Capital, and Sun Microsystem...more>

GoBeam Raises $10M
VentureWire reports that GoBeam, a VoIP service provider for businesses, has closed $10 million in an ongoing round of financing...more>

Hitachi Invests in Mountain View Data
Mountain View Data, a provider of server management software and network storage software, received investment from Hitachi and other firms in series B funding. Financial details were not disclosed. The round was led by Nippon Venture Capital Co., and was joined by ADTX, a storage hardware vendor, Nissei Capital, Daiwa Bank and Kokusai Capital, which manages the Hitachi-Kokusai Capital Number One Investment Enterprise Partnership fund...more>

Fabric7 Attracts $14 Million in Venture-Backed Financing
Fabric7 Systems, system solutions for enterprise data centers, completed its Series A financing, attracting $14 million in equity from investors including New Enterprise Associates, Goldman Sachs, Fidelity Ventures and others...more>

Atempo Raises $6.2 Million in Funding
Atempo, the developer of Time Navigator, a software platform for high-performance backup and recovery services, closed $6.2 million in funding. Banc of America Equity Partners, KBC Investco, Plantagenet Partners and Vision Capital accounted for a majority of the investment in the round...more>

Mazu Networks Opens New York City Office
Mazu Networks has opened a new sales and service office in New York City...more>

Help Desk Institute announces new strategic advisory board chairperson
Help Desk Institute announced the appointment of Akamai's Phil Verghis as their new strategic advisory board chairperson...more>

Consul, worldwide provider of security event management software for the enterprise, names Andrew J. Brown as vice president of North America.
Before joining Consul, Brown was the senior vice president of North American sales for TruSecure Corporation...more>

Arkivio, a provider of automated storage and online data management software, named Matt Foley vice president of engineering.
Before joining Arkivio, Foley served as director of engineering for core software components at Alta Vista...more>

Rackable Systems announces new vice president
Rackable Systems, a provider of rack mount high-density server and storage solutions, named Robert J. Bodnar, as vice president of worldwide sales...more>

BayPackets Appoints Amol Joshi as vice president of marketing.
Before joining BayPackets, Joshi was a co-founder and vice president of sales and marketing at BeVocal, Inc...more>

Customer Announcements

Sockeye Networks Helps Edge Web Hosting Improve Performance & Reduce Costs
Edge Web Hosting has deployed the Sockeye Networks GlobalRoute service to reduce the cost of upstream transit bandwidth while boosting Internet performance for its customers...more>

Equinix Chosen by Euronext.liffe to Provide Network Services for the Chicago Board of Trade's Electronic Trading Platform
Euronext.liffe has chosen Equinix to deliver the financial exchange company's LIFFE CONNECT electronic trading platform service. As a part of the agreement, Euronext.liffe has established operations within Equinix Internet Business Exchange...more>

New Breed, Inc. Selects Opsware Inc.'s Data Center Automation Software
New Breed, has selected the Opsware System 3.6 software to automate the provisioning and operations of its mission critical servers and applications. New Breed provides distribution services, critical logistics and supply-chain consulting services for large companies including Siemens Medical Solutions, the US Postal Service, and Verizon Wireless...more>

Speedera Teams With NPR to Stream Audio, Handle Large Traffic Spikes
NPR (National Public Radio), announced that Speedera Networks is streaming the audio content for NPR's Web site, npr.org, and is offering similar services for NPR Member stations...more>

SAS Selects Network Appliance as the Storage Infrastructure for SAS Intellivisor for Financial Services
Network Appliance, provider of enterprise network storage solutions, announced that business intelligence provider, SAS, chose NetApp as its storage solution provider to power SAS IntelliVisor for Financial Services, an application service provider (ASP) offering...more>

New York Healthcare Provider Expands Agfa IMPAX PACS Capability to Cardiology with EMC Networked Storage
Agfa has teamed with EMC to integrate clinical imaging and administrative/financial and research data onto standardized information infrastructure with scalability across the enterprise. EMC's CLARiiON CX series of networked storage systems will provide a storage solution to manage, protect, and share short-term active files. For long-term archiving, EMC's Centera CAS solution will be used...more>

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