Showing posts with label InterfaceTechNews. Show all posts
Showing posts with label InterfaceTechNews. Show all posts

Wednesday, October 10, 2001

Global-Z returns to Bennington with expansion plans

Published in Interface Tech News

MANCHESTER CENTER, Vt. ‹ Data processing company Global-Z is relocating for the second time in five years, returning to nearby Bennington, where the company was founded in 1989. The company is expanding to meet demand for direct-mail advertising in Asia, and expects to triple its payroll within five years.

The company is finishing financial arrangements for purchasing land and building a 5,000 square foot facility in Bennington. It expects to be in its new home by March 2002.

"Bennington is really hungry for new business," said company co-founder and vice president of operations Dimitri Garder. "A lot of the legwork is being done for us."

Several state, county, and municipal programs are working together to help the company remain in Bennington County and form part of what Garder hopes will be a critical mass of area technology businesses.

"If Bennington can promote themselves as really advantageous to high-tech business, we'd love to be a part of that," Garder said.

Global-Z began as a database consulting firm. Its clients ran into trouble when entering international addresses into databases that were expecting U.S.-style address formats.

In 1993, Garder said, the company began processing international address data for marketers. The benefit for the customers, Garder said, is fewer duplicates, faster delivery, and fewer pieces of returned mail. "It improves the deliverability of the mail piece," he said.

One of the company's employees works in Beijing, opening up services with Asian clients and working with the region's postal services. Global-Z has offered services in Japan for two years, and the next few countries to see Global-Z services, according to Garder, will be Taiwan, South Korea, and Thailand.

Guy Creese, research director at the Aberdeen Group, said there are big bucks in international direct mailing and address handling.

"That's quite a brisk business," he said.

There is room for improvement in addressing, Creese said, noting that even small improvements can have significant payoffs.

"If you can improve addresses by two percent, and you have a million addresses, that's big," he said.

The U.S. direct-mail market is saturated, Creese said, leading many companies, especially multi-nationals, to seek abroad the levels of success they have had with U.S. campaigns.

"The business demand for this is growing," he said.

Global-Z, planning to follow the trend in its sector, expects to add 35 jobs within the next five years, and offer training and internships collaboration with programs at Mt. Anthony Union High School's career center and Bennington College's foreign-language programs.

Tuesday, October 9, 2001

Centra takes e-learning offering to China

Published in Interface Tech News

LEXINGTON, Mass. ‹ E-learning software firm Centra has signed a deal with New Modern Technology (NMT), based in Hong Kong and Shenzhen, China, under which NMT will be Centra's distributor in China.

Centra has worked with a Japanese distributor for its eLearning framework for two years, and has several customers in that country.

In the past year, the company has expanded to serve Australia, Singapore, and India, adding Taiwan, China, and Korea in the past six months, according to Chris Reed, the company's vice president of corporate strategy.

"You really have to start in Japan," Reed said. Expansion to Australia, Singapore, and India often follow, he said.

With the new partnership, NMT will undertake the Chinese localization and marketing of Centra's software, which permits live interaction with an instructor via the Internet using video cameras, voice over IP, electronic whiteboards, and other tools.

Reed said the early adopters of this type of training platform are multi-national corporations, who are frustrated by delays between product launches in the U.S. and training for Asian offices, which often occur several months later.

Reed described Centra's platform as a "control panel around a content window," which allows multiple teaching tools to be used as part of a training session. Reed said this offers value and depth of understanding.

"The most effective learning experiences are a combination of these learning methods," he said.

Market research agrees. In August 2000, Forrester Research published a report entitled "Online Training Needs A New Course." The report indicated not only that lack of interactivity was the key obstacle to online learning, but that trainee resistance is the next largest problem.

Reed said Centra gets around these problems by offering lots of interactivity and with a simple analogy: "a class over the Internet."

Reed said people already have a sense of what a class entails and what it should be like. Centra's software, he said, gives them this without forcing companies to fly trainers all over the world, exhausting the people and the training budget.

With a distributor in China, Reed said, the company has an agent committed to a couple of years of market building, leaving Centra itself to continue working on its software and on other expansions.

Friday, October 5, 2001

$15 million to advance NetNumber's VoIP plans

Published in Interface Tech News

LOWELL, Mass. ‹ NetNumber recently drew a $15 million infusion from Mountain View, Calif.-based VeriSign and Science Applications International Corporation's venture capital subsidiary, SAIC Venture Capital Corp., located in Las Vegas, Nev.

NetNumber is betting the injection of cash will enable continued expansion of its e-numbering services for voice-over-IP (VoIP) providers.

E-numbering translates international-standard phone numbers into IP addresses for connecting with IP phones, according to NetNumber CEO Glenn Marschel. He said the company will use the money for general operations and expansion of its marketing efforts.

At present, the company has one client, Webley Communications of Deerfield, Ill., and between 12 and 20 companies working to incorporate NetNumber's products, Marschel said.

An IDC report in late August stated that the recent economic downturn will "slow but not stall" the trend toward adopting VoIP technology. The report confirmed that several companies in the VoIP sector have also received additional rounds of venture capital funding.

Marschel said VeriSign and Science Applications had previously announced their intentions to compete with one another. He attributed the new collaboration to the firms' work together on standards and regulatory issues.

Tuesday, September 25, 2001

Verizon Online addresses complaints amid anti-spam battle

Published in Interface Tech News

PORTLAND, Maine ‹ After several months of concern, customers of the former Bell Atlantic have settled into new anti-spam security measures taken by New York-based Verizon Online. Verizon, the company resulting from the merger of GTE and Bell Atlantic, has been in the process of combining the two companies' policies.

Verizon Online introduced its New England and East Coast customers to a GTE policy of what it called "domain verification" for e-mail traffic being sent to its servers. When the new policy was introduced in mid-July, some customers were angered initially, but most concerns have since faded, according to company officials and industry Web sites covering the change.

Among those upset were Verizon DSL customers who hosted Web sites with companies other than Verizon. They wanted to send e-mail from addresses at their domains rather than their Verizon DSL-assigned address, from one of Verizon's domains, including Bellatlantic.net, Verizon.net, and GTE.net.

The new security is not unique to Verizon, according to company spokeswoman Bobbi Hennessey. MSN and Earthlink have similar policies, she said.

It is intended to serve two purposes, Hennessey said: to ensure that people sending e-mail through Verizon servers are Verizon customers, and to help control spam.

Some critics say the change is not an effective means of achieving spam control.

"To even suggest that this is a move to prevent spam is a red herring," wrote Joseph Barisa on MacInTouch.com, a technology news site covering Macintosh and Internet developments.

InternetWeek recently reported that some Verizon customers are pleased with the change because it allows better system security.

Hennessey said the company has had positive feedback from some people, though not as many as have complained. The move is part of a series of updates to Verizon systems that will bring the former Bell Atlantic and GTE networks into a single integrated system.

"We're aware that there are many ways of doing this," Hennessey said. She added that the policy is one GTE had in place prior to the merger.

"This is simply the best way," Hennessey said. "There's a downside to everything you select."

Of the company's 60,000 DSL subscribers, only about 1,000 called to complain. She said most of the complaints were resolved with an explanation of modifying e-mail software settings to include the user's own domain, as well as the Verizon-authorized address.

Other customers began sending e-mail through their Web hosting company's servers, rather than Verizon's, she said.

Hennessey said Verizon is working on additional spam-proofing of its systems, but declined to describe the projects. The company is expected to make an official announcement in the coming weeks.

Monday, September 24, 2001

Clickshare moves toward large-scale micro-transacting

Published in Interface Tech News

WILLIAMSTOWN, Mass. ‹ Stepping up its support of Internet micro-transactions, Clickshare has brought a financial-services helper to the table: Multi Service Corporation, headquartered in Overland Park, Kan.

Clickshare's business is centered on micro-transactions, in which Internet users pay small amounts for specific pieces of content, such as an archived newspaper article or video clip. While many companies handle the transactions themselves, Clickshare not only moves the money, but also allows a user's registration at one member site to be valid at all other Clickshare member sites.

After the transactions, Clickshare makes sure the money gets funneled appropriately. Now Multi Service, a handler of private-label credit cards, will take care of the actual movement of money, in exchange for a cut of the transaction amount.

Forrester Research analyst James Crawford is skeptical about micro-transactions in the near term. "It's a technology in search of an audience," he said. "It's been an area that's seen a lot of activity and not a lot of success."

Name recognition is a big deal to consumers, Crawford said. He expects a micro-transaction standard to emerge, but not from small startups like Clickshare.

"It's going to come from a financial services provider," Crawford said. "Consumers just don't trust Internet startups."

ClickShare needs to process more than the $10,000 in daily transactions the company has cited as representative, Crawford added, noting that the company only retains a small percentage of each transaction.

"To be profitable, they're going to have to get orders of magnitude, more customers," Crawford said.

ClickShare CTO Richard Lerner said that is the company's major focus. "Mostly what we're doing is building up our network of clients," he said, adding that each client is a Web site with many regular viewers.

Lerner said the company has "about a dozen" live clients and is in talks with "a couple of dozen" more companies, serving what he called "potentially millions of registered users." He said the company does not have many registered users at the moment.

He hopes Multi Service's strengths will meet Clickshare's needs as it expands.

"They have a lot of expertise in handling financial matters and handling customer service," Lerner said.

Friday, September 21, 2001

$20 million adds voice recognition to Nexiq arsenal

Published in Interface Tech News

MANCHESTER, N.H. ‹ A late August infusion of nearly $20 million from its investors and Manchester-based Sunrise Capital Parters led off a round of partnership announcements for telematics hardware and software company Nexiq. The first, with Salt Lake City-based Fonix, will add voice-recognition and text-to-speech software to Nexiq's in-vehicle framework for integration of electronic devices.

According to company spokesman Brian Payne, the framework allows connection of personal devices such as mobile phones and PDAs to be connected to a car, allowing access to the devices through displays on the dashboard and the console often found between the front seats.

Payne said telematics also allows electronic diagnostics to be performed from remote locations. While it is commonplace for cars to have electronic components and require attention from mechanics using special devices, it is not yet common for managers of corporate truck and car fleets to keep track of their vehicles' maintenance schedules while they are on the road.

Payne added that telematics can be somewhat like the On-Star system currently offered in GM's top-line automobiles, in which drivers can press a button and ask for directions from their location to a restaurant, gas station, or other destination.

In a report published by TechMall, USB Warburg analyst Saul Rubin predicted the rapid expansion of telematics services and devices in the near future. He said vehicle manufacturers will likely brand their own telematics services, but will outsource the building of hardware and software to support it.

Monday, September 17, 2001

Phone service snafu pits ISPs against Verizon

Published in Interface Tech News

CONCORD, N.H. ‹ Phone customers in New Hampshire have had problems getting telephone dial tones since 1999, leading to dangerous situations when even 911 is unreachable in some towns. The New Hampshire Public Utilities Commission has been discussing the situation for two years and, despite the filing in May of a Verizon New Hampshire proposal that could alleviate the problem, the commission has not yet determined a course of action.

"We're still analyzing the filing," said PUC chief engineer Kate Bailey, who predicted there could be a technical review session before the commission rules on the proposal, and offered no projected timetable for a ruling.

High telephone circuit use has clogged some Verizon New Hampshire central office switches, causing dial-tone delays for outbound callers, fast busy signals for inbound callers, and, in some cases, lack of any dial tone.

The N.H. PUC requires that a dial tone be available within three seconds after a customer picks up a phone. If too many other phones are in use on the same circuit, this standard cannot be met.

The congestion, which the PUC, Verizon, and the New Hampshire Internet Service Providers Association (NHISPA) attribute primarily to increasing use of dial-up Internet services, has only worsened in the past two years. Verizon New Hampshire has been installing equipment at affected switching offices throughout the state and has been experiencing a form of rolling blackouts in the phone system: as congestion is eased in one place, another location becomes overloaded.

One proposed solution is for New Hampshire ISPs to reduce their use of dial-in, or "switch-side" access to the Internet, and move instead to higher-bandwidth, dedicated-circuit systems like DSL, which are called "trunk-side" services.

The ISPs like the idea, saying they do not presently have access to trunk-side lines. "We don't have alternatives to the dial-up. They're not cost-effective for us," said Brian Susnock, president of the Nashua, N.H.-based Destek Group.

Destek has a federal suit pending against Verizon New Hampshire alleging the company engaged in improper procedures regarding exceptions to standard tariffs.

Susnock said there are, however, cheap workaround products available from Verizon New Hampshire, including alarm circuits intended to maintain constant contact between a burglar alarm system and a security company or police station.

Susnock said those circuits are not engineered for data transmission, and can have reliability problems when carrying data, but he uses them anyway because they are so much cheaper.

The PUC's solution is for Verizon to sell so-called "dry copper loops" to ISPs for data traffic. In response to a PUC request, on May 29 Verizon New Hampshire filed a so-called "illustrative tariff" to show the PUC and others what a tariff for dry copper might look like.

The proposal, still being examined by the PUC, has come under fire from the ISPs for charging excessive service fees, being inconsistent with Verizon Online's pricing practices, and for being exclusionary to ISPs.

The proposal would allow Verizon New Hampshire to charge ISPs between $200 and $2,200 in one-time fees to condition a copper loop for data transmission.

Verizon spokesman Erle Pierce said removal of these devices is time-consuming and expensive. "It's a lot of work to go out and unload those copper pairs," he said. Susnock said there is no need for Verizon workers to remove hardware from existing cables, and said there is a database which will tell engineers whether dry copper lines already exist in an area.

"Are there records which will tell you whether a cable pair is loaded or unloaded? Absolutely," Pierce said, but said they are only available for lines which already carry Verizon New Hampshire voice traffic, not for cables which currently carry no traffic. And the records are available only to what Pierce called "authorized CLECs." Pierce added, "Generally speaking, [the ISPs] want all the advantages of being a regulated company, without the regulation."

Chip Sullivan, a lawyer for Destek and for the NHISPA, said the ISPs are willing to pay for access to Verizon's engineering database, but balked at having to pay Verizon $5,000 per month in registration fees, just to be able to place orders for dry copper. On June 6, the NHPUC agreed and waived the monthly fee.

As for the alleged pricing discrepancy, Verizon Online offers DSL service in New Hampshire for $49.95 per month, less than the $64 proposed monthly cost of dry copper Verizon New Hampshire proposes. The dry copper service does not include actual Internet access, Web hosting space or e-mail, which are included in Verizon Online's fee. Pierce said the price difference is because Verizon Online buys "pre-qualified" copper, which does not need to be unloaded, and gets volume discounts.

The proposal would also prevent ISPs from buying dry copper in areas where Verizon and collocated CLECS are offering DSL service. If ISPs were operating in an area and a CLEC extended service to that area, the ISPs would be cut off. In the proposed tariff, Verizon's justification is that the ISPs have no regulation and therefore could use non-standard protocols over their wires which would cause interference with the regulated companies' services.

While the PUC has been investigating and discussing the matter and its related issues for over two years, Sullivan said much of the wait has been due to understaffing at the PUC. The deadlines for commission responses to Verizon filings, he said, are "faster than staffing allows." And even Verizon filed its illustrative tariff in 60 days, rather than the 30 days ordered by the PUC on March 29. The PUC's order promised a response from the staff within 30 days of the filing, which was on May 29.

Because there is no timetable for the next step of the evaluation process, New Hampshire telephone customers will have to hope they have a dial tone when they pick up the phone to call 911.

Friday, September 14, 2001

Xanoptix rolls out fast optical switch

Published in Interface Tech News

MERRIMACK, N.H. ‹ As part of its work in miniaturizing switching components, Xanoptix has unveiled a collaborative effort with Camarillo, Calif.-based Vitesse Semiconductor to introduce a small 100+ Gbps optical-in, optical-out switch.

Xanoptix, which has based its business on parallel optical interconnections for the telecom and datacom markets, is increasing the density of available components for switching circuit boards, according to Harald Hamster, the company's vice president of marketing and business development.

In the space taken up by a 12-fiber interconnect, Hamster said, the new device, combining Xanoptix's XTM-1 optical transceiver and Vitesse's VSC838 36x36 crosspoint switch, can fit a 72-fiber interconnect.

At present, Hamster said, the hardware can only handle multi-mode fiber traffic, but the company is looking beyond this current limitation.

"We will certainly expand our offerings into other wavelength regimes," Hamster said.

The new device is entering beta testing and is expected to be available in early 2002, Hamster said. The companies demonstrated the combination product at the National Fiber Optic Engineers Conference in Baltimore in early July.

Hamster called the demo a success, and said he got good response from potential buyers. "It shows we have a very real product and you can do real things," he said.

While the combination may work well, the marketing will still be carried out by both companies independently, Hamster said, though there may be some co-marketing.

The next step for Xanoptix is to carry the structure underlying the XTM-1 over to different optical wavelengths and longer-reaching systems.

Analyst Galen Schreck of Forrester Research is skeptical of the possibilities for Gigabit Ethernet. "We're still in the beginning phases," he said. "Once we get our protocols and applications lined up we'll be needing more high-bandwidth connections."

He expects the larger market to develop over the course of the next two to three years, though he is unsure whether Ethernet will maintain its dominance ‹ citing newcomers like InfiniBand, which will have some compliant components shipping in early 2002.

Schreck also said power and space constraints on switches aren't at a critical stage right now. "I don't see it being a widespread problem just yet," he said.

Friday, September 7, 2001

Sonus refines market approach

Published in Interface Tech News

WESTFORD, Mass. ‹ Sonus Networks continued to broaden its partnership with companies in the packet-switched voice sector in early August by adding seven new companies to its roster, which includes nearly 150 companies providing add-ons to Sonus' hardware.

Sonus provides hardware and basic software for switching voice traffic on packet networks, allowing phone and data carriers to handle all of their traffic over one network, rather than two parallel ones, as is done presently.

Company CEO Steve Nill said Sonus puts together hardware and software and a basic set of applications for voice switching, and allows other companies to build additional applications, permitting clients to buy products and services that have already been tested together.

Mindy Hiebert, a senior analyst at the Boston-based Yankee Group noted that most of the company's announcements this year have been about companies testing Sonus products or working to build on them. With so much testing and so little roll-out, Hiebert said she is guarded about the company's future.

Sonus is changing its technical focus, Hiebert said. "The product that they have right now is very focused on (class 4) Internet offload," she said. "They're trying to migrate it to class 5."

Such a major change in technology, Hiebert said, makes her cautious. "I haven't seen them demonstrate the (technical) acumen to do what they're trying to do," she said. "(Carriers) want a viable solution in their network that they know is going to hold out. They can't afford any network outages."

Nill said the company and its partners are targeting the multibillion-dollar worldwide circuit switch market. He wants to see RBOCs, large CLECs, and "next-generation carriers" like Global Crossing and Qwest using Sonus products.

In April, Japan's Fusion Communications began using Sonus products. Fusion subscribers now number 510,000 customers in 17 Japanese cities. BellSouth has said it will use Sonus products to migrate traffic off its voice networks.

The company had second-quarter revenues up 27 percent from the first quarter this year, while spending 30 cents per share as compared with 51 cents per share in the first quarter. Sonus is expecting $200 million in revenue this year, Nill said.

"We're just not seeing and not hearing what their capabilities are moving forward," Hiebert said, adding there haven't been enough large-scale deployments of Sonus products to prove they can do what they say.

Nill remained confident in the potential of the company's products and services. "We're bringing client-server to voice," he said.

Tuesday, September 4, 2001

Metrobility makes short leap with Gigabit Ethernet range

Published in Interface Tech News

MERRIMACK, N.H. ‹ Working to appeal to telecom carriers, Metrobility Optical Systems has extended Gigabit Ethernet transmission distances to 70 kilometers (43.5 miles), considered by many to be a marginal improvement over the 40-50 km (25-31 miles) typically available.

"This is not the order of magnitude improvement the industry is looking for," said Aberdeen Group analyst Andrew McCormick.

Metrobility officials said the company offers signal re-timing to combat the attenuation of an optical signal over distance, and that there are several distances available, rather than just a 70-km length.

Company senior product manager Charlie Wang said Metrobility complements its extended network distance with its NetBeacon software. NetBeacon, Wang said, not only permits long-distance data transmission, but also troubleshooting capability for remote locations and network links.

"When you have a problem, our link-loss return capability allows us to do troubleshooting (remotely)," Wang said.

Wang said he sees the new development as a move toward expanding metropolitan regional networks and reaching rural locations.

"We extend the traditional WAN capability into a metropolitan Ethernet network," Wang said. "This type of capability can fit into all sorts of situations."

The company intends to offer more products for carriers, including optical Ethernetworking, which, as of press time, was expected to enter volume production in August.

McCormick was not enthused. "If you can get some extra distance, you can go a little bit farther," he said, noting there are some better services, like Sonnet and ATM for longer-distance high-bandwidth connections.

The distance extension comes as part of Metrobility's process to refocus on service providers rather than just equipment manufacturers. "We have realigned our company's product portfolio," Wang said.

Metrobility also has a patent pending on its "Stealth IP" technology, which Wang said makes use of space between Ethernet packets for network monitoring and maintenance without increasing demands on available bandwidth.

Thursday, August 23, 2001

Oxford Networks expands broadband coverage area

Published in Interface Tech News

In Norway, the company built a central office and laid 400 strands of fiber as part of creating its own infrastructure to compete with Verizon.

"We ran copper to people's houses. We don't have Verizon copper anywhere," said Todd DeWitt, the company's general manager of network solutions.

Oxford has seen DSL demand rise as people who own houses in the area decide to telecommute more frequently.

According to DeWitt, real estate agents often come to Oxford with lists of addresses, and the service provider tells the agents which houses can get DSL service, so home buyers can weigh that in their decision making.

"We've more or less affected the real estate market with DSL," DeWitt said.

The company's growth is supported by its telephone system, which serves 14,000 customers in western Maine. That financial stability is important for customers and investors, according to senior analyst Maribel Dolinov at Cambridge, Mass.-based Forrester Research.

Oxford is also building a major network access point in Portland to speed up Internet traffic within Maine.

Several larger services may be partnering in that effort, which will shorten the network distance between Maine's major Internet service providers to just one hop, DeWitt said.

As part of these of expansions, Oxford has summoned the software of Sanford, Maine-based Somix Technologies to manage its network. Somix's WebNM product, DeWitt said, is both useful and backed by responsive customer service. Since the package was installed in June, DeWitt said, it has been very useful.

"We've gotten a lot more information out of our network," he said. Oxford also offers reports to its customers, so they can see their network usage and Web site traffic.

"They like to know what's going on in their services," DeWitt said.

Dolinov agreed. "Customers want to make sure that you are delivering on what you say you are offering," she said. "Good network management can allow companies to predict problems and solve them before they occur, leading to better service more consistently. It's absolutely essential going forward."

Wednesday, July 25, 2001

TeraConnect expands throughput, lessens data bottleneck

Published in Interface Tech News

NASHUA, N.H. ‹ TeraConnect hopes major data-transmission companies will breathe a little easier with the introduction of its new T-48 fiber optic interconnection device, which permits data transfer at rates up to 120 gigabits per second.

Intended for use in high-capacity routing and switching systems, and high-end servers that contain routing and switching hardware, the T-48 is a two-dimensional array converting fiber optic signals to electrical signals used in computer equipment.

In large setups, multiple pieces of equipment are placed in rack systems and connected with high-bandwidth fiber optic cables. The machines can work only as fast as they can transfer data to each other.

"There is a bottleneck in trying to interconnect the machines themselves," said Bill Lindsay, TeraConnect's director of product marketing. Lindsay said the T-48 does the work of four standard 1x12 fiber arrays in half the space on a circuit board, and with less power consumption.

Maribel Dolinov, senior telecom analyst for Forrester Research in Boston, said the product is desirable for companies like Cisco and Nortel, which are among TeraConnect's potential customers.

"One of the things the systems providers are looking for is people to assemble (component groups) and then sell them," Dolinov said.

That is exactly what TeraConnect says it is doing.

"The traditional optical communication systems were built one link at a time," Lindsay said. The T-48 offers four dozen links in one component.

Dolinov said cost, size, and power consumption are all large factors in manufacturers' purchases of optical-electrical conversion equipment, and said TeraConnect's offering may solve some problems in those areas.

TeraConnect, which spun out of BAE Systems in November 2000, has been working on this project for over a year, taking advantage of its continued access to BAE Systems clean rooms and engineering equipment.

"That's a big competitive advantage for us," Lindsay said.

The company is pursuing deals with major market players. While reluctant to name specific potential customers, Lindsay said the company is targeting four major markets: routers, switches, high-performance servers, and storage.

In the context of those markets he talked about possibly approaching companies like Cisco, Nortel, Sun, and EMC. He said TeraConnect is also eyeing major telecom service providers and metro-area operators.

Lindsay said the company is involved in smaller deals now, as prospective clients purchase a few T-48s for testing with their products. He said he anticipates sales to increase as the test results come back.

Tuesday, July 24, 2001

Bottomline patents payment messaging system

Published in Interface Tech News

PORTSMOUTH, N.H. ‹ Moving to protect its electronic invoicing and payment software for businesses, Bottomline Technologies received a patent in late June for its e-payment notification system. The system, called ERADS (electronic remittance advice delivery system), is already distributed as part of Bottomline's PayBase payment-automation software.

Bottomline chairman and CEO Dan McGurl said ERADS makes it easier for both parties to know what transactions have occurred.

"When you make an electronic payment," McGurl said, "there are certain limitations that do not allow organizations to send all the remittance information with the payment. (ERADS) is a real-world technology that enables organizations to work around the limitations."

Bottomline still has about 20 patents pending, McGurl said, all of which are for aspects of the company's e-payment and e-invoicing products. The protection offered by a patent improves what McGurl said is the company's already-strong position in the marketplace.

Bottomline's major initiative of late has been moving from a client-server style system to a Web browser-based implementation, a project McGurl is pleased with."We have substantially strengthened our product line with this Web-based (system)," he said.

Harry Wollhandler, vice president of research at Peterborough, N.H.-based ActivMedia Research, agreed. "The systems they've developed meet the criteria of the marketplace rather well," Wollhandler said.

The issue now for Bottomline, Wollhandler said, is to see how the market standards develop. If Bottomline's products can work with most companies' accounting systems, Wollhandler expects them to do well.

"The issue is critical mass. Can you get enough partners involved?" he added.

Bottomline is making an effort, according to McGurl said. FleetBoston, Citibank, and UPS all use Bottomline products and resell them to their customers.

The opportunity is real, Wollhandler said, for systems like Bottomline's to really take off. "Bill presentment is hard for banks," he said. "In terms of corporate business, (systems like ERADS) start to bypass the credit card, saving 2.3 percent on every transaction."

Wollhandler said Bottomline, which will announce its annual financial report in the first week of August, is moving in the right direction.

"Too many companies have gone after investors at the expense of going after customers. The strategy they seem to be putting into place is going after customers and letting investors take care of themselves," Wollhandler said.