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Where are they now?

We look back at 50 start-ups to watch, 1998-2003
By Beth Schultz , Network World , 04/21/2003
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Under new ownership
These companies have been acquired since they were named as start-ups to watch.

AbirNet
Selected in 1998.
Internet monitoring software.
Update: In May 1998, Memco, a fellow Israeli security vendor, scooped up AbirNet for $27.5 million. Memco was subsequently bought by Platinum Technologies, which in turn was bought by Computer Associates. AbirNet's SessionWall-3 software is integrated into CA's eTrust products.
Access360
Selected in 2001.
Access rights management software.
Update: IBM scooped up Access360 in September 2002 and placed it in the IBM Software Group. The enRole access rights management software is now part of Tivoli's portfolio.

Aptex Software
Selected in 1998.
ISoftware for managing e-mail, Web forms and phone calls.
Update: As an 80%-held HNC Software spin-off, Aptex did business for three years on its own, posting nine consecutive profitable quarters, before HNC reacquired the company and made it an independent business unit. HNC itself merged with decision-management software maker Fair, Isaac last August.

ArrowPoint Communications
Selected in 2001.
Web switches.
Update: One of two from our 1998 list to become a Cisco property. Buying the then-public ArrowPoint in May 2000 cost Cisco a whopping $5.7 billion in a stock swap.

Asera
Selected in 2001.
Order and supply chain management software.
Update: SEEC, a provider of adaptable vertical applications built in a Web services architecture, acquired certain Asera assets this January, including the Asera name, intellectual property and customers. As part of the deal, SEEC also assumed certain liabilities of Asera.

Bluestone Software
Selected in 1999.
Web application framework and XML server.
Update: Hewlett-Packard bought the by-then public company in a stock trade - valued at about $470 million. But HP has subsequently been accused of squandering that software opportunity, made clear upon last year's middleware divestiture.

Bright Tiger Technologies
Selected in 1998.
Web server clustering technology.
Update: Update: Allaire first integrated Bright Tiger's Web server clustering technology into its popular Cold Fusion Web site development tool, then acquired the company in April 1999 for approximately $17 million and assumption of $3 million in Bright Tiger's debt. Allaire then merged with Macromedia in early 2001.

Inktomi
Selected in 1999.
Search engine and Web site acceleration
Update: Another victim of the dot-com crash. With its fortunes fading fast - it lost $600 million since 2000 - the company exited the caching market in July 2002, focusing exclusively on search. But it still posted a $41.5 million pro-forma net loss for fiscal 2002, ended Sept. 30, and laid off hundreds of workers. Yahoo stepped in and in December, offered to buy the company for approximately $235 million in a deal expected to close in the fourth quarter.

NetSpeed
Selected in 1998.
DSL technology.
Update: The second of two members of the 1998 list that Cisco acquired. Cisco bought NetSpeed in March 1998 for $265 million, turning the NetSpeed technology into the Cisco 605 asymmetric DSL modem, 675 ADSL router and 6100 DSL switch.

Network Alchemy
Selected in 1999.
VPN cluster server technology.
Update: Nokia acquired Network Alchemy in June 1999 in a $335 million deal. Nokia gained high-end VPN servers, capable of handling 20,000 simultaneous connections and load-balancing, among other technology.

Network ICE
Selected in 2000.
Intrusion-detection software
Update: One of the first companies to create IDS, by early 2001 it claimed to have signed on more than 250 enterprise users, shipped 250,000 copies BlackICE Defender, and was cash-flow positive. Internet Security Systems grabbed the company in June 2001 for approximately $195 million.

NextPoint Networks
Selected in 1998.
Performance and service-level management software.
Update: Among the first companies to preach the idea of tying application and network management to business objectives, rival NetScout Systems heard the pitch and bought NextPoint in June 2000 for $60 million.

RiverSoft
Selected in 2000.
Automated, integrated network and application management systems.
Update: Landed big-name customers such as Sun, British Airways and Deutsche Bank, and had mighty partners like HP (for incorporation in OpenView) and Cisco, for integration into mobile wireless products. Micromuse ended the competition between RiverSoft and itself through a September 2002 acquisition.

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