■ organizing programs, new initiatives, Web-based public policy effort BEYOND 2000 and networking resource for and activities throughout the year. including summaries of the companies; the most effective Massachusetts national and Massachusetts We remain committed to our advocate on public policy issues The Technology Company Software & Internet perspectives on public policy mission as we head into 2001: to affecting the industry; the most Mediation Program, (developed issues promote the software and Internet innovative catalyst for finding with Hanify & King, Professional Council 2000ANNUALREPORT industry; to assist executives in solutions to such pressing Corporation; Lucash, Gesmer ■ Project descriptions of all past starting, managing and growing their industry issues as the shortage www.msicouncil.org & Updegrove, LLP; and Nixon Above and Beyond Award companies; and to help software of workers; and the most visible Peabody, LLP) launched in winners highlighting best and Internet companies be and vocal supporter of the September of 2000 in response to practices in educational successful in global markets, strengths of the Massachusetts member requests, is a first-in-the technology 2000: Continued Industry Leadership for the New Millenium remains. We continue to strive to technology community. ■ industry program to assist ■ Investment Conference be the best information, referral, companies in settling their business Presenting Company Presenta- in last year’s Guide. The Guide potential investors, partners and from up and down the east coast and technology disputes outside the tion for review and follow-up was produced in cooperation employees; to interact with national and across the country came to courtroom by highly experienced after the conference Board of Directors 2000 with Mass High Tech and and local industry luminaries; to hear the company presentations. attorneys at a reasonable cost. sponsored by FleetBoston. travel to area companies to learn Held in cooperation with the Shikhar Ghosh * Paul Gudonis David C. Mahoney Available in print, online, an in about their experiences first-hand; National Venture Capital COMMUNICATIONS On-line communications Verilytics, Inc. Genuity Leadingside, Inc. a CD ROM version, the Guide and to meet with a variety of Association, the conference provided Members with timely Chairman Peter Gyenes Mary E. Makela * The Council’s website helps to put a shape to the federal, state and local public attracted the attention of many of information on the Council’s Deborah M. Besemer * Informix, Inc. MEM Associates (www.msicouncil.org) served burgeoning commercialization officials. The Council’s 2000 the national venture capital firms. programs and activities on behalf of BrassRing Systems, Inc. Drew Hannah Leon Navickas members as a portal to the most Secretary of the state’s information programs provided the experience Due to the involvement of Council the industry. The weekly Software Parker Guitars, Inc. Centra Software, Inc. technology industry and and advice of more than 110 Trustee William Warner of comprehensive information Paul Egerman * & Internet Council Update, Alain J. Hanover James A. Pelusi resources and extensive Escription, Inc. facilitate partnerships with industry executives, experts Wildfire, himself an entrepreneur served as a personal notification of Main Street Partners Brooks Automation, Inc. technology business activities Treasurer local companies. (Assistance and practitioners. In total, more and investor, CNN featured the Margaret Heffernan Richard Rabins * upcoming Council programs David A. Blohm* with the Guide on CD than 4,400 industry executives Investment Conference in a available. ICast, Inc. NewKidCo International and industry events and SmarterKids.com provided by CD Works and attended the Council’s programs televised segment. The 2000 Visitors to the website took E-News, a monthly e-mail Past Chairman Gordon Hoffstein Jonathan Radoff Trigent Software.) over the course of the year. Investment Conference was advantage of: newsletter chronicled Council Joseph W. Alsop Be Free, Inc. Eprise Corporation produced in association with the The Council’s contribution in 2000 PROGRAMS INCLUDED: initiatives and activities beyond Progress Software Corporation R. Douglas Kahn * Pamela D. A. Reeve * Technology Capital Network ■ Online versions of all Council funding a major new programming and informed David Andonian PanAmSat Corporation Lightbridge, Inc. 3 Membership Meetings at MIT, The Massachusetts publications and research project on worker members about the Council’s CMGI John F. Keane, Sr. * Daniel Slavin * Membership Meetings gave E-Commerce Association, the including The Complete Guide vacancies in information- research, marketing, public policy Daniel S. Bricklin * Keane, Inc. Framework Technologies Massachusetts industry executives Cambridge Business to the Massachusetts Software Corporation intensive industries in and workforce efforts on their Trellix Corporation Kija Kim Software & Internet Council an invaluable look into the Development Center, the and Internet Industry (search- Dorothy Terrell Richard A. Carpenter * Harvard Design & Massachusetts by the behalf. Mapping, Inc. Natural Microsystems Chairman Shikhar Ghosh, President, perspectives and opinions of Massachusetts Interactive able by keyword), and archived Carpenter Associates Center for Labor Studies versions of Annual Survey of Michael D. Kinkead * Corporation CEO and Founder of Verilytics, Inc., respected industry luminaries, and Media Council, and The Boston George Conrades at Northeastern Ziptran Eric E. Vogt * provided networking opportunities Search Group. Compensation and Business Akamai Technologies, Inc. University provided the industry Michael E. Kolowich Communispace Corp. for more than 1000 executives. The Practices Survey John J. Cullinane * he Council started the new with a greater understanding of the 3 Customer Relationship Scott Walters 2000 Annual Meeting featured ■ The Cullinane Group Raymond C. Kurzweil millennium by adopting a worker shortage. The research Management (CRM) Programs Full Year’s Calendar of Council Trailbreaker.com George Bell, CEO, Excite@- James D. Daniell * Kurzweil Technologies, new name that reflects our pegged the state’s IT vacancy rate The 2000 program series on CRM, Events with online registration Council Staff William J. Warner T Home, and Congressman Marty Inc. continued commitment to at 8.3% as of May 2000. Follow-on developed with The Patricia and payment and highlights of Joyce L. Plotkin, President * Randall Davis FutureBoston, Inc. Meehan, US House of Carol S. Greenfield, Vice President John B. Landry III leadership of the Massachusetts studies will be conducted in 2001. Seybold Group, dealt with issues past speakers and presentations MIT AI Laboratory Al Zollar Representatives. The Spring Bruce Holbein, Vice President, IBM/Lotus Development technology community. Now revolving around the all-important ■ Robert J. Davis Corporation Lotus Development Another new research project, Membership Meeting featured Listings of trade missions, Public Policy known as The Massachusetts customer relationship. Acquiring Terra-Lycos Ilene H. Lang Corporation MassBroadband, was undertaken Thomas Willmott, President and conferences, and substantive Christine LeBlanc, Membership Director Software & Internet Council, Customers zeroed in on the Joanne Gildenberg, Program Manager Charles J. Digate * Executive Committee in 2000, to ensure that entrepre- CEO, The Aberdeen Group and executive-level industry events John N. Little under the leadership of varied methodologies that can be Alice Jelin, Director of Special Projects MathSoft, Inc. neurs in Massachusetts have the Alan Webber, Co-Founder, Fast The MathWorks, Inc. Chairman Shikhar Ghosh, used to attract the right customers Lisa Woods, Office Manager high-speed Internet service they Company. The Fall Membership CEO of Verilytics, Inc., we to e-business initiatives. On-line need to create companies and Meeting (sponsored by Silicon spent the year 2000 working on Post-Sale Customer Service communicate with customers, Valley Bank) featured Michael C. behalf of the industry in the and Support discussed how the partners, and prospects. This effort, Ruettgers, CEO, EMC Dot.commonwealth on a wide Internet has changed the post-sales Massachusetts which the Council co-founded and Corporation; Robert Mudge, range of issues and projects. Our support equation and methods and launched in September of 2000, President of Verizon agenda for the year centered on Software & Internet involved collecting data on the Massachusetts; and activities that promote the status of high-speed Internet access Kevin Tice, Managing software and Internet industry, Council and making recommendations to Director, Credit Suisse assist members in starting, Massachusetts Software speed the deployment of universally First Boston Technology managing, and growing their & Internet Council, Inc. accessible and affordable broadband Group. One Exeter Plaza, Suite 200 companies, and help software and services throughout the Boston, MA 02116 Internet companies gain success Dot.commonwealth. The Sixth Annual 617/437-0600 • FAX 617/437-9686 in global markets. www.msicouncil.org Investment Conference [email protected] for Private Companies RESEARCH EDUCATION AND Our largest ever Our signature research product, NETWORKING Investment Conference and one of the most important (sponsored by Adams, benefits of membership, The The Council continued its tradition Harkness & Hill; Complete Guide to the of organizing high-quality Broadview; SG Cowen; Massachusetts Software and educational programs and and Imperial Bank) saw Internet Industry, 2000–2001 community-building networking 54 companies pitch their Edition, catalogued the growing sessions that enabled industry business plans after two industry and listed a record 3,310 executives to gather actionable intensive preparatory companies, including over 600 information on important business sessions. More than 200 Michael Ruettgers of EMC addresses the new companies that were not topics; to network with peers and financiers and investors crowd at the Fall Membership Meeting. tools for refining relationships with ranging from security to ASPs. The enjoyed an informal atmosphere majoring in graphic design were customers. Best Practices and second program, featuring The and benefited from the expertise of partnered with member companies THE comMONWEALTH Strategies for Building Hurwitz Group, detailed New seasoned industry leaders while on a wide range of design projects. Massachusetts. The state of things to come. Customer Loyalty through Pricing Models in the New networking with peers in the More than 75% of the students Personalization strategized about Business Economy, and included community. were offered jobs in member building customer loyalty through personal stories and outlook on companies as a result of their 1 Social Event various marketing methods. what it means to be a vendor in the projects being displayed at the The 2000 Members-only Social New Economy. Spring 2000 Membership Meeting. 3 Sales and Marketing Event treated more than 300 Participating Member companies Programs 2 Workforce Programs Members to a viewing of the Van included Cheshire Software, The 2000 Sales and Marketing Recruiting and Retaining Gogh exhibit and a private CommercialWare, DOXIS, series dealt with many issues that Strategies in the Workforce reception at the Museum of Fine Lowell Gray, Eprise Corporation, Flomerics, concern today’s companies in their focused on hiring and retaining Arts. This unbelievably elegant founder of Keane, PlanetSoft, Prescient quest to brand themselves and talented and diverse employees. backdrop was a beautiful location Shore.net greets Technologies, SHYM refine their sales and marketing Attendees benefited from the views for networking and celebrating Congressman Technology, Splashmedia strategies. Secrets to E-Branding of a panel of seasoned experts who another exciting year of Ari Schwartz of the Center for Democracy and Tchnology; Sharon John Tierney at Studios, SystemSoft Success discussed branding gave personal stories and words of membership in the Council. McLoone of the National Journal; and Bill Archey of the American the Lynn/ Corporation, TVisions, and initiatives in a program filled with wisdom on how to find and keep (Sponsored by Deloitte and Electronics Association pose at the “Technology Policy and Politics Northshore TechTarget.com. do’s and don’ts. Online Marketing the best and brightest. Living and Touche, Silicon Valley Bank, Program” sponsored by National Journal’s Technology Daily and Dot.commonwealth and PR dissected topics ranging Working in the State Street Global Advisors, Instatrac. Many member companies were able Roadshow in from brand enhancement to viral Dot.commonwealth was a and Testa Hurwitz & Thibeault). to hire seasoned professionals December, 2000. marketing, site traffic generation to recruiting event with African- through our professional retraining 7 Factory Tours We provided leadership on several In addition, we significantly personalization. Attendees learned American and Latino MBA students effort, the Software Council Factory Tours provided an major national issues that were enhanced members’ ability to how experts’ stores evolved based in conjunction with The Fellowship Program, which opportunity to gain “behind the important to the industry and that keep informed about critical on experience with customers, Partnership, a non-profit graduated its 500th person this past scenes” access to some of the most were successfully achieved in 2000: policy issues, with the launch of a which leverage points had the organization that works with year. exciting Internet companies and increasing the cap on H1B new section of our web site biggest impact on sales and profits, companies in Greater Boston to new technology developments in visas, enhancing opportunities specifically devoted to policy. We Through the six Above and and how to solve the tough assist them in more effectively Massachusetts. Factory tours and protection for the industry were also the catalyst, as part of Beyond Awards, granted in 2000 challenges of traffic generation and recruiting, retaining, and providing combined networking with a first in China through several national coalitions, for more by the Software & Internet product fulfillment at the How to leadership opportunities for Congressman hand view of the inner workings of establishment of Permanent than 200 of our members sending Council Education Foundation, Build a Web Store program. professionals of color. Bill Delahunt hot Internet companies. Factory Normalized Trade Relations, e-mails to major federal and we helped to highlight outstanding (Trustee Alain Hanover, Main talks to guests 2 Public Policy Programs Tour sites visited in 2000 were and working on a Federal legislative officials to voice their educators who made extraordinary Street Partners, Sales and at the Our policy-focused programs Gamesville, Shym, WGBH, Accounting Standards Board support for key national issues such efforts to effectively integrate Marketing Series Moderator). Dot.commonwealth offered the opportunity for BuyItOnline/Stumpworld, The issue to modify the purchase as H1B visas and the R&D tax technology into Massachusetts Cape Cod Road 4 Legal Issues Programs software and Internet industry Cambridge Incubator, Akamai, method of accounting used in credit. K-12 classrooms. The schools and Show in May 2000. The Council’s longest running executives, public affairs and Tilion. acquisitions. communities receiving Above and program series, Legal Issuses, in professionals, corporate officers WORKFORCE DEVELOPMENT Beyond Awards in 2000 included 8 Hyperlink Discussion Forums At the state level, we saw 2000 covered Distribution and the media to stay up to date on Merriam School, Acton; state’s four leading technology representatives, and providing The Hyperlink evening discussion significant Trustee In our continuing effort to increase Strategies and Agreements, E- the latest trends in information Franklin High School, Franklin; associations. The assistance and copies of our annual forums provided an opportunity to representation on several the supply of workers for our Commerce, Risk Management, technology policy. Technology Holbrook Public Schools; Dot.commonwealth Campaign industry directory to international tackle varying and timely issues Governor appointed Economic industry, the Council was selected and Hot Topics. Panels included Policy and Politics: A Look at Williams Elementary School, emphasizes the state’s leadership in delegations from all over the world such as Was it a Boom or Bust Advisory Boards and State by Radcliffe as a partner in a some of the best legal experts 1999 and 2000, sponsored by The Pittsfield; and Hosmer innovation and education, as well as that come to Massachusetts seeking for Holiday Commerce?; Viral Task Forces, succeeded in ground-breaking new National Massachusetts has to offer. (Roslyn National Journal’s Technology Elementary School, its breadth of technology sectors to establish business relationships Marketing; Web efforts to continue funding Science Foundation study on Daum, Choate, Hall & Stewart, Daily and Instatrac, included a Watertown. A Special Above and outstanding network of and partnerships with our Member Personalization; Hiring in the educational technology, co- women in the IT field. Council Legal Series Moderator). state wrap-up, a review of what the and Beyond Achievement industry influencers and opinion companies. Countries seeking the .com Era; Going International; sponsored a report released by members will serve as the survey 106th Congress did in 1999 and Award was presented to Beth leaders. The campaign seeks to Council’s assistance have included 1 Internet Strategy Program The Future of the Web; MassInsight on protecting population where issues of predictions as to what it was likely Lowd, Coordinator, Business and attract businesses, capital, Canada, China, Denmark, The CEO-focused program Funding: Before and After; consumers’ online privacy, and attracting, retaining, and promoting to do in 2000, and an inside look at Education for Schools and entrepreneurs and skilled workers France, Germany, Ireland, featuring Frank Ingari of Finding and Designing Office created and launched women will be explored. campaign 2000 and technology. Technology (BEST) for the to the region. The past year’s Japan, Korea, Morocco, Wheelhouse Corporation Space. (Co-sponsored by the MassBroadband in conjunction Taking Advantage of the Digital In another area of workforce organization’s work in lobbying for primary activity was a series of Netherlands, Norway, Pakistan, offered a look at how company Massachusetts Interactive with the Massachusetts Signatures Act was a timely look development, the Council was well the funding of educational “Road Shows,” which and United Kingdom. strategy changed with the rise in Media Council (MIMC). Technology Collaborative to at the “Electronic Signatures in represented on the State technology. (Trustee Paul highlighted the many importance of the Internet. Called accelerate the deployment of Global and National Commerce Board of Higher Education’s IT Egerman, eScription, Chair, technology pockets around the MEMBER SERVICES Seed, Feed and Weed: Strategy PUBLIC POLICY competitive broadband Act”, which gives electronic Task Force that recommended Software & Internet Council state and featured companies on in Internet Time, the program services throughout The Council worked closely with signatures the same legal The Massachusetts Software & sweeping changes to upgrade Education Foundation) the Cape, the Berkshires and explored such issues as the changed Massachusetts. members over the course of the recognition as handwritten Internet Council worked equipment, infrastructure, the North Shore. Tw o additional environment for strategy year to develop value-added signatures. cooperatively throughout 2000 with The Council members and staff curriculum and faculty for all MARKETING MASSACHUSETTS road shows are being planned for formulation; changes in the programs and services tailored key Massachusetts State officials provided briefings on issues community and state colleges and Central and Western Massachusetts responsibilities of functions across 4 Executive Dinners The Council worked aggressively to meet the needs of growing and Members of Congress to keep important to the industry to the entire University of in 2001. (Dot.commonwealth the corporation; and the Our intimate Executive Dinners and proactively in 2000 to raise technology companies. them informed about the potential such public policy officials as Massachusetts system. In addition, Campaign sponsored by Alpha revolutionary new relationship provided an elegant and personal media and public awareness of impact of state and federal Senators Kennedy and Kerry; the Council was recognized by Industries, Compaq Computer In previous summers, and once between marketing and IT. evening with leading CEOs in the Massachusetts’ strengths and legislation on the software and Congressmen Markey, Meehan Legislative leadership for its efforts Corporation, FleetBoston, again during the summer of 2000, industry. Guest speakers in 2000 innovation in the technology 2 Industry Outlook Programs Internet industry. Our Public Policy and Tierney; Lt. Governor in working with the State Informix Software, Lotus the Council ran a series of six were Stephan Paternot of marketplace through interviews This series of programs focused on goals for the year emphasized Swift, Senate President Legislature on the issue of funding Development Corporation, focus groups to elicit feedback theglobe.com, Paul Baier of and articles in a variety of trends and the future of the innovation, entrepreneurship, and Birmingham, Commissioner of for K-12 educational technology. Massachusetts Office of from a diverse range of PurchasingCenter.com, national and international media industry from the perspective of competition in a market-based Education David Driscoll, Business Development, and members on the important Margaret Heffernan of iCast Members once again took outlets from CNET to Korea Times. two analyst groups. The first economy and focused on efforts to Secretary of Administration & Verizon.) business issues that they face in (sponsored by Sullivan & advantage of our Visual program, E-Risky Business and promote the growth of the Finance Steve Crosby, The Council has also been the running software and Internet Cogliano), and Bill Warner, Communications Contest and Additionally, the Council reached Architectures for Hosted Internet, facilitate workforce Undersecretary for Workforce guiding force behind the companies. The Council used that founder of Avid and Wildfire Program with Boston out to the international Business Applications was co- development, foster access to Henri Rauschenbach; and Dot.commonwealth Campaign, information as the foundation for (sponsored by Schwartz University to hire entry-level community by meeting with sponsored by Giga Information capital, and protect intellectual Boston Mayor Tom Menino. launched collaboratively by the Communications). Attendees designers. Thirty BU students international government continued on back page Group and focused on topics property.