GroundWork Open Source Solutions Raises $3 Million in Series A Funding; 17 Customers Already Using Company's Enterprise-Ready Open Source Infrastructure Management Solutions

Business Wire, May 25, 2004

Business Editors/High-Tech Writers

OAKLAND, Calif.--(BUSINESS WIRE)--May 25, 2004

GroundWork Open Source Solutions, Inc., provider of open source IT management solutions, announced that it has received $3 million in Series A funding from Canaan Partners.

GroundWork provides low cost, open source-based IT infrastructure management solutions such as network and systems monitoring, service desk management and IT dashboards. These solutions enable organizations to keep network systems up and running, eliminating or reducing downtime and minimizing the cost of network operations. As an open source solution provider, GroundWork delivers a low cost yet highly robust alternative to expensive commercial IT management software.

17 Customers Using GroundWork Solutions

GroundWork's customers, which include high profile companies such as Rudolph & Sletten, Phoenix Technologies Ltd., and LSI Logic, use the company's software to build low cost enterprise IT management solutions. "We partnered with GroundWork to build an enterprise monitoring system, and it has transformed the reputation of IT within the company," said to Cliff Bell, CIO of Phoenix Technologies, Ltd.

Founders: Successful Entrepreneurs

The company founders, CEO Robert Fanini and COO David Lilly, are successful entrepreneurs with stellar track records for starting and growing successful companies.

With more than 20 years' operational experience, Fanini has started six companies, raised over $50 million in private equity, and created $300 million in company valuations. One of his start-ups, Foglight - a systems performance management software company - resulted in a successful merger with Quest Software. SiteROCK, a provider of remote IT management services, also resulted in a strategic acquisition while its sister company, SiteROCK KK, the first Managed Service Provider in Japan, continues as a thriving concern today.

Also a founder of successful ventures, Lilly co-founded with Fanini SiteROCK Corporation and CapTech Partners, a business development company dedicated to accelerating growth of start-up ventures. He also served as founder, vice president, and general manager of the Industrial Automation Division of Integrated Automation (IA), a factory automation technology company, where he grew his division to $45 million in sales without external investment.

"By leveraging open source tools with design, integration and support services, our customers are managing their IT investments more effectively than ever before - at a much lower cost," said GroundWork CEO, Robert Fanini. "With our solutions, customers don't need to pay expensive commercial software prices to get excellent results."

Canaan's Deepak Kamra, Skip Glass Join GroundWork Board

GroundWork also announced today that two Canaan partners, Deepak Kamra and Skip Glass, have joined the board of directors. Kamra has been with Canaan since 1991, investing primarily in telecommunications and enterprise software companies. Glass, who joined Canaan last year, focuses on infrastructure software and services for Canaan,

"We already see strong customer momentum and a compelling value proposition: keeping networks up and running and optimizing network operations at a fraction of the cost of commercial software licenses," according to Deepak Kamra, partner at Canaan Partners.

"GroundWork's founders have track records that are as impressive as I've seen, with a half dozen highly successful start-ups under their belts and a combined 35 years' operational management experience," according to Skip Glass, partner at Canaan Partners.

About GroundWork Open Source Solutions

Founded in 2003, GroundWork Open Source Solutions, Inc. provides turn-key, open source-based IT infrastructure management solutions to medium and large corporations. GroundWork enables information technology management to leverage the flexibility and low cost of open source tools to achieve enterprise-level availability, performance and operational efficiency at 20 percent of the cost of commercial software.

About Canaan Partners

Canaan Partners (www.canaan.com) is a national venture capital investment firm formed in 1987. Canaan specializes in startup and emerging-growth companies in information technology and services, as well as life sciences and medical technology. Canaan Partners was an early backer in AdvancePCS (ADVP), Capstone Turbine (CPST), CommerceOne (CMRC), Concord Communications (CCRD), Copper Mountain Networks (CMTN), Esperion (ESPR), Genaissance Pharmaceuticals (GNSC), International Network Services (INSS), IntraWare (ITRA), Interact Commerce (IACT), iPrint (IPRT), Network Engines (NENG), ONI Systems (ONIS), Orapharma (OPHM), Pozen (POZN) and Praecis Pharmaceuticals Inc. (PRCS), along with dozens of other market-leading companies.