Tech firm ready to get loud/ Intelliden launching site, software

Gazette, The (Colorado Springs), Feb 23, 2002 by Chris Walsh

Intelliden Corp. has 56 employees, a strong management team, and it recently landed $15 million in venture capital backing. But you've probably never heard of the company.

The Colorado Springs-based technology firm has kept a low profile for the past two years, preferring to focus on developing products and researching its market rather than generating hype.

But Intelliden is about to get a little louder.

The company will launch its Web site officially on Monday and will release its first products early next month - entering what Intelliden's executives say is an untapped market that could generate millions of dollars in sales.

"From Day One, we built this to be a large company," said Dale Hecht, Intelliden's president and chief executive officer. "We built a management team, a product and (put) all the processes in place to be able to really grow this."

The software - called Intelliden R10 and Intelliden R30 - allows companies to streamline the process of configuring routers and switches, the devices that transfer data between networks and over the Internet.

Intelliden targets Fortune 500 firms, large foreign businesses and Internet service providers, which rely heavily on routers and switches to conduct business.

Currently, companies use skilled network engineers to manually configure routers and switches when installing or updating them. The process can involve writing thousands of lines of computer code for each configuration - which can take several hours per device. An Internet service provider can have 15,000 to 20,000 routers and switches; large businesses average 1,000 to 2,000, according to Intelliden.

The current method is comparable to the telephone system of old, where operators had to manually connect wires into a switchboard to route phone calls, said Kevin Burns, chief marketing officer for Intelliden.

"That's literally how they're doing routers today; in this big Internet boom, they're still doing it the old way," Burns said.

Intelliden's software basically automates that process, allowing a company to make changes with a click of the mouse. The software also minimizes errors - companies no longer have to type in computer codes. It allows companies to set up policies on who can make changes to the equipment.

And, ultimately, the software can save companies millions of dollars annually, Intelliden executives say.

"Our goal is to automate the process, eliminate a large number of mistakes and give networks better performance," said Glen Tindal, chief technology officer.

The company could tap the estimated $18 billion market for routers and switches, said Tam Dell'Oro, founder of the Dell'Oro Group, which follows the data communications market.

The more routers and switches sold, the more opportunities for Intelliden's software.

"What I've heard from companies is that making changes, making upgrades, moving equipment is a big chunk of the time and budget of running a network," Dell'Oro said.

Intelliden has operated in "stealth mode" - despite securing two rounds of financing totalling $25 million.

"We wanted to make sure our product worked. We wanted to really understand this market, hire the best and brightest people we can find ... and write our patents," Burns said.

Its investors include 3i Group, Matrix Partners and mortonsgroup LLC.

To assist in sales, Intelliden developed a program that estimates the value its software can bring to companies, using such factors as the size of the company's network.

The program estimates annual savings and payback time - how long it will take to make up the cost of the software. Executives estimate an average six-month payback for most companies.

Investors said the strength of Intelliden's management team - which combined has more than 150 years of experience in data networking and telecommunications - is key.

"They have a real product that meets a real need in a very large marketplace," said Gerald Brady, a director at 3i, which was part of the most recent round of financing. "And the founding team and the people they've been able to attract is impressive."

- Chris Walsh may be reached at 636-0162 or chrisw@gazette.com

INTELLIDEN CORP.

Founded: April 2000.

Headquarters: 15,000 square feet at 90 S. Cascade Ave.

Management: Combines 150 years of telecom experience. The three founders all worked at WorldCom (formerly MCI). Board of directors includes Gerald H. Taylor, former CEO of MCI, and Steven Haley, a founding officer of Juniper Networks.

Products: Software that lets businesses automatically configure Cisco and Juniper routers and Cisco switches. First products launch March 8.

Pricing: Based on size of network. Executives declined to give price range.

Market focus: Internet service providers, financial services, insurance, automotive and aerospace companies.

Jargon translation: Routers read the "address" on the data and set up a path that the information follows to its destination. Switches actually send the data using the path outlined by the router.