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Courtney Homer
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Beige Book Reports Optimistic New England Forecast

As the final month of 2010 rushes by, questions about how the economy will perform moving into 2011 are surfacing rapidly. This week, the Fed’s latest “Beige Book” report revealed that the economy of the New England area grew at a “slight to modest pace” between early October and mid-November, and that “the outlook for 2011 is slightly more optimistic” than in past months.

“It’s consistent with what we’ve been seeing,” explained Alan Clayton-Matthews, a Northeastern University economist. “The economy seems to be slowly recovering.” (Image courtesy: http://bit.ly/iaqk2y)

Information for the New England area is derived from interviews conducted at businesses across Maine, Vermont, Massachusetts, New Hampshire, Rhode Island, and parts of Connecticut. From these interviews, the report concluded that professionals working in manufacturing, software, information technology, and commercial real estate “seem more upbeat” in regards to economic conditions than six to twelve weeks ago and that the region’s travel and tourism industries are very strong. Retailers, however, gave “mixed reports” and are uncertain about holiday sales. Additionally, residential real estate in the region is still “soft.”

“Respondents are generally more optimistic than they were three months ago,” said the report. “With strong order pipelines, most are expecting a continuation or slight acceleration of their current rate of growth.”

Software and information technology businesses reported “year-over-year revenue increases from the mid-single digits to over 20 percent” last quarter. Furthermore, most businesses in the software and information technology industries reported plans to expand their workforces heading into 2011. (Image courtesy: http://bit.ly/iaeHd6)

Lately, reports regarding the condition of the economy seem to paint the same picture: slow recovery. While not quite the news people are hoping for, a general trend of improvement is far from discouraging. Let's hope Massachusetts can finish out 2010 with a strong December and continue its upward trend into the new year.

[Sources: http://abcn.ws/eEm1cQ, http://bit.ly/hJaXw7, http://bit.ly/eZA01j, http://bit.ly/fpHK7L]

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Wilmington's Lilliputian Gains Intel's Backing

To grow a product-based business, it is crucial that manufacturers, distributors, and financial backers are all in place. Recently, Wilmington’s Lilliputian Systems, a portable power supply developer, satisfied two of these needs via a single partnership. Lilliputian announced that Intel Corp. has not only invested an undisclosed sum in the company, but has also agreed to manufacture chips for its products at its Hudson, Massachusetts facility.

“We’re elated that Intel has signed up to be our wafer manufacturing supplier,” said Mouli Ramani, vice president of business development at Lilliputian. “But it also means something a bit different for a company the size of Intel to agree with us to the point of investing its own dollars in us.” (Image courtesy: lilliputiansystemsinc.com)

Founded in 2001, Lilliputian Systems is pioneering a portable charging system that will allow superior “on-the-go power.” Intel’s chips will go into Lilliputian’s silicon power cell, which is designed for recharging portable electronic devices. Lilliputian’s next goal is to form partnerships with distributors, such as battery companies, retailers, and portable electronics producers. (Image courtesy: lilliputiansystemsinc.com)

As a result of its latest partnership, Lilliputian anticipates Intel will hire new staff at is Hudson location, although no exact numbers have been released. Lilliputian itself, plans to grow its Wilmington-based staff in the early months of 2011 as well in anticipated of increased demand for its products.

This opportunity sounds as if it is exactly what Lilliputian was looking for. Moreover, it is great to hear that this partnership will generate jobs at both Intel and Lilliputian. Now, if Lilliputian can only secure distributors to partner with, the company will be on track for success going into 2011 and on track for creating even more jobs in the Bay State.

[Sources: http://bit.ly/aSEh08, http://bit.ly/eJcbJP]

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Attachmate Corp. to Buy Waltham's Novell, Inc. for $2.2 Billion

Lately, it seems as if companies are lining up to purchase successful Boston-area businesses. Just this March, Waltham’s Novell, Inc., a leader in workload management, turned down an unsolicited bid from Elliot Associates LP. Now, just months later, Novel has decided to accept an acquisition deal from Washington State’s Attachmate Corp. valued at approximately $2.2 billion. At the same time as the aforementioned deal goes through, Novel will sell key intellectually property rights to CPTN Holdings LLC, “a consortium of technology companies organized by Microsoft,” for $450 million in cash. (Image courtesy: http://bit.ly/gQNg3Y)

“After a thorough review of a broad range of alternatives to enhance stockholder value, our Board of Directors concluded that the best available alternative was the combination of a merger with Attachmate Corporation and a sale of certain intellectual property assets to the consortium,” explained Ron Hovsepian, Novell’s president and CEO. “We are pleased that these transactions appropriately recognize the value of Novell's relationships, technology and solutions, while providing our stockholders with an attractive cash premium for their investment.” (Image courtesy: http://bit.ly/dQyTCY)

Attachmate’s offer of $6.10 per share equates to about a 28% premium on Novell’s recent stock price. Elliot Associate’s bid, which Novell turned down in March, offered only $5.75 per share, or an approximately 9% per share premium at the time of the offer.

“We are very excited about this transaction as it greatly complements our existing portfolio,” said Jeff Hawn, Attachmate Corporation’s chairman and CEO. “Novell has an established record of innovation, impressive technology and brand assets, and a leading ecosystem of partnerships and talented employees. The addition of Novell to our Attachmate and NetIQ businesses will enhance the spectrum of solutions we can offer to customers. We fully support Novell's commitment to its customers and we look forward to continuing to invest for the benefit of Novell's customers and partners.” (Image courtesy: http://www.attachmate.com/)

After the acquisition, Attachmate plans to split Novell into two separate businesses: one focusing on SuSE Linux and the other on Novell networking solutions. The deal is anticipated to be finalized during the first quarter 2011, but if the acquisition should fall through for any reason, Novell has agreed to pay a $60 million termination fee.

Novell seems confident that an acquisition by Attachmate will not only satisfy stock holders, but will allow Novell to reach new levels of success, even if as two separate entities. It will be interesting to see if Attachmate will begin hiring to expand its two new businesses in the early months of 2011. Hopefully, current Novell employees will find it easy to embrace Attachmate’s vision of their business’s future and will make the transition comfortably.

[Sources: http://bit.ly/frvFgx, http://bit.ly/bjgxcX, http://bit.ly/99bWke]

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Unemployment Hits 18-Month Low in Massachusetts

Unemployment has for a long time been used as an indicator of a state’s health. In recent months, Massachusetts’ unemployment has been on the decline, but naturally the state has been working to drive the rate even lower. This week, Massachusetts’s Executive Office of Labor and Workforce Development reported that the state’s jobless rate dropped to 8.1% in October. Not only is this the lowest unemployment rate for the state in 18 months, but it is also 1.5% lower than the national average. (Image courtesy: http://bit.ly/9iT5Vh)

Last month, Massachusetts added over 10,000 jobs. Nationally, over 150,000 new jobs were created in October, meaning Massachusetts accounted for about 6.7% of new job creation last month.

“Job creation has been priority number one since day one,” Massachusetts’ Governor Deval Patrick said. “Putting people to work will remain at the top of my agenda because, despite these positive developments, we have more to do.”

Education and health services gained the most jobs in October in Massachusetts at plus 5,100. Leisure and hospitality ranked second in jobs created at plus 2,800 for the month, followed next by government with plus 1,500 jobs and manufacturing at plus 1,200 jobs. Finally, financial services gained 600 new jobs and the technology sector gained 400 jobs during October. (Image courtesy: http://bit.ly/9B1SJN)

Of course not all industries showed employment gains in October. Construction lost 1,500 jobs last month, followed by professional and business services at minus 900 jobs and utilities at minus 500 jobs.

While it is apparent that some sectors are faring better than others in the state, the fact that Massachusetts’ unemployment has consistently remained below the national average is encouraging. With the effects of economic problems in Europe beginning to trickle back to the state, hopefully Massachusetts will continue to show a downward trend in unemployment moving forward.

[Sources: http://bit.ly/cbezDG, http://bit.ly/aDJwk6]

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Massachusetts Top in the Nation in Innovation

Innovation is key to staying relevant in an ever-changing world. Thankfully, Massachusetts, particularly the Boston-area, is world-renowned as a hotbed for revolutionary ideas and for being on the cutting edge of new technology. Recently, the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation (ITIF) rated Massachusetts as the top state in the nation in adopting a “global, innovation-based new economy.” In decreasing order, Washington, Maryland, New Jersey, and Connecticut comprised the remaining top five states of the index. (Image courtesy: http://bit.ly/d4R6pV)

“In this century, the global economy has shifted,” said Robert Litan, VP of Research and Policy at the Kauffman Foundation. “A mix of highly productive and innovative New Economy firms is necessary for an economy to prosper. The United States is lagging, and that lack of innovation-based vitality has contributed to our continuing recession. States need to concentrate on achieving New Economy success factors and providing the entrepreneurial resources and access that are critical to boosting competitiveness within the global marketplace.”

The national index was based upon 26 unique indictors in the categories of knowledge jobs, globalization, economic dynamism, transformation to a digital economy, and technological innovation capacity. All high ranking states are home to a large number of high-tech companies, have a high percentage of college-educated workers, and have high levels of entrepreneurship.

Nationally, the ideals of the New Economy were best embraced by the Northeast, mid-Atlantic, Mountain West, and Pacific regions, according to the index. Thirteen of the top twenty states are located in the aforementioned regions. The Midwest, Great Plains, and the South, on the other hand, produced 18 of the 20 lowest ranked states. Mississippi, West Virginia, Wyoming, Arkansas, and Alabama represented the bottom five states in the index. These low ranking states tend to rely heavily on natural resources and mass-production versus innovation to maintain low prices. (Image courtesy: http://bit.ly/bLtFzq)

“In today’s highly competitive environment, states must work together and with the federal government to overhaul their economic development policies,” said Dr. Robert D. Atkinson, president of the Information Technology and Innovation Foundation. “Too often, states still view their economic competitors as next door, rather than halfway around the world. If, instead, they used incentives to expand broadband, support entrepreneurial assistance programs, or invest in research and technology transfer, they – and the nation as a whole – would be far more globally competitive.”

Innovation is one of the most important ideals a state can embrace because it not only allows the state to excel now, but also infinitely into the future. It is apparent that Massachusetts will have little trouble adapting to meet the demands of a constantly changing world and global economy.

[Sources: http://bit.ly/cxyHbT, http://bit.ly/d4R6pV]

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Viacom Puts Cambridge's Harmonix Up for Sale

Although common advice, quitting while ahead often goes against human nature. Viacom, however, seems to have taken the adage to heart. After paying $175 million to acquire Cambridge-based video game maker Harmonix just four years ago, now, while the company stands to make an estimated $200 million during the holiday season, Viacom has put Harmonix up for sale. (Image courtesy: http://www.harmonixmusic.com/)

“Harmonix has and will continue to create terrific video games,” said a Viacom spokesperson. “But for us, it is about focus. Viacom is in discussions with several potential buyers and will continue to fully support the business until a sale is completed.”

Harmonix’s latest game releases are the ground-breaking Rock Band 3 and Dance Central. Rock Band 3 marks the first time the company has released a band simulation game that uses actual instruments. Dance Central is the first dancing game released that uses Microsoft’s Kinect hands-free controller. Considering both products are expected to be major hits, industry experts suspect Viacom has chosen to sell Harmonix now, while the company is performing at its peak and media exposure is high, to ensure a favorable sale price.

One source, Wedbush Securities, predicts that the market for simulated dance and band games will have shrunk by about $375 million dollars from last December to this December. Regardless of the number of dollars quoted though, industry experts agree that the genre is in decline. (Image courtesy: http://bit.ly/dugYuB0)

While a decline is hardly a good thing for Harmonix, it doesn’t have to be devastating either. Under new ownership, the company will have the leadership to reorganize and make the best of a category of games that will continue to be highly popular in comparison to other genres. Perhaps, another four years from now, Viacom will be looking to buy Harmonix back. Stranger things have happened.

[Sources: http://bit.ly/cGtCSC, http://bit.ly/bmoG29, http://bit.ly/d1db5g]

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Tyco Electronics Relocates from Lowell to Newington, NH

It can be disheartening or even downright scary for employees when their company announces plans to relocate. Immediately worries about job security or having to move across the country, or even the globe, spring to mind. Thankfully, these are not concerns that employees of Lowell, Massachusetts’ Tyco Electronics will have to face. While the company plans to close its Lowell location, following the completed expansion of its Newington, New Hampshire campus, all 100 of the branches’ employees will be welcomed at the new, relatively nearby location. (Image courtesy: http://bit.ly/aUangm)

“The lease is expiring on the Lowell facility, so we are using the opportunity to vacate that facility, and we plan to consolidate this manufacturing onto the Newington, New Hampshire, campus,” Tyco Electronics spokeswoman Sheri Woodruff said.

Tyco plans to expand its Newington presence in an effort to locate similar business functions nearer to each other, improving efficiency. “The campus approach in Newington will increase our competitiveness by reducing cost and footprint and will help us to take advantage of synergies among these manufacturing operations,” Woodruff explained.

Lowell’s City Manager, Bernie Lynch, while disappointed by the relocation, could not fault the company’s choice.“We have had a number of successes [in Lowell], but sometimes companies will make a decision to consolidate that makes sense for them,” Lynch said. (Image courtesy: http://bit.ly/aOpJtp)

Tyco’s relocation and consolidation effort seems logical. Although the decision may not be ideal for the company’s 100 former Lowell employees, at least their jobs are safe. Moreover, by making this move to cut costs and increase efficiency, Tyco has increased the odds that its employees' jobs will continue to be safe well into the future.

[Sources: http://bit.ly/aXIxwO, http://bit.ly/bTf2Xo]

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Oracle to Acquire Cambridge's ATG for $1 Billion

Acquisitions by prominent companies always grab attention. For a time, it seemed that IBM was announcing the purchase of a new Boston-area startup every month. Recently, rival Oracle decided to acquire its own Boston-area company. Art Technology Group, Inc. (ATG), a Cambridge-based provider of eCommerce software, announced this month that it had accepted a deal to be acquired by Oracle for $6 per share, or approximately $1 billion total. (Image courtesy: http://www.atg.com/)

“The addition of ATG, which brings market-leading products used by some of the largest and most well-known retailers and brands, furthers Oracle’s strategy of delivering industry-specific enterprise applications,” said Bob Weiler, Executive Vice President of Oracle Global Business Units. “This acquisition builds upon our dedication to offer the most complete and integrated suite of best-of-breed software applications and technologies required to power the most demanding companies in the world in every industry.”

In addition to offering complimentary services, Oracle and ATG have acknowledged that they already share many of the same customers. Bundling their services under one name and one leadership team will be a very natural transition.

“More than 1,000 global enterprises rely on ATG's solutions to help increase the value of their online customer interactions,” said Bob Burke, President and CEO at ATG. “This combination will enhance the ability to bring all their commerce activities together--creating a more consistent and relevant experience for their customers across all interaction channels, including online, in stores, via mobile devices and with call centers.” (Image Courtesy: http://www.oracle.com/index.html)

The acquisition will be finalized sometime in early 2011. As of now, ATG employees are anticipated to stay on with Oracle following the purchase.

With big-name companies like Macy’s, Best Buy, and CVS as clients, and demand for its services only increasing, ATG was far from struggling on its own. Now, bundled with the offerings of Oracle, and backed by the company’s tremendous resources, it seems highly likely that ATG will continue to be a lucrative asset. Congratulations to yet another Cambridge-based company for proving it has what it takes to succeed despite tough economic conditions.

[Sources: http://bit.ly/aiwHVj, http://bit.ly/98op91, http://bit.ly/aPctIp]

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Novartis to Add $600M and 300 Jobs to Cambridge

With all the big-name companies based in and around Cambridge, Massachusetts, guessing the city’s largest employer correctly might be a formidable challenge. Numbers do not lie though, and so, with a workforce of over 2,000, spread across more than 1 million square feet of office and lab space, pharmaceutical company Novartis holds the title of Cambridge’s largest corporate employer. Recently, Novartis announced plans to create an additional 300 new jobs and to invest $600 million in expanding its Cambridge facility over the next five years. (Image courtesy: http://bit.ly/bQmd4h)

“Novartis was the first global pharmaceutical company to move its research headquarters to Massachusetts just a few years ago,” said Mark Fishman, president of the Novartis Institutes for BioMedical Research. “It has achieved prominence and, we believe, helped to amplify Cambridge’s magnetism for others in the biomedical field to follow. Our scientists and physicians here already have discovered a host of new medicines, and established fruitful collaborations with academic, clinical and biotech institutions. The constellation of talent and environment are unmatched. We look forward to the next wave of new medicines coming from this center.”

Novartis will grow its Massachusetts Avenue campus with a lease of 400,000 square feet from MIT. The new space will be divided into lab, office, and retail space. Presently, construction is scheduled to begin sometime next year.

The sort of growth Novartis is undergoing in Cambridge is a testament to the powerful resources the city offers. As Fishman pointed out, Novartis’s success also serves to publicize the quality of Cambridge, encouraging other firms to locate in the city. Every new firm brings jobs and investments with it, ever-strengthening Cambridge and guaranteeing the city’s future appeal.

[Sources: http://bit.ly/aJyG6p, http://bit.ly/9boZj8, http://bit.ly/bQmd4h]

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MassChallenge Names 16 Winning Startups

Acquiring funding is no easy task for startups. Naturally, a competition such as the MassChallenge, which set out to award one million dollars in total funding across sixteen startups, attracted a lot of attention. Just recently, the competition announced its winners. (Image courtesy: http://bit.ly/deua6O)

The four $100k winners were enterprise software company Ksplice, location services analytics company Locately, water purification company OsmoPure, and shoe supplier for women with larger feet Samanta Shoes. The twelve $50k winners were 3Play Media, Abroad101, Energesis Pharmaceuticals, OsComp Systems, Pearl's Premium, Inc., RelayRides, Rentabilities, ScholarPro Inc., Seeding Labs, StorageByMail.com, Symmetric Computing, and Zyrra.

“MassChallenge is a tremendous initiative helping harness the collaborative strength of the brilliant minds attracted to the Massachusetts innovation ecosystem,” said Deval Patrick, Massachusetts’ Governor. “The Commonwealth has always produced and supported revolutionary thinkers and positive change agents, and our Administration continues this tradition as a positive force for change and as a proud sponsor and avid supporter of the MassChallenge Startup Competition and Accelerator.”

This year’s MassChallenge had 446 entrants, spanning 26 countries and 24 states. From this pool, judges selected the top 111 startups to take part in a 3-month accelerator program, which included free mentoring, office space, legal support, introductions to customers, and introductions to funding sources. The startups were judged on impact, scalability, competitive positioning, and execution. Finally, 16 winning startups were selected to pitch their ideas to a final panel of judges to determine their prize level.

“MassChallenge has brought hundreds of innovators to Boston’s waterfront. The entrepreneurs who have competed are the job creators of the future, and Boston’s Innovation District has been delighted to be their home and their launching pad,” said Thomas Menino, Boston’s Mayor.

According to John Harthorne, the Founder and CEO of MassChallenge, exit surveys revealed that eight startups chose to relocate their companies to Massachusetts as a direct result of participating in the competition. Harthorne also pointed out that MassChallenge has created more than 40 jobs in Massachusetts over the past three months. (Image courtesy: http://bit.ly/aGGWah)

“MassChallenge is an efficient and effective form of stimulus and is an ideal means for Massachusetts and America to harness and showcase the expertise and collaborative strength of our universities, investors, lawyers, entrepreneurs and businesses,” Hawthorne said. “After all, we’ve been providing revolutionary ideas since 1776.”

This year’s first MassChallenge seems to have been tremendously successful. The competition brought jobs and attention to Massachusetts and substantial funding to 16 deserving startups. Hopefully the MassChallenge will become an annual tradition and attract even more sponsors and participants next year.

[Sources: http://bit.ly/bxAjBE, http://bit.ly/deua6O]

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Integralis Opens Waltham Office, Will Hire 20%

Quality customer support is vital to the success of countless businesses. As the North American market becomes a larger, more important segment for global companies, many are driven to open regional support headquarters. This week, Integralis, a leading global IT security solutions provider, announced the opening of a Waltham, Massachusetts office. (Image courtesy: http://bit.ly/cpNOrJ)

“With east coast operations expanding, this new office allows us to support our growing roster of Boston-area clients and continue to recruit the best technology talent,” said Cary Conrad, Integralis’ president of the Americas.

Integralis’ new office occupies 5,000 square feet on 60 Hickory Drive in Waltham. The company plans to grow its U.S.-based staff by 20% this year to provide enough personal to cover its expansions. Various levels of finance, sales, and managerial professionals may find an employer in Integralis.

Presently, Integralis is Europe’s largest security solution provider, with offices in seven foreign countries: Germany, France, Sweden, Switzerland, Austria, the United Arab Emirates, and Singapore. The company currently employs just over 500 world-wide. (Image courtesy: http://bit.ly/cwX8sc)

The very fact that news of an established, global company opening a location in the Boston-area is not shocking says something about the resources the region has to offer. It will be interesting to see how quickly Integralis realizes its 20% expansion and long the company goes before calling for further expansion in the area.

[Sources: http://bit.ly/ao4Cf3, http://bit.ly/bYdho9, http://bit.ly/9unIBv]

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Q3 Venture Funding Down in Dollars, Up in Deals

Determining if investment conditions are improving can be difficult when the two common measures of progress, improvement as compared to the previous quarter and improvement as compared to the same quarter last year, paint different pictures. This week, New York’s CB Insights released information about Quarter 3, 2010 venture funding. In Massachusetts, the total dollar value of venture capital deals hit a five-quarter low of $466 million across 87 deals. While the number of deals was comparable to past quarters, it was 14 deals greater than Quarter 3, 2009. (Image courtesy: http://bit.ly/dC5Rmu)

In Quarter 1 of this year, Massachusetts saw $596 million in venture funding, or over 22% more funding than Quarter 3. In Quarter 2 of this year, Massachusetts saw $689 in venture funding, or over 30% more funding than Quarter 3. Nationwide, the trend of fewer dollars invested over more deals was also realized for Quarter 3, with $5.4 billion invested across 715 deals.

Nationwide, the healthcare sector received the most funding at $1.75 billion. California, Massachusetts, and Pennsylvania accounted for 53% of total healthcare funding, or about $92.7 million. Massachusetts received $228 million in healthcare funding this quarter, or 13% of the national figure, which was down from Quarter 2’s 23% of national healthcare capital. Within the state, healthcare accounted for 37% of deals and 49% of dollars invested, making healthcare the largest investment sector in the state by both indicators.

The internet sector received the largest number of deals nationally last quarter at 233, which accounted for just over $1.25 billion in capital. While these numbers were down from Quarter 2, 2010, they were up as compared to Quarter 3, 2009, when just $1 billion was invested in the internet sector across 194 deals. Comparable to the healthcare sector, three states dominated the internet sector, accounting for 70% of the deals and 70% of the capital: California, New York, and Massachusetts. Massachusetts also realized a partial shift in funding from the healthcare sector to the internet sector this quarter. (Image courtesy: http://bit.ly/cRp4iq)

It is not surprising that the top five deals in Massachusetts for Quarter 3, 2010 all involved healthcare companies: Dicerna Pharmaceuticals, Euthymics Bioscience, Matamark Genetics, Rhythm Pharmaceuticals, and Good Start Genetics. The top three cities in the state for Quarter 3 by dollars invested were: Cambridge, with 17 deals valued at $82 million total; Boston, with 11 deals valued at $78 million total; and Watertown, with 2 deals valued at $28 million total. Marlborough, Woburn, and Braintree followed close behind the leaders, taking in $27 million, $25 million, and $24 million in Quarter 3 funding, respectively.

While it is apparent that Quarter 3 investment activity was not as optimistic as people may have hoped for, it is not entirely disappointing. Money is still flowing, and Massachusetts is still holding a spot close to the top in key sectors. Of course, seeing the number of state deals increase as compared to last year also means that more businesses got the boost they needed last quarter. With just one quarter left in the year, let us hope we can end on a high note.

[Sources: http://bit.ly/anfXsq, http://bit.ly/cVOwmc, http://bit.ly/aquLzl, http://bit.ly/dC5Rmu]

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Executive Salaries Rise 3.3% - 4.2% Year-Over-Year

If you have not gone through a year without receiving a raise or sacrificing your once standard annual bonus, then you probably know someone who has. Companies all over the country have adopted these measures to maintain costs until the economy recovers. Perhaps that time is finally growing near. The 11th annual Compensation and Entrepreneurship study, released in conjunction with J. Robert Scoot, Ernst and Young, and the Harvard Business School, reported C-suite executives at private tech companies received a 3.3% year-over-year salary increase in 2010, while C-level executives in life sciences companies received a 4.2% salary increase over the same period.

“While salaries did increase for executives at both technology and life sciences firms in 2010, average increases are lower year-over-year than we have historically found. In fact, the average annual increase in salary over the past ten years has been five percent,” said Aaron Lapat, Managing Director at J. Robert Scott. “Although the rate of growth for these salaries has not returned to pre-recession levels, it is substantially higher this year than last, when we saw technology executives on average receive no raise at all.” (Image courtesy: http://bit.ly/dup3gw)

In fact, for 2009, the survey revealed that non-founder, C-suite executives at tech companies received only 56% of their target bonuses. Non-founder CEOs at these firms received just $53,000 on average, or nearly 15% less than the $61,000 they averaged in 2008. Life sciences executives were better off, having received 67% of their 2009 target bonuses on average, surpassing the 44% they received in 2008.

“The survey results indicate that we’re in a transitional period, where a mix of economic factors makes it challenging for companies to implement effective compensation strategies,” said Bryan Pearce, Ernst & Young’s Americas Director. “It’s important that company boards assess their current compensation structures so they strike the right balance between maintaining capital efficiency and retaining the top talent needed to seize emerging strategic opportunities.”

Surveys like this convey the trend of things improving, but not as fast as desirable. Ideally, of course, we would whiteness substantial salary increases, large enough to off-set years of salary freezes and sub-par bonuses. Improvement cannot be rushed, though. For now, executives are just going to have to be satisfied that salaries are at least back to moving in the right direction.

[Sources: http://bit.ly/bFYjKf, http://bit.ly/cNwvBo]

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Vogel Labs Startup Incubator to Open in Cambridge

For a while it seemed that independent startup incubators were not only trendy, but yielding positive results. Betahouse’s closing a few weeks ago lead some to wonder if larger, better-funded initiatives were making independent incubators obsolete. This week Vogel Labs has announced that it will open a 700-square-foot loft space between Cambridge’s Kendall Square and Central Square, demonstrating the demand for new incubators still exists.

Membership fees to join this new community will start at $100 a month. While Vogel Labs will provide the essentials, such as whiteboards, books, internet access, and desks, like many incubators, its primary focus will be on building a strong community.

“We are in no hurry to add members to Vogel Labs,” Kevin Vogelsang, founder of Vogel Labs, said. “Growing a quality community is not something that can be done in a hurry.” (Image of Vogelsang courtesy: http://bit.ly/dvRfkU)

According to one of Vegelsang’s blog posts, his incubator will be “a place where a purposeful person can make anything, and have a community surrounding them that will push them farther than they could’ve gone alone.”

“It might not be businesses at all,” Vogelsang said in regards to potential members. “It might just be someone that wants to do a project. A lot of businesses come out of wanting to do cool stuff. When the right culture happens, the right mix of people, a lot of things happen spontaneously.”

Vogelsang expressed that the future direction of Vogel Labs will be determined by the community. If more space is needed, Vogel Labs will find it. If more resources are needed, Vogel Labs will acquire them. Overall, the concept of what the incubator will grow into is very fluid.

Obtaining financing and leasing a location are key to starting an incubator, but will only take one so far. It is apparent from reading Vogelsang’s blog that he is passionate about his incubator--and that may be his most valuable asset moving forward. If the comments Vogelsang’s blog posts have generated are any indication, Cambridge-area entrepreneurs and thinkers are very excited about Vogel Labs and looking forward to joining its community.

[Sources: http://bit.ly/9qB9UB, http://bit.ly/benEmp, http://bit.ly/adUuTB]

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Holyoke to Open $168M High-Performance Computing Center

Today computers power everything from cars and traffic lights to coffee makers. While nearly every business person keeps a smart phone or laptop handy, the demand for computing power is still tremendous. This week, Massachusetts’ officials broke ground on a “$168 million high-performance computing center” in Holyoke.

“This will be the latest and most cutting edge facility of this kind in the country,” said Gregory Bialecki, Massachusetts Secretary of Housing and Development. (Image courtesy: http://bit.ly/cgLFza)

According to the interim executive director of the center, John T. Goodhue, once the facility is completed sometime in 2012, it will be capable of processing trillions of bytes of data each day. As anyone who has ever overworked their laptop knows, all that processing can cause a computer to overheat very quickly. Thankfully, Holyoke’s canal systems provide easy access to river water, which will be used to cool the center’s mainframes.

“The center is going to be a unique resource,” Governor Deval Patrick said. “It’s already become a magnet. You know the number of universities and companies that are partnering with us.”

Aside from $25 million raised from taxes, the center is funded by its partners: the University of Massachusetts, the Massachusetts Institute of Technology, Boston University, Northeastern University in Boston, Cisco Systems Inc., and EMC Corp.

“It’s kind of an incubator for the next generation of technology, including energy efficient information technology,” said Patrick Cooley, EMC Corp’s spokesman.

Presently, unemployment in Holyoke is at 12%. While the center itself will require just twenty full-time employees, the town is hopeful that its opening will draw new businesses to the area.

“You need someone to be the first ones up to bat, then everyone realizes what a good idea it is and what a great location it would be,” Holyoke’s Mayor Elaine Pluta said. (Image courtesy: http://bit.ly/cvmMnv)

In addition to the computing center, Holyoke will market the city’s easy access to promising candidates from the nearby Holyoke Community College and Springfield Technical Community College, proximity to relatively cheap hydroelectric power, and great broadband connectivity.

“It’s not that jobs are going to naturally flow to the center,” explained Robert C. Holub, chancellor at the University of Massachusetts at Amherst. “It’s something that is going to require a lot of work.”

Of course, as UMass President Jack Wilson pointed out, people can also access the center remotely, and research is often labor-intensive. “So that generates jobs all over the commonwealth,” Wilson said.

It is uncertain whether this computing center will help Holyoke take charge of its unemployment by bringing new companies to the area, but with the number of big-name partners promoting the project, the odds seem to be in the city’s favor. Deciding to market Holyoke’s other perks, such as cheap electricity and great broadband connectivity, along with the computing center, is a smart idea. Many locations have a single selling point, with any luck, Holyoke’s collection of selling-points will prove irresistible.

[Sources: http://bit.ly/cz6P6i, http://bit.ly/9ONN2S, http://bit.ly/9lFtMm]

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Boston's Apperian Names David Patrick CEO

Handing over the leading role in your business has to be a difficult decision for a founder of a company. While putting your business in another’s hands involves a substantial amount of risk, as long as the candidate is chosen with care, a new leader can steer the business towards unseen levels of success. This week, Chuck Goldan, founder of Boston’s Apperian, Inc, a provider of iPhone applications and mobile platforms, named David Patrick its CEO. (Image courtesy: http://apperian.com/)

“Apperian is a leader in providing enterprise-focused mobile application development and management solutions in an exploding market,” said Patrick. “I’m excited about joining the team at Apperian, with its proven track record in developing transformative mobile apps for Apple and Google platforms and developing solutions to help enterprises create, deploy, and manage mobile applications.”

Patrick brings over 25 years of executive experience in the software industry to his role at Apperian. Most recently, Patrick served as CEO of xkoto, an enterprise database virtualization company. Before that position, Patrick served as VP and General Manager at Novel, managing the company’s SUSE Linux and Netware operating systems. Patrick was also president of The Learning Company and Mattel and held various leadership roles at WordStar, Sun Microsystems, Ashton-Tate, and Lotus. (Image courtesy: http://bit.ly/b8cz6k)

“To be able to attract an executive like David is a testament to what we have built at Apperian over the last several years,” said Goldan. “This firmly positions our company to take the major next step in growth.”

From looking at his past, it seems certain that Patrick has what it takes to lead a software company. It is easy to see why founder Goldan was enthusiastic to have Patrick join the Apperian team. I am sure Goldan can relax knowing his company is being lead by someone as seasoned as Patrick.

[Sources: http://bit.ly/bRmTxa, http://apperian.com/]

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Interview with Zappos Shoes' CEO Tony Hsieh

Frequently, when you read an article about a business it focuses on “business” facts, such as earnings, future plans for expansion, and primary clients. Although you may find a few quotes from key personnel, you hardly get a feel for the executives who are often the driving force behind the business. This week, Xconomy interviewed Tony Hsieh (pronounced “shay”), Harvard graduate, and CEO of online shoe retailer Zappos. (Image courtesy: http://bit.ly/bpVycU)

Hsieh was in Boston promoting his new book “Delivering Happiness: A Path to Profits, Passion, and Purpose.” In the book, Hsieh talks about key events in his life, including his sale of Link Exchange to Microsoft and his sale of Zappos to Amazon.com, as well as his personal philosophy.

During his interview with Xconomy, Hsieh stressed the importance of “following your passions,” saying that, “The other stuff will naturally fall into place if you actively pursue that.”

Hsieh went on to explain that when you do follow your passions your personal life with become intertwined with your business life, evoking the adage “Find something you love doing, and you’ll never work a day in your life.” According to Hseih, he derives happiness from “anything that involves thinking outside the box, going against conventional wisdom.” Essentially, creativity is Hsieh’s passion.

Hsieh offered a particularly interesting response when asked what his biggest mistake was as CEO of Zappos. “I would say the biggest category of mistakes that I’ve made, and we’ve made at Zappos, has been in hiring,” Hsieh confided. “We’ve been around for 11 years. If you add up the cost of all our bad hires and the bad decisions they made—they also hired people, and so forth—over 11 years it has cost the company well over $100 million.”

On the same topic, Hsieh said that his one question to the metaphorical “God of Business” would be “Where are the good people to hire?”

“Ultimately, for Zappos, that has been the limiting factor--being able to hire people that are talented enough and fit our culture, and being able to hire them fast enough,” Hsieh explained. “If we could hire them faster than we can today, we’d grow really fast. A lot of businesses look at what their sales projections are and so on, and try to hire people into it. Whereas I think we really do it more as, hire the right people, and the sales will naturally be a function of how many great people you have. We’re about 2,200 people now.” (Image courtesy: http://bit.ly/dsKnh3)

As a recruiting professional myself, it was validating to read that, even with all of Hsieh’s notable experience, he sees employees as the key to his success or failure. Hsieh has witnessed firsthand how much time and money a company can save by hiring the correct people upfront. He also understands that “correct” does not simply mean that a candidate is “well qualified,” but also that she will embrace the company’s culture. In Zappos, or in any company, it is the qualified and passionate candidates that will lead the way to success.

[Sources: Xconomy - http://bit.ly/aHhxHK]

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Tewksbury's TimeTrade Systems Looking to Hire

Although Massachusetts’ unemployment rate has been decreasing over the past several months, it will still take a substantial amount of hiring before unemployment returns to a desirable level. Tewksbury’s TimeTrade Systems Inc. has announced that it will be doing its part to help out by allocating some of the $5.6 million it acquired in a recent inside round of venture financing to hire sales and marketing personnel. (Image courtesy: http://bit.ly/aPJM1K)

TimeTrade Systems specializes in “web-based software products designed to support service appointment scheduling for large enterprises.” Including the most recent round of funding, TimeTrade Systems has raised over $18.7 million since its inception in 1999.

“I was pleased that we were able to raise substantially more than we targeted,” said Ed Mallen, CEO of TimeTrade Systems, in regards to this month’s new funding. “I believe this financing round solidly reflects the continued confidence and support of our investors and their belief in the growing role online appointment scheduling will play as a central element in the fabric of the Social Web and the increasing importance of online connections to how companies do business with other companies and with consumers.”

In addition to offering entry-level sales and marketing jobs, TimeTrade is looking to fill some senior positions. Currently, the company is seeking software architecture directors as well as senior account executives. Beyond hiring, TimeTrade plans to use its new funding to expand its software package.

“TimeTrade delivers tens of millions of appointments each year for our largest customers and we are excited about making this capability more readily available to more sales and marketing teams--to help them accelerate the sales cycle, while also improving customer satisfaction that will drive loyalty and repeat revenue,” CEO Mallen said. (Image courtesy: http://bit.ly/cbOPiy)

Exceeding its anticipated funding goal is great news for TimeTrade. Clearly, investors feel confident in the company’s future. TimeTrade will have to ensure it spends its funding wisely, so future investing rounds will prove equally as successful and the company can continue its impressive expansion.

[Sources: http://bit.ly/9J4m1l, http://bit.ly/baUMW0, http://bit.ly/aPJM1K]

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Dassault Systèmes Opens Expansive Waltham Headquarters

At the end of every month, as a new wave of leases expire, several stories of buildings in the Greater Boston area changing hands are released. Often, companies expand to fill neighboring square footage or relocate to larger facilities to accommodate new growth. This month, France’s Dassault Systèmes (DS), “a world leader in 3D and Product Lifecycle Management solutions,” announced the signing of the largest lease in Greater Boston for 2010: a 320,300 square foot campus, which spans 175 and 185 Wyman Street in Waltham, MA. The expansive buildings are composed of office space, technology labs, and a high-tech data center. (Image courtesy: http://www.3ds.com/)

“This outstanding new campus will enable us to consolidate our businesses and employees into a single, world-class, state-of-the-art Americas headquarters that truly reflects the vision of our company while allowing DS to optimize our operational effectiveness and efficiency as we execute our growth plans,” said Al Bunshaft, Managing Director of DS Americas. “The Boston area has been the birthplace of many of the world’s most brilliant high tech companies and we are pleased to announce DS’s commitment to this dynamic area for the long term.”

Before selecting the Waltham location, DS led a comprehensive search of over 20 locations “stretching from Boston to Route 495” over the course of a year. One aspect of the Wyman Street location that appealed to DS was that it was built to LEED Gold standards, as established by the US Green Building Council. Additionally, the location provides easy access to Boston and Logan International Airport and will be optimal for recruiting workers from nearby colleges.

“We are thrilled that global technology leader Dassault Systèmes chose to locate its new Americas corporate campus here in Massachusetts,” said Deval Patrick, Massachusetts’ Governor. “This decision speaks to the economic opportunity, world class talent, and innovation that are unique to the Commonwealth, and we look forward to a long partnership with Dassault Systèmes moving forward.” (Image courtesy: http://www.3ds.com/)

The motivation to move into a new facility rose from necessity for DS after the company “out-grew” its former Lowell and Concord Massachusetts offices when its workforce within the state surpassed 800. This time, DS has anticipated continued aggressive hiring by selecting a large building for its regional headquarters, which provides plenty of room to future expansion.

Perhaps the only ones likely to see DS’s expansion as negative are the company’s rivals. Of course, even then, a little healthy competition is great for keeping companies on their toes. The fact that DS selected the Waltham campus in part because of its access to recent college graduates is encouraging. Providing a solid supply of quality jobs to recent graduates is one of the best ways to protect against a “brain drain” caused when young professional leave the state in search of better opportunities. It will be exciting to track Dassault Systèmes’ progress in the Bay State.

[Sources: http://bit.ly/8XYpzJ, http://bit.ly/d5BBgH, http://bit.ly/dii68o]

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uTest Looking to Expand with $13M Series C Funding

New venture funding can mean many different things for a young company. Often, a fresh supply of money can allow for turning an idea into a prototype or spur taking a prototype to production. For Southborough’s uTest Inc., a software testing community, $13 million in Series C funding means expansion. (Image courtesy: http://bit.ly/emvhp)

“We’ll be rolling out programs, training, and things of that nature that help with the skill level and help identify promising testers and make sure they get onramped to the right project,” Matt Johnston, uTest’s Vice President of Marketing and Community, said.

Back in 2007, when uTest was founded, the company announced its goal of “assembling a global army of testers.” uTest works by encouraging people from all over the world with programming experience to create accounts on its website. Next, uTest matches software testers with interested clients. From there, software testers are paid for every software bug they discover.

Much of uTest’s new funding will be put towards hiring community managers and in-house software engineers. Two objectives these new hires will be tasked with will be improving the software testing tools uTest provides to its community members and integrating uTest’s software with several common programs already used by its clients.

“This was a highly competitive situation, which is a testament to our growth and execution, as well as our belief that all applications need to be tested in the wild,” said Doron Reuveni, CEO of uTest, in regards to his company’s recent round of funding. “By enabling software, media and retail companies to get their apps tested in as little as 48 hours – and for a fraction of the cost of traditional outsourced testing – uTest is leaving a lasting footprint on the testing industry.” (Image courtesy: http://bit.ly/aZGA5k)

uTest’s business model seems perfect for moving towards meeting its goal of “assembling a global army of testers.” By only hiring a core of employees to improve infrastructure, and then matching online software testers with clients, the company truly can have a global reach without spreading itself too thin. Massachusetts is fortunate that uTest decided to employ its core of in-house employees here in the Bay State.

[Sources: http://bit.ly/98kuZ4, http://bit.ly/emvhp, http://huff.to/9iVJp0)

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Acumen Solutions Opens Boston Branch

Some of the most successful companies in the world, not to mention the wealthiest, have locations in Boston. Naturally, if you are a business-to-business consulting agency, the city is going to be a highly appealing destination. Recently, international leader in business and technology consulting, Acumen Solutions, announced the opening of its new Boston office.

Acumen decided to open the office in part because of a need for a support location for its New England-based customers, and in part because of a major deal the company signed with the City of Boston’s Department of Neighborhood Development. Acumen will be implementing “a Salesforce.com cloud computing solution” to allow Boston’s Office of Business Development (OBD) to more easily and effectively connect with the city’s small businesses and to ensure enhanced transparency. (Image courtesy: http://bit.ly/9g94gR)

“By setting up a Boston office, Acumen Solutions is adding to the city’s already strong economy and bringing new jobs to the area,” Rafael Carbonell, Deputy Director for the Department of Neighborhood Development’s Office of Business Development explained. “The cloud computing work that they are doing for us will help us to better serve our constituents in Boston’s small business community.”

Once complete, the OBD will integrate its Salesforce.com data with the Salesforce.com data of Boston Main Streets and of the Boston Redevelopment Authority (BRA). Saleforce.com is a subscription-based, customer relationship management (CRM) program, which is used to track and share information about current customers and potential leads. Once fully integrated, the program is known for its ease of use.

“Boston is a great city and we are proud to be opening a Boston office, which will strengthen support for our client base in the New England area,” said David Joubran, CEO of Acumen Solutions. “Boston has many Global 1000 enterprises in sectors that we serve such as financial services, insurance, healthcare, government, technology and education. In addition to creating jobs, Acumen Solutions will provide a breadth of business strategy and technology solutions for those large enterprises in New England who are leading the way in more effective IT delivery.(Image courtesy: salesforce.com)

Presently, Acumen is actively seeking to hire CRM Configuration Analysts to staff its new Boston location. Furthermore, the company has expressed that it will likely post additional jobs over the next few weeks as it becomes more established in its new location.

It seems that Acumen’s decision to open a Boston location will serve not only to strengthen its own infrastructure, but also that of the city, considering the company will use its services to integrate the OBD’s data with Salesforce.com. The new, leading-edge jobs that Acumen will bring with it into the Bay State are, of course, another great perk.

[Sources: http://bit.ly/csf0ch, http://bit.ly/99AoHk]

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Betahouse Closes Its Doors But Lives On Online

By now you have likely heard about programs like MassChallenge or maybe even DogPatch Labs, which are designed to build community among entrepreneurs and provide access to vital business resources. While the two aforementioned programs are running strong, another key player in the arena, Cambridge’s Betahouse, “Boston’s longest running coworking space” and a community for “creative types working in or around technology,” has closed its physical location in Central Square.

“The Betahouse community will live on virtually, and in some cases physically,” said Betahouse’s founder, Jon Pierce. “Basically I’m putting on the back burner, for now, getting a new space.” (Image courtesy: http://betahouse.org/)

If you have been following Pierce’s blog, this turn of events may have caught you by surprise. Pierce's last entry, posted just over two months ago, announced the anticipated move of Betahouse to a facility “twice the size” of the old one. Peirce has since told reporters that the lease on this new property fell through, leaving the group with no physical location as of August 31st when the lease on the group's original loft space ran out.

This original loft location only held fifteen desks and was zoned residential. This sparked several conflicts with neighbors when the group used to hold large, and relatively noisy, events at the loft. Eventually, because of complaints, Betahouse was forced to end all on-site events, which took away some of the group’s “forward momentum,” according to Brian Del Vecchio, former Executive Chef and Community Organizer at Betahouse.

Despite the closure of its physical location, Betahouse intends to expand its online presence. Already the group has a large, and growing, email list and a substantial following on common social networks, such as Facebook and Twitter.

“It’s easier for freelancers and consultants and people bringing in real money to rationalize that expense (of running office space),” Pierce said. “If you’re trying to create a community of startups and people doing something creative, it’s hard to keep the community focused on that in the face of mounting economic pressures,” Pierce explained, implying Betahouse may actually perform better without the worry of paying for a brick-and-mortar location.

“It was never about the space purely. Space is sort of a commodity,” Pierce said. “It was more about the community, and I think community can survive.”

Innately, it seems like a bad sign when an organization closes a location, but it may actually prove to be a wise decision for Betahouse. Piece expressed that the group’s previous space was too small and not appropriate for events. Now, with the money Betahouse will save from not having to pay a lease, it will have funds to put towards hosting events at more appropriate venues. I would not be surprised if Betahouse enjoys more success now that it has eliminated a substantial portion of its overhead.

[Sources: http://bit.ly/9dzvV4, http://bit.ly/bn3p2X, http://betahouse.org/]

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CLC bio Selects Cambridge for its North and South America Headquarters

Anyone who has walked the streets of Boston can see that the city draws people from all over the globe. Naturally, some of these international guests are there looking for real-estate. Recently, Denmark’s CLC bio, a “life sciences services company providing hardware, software, and data analytics,” announced plans to expand its Cambridge presence. (Image courtesy: http://www.clcbio.com/)

Last week, CLC bio purchased a new building on 10 Rogers Street in Kendall Square. According to the company, this facility will serve as CLC bio’s sales, marketing, and support operating headquarters for North and South America.

CLC bio’s President of the Americas, Dan Conway, expressed that the company will be actively looking to hire people with sales and life sciences backgrounds to fill newly created positions. Additionally, CLC bio will be seeking a handful of administrative professionals as support staff at its new location.

“Our customers and partners are clearly members of a global industry and we strongly believe that we need a significant presence in both North and South America in order to serve their interests,” Conway said in regards to CLC bio’s decision to open a regional headquarters in Cambridge. (Image courtesy: http://bit.ly/cxVXCL)

At just four years old, CLC bio also has sales offices in the United Kingdom, India, and Brazil, as well as a number of sales partnerships, which expand the company’s reach much farther. Presently, CLC bio is privately held and employs forty-one, although its headcount will be growing quickly in upcoming months as its Cambridge headquarters takes on new staff.

It is heartening to see that, out of all the possible cities in North and South America, CLC bio chose Cambridge, Massachusetts as the location for its regional headquarters. Furthermore, it is great to hear that CLC bio has decided to fill its new positions locally, rather than by relocating existing staff. Surely professionals in the Cambridge area will show interest in working at a successful and growing company like CLC bio.

[Sources: http://www.clcbio.com/, http://bit.ly/9n79xv]

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Decades of Hard Work Lead to Unica’s $480M Acquisition

Often, when a big acquisition is announced, you read a little about the company being acquired, a little about the company purchasing it, and maybe a few quotes from executives on both sides of the transaction. If you do not take the time to look beyond these quick facts, though, you might be surprised at what you are missing.

Last month, IBM acquired Waltham-based Unica for $480 million. During his life, Unica’s co-founder, Yuchun Lee, has done everything from participate in MIT’s now famous (or perhaps infamous) blackjack team, upon which the movie “21” and the book “Bringing Down the House” are based, to steer his company through four recession and finally an IPO in 2005. (Image courtesy: http://bit.ly/a7nO8E)

“The hardest thing is having the emotional fortitude to have conviction in what you think is the right path,” Lee explained. “It’s kind of like blackjack. You may get a string of bad hands, but that doesn’t mean you don’t have an edge on the market.”

At the age of 13, Lee moved to the United States from Taiwan. While still in high school, Lee launched his first software company in Houston, TX. In the mid-1980s, Lee moved to Boston where he got both his undergraduate and master’s degrees from MIT in electrical engineering and computer science.

Along with MIT grads David Cheung and Ruby Kennedy, Lee formed Unica in 1992. Initially, the company’s focus was on data mining and financial modeling. Gradually, Unica shifted into the marketing software industry.

“Marketing was not automated then,” Lee said, justifying his company’s change is focus. “We thought it was pretty interesting, and a big-budget item for companies.”

In between trips to Las Vegas, where he gambled on MITs Blackjack Team, Lee worked to keep his company in the black into the late 1990s. While Lee has not confirmed putting any of his winnings towards funding Unica, he ran his company for years without any funding from outside investors, leading some to believe it is likely. (Image courtesy: http://bit.ly/a7nO8E)

Unica brought in $48 million from its IPO along with $60 million in product sales in 2005. The company was growing, healthy, and appeared to be unstoppable.

“2009 was the only year in our history that we declined,” Lee explained. “Customers stopped buying.”

This setback in 2009 proved to be relatively brief. Just months into 2010, Unica was hiring again. Presently, the company has over 500 employees and more than 1,500 customers. Of course, this year Unica also caught the attention of IBM and is now owned by the company.

“IBM is in a really good position to shape the conversation in this market, to drive adoption in general… Marketing is undergoing a major transformation… through digital and social channels. The trend is very clear in our mind. The move is toward digital... even for smaller companies... My plan is to stay on. I’m personally very excited.” (Image courtesy: http://www.imb.com/)

It is clear from this summary of Lee’s accomplishments that he has worked incredibly hard during his life and consequently enjoyed many successes. While it has to be strange in some ways for him to hand over the company he started 18 years ago, I have no doubt that he will continue to grow and succeed as an employee of IBM. Finding a story like Lee’s makes you happy you took a moment to look a little deeper in IBM’s purchase of Unica.

[Sources: http://bit.ly/9QstIE, http://bit.ly/a7nO8E]

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