> The Old Dominion Goes Digital
Title: The Old Dominion
Goes Digital: Competing on a New Circuit -
A Cost-effective Alternative to Silicon Valley, Virginia Offers Businesses
a Hi-tech Skills Base and Robust Infrastructure
Author:
Source:
The Independent Newspaper
June 23, 2001
Jamestown
in Virginia, founded in 1607, was the first English settlement in
the New World, and the state is still considered the cradle of American
democracy. The city remained the capital of the old colony until 1699,
when Williamsburg became the seat of power, followed by Richmond in
1780. Virginia is immensely proud of its history, but it is not resting
on its laurels. Today, the state is one of Americas wealthiest
and its economy is driven by some of the worlds leading hi-tech
companies. Robert Griffin, president of eMotion, explains why his
firm decided to locate its headquarters in Vienna in northern Virginia,
instead of Redwood, California, where its development offices are
based. This is where companies like MCI, Sprint, GTE and a lot
of ISPs (internet service providers) all started out. We are able
to access the internet backbone more efficiently than we can anywhere
else, with the possible exception of the extreme west, he says.
We are right in the middle of a hi-tech population corridor.
Not only have we got great universities but we also have excellent
infrastructure technology firms here. They are continuing to educate,
train and create new resources.
The skills base is very strong and the infrastructure to support
our business is robust. It was more cost-effective than trying
to start up in Silicon Valley, where the cost of living is ridiculously
expensive. That makes it difficult to encourage senior executives
to move there and it would be almost impossible to attract new college
graduates, so we decided to choose northern Virginia instead.
Mr Griffins company is the leading provider of digital media
management solutions. The only way businesses can take advantage
of their analogue assets is to turn them into digital, which is
where eMotion comes in, he says. Among the firms clients is
McDonalds. We manage their photo archive, which includes
every historical picture of McDonalds in the world
every store front, and every picture of hamburgers and French fries.
McDonalds uses our technology to review and approve
all of their commercials. On this side of their business alone,
they are saving a million dollars annually by using our technology
to move those assets around the world.
Other companies using eMotions technology are Nike, the World
Bank, Coors brewery and advertising agency Leo Burnett. The Virginia
firm also has a direct-selling organisation with offices in Chicago,
New York, Los Angeles and London, as well as a small development
team based in Israel. We have a global reach and we are going
to market directly to channel partners, says Mr Griffin. In
April, eMotion linked up with Ampex Data Systems to integrate their
technologies in the acquisition, storage and processing of visual
information. The combined benefits of these two industry leaders
will set a new standard in the management of digital media,
he adds. The Xybernaut Corporation based in Fairfax, which has just
delivered its first shipment of hands-free computers to the US Navy
and the National Guard, has also grown as a result of its strategic
partnerships with IBM, Sony, Toshiba, Hitachi, Hewlett-Packard and
others. Xybernaut markets Mobile Assistant, a wearable voice-controlled
computer designed for industrial users who need to keep their hands
free. Weighing less than four pounds and costing as much as $9,000,
it comes with a head-mounted video or flat-panel display.
The gadget features global-positioning tracking plus internet,
cellular, and two-way video and audio communications. The software
enables data transmission between the Mobile Assistant and a PC.
Chairman Edward Newman says that Xybernauts business plan
required considerable research and development. Since the
early years, we have had to become involved in the design, engineering,
manufacturing and management of systems until others developed the
skills we have learned over the years, he says. We are
at the stage where the market is obvious to everyone, including
all of the computer manufacturers, suppliers and mobile phone companies.
Another new Xybernaut client is Federal Express, which is using
the firms equipment for its FedEx Express Aircraft Operations
division. The technology provides maintenance technicians with wireless
access to and information about FedExs fleet of 350 aircraft
in a business that is time-critical. Tod Rehm, Xybernaut president
and chief operating officer, says: An ongoing element in our
strategic plan is to identify leading commercial, government, military
and educational organisations that would benefit from the increased
productivity and return on investment from using mobile wearable
computers.
The enterprise has selected several firms for new pilot projects,
including Bell Canada. Xybernaut employs about 140 people and last
year produced revenues of $9.5 million. Also based in Fairfax is
WebMethods, a software solutions business founded five years ago,
which has offices in Europe, the US and Asia. President Phillip
Merrick says: We are the infrastructure that makes a great
deal of business-to-business e-commerce possible. The company,
which had an IPO (initial public offering) over a year ago, has
increased its revenues tenfold. No other business is selling
more integration software, except IBM. Much of the firms
growth potential lies overseas. Our Asia-Pacific business
did not exist until last summer. By the end of the year we had about
40 people in the region. Most of our competitors have been
around for years and have had time to develop their international
operations. We started with nothing, but we forecast that about
40 per cent of our sales will come from overseas by the end of next
year.
Communications in the hi-tech world have come a long way, but one
major hurdle is the variety of languages in the world. This problem
is being tackled by Multicity.com, an open global network
offering nine multilingual communications products and services
for consumers and businesses. Earlier this year, the Virginia-based
company launched MultiAuctions, the first auction product available
in multiple languages. It is estimated that two-thirds of internet
users will log on from outside the US by 2003. Alain Hanash, the
chief executive, says: We were the first to introduce these
services. We grew very fast in Europe and eventually we started
growing in the US. We want people to use this medium to learn
and to be exposed to different cultures. There is so much to learn
about, whether its religion, music and so on. Its not
just about technology.
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