VOLUME 1 ISSUE 24  
Sierra Ventures welcomes you to our 2nd quarter 2008 email newsletter. A Venture Capital firm since 1982, Sierra has $1.5B of capital under management, fifty active portfolio companies and seven Managing Directors. Our investments are focused across all areas of the Information Technology sector from Semiconductors to Enterprise Software. http://www.sierraventures.com
 
In This Issue
Feature Article
Spotlight Company
Portfolio News
Upcoming Portfolio Events
Feature Article

Disaster Recovery without Breaking the Budget
Steve Williams, Managing Director, Sierra Ventures

The recent earthquake in China was just the latest wake-up call for businesses: When disaster strikes, are you prepared? Can you keep your business running – and your revenue flowing – if your business is struck by a flood, earthquake, or tornado? While many businesses have thought about their failover and disaster recovery plans, some simply cannot afford to spend the millions of dollars required to implement the expensive, mirrored server approach that has been the industry standard for several years.

But in today’s fast-changing economy, businesses truly cannot afford NOT to implement a disaster recovery plan. For example, financial services companies cannot abide any lags or lapses in access to critical customer information. Hospitals cannot tolerate interruptions in patient care. Airports cannot accept gaps in access control. And manufacturers cannot survive with disruptions in operations or customer service.

So how can companies and other organizations ensure continuous operations after a catastrophic event or sudden system failure—without breaking their budget to do so?

Affordable Fault Tolerance and Disaster Recovery

With Marathon Technologies’ everRun® fault-tolerant, high availability, and disaster recovery software, companies now have a cost-effective and automated solution. By preventing failures rather than responding to them, everRun delivers a fundamentally different approach to availability and disaster recovery. Plus, because it requires no IT intervention, everRun enables even the smallest organization to have the peace of mind that their systems are safe from outages and their data is protected from loss.

Whereas traditional, proprietary hardware-based approaches are expensive, complicated, and difficult to implement and manage, Marathon’s everRun software installs on standard, off-the-shelf x86 Intel and AMD servers running Windows Server 2003. Operating as a virtual machine on your existing Windows hardware, you can protect any Windows application – without modification or customization. Just install the everRun software on your server and you get uninterrupted availability, 100% data protection, and rapid disaster recovers – all with a single click. And all for a few thousand rather than a few million dollars.  With the recent addition of Marathon’s everRun VM, these same benefits can now be realized in Citrix XenServer virtualized environments protecting multiple applications.  This makes the ROI even more compelling.

Proven High Availability and Automated Failover

What’s more, Marathon’s innovative approach is already road-tested: more than 1,800 businesses – from television networks to casinos to investment firms and stock exchanges to pharmaceutical manufacturers to power plants – are already running critical business process applications on and protecting their businesses with everRun software.

One of the world’s largest commodities futures exchange counts on Marathon to ensure that traders and clearing members always have accurate, up-to-the-minute pricing information and order pricing confirmations. To protect the integrity of the system and ensure the continued confidence of the traders and clearing members, downtime is not an option. With Marathon everRun running on two standard x86 servers, yet appearing as a single instance for all applications, traders now get 100% continuous uptime for the exchange’s pricing board and order confirmation messaging applications. And large clearing members are confident that their pricing position gets through – every time.

With a reputation for 24-hour coverage, one of the world’s largest sports news networks relies on Marathon everRun software to protect its email and other communications applications from downtime due to component failures or physical disasters. For disaster protection, the media company’s infrastructure is located in two fully redundant, geographically dispersed data centers requiring continuous availability without operator intervention. Using Marathon, the company has been able to deliver seamless email, file/print, Active Directory, and other key services to end users with no loss of application data, no need for transaction rollback, and no loss of performance.

And a multi-institutional shared telecommunications system that processes over 3.6 million calls annually uses Marathon to ensure that all critical calls, doctors’ pages (from multiple page vendors), alert codes, and other functions served by its call center would no go down due to server component failure or dropped network connections. In healthcare call management, there is no margin for error: a single call that does not reach its destination can result in a life-endangering situation or even a fatality. To ensure continuous availability of communications between providers, patients, and healthcare facilities, the call management company installed Marathon’s everRun software on two standard x86 servers. If one physical server or server component fails, the virtual Windows environment continues to operate with no interruption in service—protecting quality of care and patient health.

Protect your Organization with everRun

These days, no matter if you’re a large company or small, there is no system outage or disaster from which you should not be protected. Customers not only expect it—they demand it. And today’s leading-edge disaster recovery approaches—led by Marathon Technologies’ everRun software—are much more affordable than you think. You really can’t afford not to give it a test drive.


 
SEEKING DEALS

Sierra is looking for...
Passionate entrepreneurs with a compelling value proposition in large and growing markets

We are interested in:
+ consumer applications & 
   infrastructure
+ enterprise software infrastructure
+ power systems
+ SaaS
+ semiconductor
+ systems & network management
+ wireless
+ emerging markets

For more information please contact Vimal Patel vpatel@sierraven.com

About Marathon Technologies
With over 1800 global customers, Marathon is the world’s first and only provider of fault-tolerant, automated, high availability and disaster recovery software for physical and virtual servers. Marathon’s everRun® software prevents outages and data loss, without IT intervention. Organizations using everRun achieve uninterrupted availability, 100% data protection, and rapid recovery – all through “one-click” operation. For more information visit www.marathontechnologies.com.

Founded:  1993

Management Team:
Gary Phillips, President and CEO
George C. Tranos, Executive VP, Strategic Alliances
Brian Doheny, Sr. VP, Worldwide Sales
Jerald Melnick, CTO
Dan Sullivan, CFO
Bill Tao, VP, Engineering
Steve Keilen, VP, Marketing
Dave Mazursky, VP, Services

Investors:
Sierra Ventures
Atlas Ventures
Longworth Venture Partners


 
SPOTLIGHT COMPANY

Expresso Fitness is changing the $2B commercial cardio fitness equipment market by delivering an exciting interactive product to spice up a previously boring experience: working out.  Expresso is the only company that integrates game software technology in a robust cardio station for health clubs and YMCAs.  The market response has been phenomenal; Expresso grew year-over-year revenue six-fold in 2006 and almost five-fold in 2007.  In the last eighteen months, Expresso has begun penetrating the largest chains, associations and franchises, promising continued fast growth in 2008 and beyond.

Expresso’s relationship with the club member who uses our systems starts when they are installed.  Because every cardio station we sell supports Internet connectivity (and 90%+ are indeed connected), users enjoy a wide variety of networked based features, like tracking workouts and competitive riding.  No other commercial cardio system has offered this capability.  Already there are over 150,000 current registered riders and increasing numbers of riders are paying for premium services.  Expresso believes that this is a growth area and, over time, services provided to health club members will be increasingly significant to our revenue and margin.

Expresso’s near-term goal is to leverage our R&D investments by introducing new models, increasing share of current markets and establishing new market positions overseas.  We have developed an exciting product and wish to make it more broadly available.

Expresso Fitness’ systems are highly differentiated in a market that has been slow to innovate.  Furthermore, software generally and game software specifically is out of the competence area of incumbent fitness equipment suppliers.  Expresso intends to drive our early advantage by increasing our software lead and promoting community/data based capabilities that will tend to lock in our users and create barriers to a new entrant.

Expresso Fitness is headquartered in Sunnyvale with sales offices around North America.  See us on the web at http://www.expresso.com/.


 
PORTFOLIO NEWS

CodeGreen

NAFCU Services Selects Code Green Networks as Exclusive Partner for Data Loss Prevention Solutions

Washington D.C. – May 19, 2008 – The NAFCU (National Association of Federal Credit Unions) Services Corporation announced today the selection of Code Green Networks as its Preferred Partner for Data Loss Prevention (DLP) solutions. After an extensive review process, Code Green Networks was selected to help NAFCU member credit unions easily deploy, manage, and enforce data protection policies across their organizations in order to meet regulatory requirements for protecting customer data and confidential company information.
http://www.codegreennetworks.com/company/press_release_20080515.php




Element Labs

Element Labs partners with Lightpower as distribution partner for Germany.

Frankfurt, Germany - April 2, 2008 - Element Labs, Inc., a global leader in the design, manufacture, and support of cutting-edge LED video technology to the entertainment, architectural, and signage industries, is proud to announce that it will partner with Lightpower GmbH to become an official distributor of the innovative Stealth, Versa TUBE and Helix G75 LED-systems in the Germany. This distribution collaboration forms part of Lightpower’s earlier announcement that it has opened the “LED competence centre Germany”, which will see the company distribute some of the foremost creative and low-res LED products available on the market today, including Element Labs’ renowned Versa TUBE, Stealth and Helix G75 products.
http://www.elementlabs.com/wordpress/?p=403

Flypaper
Flypaper Studio, Inc. Partners with MyWorkster to Give Members Ability to Create Interactive Online Resumes

Phoenix, AZ – April 8, 2008 - Flypaper Studio, Inc., an innovator in rich media content software and services, today announces a new partnership with MyWorkster, a professional utility that connects students, alumni, employers, companies, and the University community. The partnership comes just six weeks after Flypaper launched in beta and will give all MyWorkster members the ability to easily and quickly build engaging resumes directly from the MyWorkster site. All of the interactive, rich media resumes will be hosted on Flypaper and the Flypaper software will be used as a value-added tool for all universities that join MyWorkster.
http://www.flypaper.com/company/newsroom/?articleId=1

Greenplum

Reliance Communications Using High-Performance Database and Data Warehouse Solution from Greenplum and Sun Microsystems

San Mateo, CA - June 2, 2008 – Greenplum, a leading provider of database software for business intelligence, and Sun Microsystems, Inc. (NASDAQ: JAVA) today announced that Reliance Communications is using Greenplum Database, running on the Sun Data Warehouse Appliance, to power a range of applications, from legal and regulatory compliance to call detail record analysis.
http://www.greenplum.com/index.php?page=press&item=20080602

Parature

Parature Announces Integration Partnership with Crisp Thinking

Vienna, VA - June 10, 2008 - Parature, the global leader in on-demand customer service software, announced today an integration partnership with Crisp Thinking, the online child specialists and provider of NetModerator and IMSafer. Crisp Thinking’s NetModerator software is fully integrated with Parature Customer Service™ software, providing organizations with the ability to track online gaming and social networking interactions to prevent online abuse, inappropriate activity and child related bullying. The integration of these world-class technologies provides interactive media, online gaming, and virtual worlds with the most effective software applications in the industry to keep children safe.
http://www.parature.com/press_release.aspx?ID=08-0032


Predictify

Introducing the Mashable Prediction Center: Because You’re Smarter Than Us

Redwood City, CA - June 3, 2008 - We’re excited to introduce a cool new feature to our site: The Mashable Prediction Center. The basic premise is to have the Mashable audience predict future events, specifically those pertaining to the Web and social networking space. For example, our prediction center is currently asking whether or not you think Twitter will be acquired by the end of the year. You can vote, leave your comments, and see what the crowd is saying about the issue. Then, when either Twitter is acquired or the year is over, depending on how you voted, you’ll either improve your expertise rating or retain your n00b status. Additionally, sponsored questions will be introduced in the future that will reward you for your foresight.
http://mashable.com/2008/06/03/mashable-prediction-center/

Simplify Media
SimplifyMedia: Share Your Tunes over the Web

Redwood City, CA - April 29, 2008 - iTunes has many often-forgotten features. Among them are the web radio, visualizer, and (what I think is the coolest) shared music libraries. iTunes users on the same wireless network can share their entire music libraries (or only specific playlists) with each other by turning on “Sharing” in iTunes’ preferences (in either the Mac or PC version of iTunes). Once both computers are setup to share libraries, users at both ends can browse each other’s libraries and stream each other’s music. However, there is no way to download the music; users can only listen.
http://macapper.com/2008/04/29/simplifymedia-share-your-tunes-over-the-web/

Verari Systems

Verari Systems Delivers Energy Saving Dual High Resolution Displays Over IP with Secure Connexxus™ Desktop Solution

San Diego, CA - June 3, 2008 - Verari Systems, a premier developer of energy efficient data center and desktop consolidation platforms utilizing independent blade-based computing and storage solutions, today announced enhanced features and additional blade support for its Connexxus desktop consolidation solution. Connexxus is ideal for data-intensive environments such as today’s financial trading floors and high-end visual applications such as Picture Archive Communication Systems (PACS) used in Health Care and graphically demanding digital content creation applications used in the Entertainment and Media industry.
http://www.verari.com/news/archive/PR060308.asp

VeriSilicon

VeriSilicon Joins Power Forward Initiative to Accelerate Advanced Low-Power Design

Santa Clara, CA - May 12, 2008 - VeriSilicon Holdings Co., Ltd. (VeriSilicon), a world-class ASIC design foundry and custom solutions provider, has joined the Power Forward Initiative (PFI) and plans to offer a Common Power Format (CPF)-based design solution for its ASIC customers.  VeriSilicon uses the Cadence® Design Systems, Inc. Low-Power Solution, the industry's leading and complete flow that integrates logic design, verification, and implementation technologies with the Si2-approved Common Power Format. Using this comprehensive approach to low-power design, teams can improve productivity, reduce risk, and achieve superior tradeoff among timing, power, and area requirements.
http://www.verisilicon.com/en/news_show.asp?id=33&id2=245


 
UPCOMING EVENTS

CodeGreen

NAFCU's 41st Annual Conference

July 8-12, 2008

San Diego, CA

Meru Networks
Interop NY

September 15-19, 2008

Javits Center, Booth 253

New York, NY

Razorsight

Channel Partners Fall 2008 Conference & Expo

August 18-20, 2008

Seaport Hotel & World Trade Center

Boston, MA


 
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