The State of the
Technology
Industry
Overview and Discussion
Overview
Industry
 Innovation
 Funding
 Workforce
 Of Note

Industry
Is it expanding or contracting? Growing in
number of companies or employees (or
both)?
10) A Twenty Year Anniversary
 9) Washington’s Computer Companies

WSA 20 Years Later
Founded in 1984, the WSA is the oldest and largest state-wide technology trade
association.
Sept 22nd Steve Balmer Keynote
1984
Bruce Milne, The Corum Group
“Back then we were 300 companies with only 1000 employees...even MS wasn't
that big. Now, 20 years later, we are 11,000 companies employing 130,000 with
a greater impact on the state's economy than aerospace.”
.
1985
Paul Brainerd, The Brainerd Foundation
“In 1985 we introduced PageMaker 1.0 and created a product category called
desktop”
1993
Mike Slade, Starwave
“Starwave was sold to Disney in a long series of transactions, eventually valuing
the company in 1998 at about $1 billion.”
WSA 20 Years cont…
1995
Randy Conrads, Classmates.com
“Classmates has been profitable every year since 2001. Today Classmates.com
covers school, work and military affiliations for more than 38 million members in
the U.S., Canada, Germany and Sweden Classmates.com was ranked #4 for
Consumer Paid Online Content Revenue - for the past TWO years!”
1996
Stuart MacDonald, Expedia
“Expedia began in 1996 as part of Microsoft, with the wacky idea that maybe we
could use this “web thing” to help people plan and purchase travel.”
2002
Dave Anastasi, Captaris
“We've installed over 80,000 systems in 44 countries, with 99 of the Fortune
100 using our e-document delivery, business process workflow and information
exchange and delivery solutions to reduce costs and increase the performance
of critical IT investments.
2003
Ed Lazowska, University of Washington
“Every top technology region in the country is anchored by one or more top
research universities. UW plays that role for the Puget Sound region.”
Washington’s Technology Companies

Microsoft
Hiring 5,000 in the next year
 Looking for the High End


Boeing
Hiring as we speak
 Internships ongoing


Intel

Just down the road
WA Technology Companies …
Intel
WRQ
RealNetworks
Captaris
Corbis
Lockheed Martin
3rd Mountain Technologies
Unisite
Excell Data Corporation
Primus Knowledge Solutions
BSquare
IBM
digiMine
Oracle
Jetstream Software
LoudEye Technologies
Bsquare
Agilian
Talisma
EDS
Novell Americas
Nintendo
WA Technology Companies …
Expedia
Advanced Interactive
Systems
Internap
Aventail
Safe Harbor
NetReflector
Attachmate
Dexterra, Inc.
Envision
Opsware
Screenlife LLC
NOT TO MENTION
Weyerhaeuser
Russell
Washington Mutual
DOT
Swedish Hospital
Port of Tacoma
Highway Patrol
Safeco
Starbucks
WA Technology Companies …
Locally…
Prepared Response
NewTech
ITI Services
Advanced Interactive Systems
Topia Technologies
Siteworks
OpticFusion
SagemMorpho
WA Technology Companies .. Finally

New Kids on the Block

Trumba


Mobliss


http://www.mobliss.com/index.jsp
Isilon


http://seattletimes.nwsource.com/html/businesstechnology/2002196324_jaech04.
html
http://www.isilon.com
Persuadio

Brand spanking new
Innovations
What new technologies or applications of
technology are on the horizon.
8) Patents and Innovation
 7) Entrepreneurs

Patents and Innovation

Through the eyes of UW Tech Transfer

Fast Facts

Innovation
– UW researchers annually disclose more than 200
inventions, discoveries, and software programs.

Investment
– UW TechTransfer filed more than 130 patent applications in
FY04 for discoveries made by UW researchers.

Impact
– Seven new companies have formed around technologies
licensed from TechTransfer in FY 04
The two biggest sources are Engineering and Medicine. Engineering
outpaced Medicine for the first time in five years in FY04
Patents and Innovation

Through the private sector




Patents
Trade Secrets
Trademarks
Copyright
New Ideas

Blogging

New media rules, new work rules, new election
rules.
PodCasting
 The Semantic Web


http://news.com.com/Next+big+step+for+the+Web--or+a+detour/2100-1032_3-5605922.html?tag=nefd.lede
Entrepreneurs
Washington had the highest per capita rate of
start ups in the nation.
 Washington had the highest mortality rate of
start ups in the nation
 Prosperity Partnership



Over the Hump, Crossing the Chasm
Student Examples

D-Shift, MistyRain
Funding for Technology
IPOs
 Venture Capital
 Angel
 Banks
 Friends and Family

IPOs
What they mean to you
 Private to public
 Stock Options
 No longer the darling



http://news.com.com/Tech+takes+a+backseat/2100-1030_3-5604294.html
71% of year 2000 Tech IPOs are trading below their offer price if at all.
Yet, over the last year


Google
Salesforce.com
Funding for Technology

Venture Capital Funding

Reversing a three year sequential decline
 OVP
 Madrona Venture Group
 25.3 Million to LoudEye

Angel Investment
 Alliance of Angels

“$199.65 million of venture capital was invested in 21 Washingtonbased companies during Q3 2004. The average deal size in Q3 2004 was
$9.51 million. The amount of venture capital raised during Q3 2004 is
significantly up from Q3 2003 by $104.65 million, or 110.16%. The total
venture capital raised by Washington-based companies in Q3 2003 was
$95 million in 18 companies with an average deal size of $5.28 million.”

Capital Hunter special report
Funding

Washington Technology Center

WTC is a statewide economic development
agency focused on technology and
innovation. WTC channels state, federal,
and private resources to help companies
develop and commercialize new products
and technologies.
Small Business Administration
 Friends and Family

Workforce
5) Pipeline and Graduates
 4) The University of Washington’s role
 3) Legislative Support

Pipeline and Graduates
Technology Alliance Report Card
 Not Keeping Pace
 Downturn in Interest
 Focus should be on K-12

The University of Washington’s
Role
Institute of Technology
 Paul G. Allen Center for CS and
Engineering
 High End Degrees
 Motion Sensors

Legislative Support
Current Activities in the State
 Congressman Adam Smith
 Congressman Norm Dicks
 Senator Maria Cantwell
 Senator Patty Murray
 Participation

Of Note
2) Off shoring
 1) Hiring

Off Shoring

WSA statement


Washtech Statement


http://www.wsa.org/resources/government/papers/WSA_offshore_outsourcing.pdf
http://www.washtech.org/reports/
My Statement

It’s the reality of a global economy.
Hiring
Intern if you can
 New jobs every day
 Experience still a catch
 Getting better all the time

Questions