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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (10516)	10/21/2002 9:28:13 PM
From: Nutty Buddy	Read Replies (1) \| Respond to of 14451

[Deer in the headlights]

To: Don Green who wrote (10516)	11/22/2002 8:54:35 AM
From: Ms. Baby Boomer	Read Replies (1) \| Respond to of 14451

Domestic Security Program Spells Bonanza for Technology Firms By Heather Fleming Phillips, San Jose Mercury News, Calif. Nov. 22--WASHINGTON--There's one increasingly bright spot for Silicon Valley in an otherwise gloomy economy: the federal government. The creation this week of the Department of Homeland Security will bring together 22 government agencies to focus on domestic security programs, and technology will play a crucial role -- in everything from military training to evacuation planning to spying on terrorists. And that comes on top of a pledge by President Bush to boost technology spending by the government. It's a bonanza for companies once scared away by the federal government's red tape. "I've been doing this for 20 years, and this is the most phenomenal growth rate I've ever seen," said Mark Hogan, general manager of BEA Systems, which announced this week that it has won 90 federal government contracts in the past 90 days. Even before the terrorist attacks on the World Trade Center and Pentagon, the federal government had begun taking steps to improve the security of its networks and computer systems. After Sept. 11, it entered a full-fledged sprint to protect the nation's infrastructure and improve inter-governmental communication before another band of terrorists capitalizes on their vulnerabilities. Tech companies large and small saw the opportunity, and responded quickly. Software company Redwood City-based Informatica, which makes business analytics software, has seen its federal government business grow by about 150 percent. SGI, maker of data visualization technology, says its government business has grown from about 20 percent to 35 percent of its overall sales. Among its government clients: various branches of the military and the "three-letter agencies" such as the FBI, CIA and National Security Agency. SGI, for instance, is providing technology to plan a response and evacuation in the event of a bioterrorist, nuclear or chemical attack. SGI's computers bring together complex weather and atmospheric data, mapping information and other variables to determine the best way to evacuate a city. The company's powerful computers also are used in train tank commanders and fighter pilots on upcoming missions. All across the valley, companies are ramping up their government sales forces. Webmethods in March hired 12 people to focus on federal sales; security software company Network Associates in October assembled a team to target the federal government; and two years ago, Symantec beefed up its state and local government sales teams. In the past year, a program sponsored by the Information Technology Industry Association of America to help tech companies maneuver the federal government minefields has grown by 35 percent to 40 percent. While some companies have already benefited from the government's focus on security, others are salivating at future prospects raised by the 170,000-person Department of Homeland Security. One of the department's first priorities will be integrating its systems and data to make sure terrorist information doesn't slip through the cracks. "The impact is going to be quick and dramatic, and it will provide a lot of opportunities for IT companies," said Harris Miller, president of the Information Technology Association of America. One of the biggest government spending projects in history is expected to come out of the new agency -- an enormous new project by the Immigration and Naturalization Service to track people entering and exiting the United States. That project alone could exceed $10 billion. The same bill that created the Department also mandates that all agencies meet a baseline level of security, and requires the government to identify small businesses and new companies to fulfill homeland defense-related contracts. It also establishes a new agency -- the Homeland Security Advanced Research Projects Agency -- modeled on the Defense Department's DARPA, which created the Internet's predecessor. The agency will fund research and development in security. Last week, Congress passed a separate bill setting aside federal funds for cyber security research and development. Tech companies are hoping that this security research will be a breeding ground for new technologies and lucrative business opportunities. Of equal significance to the industry is President Bush's promise to raise federal tech spending. The federal government spent about $47 billion on information technology products in fiscal year 2002, and an estimated $10 billion to $15 billion off-the-books for national intelligence efforts. Bush has asked Congress to increase the overall federal budget for IT by about 15 percent for fiscal year 2003, though decisions won't be made until the beginning of next year. The money is being used on two fronts. Internally, it is being used to make sure that government computers and systems are secure, and are able to communicate with one another. For example, in the so-called Federal Bridge project, government agency systems are linked so that they can interoperate and share information securely. Entrust's technology serves as the cornerstone of the bridge. Despite the government's efforts on the security front, there's still much work to be done. The General Accounting Office, Congress' investigative arm, released a scathing report this week criticizing the government for its lax security measures. Government money is also being used for cutting-edge technologies to combat terrorism. SGI is providing the government technology that would help combat information overload during a crisis, and translate data from different sources on the front lines into a three-dimensional virtual image back at command central. While the opportunities for tech companies to work with the government are numerous, it's not as easy as showing up in Washington with an idea. The government has a rigid way of doing business, and inexperienced players could run into difficulties. Washington insiders say newcomers are better off partnering with established players at first to get a foot in the door. Once they learn the ropes, they can go out on their own. "I think there is a naiveté" among some tech companies, said SGI Chief Executive Robert Bishop. "It takes many years to line up your terms and conditions and your products in a way that is compatible with government procurement cycles." newsalert.com