Monday, September 26, 2011

IT Capital Chairman, Aivars Lode, on how IT Capital is Supporting Technology Innovation at Portfolio and Partner Companies.

Naples, FL - September 26, 2011 by Charlotte Luer

1. IT Capital hosted another one of The Naples Technology Group (TNTG) Think Tanks today in Naples FL, Aivars what was the Genesis for organizing the Think Tank?
South West Florida is a truly unique ecosystem of technology innovation, and we’re eager to show our continued support through The Naples Technology Group Think Tank. IT Capital’s Technology Advisory team works with executives from leading companies across the technology landscape. At the same time, our portfolio companies realize that technology investments are a key driver of growth and operational improvements. TNTG Think Tank is an opportunity for IT Capital to showcase proprietary resources across the firm including our Operating Partners, CIO network, Advisory Board and client network to create an interesting environment for collaboration. The forum is designed as a gathering of peers, enabling them to interact and exchange ideas with one another in an engaging and stimulating setting. Participants discuss and share best practices, stay on top of emerging technology trends and collaborate on strategies for future investments. IT Capital is committed to staying at the forefront of technological innovation and we are excited about the emerging disruptive companies and technologies that are partners and are associated with the TNTG.

2. How does the TNTG benefit the CEO’s from IT Capital Portfolio companies who attend?
One of the many goals of TNTG is to highlight emerging technology trends and IT’s evolving role in achieving business goals. Our Partners benefit from a valuable opportunity to gain insights into strategic business and technology issues, and hear from companies that are at the forefront of enterprise IT innovation. We believe that the Enterprise IT landscape is undergoing a transformational shift with the emergence of technologies such as cloud computing, and the TNTG is designed to address the implications for organizations and discuss how to best architect their business strategies utilizing the technology in the future. We are sure that our partners can leverage these insights as they select vendors for various internal projects, deploy IT enabled solutions and analyze the longer term priorities that will drive growth and efficiency at their respective organizations.

3. The TNTG is made up of successful entrepreneurs that have already created successful technology companies that have left an indelible mark on the industry that they participate, in most cases leading business disruption through technology in their industry. Can you talk about what these companies will gain from attending the TNTG Think Tank?
Technology companies that will attend the forum will enjoy featured visibility in front of some of the leading Technology business minds on the planet. As you might know, IT Capital's combined portfolio makes it one of the most diverse software only investors on the planet, therefore participants have the opportunity to present their ideas and solutions and have engaging discussions with some of the leading business minds. We believe that the companies attending are at the forefront of the type of innovation that will transform the enterprise IT landscape for decades to come and we want to provide a forum for them to showcase their disruptive products and services.

4. Can you give us any insights into next generation enterprise IT trends and other hot topics that you anticipate driving the conversation during TNTG Think Tank sessions?
While there are a lot of disruptive IT trends that are emerging, we think Cloud Computing and Mobility are two themes that are driving a profound transformation for the future of enterprise IT. Cloud Computing is a ‘once-in-several-decades’ shift in the IT landscape. It is changing the way we design and manage data centers and applications, how IT departments deliver capabilities to users, and how users access, select and interact with applications. It’s enabling entirely new applications and capabilities that didn’t exist just a few years ago. We are active participants around Cloud Infrastructure and are currently in the process of establishing 20 exchanges where there have been none in the past across a range of industries, we already have investments in many industry specific deployments as well as the only Enterprise Grade Cloud computing environment. As we enter the post-PC era, mobile devices, whether they are smartphones or tablets, are increasingly becoming ubiquitous in enterprise environments. As a result, we are witnessing a new generation of ‘computing anywhere’ with a mobilized workforce that can be far more productive than ever before. This creates ever greater challenges for IT departments looking to secure and manage an effectively borderless mobile enterprise and an opportunity for software and solutions vendors to address the needs of a mobile workforce. Finally, we will focus on how to think strategically about IT investments, so that IT spending is not just a cost center for companies but a driver of revenue growth and employee productivity. Given the breadth of our private equity portfolio, we’re uniquely positioned to both discover and share best practices here.

5. Can you talk a little about the M&A and consolidation activity you are seeing in the technology sector?
Many of the trends we will discuss at the forum, such as next-gen datacenter, cloud computing and mobile, continue to be catalysts for increased deal activity in the Technology sector. The over-arching theme is the migration to cloud computing. We believe we are at the very beginning of a ~20 year cycle which will be just as transformative as the prior shift from mainframe to client server. As we saw in that cycle, it is imperative for the mega technology vendors to transform themselves or risk becoming obsolete (as many did). For many large vendors, organic activity alone is simply not creating enough innovation to keep up with this transformation. As a result, larger vendors are looking to M&A. There is intense competition among vendors and virtually unlimited capacity to complete deals given the massive cash balances and broad availability of capital. These trends are driving higher premiums and competitive bidding for the most strategic assets. IT Capital’s IT Strategy Group serves as a strategic advisor to companies across the technology landscape and has advised on several landmark M&A transactions. Our Global team is committed to working with both larger technology vendors and emerging disruptors in a variety of capacities including buy-side, sell-side and private capital advisory. The biggest differentiator between IT capital and other private equity firms is our in-house operations team. We're able to complete due diligence more quickly, and with much more confidence. And we are 'technology only' investors.

Naples, FL - September 26, 2011 by Charlotte Luer

1. IT Capital hosted another one of The Naples Technology Group (TNTG) Think Tanks today in Naples FL, Aivars what was the Genesis for organizing the Think Tank?
South West Florida is a truly unique ecosystem of technology innovation, and we’re eager to show our continued support through The Naples Technology Group Think Tank. IT Capital’s Technology Advisory team works with executives from leading companies across the technology landscape. At the same time, our portfolio companies realize that technology investments are a key driver of growth and operational improvements. TNTG Think Tank is an opportunity for IT Capital to showcase proprietary resources across the firm including our Operating Partners, CIO network, Advisory Board and client network to create an interesting environment for collaboration. The forum is designed as a gathering of peers, enabling them to interact and exchange ideas with one another in an engaging and stimulating setting. Participants discuss and share best practices, stay on top of emerging technology trends and collaborate on strategies for future investments. IT Capital is committed to staying at the forefront of technological innovation and we are excited about the emerging disruptive companies and technologies that are partners and are associated with the TNTG.

2. How does the TNTG benefit the CEO’s from IT Capital Portfolio companies who attend?
One of the many goals of TNTG is to highlight emerging technology trends and IT’s evolving role in achieving business goals. Our Partners benefit from a valuable opportunity to gain insights into strategic business and technology issues, and hear from companies that are at the forefront of enterprise IT innovation. We believe that the Enterprise IT landscape is undergoing a transformational shift with the emergence of technologies such as cloud computing, and the TNTG is designed to address the implications for organizations and discuss how to best architect their business strategies utilizing the technology in the future. We are sure that our partners can leverage these insights as they select vendors for various internal projects, deploy IT enabled solutions and analyze the longer term priorities that will drive growth and efficiency at their respective organizations.

3. The TNTG is made up of successful entrepreneurs that have already created successful technology companies that have left an indelible mark on the industry that they participate, in most cases leading business disruption through technology in their industry. Can you talk about what these companies will gain from attending the TNTG Think Tank?
Technology companies that will attend the forum will enjoy featured visibility in front of some of the leading Technology business minds on the planet. As you might know, IT Capital's combined portfolio makes it one of the most diverse software only investors on the planet, therefore participants have the opportunity to present their ideas and solutions and have engaging discussions with some of the leading business minds. We believe that the companies attending are at the forefront of the type of innovation that will transform the enterprise IT landscape for decades to come and we want to provide a forum for them to showcase their disruptive products and services.

4. Can you give us any insights into next generation enterprise IT trends and other hot topics that you anticipate driving the conversation during TNTG Think Tank sessions?
While there are a lot of disruptive IT trends that are emerging, we think Cloud Computing and Mobility are two themes that are driving a profound transformation for the future of enterprise IT. Cloud Computing is a ‘once-in-several-decades’ shift in the IT landscape. It is changing the way we design and manage data centers and applications, how IT departments deliver capabilities to users, and how users access, select and interact with applications. It’s enabling entirely new applications and capabilities that didn’t exist just a few years ago. We are active participants around Cloud Infrastructure and are currently in the process of establishing 20 exchanges where there have been none in the past across a range of industries, we already have investments in many industry specific deployments as well as the only Enterprise Grade Cloud computing environment. As we enter the post-PC era, mobile devices, whether they are smartphones or tablets, are increasingly becoming ubiquitous in enterprise environments. As a result, we are witnessing a new generation of ‘computing anywhere’ with a mobilized workforce that can be far more productive than ever before. This creates ever greater challenges for IT departments looking to secure and manage an effectively borderless mobile enterprise and an opportunity for software and solutions vendors to address the needs of a mobile workforce. Finally, we will focus on how to think strategically about IT investments, so that IT spending is not just a cost center for companies but a driver of revenue growth and employee productivity. Given the breadth of our private equity portfolio, we’re uniquely positioned to both discover and share best practices here.

5. Can you talk a little about the M&A and consolidation activity you are seeing in the technology sector?
Many of the trends we will discuss at the forum, such as next-gen datacenter, cloud computing and mobile, continue to be catalysts for increased deal activity in the Technology sector. The over-arching theme is the migration to cloud computing. We believe we are at the very beginning of a ~20 year cycle which will be just as transformative as the prior shift from mainframe to client server. As we saw in that cycle, it is imperative for the mega technology vendors to transform themselves or risk becoming obsolete (as many did). For many large vendors, organic activity alone is simply not creating enough innovation to keep up with this transformation. As a result, larger vendors are looking to M&A. There is intense competition among vendors and virtually unlimited capacity to complete deals given the massive cash balances and broad availability of capital. These trends are driving higher premiums and competitive bidding for the most strategic assets. IT Capital’s IT Strategy Group serves as a strategic advisor to companies across the technology landscape and has advised on several landmark M&A transactions. Our Global team is committed to working with both larger technology vendors and emerging disruptors in a variety of capacities including buy-side, sell-side and private capital advisory. The biggest differentiator between IT capital and other private equity firms is our in-house operations team. We're able to complete due diligence more quickly, and with much more confidence. And we are 'technology only' investors.

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