What Fastest growing S/W companies have common today? A Case Study

The statistics keep changing so is market capitalization and hence so is market reality? What trends we see today software industry is following:

There are phases in life of company and market..One day we see the shares of one company rising 30%…but is it  able to sustain momentum? Company which does consistently good over period of time is winner. There is no thumb rule as such but it depends on environment time and technology evolution.

When i see today? % change in valuation fastest growing company i see today?

Authenticate Holding Corp: So What makes its share go on rampage today? what it does? Does its business make it hot? 

Authentidate Holding Corp. (Authentidate) is a provider of secure health information exchange, workflow management services and telehealth solutions. Authentidate and its subsidiaries provide software applications and Web-based services that address a variety of business needs for its customers. The Company’s Web-based services are delivered as software as a service (SaaS) to its customers interfacing seamlessly with billing and document management systems. These solutions incorporate multiple features and security technologies, such as rules based electronic forms, intelligent routing, transaction management, electronic signatures, identity credentialing, content authentication, automated audit trails and remote patient monitoring capabilities. Both Web and fax-based communications are integrated into automated, secure and trusted workflow solutions.

Yes we see good Trends there?Fundamental Analysis: Health reforms makes it good contender for company in demand.Also it has latest good in demand SAAS model. but only today share bounced what has happened over year? Financial indicators down share value down.

But when I see financial indicators :

Key stats and ratios

Q2 (Jun ’11) 2011
Net profit margin -274.01% -242.79%
Operating margin -274.01% -255.85%
EBITD margin -218.03%
Return on average assets -62.81% -43.25%
Return on average equity -153.35% -73.09%
Employees 37
Carbon Disclosure Rating
So we can see though comapany is in good business but still it cannot make up as growing company over period of time.
But is share has risen today due to News that it will grow 9% upto 2020. Is it hot? In my view its not?
What is hot for long term which can grow fast is company with sound business and technology + vision? what vision it brings make it hot? Microsoft beat IBM, Google beat Microsoft, Apple beat everyone all due to vision:
Let see such companies:

Some company grow fast and continue to grow because they have somthing in store for future…there valutations are not dependent on current technology but about future…

see details what concur and Salesforce combination can do..concur has nearly all airline as its customer.. http://www.concur.com/

Though the business in old but why is it hot? 1. latest technology : SAAS/cloud computing  but industry is still old and many players:Expense Management. Recently, Salesforce.com tied up with Concur for expense managment applications. Salesforce.com Cloud based CRM tool which uses its onw proprietory language for customization of force.com CRM ERP) has tied up with .Both company valuation are high as ever … They also provide SAAS..but not packaged one one that is comming with all ground up technology not dependent on any stack..also with all features of Cloud computing. Also solving latest problems like making ERP in terfaces easy to use configure..reducing TCO by use of virtualisation of datacentre and reducing huge ERP update cycle ..(Read my other blog for more details).All big 4 are responding by   acquiring Cloud companies.

Then I see another set of companies which are driven by what Gartner calls “ability to execute“. companies like microsoft which re-engineer product fast put similar looking product like Junit ( unit testing framework in Java and we have Nunit in .NET) not to say otherwise AJAX was first created Microsoft when it started work on ActiveX objects..but it was exploited by hackers to put any install file on client system.

1999: Microsoft created ActiveX objects.XMLHttp ActiveX control.which was later adopted by Mozilla,firefox,safari,opera as XMLHttpRequest.

Response Microsoft adopted XMLHttpRequest Model in Windows 7.

Java: Applet See the competition: Then came applets by Java which were more platform independent and safe…These allow compiled client-side code to load data asynchronously from the web server after a web page is loaded

Microsoft: Iframe element to HTML which also enabled asynchronous loading.utilized its iframe technology to dynamically update the news stories and stock quotes on the default page for Internet Explorer.Microsoft filed a patent on the basic Ajax technology, which was granted in June 2006, related to ASP.

Google was the first to deploy Large scale AJAX implementation in everything from Gmail, Google maps.

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Same way know Cloud,virtualisation,SAAS but nothing can beat innovation not even if other company is ready to copy it faster..Apple shown it.Now apple is nearly double size of Microsoft. Even when many things microsoft inherited from Apple.

2. Vmware was the first company actually started revolution silently with bare metal hypervisors ESXi and VSphere for managing all virtualisation.We can just copy paste OS into machine just like files.All due to hypervisors. Althought there were Vmware fusion product for non hypervisors..but We cannot get same fault tolerance of dynamic migration of machine. thus defining What we call it IAAS today..it had record valuation at one time. That was vision..It had astonishing financial ratios never dreamt of.

What happen then today Vmware is there are hot but out to hottest list? Reason not taking it to next level. Redhat took it with KVM Kernal based virtual machine. Solaris LDOM..and so on…Now Vmware released PowerCLI and API for developers but race is too fast to be with it.Amazingly it has become 50 billion dollar company. but other are taking lead..It has Lost its ability to execute.Today KVM is beating ESXi.

Vmware ESXi in Red losing to KVM in blue from Redhat

Why SIP is most hot technology in telecom? VoIP and Unified Comunication

VoIP: Voice over IP.

VoIP over business or enterprise class environment important terms used are VOIP server ,VoIP client,CODEC,gateways,lateny QOS,hard phone,soft phone.These are explained with Example below:

VoIP Server: or IP PABX, all traditional phones goes through PABX, data devices transmit real time audio communications use VoIP servers and VoIP gateways are used to connect outside telephone network to VoIP phones using gateways.

VoIP server connected to switch, which connected to router,switch is also connected to client,all communication happens TCP/IP(ethernet network) but if server has Analog port they can also connect to traditional phone directly, communication provide VoIP IP trunk lines (straight over internet) like company called OnSIP,Normal  Phone line can also used if VoIP server has plugs for phone lines.VoIP server replaces PBAX, VoIP server are hosted over internet.(pay for service every month just like gmail)

Avaya ,Luccent ,AT&T ,Nortel : Propertory VoIP service provider

Asterix,SIPx,Switch Fox: Open source VoIP server Providers.(Now avaya and Cisco also joined here through unified communication).

HardPhone Vs Soft Phone:

HardPhone is also computer device which looks like phone(polycom)VoIP telephone which looks like telephone.To configure through web interface. in polycom goto IP address web server which resides over this phone and configure this phone.

SoftPhone are software which lets computer devices make behave like telephone over software.

VoIP server we can create accounts ,by using these user accounts only client can connect to server. you can configure user name and password. and extension on client. User name and password authentication is must.

VoIP account configured over VoIP server validates VoIP client.

VoIP Gateway: helps old PABX telephone system to connect to VoIP server using RJ11 telephone connector to VoIP server Thus old PABX based phones can also send and receive call using VoIP server.VoIP gateway are connected to traditional phone on one end and VoIP server on other.

How to reduce Long distance call cost to remote office using VoIP server?

A VoIP gateway installed in central office.Everyone uses VoIP phone which uses internet connections. Long distance call charges can be reduce. Call gets diverted over T1 line to VoIP server of remote office which connect to VoIP gateway on remote location office thus can connect normal PSTN network locally to connect local telephone lines for local call. Thus gateway help can help call local no. Long distance call comes over internet lines

office like Sears,Jcpenny, Axon ,have facilities distributed across country and world use this method to reduce call rates for long distance call to remote located office across the world.

skype, voip services Gateway specially designed skype voip traffic can be converted normal sip VoIP.

three communication methods possible skype to SIP, SIP to skype,skype to telephone,. etc for all this VoIP gateways are used.

Session Initiation protocol. SIP cisco phone (very costly),polycom, linksys(relatively cheap).SIP is application layer protocol which works over TCP/IP(hence work over TCP,UDP etc.) Why SIP is important? Major manufacturer uses proprietary system/protocol.

if u use Avaya VoIP server/PABX  then u have only use Avaya VoIP phone.Skype uses proprietory protocol if u use skype u proprietory protocol have to use skype protocol built into it.(u have to same server and client). Cisco deals with SIP,Cisco SIP/VoIP phone can connect open free source SIP VoIP server.(Cisco call manager connect to linksys phone,cisco phone to linksys (nortel,avaya use propertery protocol)server.

Codec: Voice traffic is encoded/encapsulate packets . high quality communication then use high bandwidth codec.(determine quality /sound/audio quality of communications).codec determines how much bandwidth is used? VoIP server have built in codec(open source (sound quality good but bandwith utilization is not good)or properitory Codec (sound quality good but bandwidth utilization is good)). $5 per device which suppose google uses 4.5 kbps are high quality.

NETWORK LATENCY or QOS.

QOS:–> telephone + computers over same line then telephone had to given certain minimum bandwith(priorities). Switches and routers you can prioritize traffic for VoIP.

Network Latency: Hosted VoIP server is over internet. Internet network latency should not be very high.

how long it takes for bit to reach from point A to point B.(45 milliseconds average).VoIP (75-100 milliseconds delay).

Unified communication:boundary between telephone and computer is blurring).Softphone on computer why can you have outlook plugin and when u receive mail u can talk to them. So Microsoft acquired Skype. Outlook email can be turned in audio file and vice versa.Outlook click there name and call them software lets u connect to no.(outlook can record them using VoIP server in text u can do google search).

Microsoft+Sype+polycom:

These events highlighted the advantages of using Polycom’s full suite of HD voice, video, telepresence and infrastructure solutions that will natively integrate with the UC solution from Microsoft Lync.

Polycom solutions integrate with Microsoft Lync without gateways, making them easy to deploy, manage, and use. Company offers a complete line of standards-based, fully interoperable voice, video, and telepresence solutions for the Microsoft UC platform, which includes Microsoft Lync, Microsoft Exchange Server, and Microsoft SharePoint Server.

With Microsoft and Polycom, people can now communicate using familiar applications, adding rich voice and video to IM, e-mail, calendars, and more. Polycom voice and video solutions – for Microsoft Lync – support system-wide secure authentication and media encryption, securing calls inside and outside the network. With Microsoft’s Active Directory® solution, people have access to a common directory across Microsoft applications and Polycom solutions, reducing the time and effort required to deploy and manage communications. The joint solution enable life-like communications in enterprise and business-to-business (B2B) environments.

Avaya another major player in voice market announced server to unify communications via SIP in march 2009

Avaya is announcing at VoiceCon Orlando a new server that connects disparate SIP-enabled PABXs into a single system with global dial plans and call routing – a cost-saving first step toward rolling out corporate-wide unified communication.

Avaya Aura Session Manager can enable centralized control of voice, video, messaging, presence and Web applications that the company says can be rolled out quickly to the largest corporations.

Aura architecture can link individual user profiles to sets of communications applications to extend the benefits of unified communications across the business, the company says.

But initially, businesses can use Aura Session Manager to save money by unifying their disparate multi-vendor PABXs. As long as they are SIP capable – and this includes TDM PABX with SIP gateways – they can use SIP trunking to connect all corporate sites. The Aura server can route calls across the network, generating savings on inter-site toll calls.

Aura will work with certain Cisco and Nortel PABXs.

Tied in with Avaya Communication Manager (now Aura Communication Manager) the new Aura Session Manager server can coordinate voice and video features and make them available via SIP across the business network.

Avaya SIP session management to ensure it works with SIP trunking services from AT&T, Orange and Verizon

Avaya Voice Portal software  helps in improve call handling in contact centers after-hours call going to voicemail, Session Manager routes it to a voice portal where the caller can order supplies all using SIP.Scaling up is very easy in VoIP over SIP servers.