Nashville Technology Council

The Nashville Tech Story (9/1/2009)

Your child or the one you love is running a dangerous fever and is showing signs that he/she may have contracted the ever dangerous H1N1 virus, better known as the “swine flu.”  As you rush to the physician’s office your thoughts are constantly racing, hoping that it is just a run-of-the-mill virus.  Having gone through this experience a few hours ago, the “what if” scenarios kept running through my mind as I rushed my daughter to the pediatrician.  Once all was clear, I really had a moment to think about the implications if the test had shown a positive result.

The swine flu particularly in children can be deadly, but left untreated, could be deadly for anyone of us.  The United States is one of the most technologically advanced societies in the world today, so what role does technology play to combat this potentially life threatening disease?

Being the hardest hit country in the world, a team of Australian scientists, along with the help of a federal grant from their government, has developed a new technology called the Nanopatch.  This potentially could eliminate some of the major problems associated with the vaccination of millions worldwide.  The goal of the Nanopatch project is to target long term protection, similar to that of the annual flu shot, which calls for seasonal vaccinations. 

The patch ignites immune cells found under the surface of the skin.  This, in turn, initiates a powerful immune response from the body, while using considerably less vaccine.  Producing the Nanopatch is significantly cheaper than the use of a syringe or needle.  The reduction in cost is based on the Nanopatch using less of the vaccine and the elimination of expensive syringes, needles, and the appropriate means of disposal.

While this new technology is still in the testing phase, the increase in reported H1N1 flu cases should drive the production of potential weapons to treat this virus to a new level.  As the swine flu continues to make its best attempt to steal the headlines, the common seasonal flu symptoms now take priority in early treatment and detection.  As in Australia, the use of the Nanopatch and the hope that the United States will see some relief could still be a few years away.

The Nashville Tech Story (8/31/2009)

As the economy slowly begins to stabilize and take an upward swing for a change, the world is looking to find new ways to save money.  As witnessed in our blog posting last week, the Pinnacle building in Nashville and the Willis Tower in Chicago, formerly known as the Sears Tower, have taken an aggressive approach using “green” technology to create long term savings.

While all of the improvements are being made, a lot of focus has been put on the use of large turbines to utilize wind power to save cost.  However, another type of power that has lost some attention is the use of solar energy.  At least, that used to be the case.

Industry experts are reporting that the reductions in solar power costs are expected to not only drop, but decrease significantly.  The downside of using solar power has always been the extreme expense of installing solar panels for collecting and transferring energy into the home or business.  Materials and installation expenses are one of the main reasons for the anticipated savings, with projections dipping nearly one-third less than current costs over the next several years. 

For residential buyers, a one-third reduction in cost would equal an average savings of $16,000; dropping the normal budget from nearly $24k to only $8k.  Help from state and federal governments has already been seen in the “cost cut” cause, as some residents, like those in California, are eligible for state and federal rebates.  The primary reason for the drop in price is the significant decrease in production costs for solar cells. 

Currently, the use of solar energy is most popular in places like Germany and Japan.  The hope is that the United States government will take the same approach as the Germans.  The German government placed a premium on “green electrons.”  They have developed a policy that pays solar energy producers a fixed amount of money per watt at a rate guaranteed for 20 years. 

This is great news for solar power investing homeowners, who have been given the ability to generate a healthy rate of return from their solar energy investment.

One of the main concerns on our home soil is that rolling blackouts continue to effect the Southwestern United States and a substantial investment in solar energy should alleviate the problem.

Nashville Tech Story (August 28, 2009)

Is there ever a time when someone can have too much power?   Well the developers at Power.com are working hard to provide a powerful social media tool that allows the user to track all of his/her social media accounts in one place. 

There are other applications out there that are slicker and allow you to track your social media presence, but require the opening of multiple tabs in your browser.  The marketing on this says that it will help consolidate all communications, calendars, and social networks.  It fell short of expectations, but if you are a power user on social networks, you might find some value in logging in once to access all of your sites.  It was a pleasant surprise to find Hi5 included in the social nets as well.

Interested in learning more?  Visit www.power.com

Inc. Magazine Unveils Exclusive List of America’s Fastest-Growing Private Companies—the Inc. 5000
California tops the Inc. 5000 with 612 companies; Texas places second with 393, followed by New York (263), Florida (263), and Virginia (261)Insurance ranks as top growth industry; health now top employerAmid recession, Inc. 5000 companies generate $214 billion in revenue; responsible for creating more than 1 million jobs since their founding

NEW YORK, August 12, 2009 — Inc. magazine today announced its third annual
Inc. 5000, an exclusive ranking of the nation’s fastest-growing private companies. The list represents the most comprehensive look at the most important segment of the economy—America’s independent-minded entrepreneurs. Consumer electronics maker Vizio, Internet giant GoDaddy, rental car service Zipcar, and beverage maker Honest Tea are among the prominent brands featured on this year’s list.

The 2009 Inc. 5000, unveiled today on Inc.com, serve as a unique report card on the U.S. economy. Despite the ongoing recession, aggregate revenue among the companies on the list actually increased to $214 billion, up $29 billion from last year, with a median three-year growth rate of 126 percent. The Inc. 5000 are responsible for creating more than 1 million jobs since their founding, making the list perhaps the best example of the impact private, fast-growing companies can have on the economy.

This year’s list also offers a preview of which industries are poised for growth in coming years. With an average growth rate of 667 percent, Insurance ranked as the top industry overall. Government Services was the top industry gainer with 252 companies on this year’s list, up from 135 last year. Health is the top industry by both total revenue ($22.7 billion) and total employment (156,223 jobs).

Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found on Inc.com.

“Savvy trend spotters and those who invest in private companies know that the Inc. 5000 is the best place to find out about young companies that are achieving success through a wide variety of unprecedented business models, as well as older private companies that are still expanding at an impressive rate,” said Inc. 5000 project manager Jim Melloan. “That’s why our list is so eagerly anticipated every year.”

The Hottest Regions for Fast-Growing Companies

Once again, California tops the Inc. 5000 with the most companies of any state with 612. The Golden State is followed by Texas (393), New York (316), Florida (263), and Virginia (261). All 50 states, plus Washington, D.C., and Puerto Rico, are represented on this year’s list.

New York boasts 371 Inc. 5000 companies, making it the top metro area, followed by Washington, D.C. (317), Los Angeles (253), Atlanta (209), and Chicago (203).

The Inc. 5000 at a Glance

Bolstered by this year’s No. 1 company, Northern Capital Insurance, Insurance emerged as the top industry, with an average growth rate of 667 percent. Other strong performers include Energy (523 percent) and Government Services (491 percent).

In total, the companies on the Inc. 5000 have created more than 1 million jobs. Health is the top employer with 156,223 jobs, followed by Business Products & Services (122,911), IT Services (89,632), Food & Beverage (86,572), and Construction (65,494).

IT Services had the most companies on this year’s list with 658, followed by Business Products & Services (502), Advertising & Marketing (398), Construction (354), Manufacturing (342).

Topping this year’s list is Northern Capital Insurance, a Miami-based firm that is helping to revolutionize Florida’s ailing insurance industry. The company generated $95 million in revenue in 2008 and an impressive three-year growth rate of 19,812 percent.

The top woman-owned company is P3S (No. 17 overall), a San Antonio–based firm that provides IT network security and physical security services, mostly to the Defense Department. P3S, owned by Mary Ellen Trevino, recorded revenue of $13.5 million in 2008 and a three-year growth rate of 5,898 percent. The top minority-owned company is Harley Stanfield (No. 3 overall), a Washington, D.C.–based real estate investment firm that buys existing properties, makes them energy efficient, and then resells them as investment properties. Harley Stanfield, founded by Cedric Franklin, posted revenue of $38.4 million in 2008 and a three-year growth rate of 13,350 percent.

The Inc. 5000 posted an aggregate revenue of $214 billion in 2008, up nearly 16 percent from the previous year. The top five industries by total revenue include Health ($22.7 billion), Business Products & Services ($19.6 billion), Construction ($18.8 billion), Energy ($14.7 billion), and IT Services ($13.2 billion).

The Nashville Tech Story (8/27/2009)

Last month, the Willis Tower in Chicago, known as the center of renovation, caused shockwaves throughout the world with the announcement to “go green.”

Being the tallest building in the United States, the skyscraper formerly known as the Sears Tower, is a national icon. With these renovations they are working to show how a few changes can save natural resources.  Estimates put the project at approximately $350 million dollars and will include the following changes:

• Installation of solar panels to heat water used in the building.
• Efficiency improvements to the building exterior and windows, reducing energy use by 50%.
• Implementation of fuel cell technologies that will generate electricity, heating, and cooling.
• Elevators will be modernized to reduce energy consumption.
• Plumbing upgrades to restrooms and recovery systems for condensations, which could save almost 24 million gallons of water per year.
• A lighting control system will be added that recognizes the amount of sunlight in a room and dims the lighting accordingly.
• Wind turbines will be placed on the 90th floor to create an efficient energy source.  
• A “green” area will be developed to include plants that can survive high-altitudes and they will be used as a test to see if they can reduce storm water runoff and help with the urban heat island effect.

The upgrades will reduce energy use by 80%, which averages out to 68,000,000 kWh per year or the comparable of 50,000 barrels of crude oil. The updates are in progress and due for completion in four short years.

Other icons that have become more economically friendly include the Empire State Building, and coming soon, Nashville’s newest skyline addition, the Pinnacle at Symphony Place.  Due to be completed by November of this year, the Pinnacle will be the first downtown building to gain the LEED Silver Certification, which is a national standard measuring a building’s environmental friendliness. 

With the Pinnacle building making a strong statement locally with its environmentally conscious design and the statistical advantages shown by the current improvements being done on the Willis Tower, the hope is that others will follow in their footsteps.  The costs of creating of more environmentally friendly buildings can be relatively high in the short term, but the long term financial savings and the reduced strain on the environment are well worth the investment.

Nashville Technology Council member companies Pinnacle Financial and Bass, Berry and Sims PLC will be two of the most highly recognized companies to take up residence in one of Nashville’s first environmentally friendly masterpieces. 

For more information on the Pinnacle at Symphony Place, click here.

NASHVILLE, Tenn. – Leadership Health Care (LHC) has announced its 2009-2010 board leadership and has appointed 14 new board members. All terms took effect on July 1.

An initiative of the Nashville Health Care Council, LHC fosters the talents of Nashville’s next generation of health care industry leaders by creating educational, networking and mentoring opportunities for LHC’s more than 500 individual members.

Nashville is recognized as a health care industry capital and is well-known for nurturing dynamic, innovative health care companies. Decisions made by Nashville’s health care executives are impacting the delivery of care nationwide and their expertise is being tapped during the nation’s current health care policy discussions.

Bo Bartholomew, president & CEO of PharmMD, serves as chairman for 2009-2010, and Melissa Waddey, COO, Summit Medical Center, HCA/TriStar Health System, is vice chair.

“LHC members have a common passion for the continued growth of Nashville’s health care industry,” Bartholomew said. “I look forward to working with our new LHC Board members and the Health Care Council to further Nashville’s reputation as the nation’s health care industry capital.”

The following new members joined the LHC Board: Clint Adams, chief accounting officer, Ardent Health Services; Kelvin Ault, vice president, Tax, Vanguard Health Systems; Chris Bangerter, corporate compliance officer, LifePoint Hospitals; Laura Beth Brown, president, Vanderbilt Home Care Services; Molly Cate, partner, Jarrard Phillips Cate & Hancock; Sarah Cook, director, Account Management, Healthways; Leon Dowling, founder & CEO, IMI Health; Ryan Doyle, manager, business development, Health Care REIT; Jim Kinser, regional director, provider networks, BlueCross BlueShield of Tennessee; James Lakes, senior industry solutions strategist, Healthcare Providers, Microsoft Corporation; Ken Marlow, partner, Waller Lansden Dortch & Davis; Kearstin Patterson, director, Corporate Communications, BioMimetic Therapeutics; and Steve Verner, associate, Gresham, Smith & Partners.

Paul Asper, a student in the Healthcare MBA Program at the Vanderbilt Owen School of Management also joins the group in a one-year student board seat.

“The Leadership Health Care Board truly reflects the diverse nature of Nashville’s health care industry and the wealth of industry talent found here. We are excited to be working with such an active and dedicated group of rising leaders,” said Nashville Health Care Council President Caroline Young.

For more information about Leadership Health Care, please visit www.leadershiphealthcare.org.

###

Leadership Health Care Board of Directors (2009 – 2010)

Bo Bartholomew (Chair)

PharmMD

Melissa Waddey (Vice Chair)

Summit Medical Center, HCA/TriStar Health System

Directors

Clint Adams

Ardent Health Services

Paul Asper

Owen Graduate School of Management,

Vanderbilt University

Kelvin Ault

Vanguard Health Systems

Chris Bangerter

LifePoint Hospitals

Laura Beth Brown

Vanderbilt Home Care Services

Molly Cate

Jarrard Phillips Cate & Hancock

Will Clark

Sarah Cook

Healthways

Leon Dowling

IMI Health

Ryan Doyle

Health Care REIT

Jimmy Evans

Marsh

Neil Heatherly

Community Health Systems

Angela Humphreys

Bass, Berry & Sims

Jim Kinser

BlueCross BlueShield of Tennessee

James Lakes

Microsoft Corporation

Burk Lindsey

Raymond James & Associates

Ken Marlow

Waller Lansden Dortch & Davis

Lisa Nix

Deloitte

Kearstin Patterson

BioMimetic Therapeutics

Kim Ramsey

Dialysis Corporation of America

Carrie Teaford

Baptist Hospital

Sunny Turner

Psychiatric Solutions

Steve Verner

Gresham Smith & Partners

Mark Wainner

AmSurg

Dana Zukierski

Ernst & Young

Ex Officio

Jim Lackey

Passport Health Communications

Caroline Young

Nashville Health Care Council

Past Chairs

Hal Andrews

Data Advantage

Michael Drescher

State of Tennessee

Neil Heatherly

Community Health Systems

Chris Howard

Psychiatric Solutions

Teresa Sparks

Symbion

Paul Wallace

Step Function Partners

Inc. Magazine Honors GlowTouch Technologies on the Inc. 500 List of America’s Fastest-Growing Private Companies

IT Services Company Ranks No. 2 in Kentucky and No. 130 in United States

LOUISVILLE, KY, August 26, 2009 – GlowTouch Technologies, a Louisville, KY-based IT services company, was recently listed as the second fastest-growing private company in Kentucky and the 130th fastest in the nation by Inc. magazine. The magazine also awarded GlowTouch “Top 10 Indian-Run Companies” and “Top 10 IT Services.”

“If you want to know which companies are going to change the world, look at the Inc. 500,” said Inc. editor Jane Berentson. “These are the most dynamic, fast-growth companies in the nation, the ones finding innovative solutions to problems, creating smart systems, and inventing products we soon discover we can’t live without. The Inc. 500 list is Inc. magazine’s tribute to American business ingenuity and ambition.”

Founded in 2004, GlowTouch has grown 1,350.2% over the last three years by providing IT outsourcing services to businesses across the nation. The company’s core service lines include web design, business intelligence, and technical support. Critical to GlowTouch’s success has been their ability to attract and manage high quality offshore technical resources combined with US-based onsite architects and managers. GlowTouch’s growth has recently allowed the company to open a third office in Nashville, TN and to complete construction of a state-of-art, 60,000 square foot development campus in Mangalore, India.

“We are honored to be featured on the Inc. 500 list,” said Vidya Ravichandran, GlowTouch’s President. “For a company that started with very humble beginnings and has continued to grow in tough economic times, this recognition means a lot to us.”

About GlowTouch Technologies

GlowTouch is a well diversified technology resource company with offices in Louisville, KY, Nashville, TN, Palo Alto, CA, and a development center in Mangalore, India. The firm provides turnkey IT outsourcing solutions to small, medium, and enterprise-sized companies nationwide. For more information, visit www.glowtouch.com.

The Nashville Tech Story (8/25/2009)
by Bill Gurley

Many are speculating that the year two thousand and nine represents a fundamental turning point for the venture capital industry. Some are arguing that the industry is in dire straits after years of poor performance. Others have argued that the math simply does not work for the industry’s current size. Another theory suggests that permanent challenges with the IPO market call into question the fundamental economics of the VC industry. Lastly, some credible authors have suggested that things are so bad that a federal bailout may be in order.

What is really happening in the venture capital industry? It is indeed quite likely that the venture industry is in the process of a very substantial reduction in size, perhaps the first in the history of the industry. However, the specific catalyst for this reduction is not directly related to the issues just mentioned. In order to fully understand what is happening, one must look upstream from the venture capitalists to the source of funds, for that is where the wheels of change are in motion.

Venture capital funds receive the majority of their funds from large pension funds, endowments, and foundations which represent some of the largest pools of capital in the world. This “institutional capital” is typically managed by active fund managers who invest with the objective of earning an optimal return in order to meet the needs of the specific institution and/or to grow the size of their overall fund. These fund managers have one primary tool in their search for optimal returns: deciding which investment categories (referred to as “asset classes”) should receive which percentage of the overall capital allocation. This process is known in the financial field as “asset allocation.”

Asset allocation is the strategy an investor uses to choose specifically how to divide up capital amongst asset classes such as stocks, bonds, international stocks, international bonds, real-estate funds, leveraged buys-outs (LBOs), venture capital, as well as other obscure classes such as timber funds.  Some of these asset classes, such as stocks and bonds, are known as “liquid assets,” because these instruments trade on a daily basis on exchanges around the world. For these assets, investors can be quite sure of the exact value of their holdings, as the price is set continuously in the market. Also, if they need to sell, there is a ready market to accept the trade. Illiquid assets, also known as alternative assets, include all the other investment classes that do not trade on a daily exchange. These “private” investments (as compared to “public” liquid investments) are considered higher risk due to their illiquidity, but also are expected to earn a higher return. Some hedge funds are included in alternative assets either because they themselves invest in illiquid investments or because they put strict limitations on the trading capability of the institutional investors, rendering themselves “illiquid”.

Continue Reading →

New Member Spotlight
Amy Lieberg
Crowe Horwath

What brought you to Nashville?
I was relocated by my employer, Crowe Horwath, from Madison, WI to help build our technology practice in our Brentwood office.   About 5 years ago we acquired a local CPA firm and are now working to build our Performance practice in the southern region of the United States.  Our Performance practice provides operational strategy, process design, program management, business advisory, business system implementations, business intelligence and analytics and emerging technology solutions to clients in a variety of industries, targeting manufacturing and distribution, healthcare, government and financial services.

What is your favorite venue to go to in Nashville?
Since I am new in town I have not had too much time to explore yet.  My top picks so far are Sambuca and Criallo’s.  I enjoy live music which is never lacking here.  There is so much to do and see in Nashville.  I am excited about exploring my new home.

What surprised you most about our city?
A wonderful surprise is the city’s diversity and how friendly everyone is no matter where you go.  People go out of their way to help you.  Southern hospitality is like nothing else.

How does the Technology Community here compare to where you lived previously?
The technology community is much larger here than where I lived previously.  Technology opportunities in healthcare are greater.  In Madison there was more of an emphasis in government.  The technology community is well connected and very supportive to those new to the area.

Do you have any recommendations for other technologists who are new to the area?
Get involved in the community and participate in local organizations.   It’s an easy way to get to know people and to build your network.  Don’t be afraid to ask for help.  There is always someone willing to lend a hand.

August Member Notes

Belmont Software Services
Peter Hermann, Managing Partner

How long have you been in business in Nashville?
Since 2006.

What does your company or organization do best?
Belmont SS specializes in providing desktop and data center service automation, virtualization, configuration management, and identity management solutions and software to mid-sized and enterprise local, national and international clients.

What is one interesting fact about your company?
Belmont’s partners were friends in high school.

What new technology product or service are you the most excited about?
We’re most excited about the application and desktop virtualization
solutions we’re providing with InstallFree and our own recently-released enterprise desktop/laptop backup and recovery self-service product.

Who is the most interesting person you have ever met?
I met Wayne Gretzky when I was a youth hockey player.