Registry Operator's Proposal - BUSINESS CAPABILITIES AND PLAN

D13.1.3. Past business operations/entity history. History, date of formation, legal status/type of entity, initial services, duration of provision of services and products.

Company Overview

WebVision is the successor company to NovaQuest Infosystems, Inc., which was a Network value added reseller founded in 1984. NovaQuest had revenues of $209 million for fiscal year ending September 30, 1998. On December 1, 1998, Novaquest sold the Novell, Microsoft, and other desktop support business unit to Sarcom Inc. and redeployed its resources to concentrate on the advanced IP, e-Business, and other Internet infrastructure support-related business it started in 1996 through a subsidiary named WebVision, Inc.

WebVision provides integrated Internet solutions to both large and medium-sized traditional businesses and institutions and Internet start-ups implementing electronic commerce strategies and outsourcing data storage, access and networking needs. The Company is able to provide a “one-stop” e-commerce solution through its full range of products and services, including sophisticated e-commerce software applications, server hosting in state-of-the-art data centers, and network management and consulting services. The quality of these services were demonstrated when the Company was awarded the best “Information Provider/Integrator” award at the October 1999 Internet Commerce Expo (ICE). WebVision is capitalizing on the rapidly growing demand for Internet and data networking capabilities from businesses and institutions. Forrester estimates that Internet hosting revenue alone, which represents only a portion of WebVision’s Internet solution, will increase from approximately $900 million in 1998 to over $10.5 billion by the year 2002. The Company’s clients typically do not have the resources to develop comprehensive Internet solutions in-house or would prefer to direct resources toward their core business strategies and outsource their Internet needs. WebVision’s primary service offerings include:

E-Commerce Business Solutions. The Company develops and implements Internet-based software applications and strategies supporting advanced transaction and database-oriented e-commerce business solutions, including online auctions, shopping catalogs, and procurement.

Comprehensive Business-Class (“High End”) Hosting Solutions. The Company provides Web hosting services including complete collocation, hosting and communication services and a comprehensive suite of system performance and network management tools that meet its customers’ needs as their Web sites evolve. Hosting services generate recurring monthly charges based primarily on leased space and dedicated bandwidth.

Over 50 companies have purchased the Company’s software application solutions and WebVision currently houses Company owned and customers’ servers and related equipment in its data centers for over 75 companies. The Company’s clients range in size from Fortune 500 companies to Internet start-ups. The Company has spent over four years developing its e-commerce software applications, which are highly scalable and able to run high-growth e-commerce Web sites. In addition, the Company has spent the last two years (i) developing its architecture and support infrastructure for its state-of-the-art data centers and (ii) completing the construction and deployment of two data centers.

Recent Events

• In December 1999, the Company completed a Series B Preferred Stock placement of which $10 million was funded by TL Ventures and SCP Private Equity Partners, both affiliates of Safeguard Scientifics, and $1.2 million was funded by Jefferies & Co. and certain employees of Jefferies.
  
  
• In May, 2000, the Company completed a Series C Preferred Stock placement of which more than $45 million was funded by Freeman Spogli & Co., certain affiliates of Goldman Sachs & Co., TL Ventures and SCP Private Equity Partners, both affiliates of Safeguard Scientifics, Denota Investments L.L.C. and a various existing investors, including Jefferies & Co. and certain of the Series A investors.
  
  

WebVision’s Solution

The Company builds, hosts, and manages high performance business and institutional Web sites. The Company provides complete enterprise-wide end-to-end Internet solutions that enable its clients to meet their electronic commerce, storage management and data, voice, image and video transport needs in a cost effective manner. As Internet sites move from being static information brochures to full-fledged transaction-capable sites, the Company’s products and services will help meet the growing requirement for these industrial-quality Web sites to be quickly up and running, 24 hours a day, seven days a week (24x7). The Company offers a unique blend of technological expertise, partnering ability and under­standing of the e-commerce business models which the Company believes are essential to succeed in this marketplace.

The Company provides the following solutions to its customers:

E-Commerce Business Solutions. The Company develops and implements Internet-based software applications focusing on advanced transaction and database oriented e-commerce business solutions. WebVision has developed expertise in providing business-to-business extended enterprise solutions, which includes auctions, purchasing, bidding, on-line catalogs and online order-taking workflow enhancement software under the “WEBtropolis” suite of products. While the initial WEBtropolis software applications were designed as individual solutions to specific clients’ needs, WebVision allocated additional up front resources to design these applications as a collection of individualized modules, rather than as single integrated solution. For example, the Company's 'Jauctioneer' business object can be imbedded in other products that support Java, JSP, or EJB. The Company believes that its initial investment in this “module-based” approach to application development provides it with significant competitive advantages. WebVision has taken the modular design approach and created 'reusable' software that can be integrated together to create each of its Internet software products. WebVision calls this tool set the WEBtropolis Software Application Development Framework. The following describe competitive strengths of this software:

Open Technology. WEBtropolis is an open technology that is now based on Java and J2EE open standards. This allow integration of products from third-party vendors, giving the Company’s developers a wide range of tools to choose from when developing Web applications. Additionally, WEBtropolis supports advanced browser features such as vended Java applets, Netscape and Microsoft extensions to HTML, and browser support for SSL secured links to a Netscape Commerce server. WEBtropolis offers seamless and dynamic access to multiple servers and clients, irrespective of platform, operating system or database structure. WebVision software allows clients to access data in real time from their existing legacy business applications, rather than requiring the conversion to a new system. Rapid Application Development. The WEBtropolis Framework allows developers to deliver applications in days instead of “man years” due to the rapid application development methodology. Because the company maintains an inventory of interchangeable software modules, application development is primarily composed of linking necessary modules rather than developing a complete application or customizing a monolithic existing application. WebVision has simplified the process even further by developing a simple interface that eliminates much of the need to re-code programs on a line by line basis.

Leverages Existing Knowledge of Corporate Databases. The Company has a strong understanding of database structure which is at the heart of any enterprise mission critical business application. The Company’s database technology allows current information to be presented on the Internet with the ability to access complex data types such as multimedia that create a more exciting and informative experience to Web site visitors. As part of its WEBtropolis framework, the Company has individual modules that provide direct access to most widely used databases including Oracle, Informix, Sybase, Microsoft Server and IBM DB2.

Comprehensive Hosting Solutions. The Company is able to provide Web hosting services, including complete collocation, hosting and communication services, that meet its customers’ needs as their Web sites evolve from low-end marketing brochures to more complex, interactive Web sites and finally to applications that are integral to their businesses. The Company’ s iComSuite application hosting services provide Web server and systems collocation services, high quality Internet access, Web server hosting, Web-site hosting and Web-services management, and application outsourcing, which can provide its customers with continuously available remote access to applications and data that are mission-critical. Finally, the Company offers a broad range of enhanced Internet services such as storage, e-commerce capabilities, multimedia hosting and community hosting. WebVision maintains a state-of-the-art data center in Torrance, California from which it currently provides Web hosting services. This facility features approximately 26,000 square feet of raised floor, separate and redundant fiber and power connections, server quality cooling systems and an un-interruptible power supply (“UPS”) system. Because quality and security are paramount concerns for the Company’s customer base, this facility is staffed by both engineering personnel and security personnel 24x7. A full service NOC is located in this facility. This NOC is used to manage the Company’s entire network. This NOC is also used to manage client equipment located in a WebVision data center, as well as to manage remote client equipment located at client-specified locations. This NOC currently manages data traffic between the Torrance, California data center and WebVision’s main satellite data center in Rancho Cucamonga, California and can be used to manage future data centers. The Company’s network is able to transport data in both ATM and IP protocols, which will allow the Company further flexibility as the global telecommunications market progresses towards a fusion of data and voice traffic. In addition, the Company recently acquired a facility in Raleigh, North Carolina, which will serve as an additional data center for the Company's operations.

Network & Systems Management Solutions. WebVision has assembled best-of-breed network & systems monitoring and management tools to deploy both 'proactive' and 'reactive' management performance reporting software and offers this product suite under the brand name ManagePoint. ManagePoint is an integrated solution comprised of “best-of-breed” point solutions fully integrated into an “event correlation” and “business process” bound database and alert system. The software’s strongest feature is its ability to collect and consolidate events from several components into one central database. These events are then sorted based upon urgency by a business process engine which uses rules defined in a specific business model. Meaningful results are then made available from the Java-based database in the form of reports as well as statistics and views that can be accessed from the Internet via any Java-capable browser.

Consulting Services. WebVision consultants use a standardized methodology to learn each client’s individual needs and to develop an Internet strategy that addresses a Company’s project definition, functional specifications, application design, programming and coding, quality assurance, implementation, and security issues. This service allows WebVision to successfully integrate the products into the customer’s existing information infrastructure and provide the project management to assure completion within the specified budget and timeframe. The Company’s consultants maintain close continued contact with clients after completion of each project so that they can be ready to quickly respond when clients want to enhance or modify their sites.

Cost Savings. The Company’s customers benefit from its focus on hosting and the capital and labor investments that the Company has made to support hosting and enhanced Internet services solutions. For customers to replicate the Company's performance and reliability, they would be required to make significant expenditures for equipment, personnel and dedicated bandwidth. This is especially relevant with respect to the Company’s e-commerce solutions and network management software. The Company believes that its hosting solutions are significantly more cost-effective and reliable than in-house solutions, both for businesses with low-end application requirements and for those businesses whose Internet operations are mission-critical and require sophisticated application support.