Tuesday, June 29, 2004

Boston.com / Business / Technology / Accidental contractor: Groove Networks unexpectedly lands major customer: US government

Boston.com / Business / Technology / Accidental contractor: Groove Networks unexpectedly lands major customer: US government "When he founded Groove Networks in 1997, technologist Ray Ozzie envisioned a target market for its collaboration software: businesses eager to communicate with their partners and suppliers. ''In the founding documents, I don't think there was a single mention of the government," Ozzie admitted.
Today, government represents roughly 40 percent of Groove's sales. Groove software is being deployed by the Pentagon and civilian agencies rebuilding Iraq, and by Department of Homeland Security officials coordinating security for the Democratic and Republican conventions. Defense and security sales are likely to climb in coming years, as collaboration between agencies increases. And with private-sector customers still holding back on technology spending, government sales could represent a growing share of Groove's business mix."

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