Mr. Douglas: WARP is a company that specializes in delivering application acceleration technology for the Global 2000/Fortune 500 market. Companies that are running Web-enabled applications, such as BEA Weblogic or IBM WebSphere, for example, typically have needs for technologies that accelerate the performance of these applications. So we deliver a hardware-based appliance that actually speeds up transaction delivery over the Internet.
TWST: Give us some examples of these applications and describe
the product and what it accomplishes.
Mr. Douglas: Basically, we have Web applications that are
deployed over the Internet. One of the most recent statistics I
read is that 55% of corporations are deploying Web-enabled
applications, traditional applications like enterprise resource
planning, CRM, enterprise-wide portals, supply chain management,
etc. on the Internet. And the way this is done is that these
technologies are being used by companies and products, such as
Web-enabled PeopleSoft or SAP, as well as some of the traditional
application server products like IBM WebSphere, Sun iPlanet, BEA
Weblogic and Oracle. So those are the leaders in the market.
There is actually over $2 billion per year being spent on those
types of application server technologies. What WARP sells is two
hardware products, which we call the 2063 and the 2063e. They are
two u-rack mounted router-like devices that get installed in the
data center, and what these products do is to monitor what's
happening at the application server and data server levels of
these Web applications. They leverage the principle of repeat use
of same data to serve new traffic. For example, a user might go
into an auto part supplier's supply chain management system and
looks up pricing information on the latest motor ' large
companies will have this request happen thousands of times, just
in the course of a single business day. With today's
infrastructure that request comes through the data server layer
and the application server layers, very expensive layers for
processing data. With the WARP appliance, essentially they can
reduce the processing time and also the processing cost. So the
2063e is deployed in the Internet, and those are the two main
products. We also have a software technology that accelerates
the Web server layer as well, and that's our Spider Web product.
Spider Web is designed to offload complex processing at the Web
server layer as well, so the combination of these technologies
really comprises the firm's overall application acceleration
technology suite, which we call our global transaction enabled
network (GTEN).
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