News and Features
Phorum 2012 conference focuses
on today’s hottest IT trend
National cloud conference March 28 in Philly
These days, CEOs, CFOs and CIOs who have their head in the clouds are hardly daydreaming. In fact, they have a firm grasp on reality. One of today’s hottest technology trends, cloud computing, is changing the way people do business, store information, access that information and share it with others.
What is cloud computing? “Simply put, it’s a way of using software over the Internet as opposed to installing and running it on your own computer,” says Bob Moul, a Director on the Board of the Greater Philadelphia Alliance for Capital and Technologies (PACT) and the former CEO of Boomi, now Dell Boomi, the creator of AtomSphere, a cloud technology.
There are numerous reasons why companies are studying cloud formations. “The primary drivers are the promise of lower total costs of ownership and the efficiency — greater ease of use,” says Brian Hughes, a partner at KPMG, an audit, tax and advisory firm.
19th Annual Enterprise Awards finalists named
Top technology, life sciences, medtech,
and cleantech companies and entrepreneurs
to vie for top honors at ‘Academy Awards of Business’ gala
An esteemed panel of judges has selected finalists in 10 competitive categories and three medtech honoree categories for the 19th Annual Enterprise Awards from hundreds of nominations. Winners will be announced at the springtime Enterprise Awards gala on Thursday, May 3, at The Hilton Philadelphia City Avenue Hotel. The black-tie event has been called the “Academy Awards of Business.” Click here for ticket and table reservations.
Meet the 2012 Enterprise Awards finalists …
Save the date for the second annual PACT Foundation Luncheon
Plans for the second annual PACT Foundation Luncheon are well under way. The June 6 event will be held at the Hyatt at the Bellevue in Philadelphia, from 11:30 a.m. to 2 p.m.
A panel will feature moderator Sal Paolantonio, National Correspondent, ESPN, along with panelists including Phil Martelli, Head Coach, St. Joseph’s University and John Giannini, Head Coach, LaSalle University. More speakers will be announced soon.
A portion of the proceeds from the luncheon will go to the PACT Foundation, a 501c3 focusing on education in STEM subjects (Science, Technology, Engineering and Mathematics).
There’s an app for that! —
FDA plans to regulate certain
mobile medical applications
The Food and Drug Administration (FDA) has cleared several mobile medical applications (mobile medical apps) through the 510(k) process and is taking action that is expected to further impact a variety of industries developing, marketing and selling products used in a mobile health environment. The FDA’s Draft Guidance for Industry and Food and Drug Administration Staff- Mobile Medical Applications, initially released in July 2011, is expected to issue in final form in early 2012. (Food and Drug Administration, Draft Guidance for Industry and FDA Staff, Mobile Medical Applications, 21 July 2011 — hereinafter Draft Guidance.) The draft document describes how the Agency intends to apply its regulatory authority to the rapidly growing area of mobile apps and outlines a targeted group of mobile medical apps over which it intends to exercise regulatory oversight, with a focus on those mobile apps that present the greatest potential risk to patients if they do not work as intended. Notwithstanding certain ambiguities, the draft guidance provides useful information, including a lengthy appendix, and is, for now, the best source of the FDA’s current thinking on the topic. Highlights are set forth below.
Mobile medical apps — regulated, not regulated or subject to FDA discretion
According to the draft guidance, the Agency intends to exercise regulatory oversight over a mobile medical app that meets the definition of a medical device as defined in Section 201(h) of the Federal Food Drug and Cosmetic Act (FDCA):
Break out the bubble(ly)
… before it bursts
Social media: The rapidly growing testament
to an industry bubble
Social media companies are fueling an industry bubble, and as shown by the recent IPOs and current valuations, it will burst. There’s no doubt that companies like Facebook, Zynga, Groupon and LinkedIn offer advertisers a vehicle to get in front of many potential customers. For instance, Facebook indicates that it has 845 million active users, Groupon has 115 million, LinkedIn has 135 million and Zynga has 227 million.
These numbers are astounding by any measurement.
However, these companies’ market caps, such as Groupon’s $13 billion, Zynga’s $8.6 billion, LinkedIn’s $7.45 billion and — drum roll please — Facebook’s $102.6 billion valuation as of February 9 — assume continued astounding expectations for its earnings growth rates. In the one week since filing its IPO, Facebook’s privately traded shares rose in value by 10% to reach that $102.6 billion. Let’s look at what that means: A P/E of 102.6 and valued at 27 times trailing 12-month sales.
Richard Waters of the Financial Times wrote of Facebook, “While up 69% from a year before, advertising growth slowed sharply from the growth of 145% the year before. For a company whose shares will trade on expectations of continued sky-high growth, any further signs of deceleration will be scrutinized closely in coming quarters.”
It is not possible for these earnings growth rates to continue as quickly as the market is anticipating and upon which it is basing its valuations. These company valuations are based on unattainably high earnings growth rate expectations, echoed by Ryan Jacob, a U.S. Internet fund manager when he said, “To get comfortable with the valuations people are talking about, you have to be assuming they will develop other revenue streams.”
Mobility minefields: Keeping your business out of the danger zone
Mobile devices, such as smartphones, tablet computers, thumb drives and laptops, are now essential business tools for companies to sustain productivity, flexibility and profitability. In today’s business climate, consumerization of mobility is the trend — meaning that the mobile device remains the property of the employee while the business data on the device is company property. Businesses can now elect not to issue company-owned devices that they must buy, track and recover from employees. If you’ve ever tried to recover a device from a recalcitrant ex-employee, you know it can be painful. The big picture quandary has become: how does a business harness the power of smart devices without also taking on the “lose-your-job” risks associated with loss of confidential information, loss of data or even the creation of a wormhole into business systems?
The features and capabilities of handheld or tablet mobile devices have advanced to the point that they function as handheld computers. Employees often complete tasks and manage sensitive information outside the typical office setting. While that can be good for output, it can create exponential risks in terms of data security. As mobile devices become more powerful, information that previously did not leave the internal network is making its way outside the safety zone. At that point, data becomes more vulnerable to device loss, theft, viruses and keystroke logging. Hackers have realized that mobile devices are easy targets and have been shifting their focus to attacking mobile devices. Unfortunately, many businesses still devote the majority of their IT security budget to developing, testing and improving the firewall for their local area networks (LANs). This is a dated approach and can result in underdeveloped security tools for mobile devices.
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Click here to view news from the companies below.
Ben Franklin Technology Partners of Southeastern PA
Fish & Richardson
ICG Group, Inc.
University City Science Center
The Greater Philadelphia Alliance for Capital and Technologies welcomes these new members:
Bernstein Global Wealth Management CADD Edge, Inc.
FMP Media Solutions
Hercules Technology Growth Capital
IPQ Analytics, LLC
Johnson and Johnson
Newmark Knight Frank
TriNet HR Corporation
imPACT Times is published four times a year as a service to members of Greater Philadelphia Alliance for Capital and Technologies (PACT), as well as those who actively participate in the business, life sciences, investment and technology communities in Greater Philadelphia
Publisher: Dianne Strunk, Vice President of Business Development, PACT
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imPACT Times Editorial Advisory Board
Carter Caldwell, Principal, Cross Atlantic Capital
Carl Cherkin, Vice President,
Business Relations, Philadelphia Union
Mel Dittrich-Martin, Business Development, Advanced AV
Jane Hollingsworth, CEO, NuPathe
Jeffrey Lipson, CEO, Sabre Source
Mike Persiano, VP Marketing, iPipeline
Mary Alexandra Regan, Director of Practice Development,
Julia Rafferty, Stradley, Ronon, Stevens and Young LLP
Kimberly Rhodes, SVP Strategic Initiatives,
General Counsel & Secretary, Fiberlink Communications
Nick Spring, CEO, Rainbow Pharmaceuticals
This publication is distributed with the understanding that neither the publisher nor any other party is rendering expert advice. If expert assistance is required, seek the advice of a competent professional. ©2012 Greater Philadelphia Alliance for Capital and Technologies, 200 South Broad Street, Suite 700, Philadelphia, PA 19102-3896