4th Quarter – October 2010 Rua Alexandre Herculano, 38 • 1269-161 Lisboa - Portugal • Phone: +351 21 310 64 90 / Fax: +351 21 310 64 25 • E-mail: firstname.lastname@example.org www.es-ventures.com Newsletter Cleantech Healthcare IT Editorial problems and, in the process, can grow eight years ago, revolutionizes the way IT at breathtaking speeds, increasing sales, projects are dealt with at mid- and large-sizedJoaquim Sérvulo Rodrigues creating value and employing not only corporations. It has been considered one ofCEO signiﬁcant numbers of people but also highly the most visionary IT companies in the worldEspírito Santo Ventures qualiﬁed people. This is of tremendous value by Gartner and other IT gurus. to society as a whole and, in particular, to the Clients from different parts of the world are regions in which these companies operate. increasingly adopting Outsystems’ “Agile” The media, politicians and economic platform as a means to be able to deliver ITInnovative companies commentators are increasingly conscious projects on budget and on time and, at thecreate wealth. of that fact and, through them, so is society same time, getting rid of the obsolescence at large. Venture capital investing is, in this problem, which is an inherent characteristicPortugal is just one of the many countries regard, a two-sided coin. of the way IT systems are deployed andthat have been experiencing signiﬁcant On one side, we strive to identify, invest in maintained nowadays. This very positivechallenges in terms of competitiveness. These and support the most promising companies development has turned Outsystems into achallenges are exacerbated with stagnant in order to maximize the return on our company that, today, employs over 100 highlyeconomic growth and sizable unemployment. investments. This is the visible side of our qualiﬁed professionals, and generates almostAlthough the way out of these situations activity. half of its relevant sales volume from abroad.encompasses many dimensions, one is On the ﬂip side, we know that by doing that Across the Atlantic, Brazil is a market whichunavoidable: the growing importance of well we are contributing signiﬁcantly to we also believe is likely to produce manyinnovative companies in both jobs and wealth structural economic recovery by helping investment opportunities in the near future.creation. foster the most innovative companies. To give us a glimpse of those opportunities,Wealth cannot be distributed if it is not ﬁrst In this edition of our quarterly newsletter, we invited René Fernandes from thecreated. we introduce you to one of our Portuguese “Centro de Empreendedorismo GetúlioInnovative companies create wealth. portfolio companies which is proof of that Vargas” to share his experience as to howInnovative companies are the ones that ﬁnd development. Outsystems, a Portuguese IT the entrepreneurial mind-set is evolving innew and better ways to address signiﬁcant company, founded by Paulo Rosado some modern Brazil.
4th Quarter - October 2010 - Newsletter - Espírito Santo Ventures 03At OutSystems we are changingthe way companies look at customenterprise software developmentand are providing a new businessdynamic where IT takes a strategicrole in driving business innovation. The Big Idea OutSystems’ founders had previously worked in building and delivering web applications for enterprises in intranet and extranet contexts. More often than not, those projects did not go well. We discovered it was a rare occasion when we could deliver any project on time and on budget. Projects tended to drag on Paulo Rosado through many months and when they were CEO OutSystems ﬁnally delivered, the business had moved on and the application no longer fulﬁlled their core needs. After many unsuccessful attempts to The statement we commonly hear improve the requirements gathering process, is “I like what you are telling me, but we decided to look into the problem from a it sounds too good to be true!” We often different perspective. ﬁnd in our sales process that people cannot Our assumption was that enterprise understand how a company like OutSystems processes supported by web applications are has managed to create such a broad and constantly changing. So when building such unique product, display so many success cases an application we needed to be extremely and solve, in one go, a myriad of pervasive fast and we needed to be ﬂexible enough to problems that have plagued the $800 billion IT correct any bad assumptions made during the industry for years. requirements gathering phase. In order to do that we looked into what it would take to The bottom line, it just sounds make changing software fast and inexpensive, “too good to be true.” effectively removing the cost of “feature creep”.
04 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010OutSystems Introduces for enterprise projects using Agile of a SOA BPM solution by the OMG and otherthe Agile Platform methodologies where constant interaction industry veterans – all built with the AgileThe result was the construction of a between IT and Business is desired. Platform.development platform that could automatethe process of software change in an easy, Today the Agile Platform has over First Customersinexpensive, robust and fast way. The ﬁrst 12,540 installations worldwide and In the ﬁrst years, OutSystems focused onversion of the Agile Platform was released Mobile Telecoms in Europe. At the time, in 2009 was recognized with ain 2002 and paved the way for today’s very the telecom industry was very competitive Codie Award for the Best Softwarerobust application delivery and management and IT departments were subject to anplatform. Development Solution and a unusual amount of pressure to provideOur customers use the Agile Platform to Jolt Award for Enterprise Tools constant innovation and change. These earlyaddress common information technology Productivity Award. This year SD customers brought with them high scalabilitychallenges such as: Times recognized OutSystems and and availability requirements and a zoo of• Implementation of front-end applications the Agile Platform in their Top 100 legacy systems that required fast integration (web sites, intranets, portals, CRMs, etc) that requirements. From 2001 to 2004, the Agile software companies. integrate with existing systems Platform was enhanced with new capabilities• Deployment of complex business processes to address the needs of these early customers that link multiple departments The Platform has also been reviewed across and now is used to deliver extremely high• Replacement of old legacy software systems analyst and end user communities. Gartner performance web applications such as that have reached the end of life recognized OutSystems as the most visionary TravelZoo’s Fly.com and Via Verde’s Customer• Modernization of old software by refreshing company in Magic Quadrant for Application Portal. what they have with a fresh new web 2.0 Infrastructure for SOA Composite Application Today our customers cite the following seven User Interface projects. Numerous industry experts reasons as to why they selected and continue• Companion to SAP implementations have reviewed the platform. Justin James to use the Agile Platform: avoiding the need to customize SAP of TechRepublic titled his second, in depth 1 Fast release time – our customers and assuring that upgrades can still be review, the “IDE of my Dreams”. Just recently, experience projects delivered 5 times faster performed OutSystems’ Dutch customer VanAmeyde than when using traditional .Net or Java• The platform is specially suited was recognized as having the best example development. OutSystems Agile Platform
4th Quarter - October 2010 - Newsletter - Espírito Santo Ventures 052 Predictable outcome – delivery is not only using our unique process based approach Expansion and Growth fast but on-time and on-budget even in that applies a combination of near-shore and OutSystems has aggressively embraced adverse situations. off-shore resources supported by our Agile the Web 2.0 world and invested in scaling3 Keeping the business and IT aligned – our collaboration and management tools. These the business through providing prospective customers deliver exactly what the business processes and tools provide a scalable delivery customers the ability to self educate and wants and respond fast to change requests capability without having to incur large upfront prefer the Agile Platform using OutSystems’4 High Productivity – results in a decreased offshore setup costs while overcoming the web site. Part of this strategy included the project backlog problem of knowledge transfer and team development of our Agile Professional Center5 Architecture Fit – simplify the reuse of turnover. to ﬁle requests and streamline the buying legacy systems (e.g. ERPs) process. These investments are proving to be6 Full control and management - more With 155 customers across 16 successful with OutSystems receiving more visibility and control over the money you are different industries OutSystems has and more incoming requests from all over the spending and the return on your investment world. continued to grow and expand its7 Easy to learn and operate – it is easy To support our growing community customer base around the world. To to adopt by IT and provides ﬂexibility in OutSystems continues to invest in programs team allocation and knowledge retention support the growing customer base to nurture developers and today has an active / transfer. It takes 2 weeks for a new staff in 2008 OutSystems revamped its network of users discussing topics online. In member to get added to an OutSystems channel partner program and today addition, the OutSystems Academy provides team when compared to 6 months for Java has 59 channel partners that provide access to a complete set of training courses to or .Net team. a range of services to support the master our development tools and approach. There are over 550 certiﬁed agile professionals expanding customer base.Serving Customers Worldwide, supporting our growing customer base. Within an Agile Way increased market reach, streamlined salesTo effectively support a growing worldwide processes and strong partner community thecustomer base, OutSystems’ has addressed company is poised to continue growing andthe challenge of delivering applications using capturing market share around the globe.offshore development teams. Today we areable to deliver fast and predictable solutions Agile Platform Interface Some of OutSystems clients
06 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010 SOME NOTES ON ENTREPRENEURSHIP IN BRAZIL Since colonial times, Brazil has always produced entrepreneurs. Brazilians have a long tradition of proactively seeking solutions to their problems and continue to do so today. Since the 80’s, large companies have been drastically reducing employee numbers and entrepreneurship has emerged as a means of people re- entering the job market and creating opportunities for René Fernandes Centro de Empreendedorismo Getúlio Vargas many to come every day to the productive age. According to data from the 2008 Global introducing new products and services, new Another example is the world renowned Entrepreneurship Monitor (GEM), organizational systems, and utilization of new “Buscapé”, a leading shopping comparisonreleased by SEBRAE (a Brazilian Service to resources and material. In 2009, the number website in Latin America, founded in 1999, thatSupport Micro and Small Businesses), Brazil of opportunity driven ventures surpassed those received venture capital investment, boughtranks 13th in terms of entrepreneurship out that were necessity driven. Brazil entered a other companies and was sold to the Southof a total of 37 countries. The GEM report new era characterized by a higher degree of African media group Naspers in 2009 foralso mentions that the rate of “total early- technological innovation and greater growth US$374M.stage entrepreneurial activity” (TEA) in Brazil potential, as can be witnessed by recentwas 12.02, which means that for every 100 examples. In summary, over the past years there haveBrazilians, 12 held some kind of entrepreneurial been many cases of successful companiesactivity. Ahead of Brazil in this ranking are In 2007, “Entrepreneur” magazine published created through opportunity. These companiescountries like the Dominican Republic (20.4%), a report about businessmen that were born will help Brazil to evolve, thus stimulating thePeru (25.6%), Mexico (13.1%), Chile (13.1%) and as a result of business plan competition right environment fostering entrepreneurship:Argentina (16, 5%), where a large amount of programmes. Among them stands Rodrigoinformal economic activity may be found. Veloso, the winner of a business plan incubators are being developed, competition at FGV, called the “Latin Moot schools are changing their curricula,Also according to data from SEBRAE, Corp” (www.latinmootcorp.org). Rodrigo was many venture capital funds areBrazil has over ﬁfteen million later able to implement his plan thanks to starting to operate in the country, contacts that he made initially at the Sãoentrepreneurs that launched their the IPO market is growing and Paulo leg of the competition and then at theown businesses either driven by large companies are looking at new global ﬁnal at the University of Texas at Austin.opportunity or by necessity. Until Soon after arriving at the contest, Rodrigo met investment opportunities.2008, the latter was the most several investors that subsequently introducedfrequent. him to other venture capitalists and angel There are still some regulatory issues, investors. After a little more than two years but these are being addressed and thusIn 1934, the Austrian economist Joseph in business, his company O.N.E. - One Natural the country is now better equipped toSchumpeter identiﬁed the “Entrepreneur” Experience, was already making several million accommodate this new generation eager toas the central character of economic dollars exporting coconut water, açaí juice and become entrepreneurs.development and introduced him as a a few other natural products to the USA, anddisruptor of the existing economic order, by was eventually sold to PEPSI.
4th Quarter - October 2010 - Newsletter - Espírito Santo Ventures 07Recent News YDreams Coreworks (July 23, 2010) (September 10, 2010) YDreams announced Coreworks and Xilinx recently announced the availability of YVision Closed-Beta, a at the IBC2000 conference, the launch of general purpose programming framework, a range of audio codecs supporting Dolby to enable fast prototyping and development Digital, AAC+ for multimedia distribution of multimedia applications using image infrastructure to the home and mobile, Dolby processing, rendering, physics, augmented E for content providers and an MPEG-1 Layer reality, artiﬁcial intelligence and others. II for professional distribution and in-Field YVision Closed-Beta integrates the knowledge Programmable Gate Arrays (FPGAs). that YDreams has been acquiring for almost Coreworks technology allows these codecs to a decade. Currently reserved for a number of be implemented in a single FPGA, eliminating restricted users, the platform will be made the need for DSP farms and reducing power available to the developer community very consumption, costs and increasing the device soon. density. The codecs have been available since October Multiwave 1st, 2010. (September 01, 2010) Multiwave announced the opening of its new Nanosolar North American headquarters, in San Jose, (June 24, 2010) California. This ofﬁce will improve Multiwave’s The Nanosolar Utility Panel (the industry’s ability to support its fast growing customer ﬁrst solar power panel speciﬁcally designed base, and will be reinforced by the presence for utility-scale deployment) made its ﬁrst of the company’s Vice-President for Sales and public debut in June at Intersolar Europe 2010 Engineering Directors. in Munich, Germany. Enjoying a premier display area in Blitzstrom’s exhibit booth, Nanosolar showcased its utility-scale panel as well as a new video depicting footage of a Nanosolar Utility Panel installation in Germany.
08 Espírito Santo Ventures - Newsletter - 4th Quarter - October 2010 Outsystems Spectrum Bridge by up to 600MW. hours per year when fully (August 05, 2010) (July 12, 2010) operational, contributing to the company’s plan The OutSystems Agile Spectrum Bridge to expand global ﬁnal cell annual assemblyPlatform was selected as a Top 20 corporate announced a relationship with GE Energy to capacity to more than 760MW. hours by theapplication in August 2010 by GetApp.com, the offer a new industrial data networking solution end of 2011. The opening of the Livonia factorybusiness software search engine. for use in mission critical applications in the comes just over a year after A123 was awardedThe Agile Platform is a complete solution to Utility, Oil & Gas, Water/Wastewater and Heavy a $249 million grant from the U.S. Departmentdevelop, deploy, manage and change enterprise Industrial markets. of Energy (DOE) as part of the Americanweb applications. Thousands of corporate Deployment will be based on GE’s state-of- Recovery and Reinvestment Act to help theIT professionals have already downloaded the-art MDS SD2 radio, using the licensed company execute its strategy to ramp up U.S.the free Community Edition to speed-up 218-219 MHz Interactive Video & Data Service manufacturing capabilities to meet increasing,and simplify the delivery of new enterprise (IVDS) spectrum, auctioned in 1994. The users market-driven demand for its innovativeapplications. of these applications have been struggling to technologies.This month, the Agile Platform ranked #4 as fulﬁll their growing spectrum requirementsthe most downloaded corporate software and having the option to utilize 218-219 MHz Petra Solarapplication. In 2009, the Agile Platform won the spectrum provides an ideal solution. (September 09,Codie Award for Best Software Development Multiple 218-219 MHz licenses are currently 2010)Solution, and the Dr.Dobbs Jolt Productivity available for immediate purchase or lease Sandia National Laboratories, a government-Award for Enterprise Tools. on SpecEx.com (the spectrum database owned/contractor operated (GOCO) facility, managed by Spectrum Bridge) and cover 20% has awarded a contract to Petra Solar’s Solar Safety-Pay of the USA’s population in 6 of the top 10 NFL Energy Grid Integration Systems (SEGIS) as (September 02, 2010) markets, including Chicago, Washington DC, part of a program from the U.S. DepartmentSafetyPay was featured in the August 2010 Philadelphia and Miami. Furthermore, SpecEx. of Solar Energy Technologies. As a result,issue of The Nilson Report, the world’s most com also has AMTS spectrum and 220 MHz federal funding granted to this cleantechrenowned source of news and proprietary spectrum listed for near nationwide spectrum company that pioneered the smart solar-on-a-research on consumer payment systems. coverage for the 217-222 MHz range. pole technology, now amounts to $5.8 million.The article in the Nilson Report entitled With this contract, Petra Solar will extend“SafetyPay Web Merchant Payments” explains A123 Systems its development of electric-grid stabilization,how SafetyPay facilitates transactions (September 13, 2010) micro-grid and smart grid technologies therebybetween suppliers and banks through an A123 Systems announced enabling utilities to manage the massiveonline banking platform. With a leader article the grand opening of increase in renewable energy deploymenton the front page, The Nilson Report directs the largest lithium-ion automotive battery which is forecast due to the increasing need forthe reader to the main article which, among production facility in North America. The alternatives to fossil fuels.other information, announces the launch of new plant in Livonia, Michigan, is expectedSafetyPay’s ﬁrst supplier pilot test in the U.S. to expand A123’s manufacturing capabilities