Articles
"Getting on the Same
Page",
Saint Paul Pioneer Press, (c) John Welbes, 4/23/06
Salman Mitha saw a need for a product that didn't exist when he worked for an
engineering services firm in Silicon Valley in the 1990s.
If he needed to share information with clients about a project say, the
results of tests on computer components it was difficult to get everyone what
they wanted. While much of that sharing typically occurs electronically, he
noticed the data didn't always flow smoothly.
"There are all these documents that a typical database doesn't handle," said
Mitha, who has a Ph.D. in applied physics from Harvard University. Also, items
sent in e-mail form often get lost in inundated in-boxes. Then there were other,
more human, problems. With multiple engineers working on a project, "if one goes
on vacation, nobody knows what he just sent out" to a client, Mitha said.
Two years ago, with his California experience in mind, Mitha founded
DeltaMatics Corp. in Eagan. The company provides what Mitha describes as a
"virtual file cabinet."
The product called the DeltaCabinet is computer software that allows
engineers and manufacturers to get online at a secure Web site and see all the
components of a project. Whether the components are contracts, design
specifications for a piece of machinery or cost estimates, all are available and
up-to-date around the clock.
Each client's Web site features a graphic that looks like a traditional
filing cabinet, allowing users to click on drawers, folders and documents for
detailed information.
In its first year, DeltaMatics focused on market research, gauging the
potential sales for the software Mitha had in mind. Last year, the company
stepped up product development, with Majeed Almadan as the chief software
architect of the DeltaCabinet.
The company now counts about 10 clients and is well into its sales and
marketing plan. With several good prospects in their sights, DeltaMatics is
aiming for $3 million in revenue in the next 12 months.
As they've pitched the cabinet technology to prospective clients, "there
isn't anybody who says this is a dumb idea," said Craig Johnson, the company's
vice president for marketing and sales. "In some respects it's a numbers game."
The cabinet can be customized to handle whatever documents and data a client
needs. DeltaMatics typically charges $65 per user per month, with most clients
ending up paying $10,000 to $15,000 a year for the service. Companies have to be
convinced that it's worth the expense.
"We've had to appeal to the early-adapter market, the people who are forward
thinkers," Johnson said.
DeltaMatics' target market is smaller engineering and manufacturing
businesses. It also is targeting departments within larger companies, such as
Polaris Industries Inc., where DeltaMatics' product is being used in a pilot
stage for information sharing. DeltaMatics also plans to focus marketing efforts
on the Twin Cities' sizable medical- technology sector.
The company has already seen that the software appeals to U.S. businesses
that are sending manufacturing specifications to facilities overseas. The
information can be stored at the online site and plucked from the "cabinet" from
engineers overseas at their convenience.
Both Mitha and Almadan are former employees of Stellent Inc., an Eden
Prairie-based maker of content-management software. DeltaMatics has a license to
use Stellent technology that supports the DeltaCabinet.
While a license for that technology, along with the hardware and
implementation costs, can cost around $100,000, Mitha said, DeltaMatics can
pitch its "virtual cabinet" as a much cheaper alternative to prospective
clients.
Larger manufacturers might have computer systems that allow staff to share
data internally, but not externally with clients. Smaller companies might want a
similar system, even for internal document sharing online, but would probably
balk at the $200,000 or more they might have to pay for such a package, Johnson
said.
A spokeswoman for Stellent said most customers use the company's technology
for internal purposes versus licensing it to build into their own products.
In its startup phase, DeltaMatics has tried to keep its fixed costs to a
minimum and has used financing from a venture capital firm to get off the
ground. A second round of financing from a network of "angel" venture capital
investors is coming soon.
The founders came up with the name DeltaMatics during a brainstorming
session. Delta means change, and, on a practical level, the name and the online
domain name were both available.
"It's hard to find a name that hasn't been taken," Johnson said.
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