Globecomm CEO: Company Expanding in Enterprise Software Application, Military Sectors

[Satellite News 04-12-11] Satellite-based managed network service provider Globecomm Systems acquired independent testing and long-term application developer ComSource for $20 million on April 8, continuing Globecomm’s shift from hardware provider to software developer and expanding the company’s multi-vertical market business model, Globecomm CEO David Hershberg told Satellite News.
     “We’re in wireless, media, government, maritime and now enterprise application development,” Hershberg said. “It’s a strategy that keeps us strong and stable because when one of these markets is experiencing a slowdown, the growth in our other divisions take over and lessen the impact.”
     The acquisition of ComSource, based in Frederick, Md., gives Globecomm a range of technologies. Globecomm will inherit ComSource’s testing facility for wireless basic performance, data assurance, reliability and system security as well as 39 ComSource engineers dedicated to wireless technologies software development.
     “We’ve been interested in the software and application market for two reasons. The first and most important reason is that our customers demanded it. Building a business unit based on what the customer wants is always a better move than a bunch of executives trying to guess what the customer wants and then hoping we’re right,” Hershberg said. “The second is because of the synergies that software and applications create between our business units. We’ll invest in the robust mobile technologies vertical marketplace and simultaneously develop technology to support multiple aspects of our current engineering capabilities in the broadcast, multi-media and now enterprise markets with our Tempo platform.”
     Globecomm’s Tempo is an enterprise media platform that aims to allow organizations to create a secure, private network for their internal communications, employee training and digital display. Developed by a newly formed team of its own engineers and developers, the Tempo service supports network distribution across multiple Internet content delivery networks to reach computers, televisions and mobile devices around the world through a Master Control Suite. The interface operates much like other enterprise networking services, such as WebEx, but includes integrated solutions for publishing live and on-demand events and customizable analytics tools.
     Hershberg said customers not only are driving the technology but also buying it. “The streaming video analytics feature is really a big sell for our satellite customers. We’re on version 2.0 now, which is much more user-friendly and customizable. We’re excited about the fact that this service maintains a churn rate of less than 3 percent. It means we’re doing something right,” he said.
     In its government and military division, Globecomm is coming off of a five-year contract win from an unnamed U.S. government prime contractor. Under the $152 million contract, Globecomm will provide satellite Earth stations and services that leverage the company’s global service network by providing voice, video and data services that use the same managed network service offerings in the company’s other divisions.
     Hershberg hinted that this development could lead to significant progress with future U.S. military business. “Look for us to come out with news on the GSA schedule 70 contract in the next couple of months,” he said. “We met three of the government’s major requirements in our single proposal, and I believe that we were the only company to do that. I’m very confident that we’ll be under that contract vehicle by the summer.”