Israel Innovation 2.0

Inside Israeli Technology

Browsing Posts published by Lisa Damast

aladdin1_logoIsrael-based Aladdin Knowledge Systems announced today that the software security company has agreed to be acquired by an investor group lead by private equity firm Vector Capital, which specializes in the technology industry, for about $160 million.

Aladdin was covered on Israel Innovation 2.0 in August 2008 after its eSafe product was awarded a Checkmark Premium Level Anti-Spam Certification by West Coast Labs, an independent test facility for information security products and services. Together, Aladdin’s products eSafe, HASP and eToken offer software DRM security, online protection and secure network access. Despite quality security software the company’s stocks never reached its potential.

Jasmine Holdco LLC, an affiliate of Vector Capital, had been in talks with Aladdin on and off since last summer before this agreement was finally reached.

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During the week of of January 4, 2008, aside from the escalation of Israel’s operation in Gaza and more attacks on Israeli websites, one of the biggest stories in the tech world was the launch of Israel-based Ctera’s new storage device. Another was that Israel issued its first solar licenses for solar power plants. Despite the poor economic and VC investment outlooks, at least three Israeli companies (including Ctera) announced they raised funds. There was also news of an imminent Aladdin sale that sent its stocks rocketing. For these stories and more, you can view this week’s 15 Israel-related headlines below.

Israel-Hamas Conflict (Technology side)

1. Israel-Gaza Conflict Spills Over Into Twitter

2. Hackers Take the Fight Over Gaza Online

3. Digital World: How to beat anti-Israel hackers at their own game

4. Spam poses as CNN story about Israel-Hamas conflict

Cleantech

5. Israel issues first solar licenses

6. Cleantech Investment Slowdown Predicted in 2009

Investments

7. SundaySky Secures First Institutional Round of $8 million from Carmel Ventures and Globespan Capital Partners

8. TraderTools Raises $7.5 Million

Information Technology

9. Aladdin shares surge on report company sale is near

10. Start-up Ctera will offer cloud storage through carriers

11. Save Mart Supermarkets Deploys Integrated Retalix Supply Chain Software

12. Gigya: December 23rd Was Biggest Day For Our Widgets, Ever

Miscellaneous

13. Freeverse Announces Slot Car Racing Game for IPhone

14. Eyes in the sky

15. Fish memories underestimated

Top posts on Israel Innovation 2.0 from the past week

G.ho.st: A real model for coexistence

Why TechAviv and technology in general lacks women (Part 1)

Welcome to the first installment of a new video series on the Israel Innovation 2.0 blog titled, “What is…?” Each video in the series will provide a brief explanation of a new technology from an Israeli startup. Leading off the series is Ctera Networks Ltd., which launched a new device at the Consumer Electronics Show (CES) in Las Vegas week to a lot of media coverage. Its technology has potential to is going to change online storage as we know it.

To visualize how simple the process is, here is a diagram from Ctera’s website of how CloudPlug works.

Ctera was founded by serial entrepreneurs, Liran Eshel and Zohar Kaufman in May 2008 as a storage solutions provider for home and small-business back up. The company combines Network Attached Storage devices with cloud storage services to create its Cloud Attached Storage™ technology.

Ctera Networks Ltd is based in Petach Tikva, Israel and CloudPlug should be available sometime in 2009.

I am starting a new section where once a month on a Friday Israel Innovation 2.0 will cover Israel’s thriving cleantech industry. To kick it off, I will be covering this week a cleantech initiative that the Jerusalem Business Networking Forum (JBNF), a group I’m a co-organizer of, is organizing.

jbnfcleantecheventjan15In the past 5 years, Israel has experienced a revival in cleantech initiatives that is slowly leading it to become the top country in the field, regarding both innovating and practicing it. In 2008, a total of $247 million was raised by Israeli companies, primarily in the solar industry. During this time the interest in the field among technology professionals also became apparent through the rise of Israeli cleantech networking groups and cleantech blogs focused on Israel.

While over the years most cleachtech companies have been founded in the center of Israel near Tel Aviv, a smaller group of companies have been founded in Jerusalem also. In an effort to increase activity in Jerusalem further and get the public involved, the Jerusalem Business Networking Forum (JBNF), a group that helps facilitate networking online and offline among Jerusalem business professionals, will be holding a special forum later this week in conjunction with the CleanIsrael Network, the Renewable Energy Association, the Movement for Strengthening Jerusalem and the Ministry of Industry and Trade.

The forum will feature presentations from renewable energy projects that companies around Jerusalem, including Phoebus Energy and 3G Solar, are working on as well as from representatives from Jerusalem’s government, including Jerusalem Council Member & Responsible for Environment, Naomi Tsur. The event is free and open to the public and everyone is encouraged to attend.

  • What: Greening of Jerusalem
  • Date: Thursday, January 15, 2009
  • Time: 6 PM
  • Location: Weitzman Hall at the Jewish Agency’s offices on 45 King George Street, Jerusalem
  • Language: English and Hebrew

To RSVP and for additional info please visit the JBNF’s event page.

As if reading the news the past few months hasn’t been depressing enough with the worldwide economic downturn, the current conflict going on in Gaza had to happen to bring the news down to a whole new level of sadness. With each passing day it seems less likely that there will ever be a real peace between Israelis and Palestinians, and yet, as the current conflict unravels, one company, with an office in the Israeli city of Modi’in and another in the West Bank city of Ramallah seems to have found a solution.

That company, G.ho.st,  is the only joint venture between Israelis and Palestinians and is defying the odds and difficulties that have arisen from strong sentiments on both sides. Founded in 2006, G.ho.st is short for Global Hosting Operating Systems and provides its 100,000 and growing users with a free vitual desktop that allows them to store items from their desktops and files and to access them from any computer connected to the Internet. G.ho.st calls it a virtual computer or VC.

The company is made up of 35 Palestinians who do software programming and are led by Director, Tareq Maayah and 6 Israelis, including CEO, Zvi Schreiber. Though the offices are relatively close to each other (under 6 miles away), because of restrictions, workers usually have to communicate via video conference and don’t have leisurely access to visiting each other. While the Palestinians are paid less than their Israeli counterparts (because the cost of living is less), both the Palestinians and Israelis have equal shares in the company.

According to correspondence I had with Schreiber this week, this model worked well and thrived during the relative peace that took place from the time G.ho.st was founded and, even now, is continuing to.

Picture on left: Zvi Schreiber with Israeli President Shumon Peres. Picture on right: Ghost team

(Picture on left: Zvi Schreiber with Israeli President Shumon Peres. Picture on right: Ghost team.)

Schreiber explained that despite everyone’s concerns about the current conflict, in which employees on both sides have family and/or friends who are affected, work is still going on as usual and that the team, which includes people who worked through a previous conflict at their last job,  is prepared to continue to work even if the situation were to spread to the West Bank.

Perhaps the secret to G.ho.st’s success and resilience of its employees so far has been the care that’s been taken to keep and maintain the common ground between employees in both offices. Prior to the latest conflict, the company would manage to get permits to bring everyone together in Israel for valuable team activities, meals, business updates etc. Because of the conflict though, Schreiber said that everyone is now (understandably) worried about the safety of their families and friends on both sides and there’s only so much the company can do about it. His hope however, is that “in some small way our team, working peacefully together, can be an example of what a different reality could look like.”

It’s not just the employees in the company working peacefully together though that can change reality. G.ho.st also has a foundation that is helping lay the groundwork for future joint ventures by creating community computer centers in Ramallah and in mixed Jewish-Arab towns in Israel. Perhaps if more companies were to use G.ho.st’s model in business and in the community, Schreiber’s hope will not only become a reality where the two sides co-exist knowing no borders and,  in line with the G.ho.st slogan, no walls.

Earlier this week Daniel Cohen of Gemini Israel Funds posted on his blog his predictions for Israel’s tech community in 2009. Topics he made predictions for included cleantech, Google making acquitisions, Web 2.0 companies being acquired and that “there is a world beyond Atlanta/Southeast, New York and Silicon Valley, specifically in Asia.” 

Asia might gain ground in 2009 in terms of, according to him, “companies starting in Israel and marketing to Asia directly without having anything to do with the US market,” but Atlanta/Southeast, New York, and most parts of California (particularly San Diego) will still continue to thrive. My prediction is that Silicon Valley, in specific, will probably lose ground.

Regarding the Atlanta/Southeast region, towards the end of 2008, the AICC-Southeast region created a blog for posting the latest news related to any of its companies and partnerships. To get an idea of what can be expected this year in that region and why it will still thrive, here are titles of some blog entries about Israeli companies and the Southeast region from the end of November to the end of December 2008:  

What do you think? Will the Atlanta Chamber of Commerce continue to help Israel thrive, stay neutral or lose ground in 2009?

techaviv_logoTechAviv, a global group for hi-tech Israeli entrepreneurs, had its first meeting of 2009 at the Inter-Disciplinary College (IDC) in Herzilyya last night. During the event, which was only open to Israeli entrepreneurs, representatives from Outbrain, 2Pad and Boxee spoke about their companies. The event was streamed live over the Internet on the TechAviv website. Watching part of the event online, the most interesting thing for me was noticing that out of all who attended the event, there was not one woman in the audience.

Sadly, this isn’t very surprising. Of the hundreds of Israeli companies that I have become familiar with in the past year and a half, the only company that I can think of that was started by a woman is eSnips (founded by Yael Elish and her then-husband). This isn’t just in Israel though and it’s not limited to just women starting companies in technology.

I started planning this entry back in November after Charlene Li, the former Forrester Senior Analyst, posted on her blog about the shortage of women speakers at technology industry events. (In it she mentioned that though there are few women in tech to begin with, there are fewer women who can make the time commitments required for conferences due to familial responsibility.)

My intention at the time was to answer the questions, “Where are the women?” “Why aren’t women in hi-tech?” and “Are women less innovative than men?” Questions that were also brought up today on Twitter in an interesting discussion between @TechAviv (Yaron Samid), @OurielOhayon, @israluv (Ahuvah Berger) and others about the lack of female entrepreneurs in Israel in relation to last night’s event.

The following are a few ideas based on what I found when I did preliminary research a few months ago on these topics.

Regarding the last question first, statistically it would certainly appear that men are more innovative than women. Go to any conference (in the United States) on technology and there will be few women speakers and only a few more in the audience. The biggest female entrepreneur in tech that comes to my mind is Arianna Huffington of the Huffington Post, while when I think of men, several come to mind (Steve Jobs for example). In Israel, though Yael Elish is the only female tech entrepreneur I can think of, two of the biggest bloggers/consultants I can think of in the Web 2.0 space, are female: Ayelet Noff of Blonde 2.0 and Orli Yakuel of Go2Web2.

 

Steve Jobs

Steve Jobs

 

In an online search I conducted on major scientific breakthroughs of the past 200 years that were made by women, About.com seemed to have the best list that was solely of female inventors. It includes:

  • Randice-Lisa Altschul (invented the world’s first disposable cell phone)
  • Mary Anderson (invented the windshield wiper)
  • Marie Curie (discovered radium and furthered x-ray technology)
  • Ada Lovelace (wrote a scientific paper in 1843 that anticipated the development of computer software artificial intelligence and computer music)
  • Krisztina Holly (Co-invented the telephony software called Visual Voice) 
  • and Bette Nesmith Graham (invented liquid paper, also known as White-Out™).

In addition, the CS (computer science) department at Yale University has a list of women who contributed to CS that includes:

  • Alexandra Illmer Forsythe (During the 1960’s and 1970’s, she co-authored a series of textbooks on computer science, published by Wiley & Sons and Academic Press, including the first textbook written in CS.)
  • Erna Schneider Hoover (She invented a computerized switching system for telephone traffic, to replace existing hard-wired, mechanical switching equipment. For this ground-breaking achievement — the principles of which are still used today — she was awarded one of the first software patents ever issued in 1971 ). 

From these lists, it is clear that women too have invented things throughout the past 200 years, but not in significant numbers and none at the level of fame or being as prolific as men such as Thomas Edison, Eli Whitney or Henry Ford.

 

Ford Model T

Ford Model T

 

Since the 1990s, psychologists have conducted several research studies on what the reasons are for why there are fewer female innovators than male ones.

One reason psychologists have found is that women perform lower in math when conscious of gender stereotypes and get turned off that way. Another study explains that young women tend to avoid careers in math, science and engineering “because they view science as a solitary rather than a social occupation” and uninteresting. Instead many are in public relations, education and psychology. The main theory that has been presented in recent years is based on the amount of confidence given by parents and teachers in these areas- “the self-confidence instilled by parents and teachers is more important for young girls learning math and science than their initial interest.”

Now that there is proof that males and females have equal cognitive abilities for math, incentives and programs are more actively being put in place to change female perceptions and stimulate more interest among them in math and science. Through these there should be changes seen in the near future of a new generation of new generation female inventors/entrepreneurs. 

Regarding what can be done in Israel, going back to the TechAviv and the Twitter discussion, Yaron Samid suggested that Israeli entrepreneurs start an Israeli female entrepreneur group. I think going beyond that group, a national program or wider organization should be created that nurtures women’s interest in science from at least high school age and provides resources to them and older women.

What do you think should be done in Israel?

Update: January 11, 2009 – Joel Katz has notified me that in a video taken by Oren Todoros of SeoVice at TechAviv last week, there are at least two women. You can view the video on seovice.com.  

worklight_logoI meant to write about WorkLight last month but got caught up with things. As what happens every few weeks though, my attention has quickly been drawn back to the company again. In Jon Brodkin’s post on Network World earlier today, he listed the “Secure Web 2.0 for Business” Enterprise 2.0 company as one of 10 startups to watch in 2009. I couldn’t agree more.

WorkLight, Inc. seemed to have a stellar year in 2008, and as Web 2.0 in the enterprise continues to grow  in 2009 despite the economic downturn, there’s no reason not to think that it won’t repeat it, and more. Since the company first showed up on my radar as one of two Israeli demonstrators at the 2007 DemoGermany conference in Munich, the company has raised an impressive round of funding, been chosen as one of the top 10 web startups in Israel’s version of the TechCrunch and Demo conferences and just last month, and partnered with NetVibes to develop secure widgets for the enterprise among other news about the company.

The company’s software is customized for specific industries and, as such, has helped simplify and accelerate the embracing and integration of Web 2.0 in the enterprise. On its website, the company explains itself and its offerings as follows: 

“WorkLight® Inc. develops server software products that help businesses reach customers, channels, employees, and partners securely in the places they frequent online, such as iGoogle, Windows Live, desktop widgets, RSS readers, Facebook, even the Apple iPhone. Through WorkLight, people effortlessly get valuable information they desire, such as account status, product availability, or updates about their latest transactions. They can then take actions, for example order products or services, respond to promotions or offers, and consult with colleagues, without having to log into a portal or corporate web site. As such, WorkLight transforms consumer interfaces into enterprise-grade business tools that directly increase revenue.”

Here is an image from the site of how its products work.

howitworksimage4

Additionally, I’ve created a timeline of some of the WorkLight news that caught my attention in 2008

worklight2008_t

Company Facts

Founded in 2006.

Based in New York and Yakum, Israel.

Shahar Kaminitz, CEO and Co-Founder.

Doron Somer, Vice President of R&D.

Products: WorkBook, WorkLight for SAP, WorkLight for Technology Companies and WorkLight for Business Services.

Competitors include: Awareness Inc. and NewsGator Technologies Inc.

Customer industries: financial services, retail banking, manufacturing, book publishing, technology and IT services and utilities

Website: myworklight.com

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Much attention in the news was paid to Israel’s operation in Gaza during the week of December 28, 2009, including to online technology related to it. Different Israeli government branches, from the IDF to Israeli Consulates in the U.S., began to leverage popular social media tools, such as blogs, YouTube and Twitter, to explain the purpose of Israel’s operation and its objectives, while supporters around the world used the same mediums and others, such as Facebook, to show their support for Israel and its troops. During the week it also became clear that the conflict wouldn’t be bound to physical operations as several Israeli sites became the targets of cyberterrorism.

Despite the conflict, there was plenty of news of unrelated innovations coming from Israel. Funds were raised and contracts were signed in Israel’s IT and cleantech sectors and announcements of foreign companies opening R&D offices were made. Not all the news that wasn’t related to the conflict was good though. For all these stories and more, check out this week’s special edition of Israel-related headlines from the week of December 28, 2008 below.

Israel-Hamas Conflict (Technology side)

1. Israeli news site down, blames cyber attack

2. Muslim hackers attack Israeli websites as Gaza strikes continue

3. Israel Backed by Army of Cyber-Soldiers

4. War sickens me, but I stand with Israel (HelpUsWin*)

5. The Big War You Never Hear Much About

6. Israeli Consulate to tweet about Gaza war

Cleantech

7. Israel’s SolarEdge Raises $23M to Crush Shady Solar

8. BrightSource Energy signs contract with Siemens for solar-powered generator

Investments and deals

9. 2009: Year of the survival of the fittest

10. Bluephoenix Announces Multi-Million Dollar Modernization Contract With a Large Scandinavian Bank

11. Intrinsyc Signs Soleus Licensing Agreement With ODM for Industrial PDA and LBS Phone
12. Oy Vey! Israeli VCs Exceptionally Gloomy on 2009

Information Technology

13. HCL opens office in Israel

14. Invention: Software research assistant

15. EMC continues to move forward

Miscellaneous

16. The American Idol for blogging superstars

17. One to Watch: Tvinci

18. Israeli’s documentary is drawing wide acclaim

19. MyHeritage Makes Family History Research Easier With Launch Of Family Tree Builder 3

20. Crude oil rises after Israeli attacks on Gaza roil Middle East

Israel Innovation 2.0 content related to Israel-Hamas conflict

21. Direct from the streets of Gaza… and Israel. How TechCrunch UK’s post could have read regarding UGC

22. Cyberterrorism against Israeli and American sites: How to Stay Secure

Video from IDF Spokeperson’s Unit TouTube Channel (Capt. Benjamin Rutland on the ground forces entering Gaza on 3 Jan. 2009)

*HelpUsWin is an online grassroots campaign helping to ensure that international coverage of the Campaign Against Hamas is balanced. To learn more about it or how you can become involved, please check out the HelpUsWin website.

Since Israel began its operation in Gaza a week ago, over 300 sites have fallen victim to cyberattacks. Large Israeli company sites, such as Israel Discount Bank, Ynetnews and Israel’s largest domain registration site along with small Jewish community sites, including several religious ones in the US have been targeted. The main group behind several of these attacks, though far from the only one, is the infamous Moroccan group, TeamEvil, which also hacked some of the 750-plus Israeli websites before and during the Lebanon war in 2006.

Security analysts predict that American company websites will also be attacked in the next few weeks. For an article on the topic that appeared in SC Magazine last week, Dan Kaplan interviewed Gary Warner, director of research in computer forensics at the University of Alabama at Birmingham and John Kindervag, a senior analyst with Forrester Research who both made suggestions for preventing cyberattacks:

“Warner said website operators must secure common entryways for hackers, including vulnerable programming language, forum or blog software, image programs and utilities, such as website statistic applications. In addition, they must prevent the theft of FTP credentials, which are used to access sites and load content.

John Kindervag, a senior analyst with Forrester Research, said most websites are not built with security in mind. As a result, site owners should conduct a vulnerability assessment and, if they need immediate action, install a web application firewall, which can detect anomalous behavior.”

For more on the topic and to make sure your secure, you can check out the following sites:

10 Ways to Prevent Cyberterrorism

International Cooperation Needed To Prevent Cyberterrorism

Cyber Terrorism Threat Increasing – How To Prevent A Digital 9/11