St. Louis-based Object Computing Inc. has helped Raytheon upgrade its early warning radar system; it has worked with NASA on its preflight launch systems, and United Airlines on its automated baggage handling. The BBC is using Object Computing Inc.'s services for its editing systems, and Cisco deploys OCI's software in its switches.
by Linda Tucci
To hear business development director Malcolm Spence tell it though, you'd think OCI was in the real estate business.
"We're like a smart real estate broker who takes your assignment, surveys the field and comes up with the perfect dream house," Spence said.
Formed in the early 1990s, the privately held software engineering company has focused in recent years on installing and servicing a software program called TAO, a form of "middleware" that allows other programs to work smoothly together. TAO, or The Ace Orb, supports between 20 and 30 different operating systems.
"We're opening up the middle," Spence said.
TAO was developed by Doug Schmidt, a former Washington University professor, with grants supplied by about 16 corporations with vested interests. For example, Boeing, a big supporter, wanted to cut costs by using software to stitch together program components for computer systems in its airplanes, rather than starting from scratch for each plane.
Unlike source code for proprietary programs such as Microsoft's Windows, TAO is an open source system. Its code is open to end users, or as Spence puts it, "our stakeholders." In open source software, users have access to the source code, meaning they enhance the new code and act as a source of ideas. Unlike Windows, open source software is free. That is a calling card. For the type of customers OCI courts, a licensed software system can run $1 million to install.
With no licensing fees and customers that savvy, how is OCI still in business?
"We have a 'servicecentric' model. Yes, the people who know they need this are savvy, but they are not in the middleware business," Spence said. "We deal with different types of operating systems. Our job is to make that melange look seamless to the operators. We tell them up front, we're competing with your ability to fix this problem."
Dynalivery, a relatively young company here in St. Louis, decided to go with TAO after the price of commercial software increased dramatically. Formed in 1995, Dynalivery produces reporting and document processing software. About half its 150 customers are banks, which use the software, for example, to send statements electronically.
"We were happy with the commercial package, but they raised their prices overnight. We were aware of TAO and made the switch," said Rod Zimmerman, president of Dynalivery.
OCI's CEO Ebrahim Moshiri concedes he initially had trouble accepting a business model built on a product that is free. "Although TAO is open source, it is extremely complex and requires detailed knowledge. That is why our customers call us for service." In addition, OCI serves as a clearinghouse, collecting new code and making it available for customers. The result is cutting-edge software that Moshiri thinks will be hard for commercial products to keep up with.
In the past four years, OCI's staff of engineers has grown to nearly 70 people. The administrative staff numbers 10. The company said sales of services are in excess of $10 million.
Originally published at: http://www.bizjournals.com/stlouis/stories/2002/02/18/focus4.html
