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Allaire: Always Looking for the Next Big Thing

When most Web sites were static brochures, two brothers had a better vision of the Web - that is, a vision of the Web that is dynamic. The brothers were J.J. Allaire and Jeremy Allaire. They developed the first Web application sever for Windows NT called ColdFusion.

Their initial investment was $18,000. It was money well spent. Now, their company, Allaire Corporation , has a market capitalization of $846 million.

Of course, Allaire has morphed into a company with a strong suite of development tools. With ColdFusion, you can develop just about anything: e-commerce sites, B2B sites, wireless applications and so on. There is also JRun, which is a Java-based application server. Actually, Allaire had a major release of this product in the last quarter. The new version supports the Java 2 Platform, Enterprise Edition specification. JRun has more than 80,000 developers worldwide.

An example of a happy customer is Siemens. One of the companys divisions, the Communications Network group, has 7,500 field personnel. Critical to the this group is having a sophisticated intranet that is accessible anytime, anywhere. Siemens developed its system using ColdFusion

The most recent product announcement is Spectra. Basically, the solution makes it much easier to build ColdFusion applications. There are modular and customizable programs for content management, e-commerce and personalization.

And Spectra is definitely in high demand. After all, companies need solutions that increase time-to-market.

Since its release in December 1999, Spectra has attracted more than 400 customers and includes FedEx, Palm and AT&T. Since this time, over 70 customers have launched their sites.

Allaire is becoming a solid company financially. In the past quarter, revenues were $33.3 million, which was a 155% increase from the same period a year ago. The sequential growth rate was 25%. The company was even profitable, with net income of $1.8 million.

Of course, the complexity of the Web is accelerating at an incredible rate. As a result, Allaire has been striking key alliances so as to advance its technology. One strategic alliance is with Intel, so as to optimize ColdFusion on the Pentium III Xeon processors. Such technology will position Allaire for large-volume, transaction heavy Web applications.

What started as a great idea has now become a company that corporate America relies on for good technology. Like others in its sector, the stock price has fallen for Allaire -- but, in no way has Allaire deviated from its focus on creating top-notch technologies.