VCs Establish SilverBack as Leader of the Pack

SilverBack Technologies Inc.
this week secured $18.5 million in second round funding lead by a handful
of strategic investors and venture capital firms.

Funding was led by Spectrum Equity
with key participation from Matrix Partners and North Bridge Venture Partners. Other
strategic investors included Citrix
Systems Inc.
and PSINet Ventures.

SilverBack completed its first round of financing in July 1999 and promptly
launched its innovative remote access delivery model that integrates IT
management solutions for small, to medium-sized businesses. The firm
intends to embark on the next phase of its plan to be the top player in the
emerging Management Service Provider market segment.

SilverBack’s stash of cash allows the company to pursue strategic
relationships with other technology and channel partners, as well as engage
in a mix of sales and marketing activities.

John Igoe, SilverBack chief executive officer, said the company is blazing
a trail as a pioneering service provider in the new information economy.

“Our strategic investment partners have provided us with an unmatched
complement of top advisors from the Internet infrastructure, e-commerce and
service arenas,” Igoe said. “It’s this blend of expertise moving forward,
that will truly make the difference as we work toward fulfilling our vision.”

Victor Parker, Spectrum Equity general partner, said the combined expertise
of SilverBack’s executive team, coupled with its unique delivery approach,
made the firm an extremely attractive company.

“Clearly, the MSP space is one of the fastest growing market segments in
the service industry,” Parker said. “SilverBack is an impressive player.”

SilverBack is also a founding member of the MSP Association, an international
consortium formed to define, shape and promote the emerging managed network
services sector.

Analysts have not determined the difference between remote management
services and outsourcing. Lacking a boundary between the two IT service
segments, both vendors and end users have expressed confusion about the MSP

SilverBack contends that management service providers deliver IT
infrastructure services to multiple customers over a network on a
subscription basis. Like an Application Service Provider, MSPs deliver
services via networks that are billed to their clients on a recurring fee
basis. Unlike ASPs, which deliver business applications to end users, MSPs
deliver system management services to IT departments and other customers
who manage their own technology assets.

Simply stated, SilverBack’s Igoe said managed services are used by growing
businesses that demand superior network management but don’t want to
sacrifice IT budgets in order to get it.

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