Ellacoya Snares $7M

Investors pour another round into the traffic-managment company; separately, Ellacoya opens offices in Japan and the U.K.

September 20, 2004

2 Min Read

MERRIMACK, N.H. -- Ellacoya Networks, Inc., a leading provider of intelligent bandwidth management solutions for broadband networks, today announced it has secured $7 million in venture capital financing. The funding will be used to support sales revenue growth from leading MSOs and DSL providers, continued technical development, and will fund the company to cash-flow-positive. Existing investors Atlas Venture, Flagship Venture Partners, and Lightspeed Venture Partners participated in the financing round.

"Broadband consumer market dynamics are compelling service providers to differentiate themselves by using their networks to deliver high value services along with a superior user experience," said Gerald Wesel, Chairman of the Board at Ellacoya. "Broadband operators need new tools that automatically manage and prioritize applications and subscribers on the network to participate in this new digital content market. Ellacoya is addressing that requirement with a proven solution."

Ellacoya Networks' intelligent bandwidth management solutions are deployed worldwide in over 40 broadband cable and DSL networks throughout Asia, EMEA, and North and Latin America. Its IP Service Control System provides new insight into network activity, provides comprehensive reports, and manages bandwidth automatically, based on policies set by the service provider, to insure high quality service for all subscribers.

With its unique system architecture, the Ellacoya system easily integrates with the service providers provisioning and OSS systems. This enables service providers, in real time, to set policies based on specific subscriber and application profiles to deliver new services dynamically on a per subscriber basis. At the same time, it allows the number of subscribers supported to easily scale to meet future projections.

In the first half of 2004 Ellacoya introduced two new plug-in software modules to the base hardware system that add significant functionality. Based on the Cablelabs PacketCable Multimedia specification, the Multimedia Service Manager (MSM) automates the delivery of multimedia services through dynamic QoS on a per subscriber basis. The Network Intrusion Manager (NIM) automates the prevention of network attacks by detecting an attack from a specific subscriber and taking action automatically to prevent its spreading.

"Because of the company's early entry into this market, Ellacoya understands the requirements and continues to develop its solution to anticipate future needs," said Barry Fidelman, Senior Partner, at Atlas Venture. "Its experience, and established success, in the cable MSO networks is already proving incredibly valuable in providing a superior solution to the DSL service provider market, both domestically and overseas."

To support increasing demand overseas, Ellacoya also announced today the opening of two new offices. It has centralized its resources in the United Kingdom to support the European region and in Tokyo to support the Asia-Pacific region.

Ellacoya Networks Inc.

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