Ennovate Enervates Texas Expansion

RICHARDSON, Texas -- Ennovate Networks has curbed its appetite for Texas talent.

In the past two weeks, Ennovate has dismissed its in-house recruiter here and put plans to hire several area engineers on hold. Light Reading sources say that Ennovate's current Richardson staff also has been told that they will need to spend between "a few weeks and several months" in the company's Boston offices, helping to resolve software bugs and add new features to Ennovate's Envoy 1600 switch.

Ennovate founder and senior vice president Ian Mashiter is playing down the strategy changes. "The Richardson facility was set up to look at next-generation product architectures and recruit staff to work on our present platform," he says. "And we're continuing to do that."

What has changed, Mashiter says, is that a loosening job market in the Boston area has made finding engineering talent there much easier (see IronBridge Has Fallen Down). After hiring four times as many Boston-area employees as it had intended in January, Ennovate's original plan of running a 100-person Texas-based R&D center, as announced in August 2000, has cooled, he says.

Ennovate now has only 13 of its 220 employees located here. Mashiter says Ennovate is still growing and figures it will hire between 10 and 20 people a month for a while. However, he doesn't know how many of those new hires, if any, will be in Texas.

Other firms based in Texas, while appreciative that at least one more startup won’t be after the same local talent pool, say that their Texas-based hiring hasn’t slowed down. Rapid5 Networks, an Ennovate competitor, says it will add around 50 people by the year’s end to its San Jose, Calif., and Richardson facilities.

-- Phil Harvey, senior editor, Light Reading http://www.lightreading.com
DCITDave 12/4/2012 | 8:57:11 PM
re: Ennovate Enervates Texas Expansion Has anyone heard of other firms that may be slowing expansion here? Or growing faster than expected?

It's an interesting time to be here in the middle of nowhere because while there seem to be more resumes on the street in Boston and New Jersey, some firms are considering doing less in California because of the electricity debacle.

Any new news on the Nortel lay-offs and rumored Cisco hiring freeze is helpful, too.
Frank Sinatra 12/4/2012 | 8:56:58 PM
re: Ennovate Enervates Texas Expansion Hi:
Steve - in addition to Lightspeed Partners, what other VC firms back Lightreading? Looking at your flattering articles vs. attack-dog articles, and I have some theories - but can you tell us all who they are?
DCITDave 12/4/2012 | 8:56:56 PM
re: Ennovate Enervates Texas Expansion Lightspeed (formerly Weiss Peck & Greer) is the only venture capitalist that has invested in Light Reading. And, to address your puerile insinuation about our objectivity, please know that weGÇÖre no less skeptical of Lightspeed's portfolio companies than those of any other VC.
Jeff Goldblum 12/4/2012 | 8:56:54 PM
re: Ennovate Enervates Texas Expansion I am told that this company has a good product and can go a long way with or without Dallas. I heard that the guy responsible for engineering operation (CTO and Sr. VP of Engineering) is the nastiest guy with a BIG attitude problem. The guy has a jumbo 747 size ego. Should have been fired by the board long ago as he hasn't been able to work with any of software VP that company brought in the past three years. The product has seen several software VPs. Some smart engineering guys (including a top guy that was working on defining Dallas product) have recently departed from the company. No wonder the company is scrapping Dallas office.

kupfi 12/4/2012 | 8:44:44 PM
re: Ennovate Enervates Texas Expansion I heard lots of resumes going out from ennovate.
John Goldsmith 12/4/2012 | 8:44:18 PM
re: Ennovate Enervates Texas Expansion With regards to previous message, yes I have seen nearly flood of them coming my way too and many intelligent folks have already moved over to other companies.

The company, I believe, may be in serious trouble.
How can you run a company with a CTO and VP of engineering who works less than 4 days in a month from the office (at least thats what some of the engineers I interviewed said). Why would engineers work 70 to 80 hours a week if the top man is sitting at home and enjoying his life? On top of that the guy, I am told, is impossible to work with, and has supersized attitude/ego problem which has resulted many good folks leaving the company in the recent past. Is this the way to build a successful start-up ?

You can't build a start-up by designating a Sr. VP of engineering who has no previous engineering management experience and has never managed other than himself. The guy was a well known cisco protocol engineer, and thanks to his personal relationship to the founder jumped to a postion where he doesn't belong at all. He is described as someone who has no understanding of the engineering of a product of this nature. AT this level, it doesn't really matter how many RFCs you wrote but how many products you supervised from start to finish. Answer is NONE. Others in the engineering management team are OK, but lack the experience of building a switch product for IP market. The insiders tell me that only way company can survive if VCs use axe the current founders team and bring more competant professional managment team in engineering and marketing (similar to Pluris). There are still good engineers there willing to work hard. Failing which we may see one more Ironbridge on the way. What a tremendous waste of talent and resources that will be!

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