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Fri, Aug 22, 2003 - Page 12 News List

Boeing spins off spam filter software company

BABY BOEINGS In the land of the Microsoft startup, the airplane maker is using its weight to advance a number of new firms, the latest of which is called MessageGate

AP , BELLEVUE, WASHINGTON

Microsoft Corp has long reigned as the undisputed software magnate in these parts.

But don't count out Seattle's other 800-pound gorilla just yet.

Turns out that the Boeing Co, founded in Seattle 87 years ago and known more for its airplane engineering than software engineering, has done some high-tech research and development of its own.

On Wednesday, Boeing spun off a new company, MessageGate, that sells Boeing's own home-grown technology for filtering out junk e-mail for corporate networks.

Not only does MessageGate aim to seize a share of the hot market for controlling junk messages, but it also represents a new -- albeit modest -- hope for the region as Boeing's commercial airplane business cools. The business is one of only three to be spun out of a Boeing initiative to promote entrepreneurship within its ranks.

But executives hope it's the beginning of a crop of "Baby Boeings" in a land of "Baby Bills" -- the nickname for startups created by former Microsoft workers, in homage to Microsoft Chairman Bill Gates.

"There are a lot in the pipeline," said Miller Adams, vice president of Boeing Ventures, which falls under Boeing's chief technology officer. The division runs an entrepreneurship initiative that educates, trains and supports employees' ideas for possible new business opportunities.

MessageGate emerged from efforts by Boeing engineers who had developed the technology four years ago to control junk e-mail, or spam, that flooded the aerospace manufacturer's networks. Boeing gets about 10 million spam messages a month.

One research firm -- the Radicati Group, based in Palo Alto, California -- estimates companies will spend US$2.4 billion in revenues by 2007 on anti-spam products.

After realizing the potential market for a spam product, Boeing decided to pair with venture firm Polaris Venture Partners and Northwest Venture Associates, who vested MessageGate with more than US$5 million in funding. Boeing continues to hold a minority stake in MessageGate.

The companies tapped David Weld -- a former Microsoft executive who himself was one of the original crop of "Baby Bill" entrepreneurs -- to head MessageGate, which now has about 20 employees.

It's not your typical startup, said Weld, a former president of Seattle-based Loudeye Technology and founder of two startups.

"It's not five smart guys in a garage," he said. "This was built by Boeing, and that carries a lot of weight."

The technology evaluates the sender, content and context of the message to help determine its suitability, Weld said. It can be configured to be broad or narrow, depending on the company's policies and definitions of "spam," and any messages identified as junk can be quarantined for personal review.

The technology also allows network administrators to track and retain messages to meet various federal requirements regarding internal and external communications.

But analysts said they are most interested in its plans to roll out a product this year that works not just on e-mail, but instant-messaging services and text messaging over wireless devices as well.

"It's a pretty crowded space at this point," said Masha Khmartseva, senior analyst with the Radicati Group, noting vendors including Brightmail and SurfControl. But the instant-message and wireless messaging capabilities would be different, she said.

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