Invisible Hand's Merkato software platform enables the dynamic pricing
and allocation of IP bandwidth, creating "bandwidth-on-demand" services
coupled with real-time market pricing and instant delivery.
"Our mission remains unchanged, namely to make Merkato the de-facto
standard platform for IP bandwidth markets," said Dr. Nemo Semret,
co-founder and Chairman. "Our new course is an evolutionary one, which
allows us to provide each type of customer with the adoption path that
is easiest for them, whether through our market-making, exchange
services, software licensing, or any combinations thereof. This
strategy gives us great synergies across these activities, and a
sustainable business model through the different stages of adoption of
our technology."
Invisible Hand delivers the value of the Merkato platform directly to
buyers and sellers of IP transit bandwidth, through market-making and
exchange services operated by the company in partnership with neutral
co-location facility providers. The company also licenses the Merkato
platform to telecommunications carriers and IP service providers.
The service business, which has traditionally provided the company with
a real world environment to constantly prove and refine the technology,
is taking on a central role in the overall business.
"While the current state of the telecommunications market offers
significant opportunity for revenue centric technologies like Merkato,
the resultant extended sales cycles and premium in equity financing
have forced us to take a long hard look at where the money is coming
from today," said John Cahill, VP of Sales for Invisible Hand
Networks.
The company announced that its StreamingHand IP bandwidth market-making
service, which currently generates a gross profit, while incurring a
relatively low cost for customer acquisition, will be re-launched as
Invisible Hand Services. The company plans to further develop and focus
more of its attention on this segment of its business in the coming
year, as an engine of growth for the company's wider ranging goals. As
the first steps in this initiative, the company introduced a stronger
service level agreement, additional service infrastructure, and new
sales and support programs targeting service customers.
As part of this refocusing effort, the company has relocated its
headquarters from Massachusetts back to New York City, where it was
founded. This puts it in closer physical proximity to a large number of
its service business clients and partners, as well as places the
company strategically at the intersection of the biggest bandwidth and
financial markets. Reflecting its commitment to profitability, the
company has reduced and reorganized the staff to execute on the new
priorities.
With the successful acquisition of several significant new
participants, the service business, which has grown at an annual rate
of 240% since Q2 2001, is on track to surpass this growth in 2003.
Building on this success, the company is poised to announce its largest
licensing deal to date.
Invisible Hand Networks, the InvisibleHand Networks logo and Merkato,
are registered trademarks of Invisible Hand Networks, Inc. All other
trademarks are property of their respective owners.
About Invisible Hand Networks, Inc.
Founded in 1998, Invisible Hand Networks is changing the way bandwidth
is bought and sold. Invisible Hand's innovative software platform,
Merkato, dynamically prices and allocates bandwidth, creating
"bandwidth-on-demand" services coupled with market pricing and
real-time delivery.
Invisible Hand's Merkato software platform enables a demand-based
marketplace that automates price discovery and negotiation, leveraging
economic theory and patented market mechanisms. Transactions can be
made manually or automatically through intelligent software agents,
according to each customer's needs. IP capacity is allocated in
real-time in as little as five minute increments. The software is
easily integrated with major network elements and billing systems
Invisible Hand Networks, Inc. is based in New York City. For more
information, please visit
http://www.invisiblehand.net/
CONTACT: Invisible Hand Networks John A. Cahill III office:
508/303-6313 cell: 617/290-1114 jcahill@invisiblehand.net.
