SAIC Provides SiteScape With Financial Punch

Science Applications International Corp. must really like SiteScape Inc.'s Web-based collaboration software. The $6 billion privately owned systems integrator has formed a partnership with SiteScape through which it will act as a value-added reseller of SiteScape's Enterprise Forum software. And to cement its commitment, SAIC's venture arm, SAIC Venture Capital Corp., also has joined Echelon Ventures in a $5 million round of venture-capital financing disclosed Wednesday by SiteScape.

The companies have been working together for more than two years on projects such as a supply-chain collaboration system for Halliburton Energy Services that's used by more than 300 members of Halliburton's supplier network, and they also recently were awarded a U.S. Navy contract to create a secure collaborative environment for advanced materials development. In all, SAIC has used Enterprise Forum--a 7-year-old product now on its 11th version--in systems deployment for about 10 customers this year, says Brian Hays, senior VP of SAIC's technology analysis and applications group. Hays says the key attributes of SiteScape's technology--effective business process tools, easy integration, and an adaptable architecture--are a good match with systems integration work.

SiteScape CEO Timothy Butler says the partnership with SAIC will help his company overcome its "small-company balance sheet," which he says has cost it some deals. SAIC's $1.5 billion in cash reserves should help to alleviate that problem, Butler says, as the track record of the companies' joint project work demonstrates. "The partnership is already paying real dividends, both in terms of real projects and real revenue coming into both companies," he says. The partners figure to get a quick start on their formalized relationship, as they've jointly submitted bids for three projects worth a total of $8 million in the past three weeks alone. If the partnership yields some winning project bids in the near future, SiteScape's plan to add another $5 million to the current venture round may become unnecessary, Hays says.

Not every SAIC partner is lucky enough to receive funding, which speaks to the strength of SiteScape's technology, Hays says. "We have some partners that would love for us to invest in them," he says. SiteScape will use the funds to expand its sales force, launch an integrated marketing campaign, and beef up distribution through technology partners, systems integrators, and value-added resellers.