Let the disease-fighting
biologists have the spotlight.
Paul Buckley won't mind if his computer software engineers
play a behind-the-scenes role in the biotech boom -- just
as long as they have a part.
"We want to position ourselves to deal with the life
sciences companies," said Buckley, president of Applied
Sciences Group in Cheektowaga. In fact, his 11-year-old software
company
is giving free business advice to biotech start-ups, in hopes
of winning more business from them down the road. "The
free work is essentially strategic," he said.
Tech companies
like Buckley's were forced to adopt creative business approaches
to survive the industry downturn. Now
their out-of-box thinking habits may allow them to thrive
as the business climate warms up.
Internet projects are no
longer a money machine for infotech businesses. But hot
new opportunities are emerging in wireless
technology and, in a security-conscious world, identification
systems.
And as biotechnology's star rises, infotech companies
like Buckley's hope to provide number- crunching support
for life
science firms, which are more familiar with test tubes
than silicon chips.
The modest infotech upturn under way now may
feel less exuberant than the Internet boom in the 1990s,
but it's built on firmer
foundations, industry experts said.
"Everybody who survived the bubble is now being cautious
-- they're being good businesspeople," said Brian Griffin,
executive director of the industry group Infotech Niagara.
Griffin's own hiring early in 2003 as a full-time executive
director marked a maturing of the 225-member industry group,
which was founded in 1997.
Nationally, business is picking
up for infotech firms, but the activity is slow to translate
into new jobs, according
to industry surveys and federal reports. Part of the reason
is the outsourcing of programming and related tasks to
offshore workers, according to a survey by the Information
Technology
Association of America.
Still, the job climate is better than
the arctic chill during the downturn. From 2000 through 2002,
tech employment fell
11.2 percent, compared with a 2 percent decline for other
jobs, according to the U.S. Commerce Department's Digital
Economy report for 2003.
Locally, Infotech Niagara is seeing signs of an upturn at
its networking events for the out-of-work, Griffin said.
In surveys, about half of attendees say the job market is
improving. "People are getting jobs." Buckley's
Applied Sciences Group is supplying software know-how for
life science companies, helping to turn their ideas into
commercial products. For instance, the company wrote code
to operate a medical device for heart patients, developed
by a University at Buffalo researcher. The device, a kind
of implanted sensor, constantly monitors cardiac performance.
Applied Sciences Group is also working with a protein analysis
company spun off from Hauptman-Woodward Medical Research
Institute.
Although biomedical advances are about bodies not
bytes, the products often need a digital component that tech
firms
can contribute, Buckley said. Bioscience researchers may
have software that works well enough in a lab. But for a
commercial product, they need code that's been professionally
designed and tested, giving Applied Sciences a role.
"
They know what it is they want to put together," said
Buckley, whose own background in biomedical engineering gives
him a common language with life science researchers.
While emerging industries beckon, mainstream infotech work
is seeing a welcome upturn as well.
At digital consultant
Computer Task Group, president Jim Boldt has seen signs
of business building slowly through
2003. One of Western New York's largest tech companies,
CTG provides temporary computer staffers and supports technology
upgrades for corporate customers.
"We have started to see companies work on projects again," Boldt
said. Corporations are starting to perform the cost analyses
that are a precursor for infotech upgrade projects, he said.
One of the hot industries is expected to be pharmaceuticals,
which will need electronic signature systems under new FDA
rules for tracking drug development.
In fact, identification and security systems are a growth
area for several local companies. Networks flung together
during the 1990s now seek to build doors and locks, to control
access in a more security conscious world.
Identification
is the heart of UltraScan's business, an Amherst fingerprint
technology that got an injection of $18 million
in capital last year, led by billionaire business magnate
B. Thomas Golisano. Founded by an ex-University at Buffalo
researcher, UltraScan makes fingerprint scanners that use
sound waves instead of optical technology to read the pattern
of ridges on a fingertip. The company's technology is being
installed at hospitals, airports and other organizations
seeking fast and accurate identification systems.
Combining
ID technology with wireless communication is the business
model for a start-up company in downtown Buffalo.
Tech entrepreneur David Straitiff launched Intuitek last
year to capitalize on an expected boom in "radio frequency
identification" or RFID technology. Relatively cheap
radio tags -- like the ones used by the E-ZPass toll system
on the Thruway -- are being seen as a way to control access
-- both on networks and in real-world buildings.
Straitiff's
company is developing a low-cost RFID card reader that plugs
into a PC. He sees it being used to increase security
on networks, adding another layer of ID check beyond standard
password protection. In addition, sensitive documents embedded
with RFID tags can be tracked as they're passed from user
to user within an organization.
"
The RFID market is so new, there are a lot of niches," Straitiff
said. "Most of the opportunities were going after are
very high-volume."
An outgrowth of Buffalo's Algonquin
Studios, Intuitek is working with an area hospital to implement
an identification
and tracking system. It also helped Buffalo's Enterprise
Charter School install an RFID-based system that takes
attendance electronically.
Even the telecommunications sector, whose start-up companies
were among the hardest-hit in the downturn, is showing
new vigor.
Choice One Communications, one of the largest independent
telephone companies operating in Western New York, saw
its stock fall below $1 on fears that it wouldn't survive.
But
it staunched losses and reached positive cash flow last
year, helping to allay investors' fears. This year the Rochester-based
company will be selling local phone service to residential
customers in Buffalo, expanding from its base in the business
phone market.
e-mail: fwilliams@buffnews.com |