Danam Data Systems Making Inroads into Internet, SI, Security Markets
Investors setting their eyes on an Internet startup are likely to be highly cautious due to the potential risks involved. Such an attitude is particularly apparent in foreign investors in search of a promising venture in Korea.
It is notable, therefore, that AsiaNet, a venture capital group, offered to invest in a small Internet firm here, only to be turned down.
``AsiaNet wanted a 30 percent stake and a partnership for a closely connected affiliate, a deal which we reckoned should be delayed until our project goes into full swing,'' said Bae Young-hoon, president and CEO of Danam Data Systems Inc. (www.danam21.co.kr), a system integration and Internet startup, in an interview with The Korea Times.
AsiaNet approached the fledgling Internet firm, which was founded in October of last year, and offered the deal mainly because of Danam's respectable performance record, Bae said.
Danam Data Systems initially explored the system integration field last year and noticed the immense opportunity in the Year 2000 computer glitch market in Korea where there were few solution providers.
Only a month after the company was established, Bae and his staff secured a joint consulting business contract with the U.S.-based Ascent Logic related to the Y2K problem and made a huge impact in the field.
Danam Data Systems, defying skepticism from competitors, expanded its Y2K consulting business, winning successive orders from financial institutions and manufacturing firms.
Even Hyundai Marine & Fire Insurance Co. awarded its Y2K consulting project to Danam, rather than its own affiliate HIT, an SI firm affiliated with the Hyundai Group.
While cementing its position in the Y2K business, Danam beefed up its ERP (enterprise resource planning) operation, targeting corporate clients.
Given that the domestic ERP market is dominated by a few conglomerate-affiliated SI firms, few expected Danam would survive in the fiercely competitive sector, and yet the venture firm won a host of bidding contests.
In total, Danam secured 40 corporate projects and turned profitable within a year. The successful launching of the company, however, is only a prelude, Bae said.
``We plan to make inroads into the Internet, security and data warehousing markets on the back of strong marketing power and a solid technological foundation,'' he said.
The company is now teaming up with Oracle Korea for data warehousing while joining forces with Penta Security for security system businesses.
Data warehousing is a tool that enables one-to-one marketing through e-mail and other electronic channels on the Internet, a solution which is deemed vital for Internet firms which plan to manage their customer database effectively. …