N2H2 INC

N2H2 INC

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Company Overview
The company is engaged in the provision of content filtering, reporting and usage management software and related services. It was founded in 1995 and has its registered head office in the city of Seattle in Washington, the United States.
The company is considered as a leading Internet infrastructure firm in the US. It provides categorization of Internet Websites (Internet content filtering and monitoring solutions) that its customers use to manage their end-users’ Internet experience, thus increasing productivity, reducing bandwidth consumption, and limiting potential legal liability. The company’s flagship Web filtering service, Bessr, protects over six million students in US, Canadian and UK schools.
The company markets its products through its own sales force and through resellers in Australia, Canada, Chile, the Dominican Republic, Japan, Mexico, the United Kingdom and the United States. The company’s customers include schools, ISPs, corporations, governments, and other organizations.
Business Summary
N2H2, Inc. provides filtering, reporting and usage management software and related services to conserve bandwidth and increase user productivity. It also seeks to limit potential legal liabilities of its customers relating to inappropriate employee Internet use. N2H2’s Internet filtering is designed to enable organizations (enterprises, government institutions, Internet service providers (ISPs) and schools) to control costs through customizable filtering levels that are designed to allow users only access to Web content most relevant to their specific environment. The Company has two product lines: Sentian for corporate and government customers and Bess for schools, libraries and non-profit organizations. Both Sentian and Bess are software-based filtering solutions. N2H2 also continues to support its legacy proxy server-based filtering solutions, which continue to be used by some of its customers. In October 2003, the Company was acquired by Secure Computing Corporation.
Description and history
N2H2, Inc., incorporated in June 1995, is a provider of Internet content filtering and monitoring solutions. The Company provides filtering, reporting and usage management software and related services to conserve bandwidth and increase user productivity. It also seeks to limit potential legal liabilities of its customers relating to inappropriate employee Internet use. N2H2’s Internet filtering is designed to enable organizations (enterprises, government institutions, Internet service providers (ISPs) and schools) to control costs through customizable filtering levels that are designed to allow users only access to Web content most relevant to their specific environment. The Company has two product lines: Sentian for corporate and government customers and Bess for schools, libraries and non-profit organizations. Both Sentian and Bess are software-based filtering solutions. N2H2 also continues to support its legacy proxy server-based filtering solutions, which continue to be used by some of its customers. In October 2003, the Company was acquired by Secure Computing Corporation.

Bess and Sentian Internet Filtering – Software-Based Filtering Solutions

N2H2 Internet filtering products help organizations of all sizes control, manage and understand their Internet use. The Company’s versatile filtering software can help organizations to control costs by limiting potential legal liability, increasing productivity and conserving network bandwidth. The Company’s software is available for a wide variety of network security devices and applications and is designed to integrate easily into almost any network, providing various features and a simple and straightforward user experience.

The Company’s software offers many features. These features allow network administrators great flexibility in configuring their system for end users. Administrators are able to fine-tune their system by creating custom end user groups, filtering categories, rules and filtering times. They can monitor end user activity using a wide range of detail and summary reports. They can set the system to notify administrators via e-mail and provide end user warnings. They can allow authorized end users to override the system, and can, if they choose, monitor this and other authorized activity including overall web use patterns. In some products these features can be controlled from any location on the Web using a special interface. This can be done by the super administrator, or, in some cases, by a local one. N2H2’s filtering software is Cisco Verified, Microsoft Gold Certified and Check Point OPSEC Certified.

N2H2’s Sentian solution targets the enterprise market. The Company’s Bess solutions serve the education, library and non-profit organizations markets. N2H2 software applications reside on a customer’s server, behind or on the network firewall. These solutions are designed to be downloadable from the Internet and installed by the customer. The Company’s database of Internet content, typically updated daily, is provided to the product via a secure pull method that is designed to allow the customer the ability to download the database without opening their firewall to external intrusion.

I2100, G2100 and I1100 Servers – Proxy-Based Filtering Solution

During the fiscal year ended in September 2001 (fiscal 2001), the Company introduced its new software-based filtering solutions and the firm plans to eventually phase out the proxy server product line. The Company no longer promotes the proxy server-based product to new customers. N2H2 plans to continue support of its existing customers’ proxy-based filtering installations. However, the Company is working to migrate these customers to one of its new software-based filtering solutions.

The Company’s proxy servers are a combination of readily available computer hardware, including a high-capacity hard drive and a high-speed network connection, purchased from outside suppliers. N2H2 configures these servers with software developed by the firm that enables the filtering functions. The Company also monitors and maintains all the software and hardware components necessary to meet its proxy-based customers’ filtering needs remotely from its Seattle network facility. The Company’s proxy-based filtering solution uses a proxy server that is usually installed on the customer’s network. With this structure, every networked workstation uses its filtering solution to access the Internet.

For legacy customers that still use its proxy-server based filtering service, N2H2 maintains a log of Internet data retrieval requests and the workstations that originated the request. This process does not provide the Company with information about the identity of the individual originating the request. The Company will provide third parties with log file information only pursuant to appropriate procedures that meet the requirements of applicable law.

N2H2 proxy servers are built by ISO9002 certified hardware vendors utilizing industry standard hardware components easily obtained from commercial sources. The Company’s proprietary filtering software can be deployed on either Windows or Linux platforms. Its standard I2100 and I1100 filtering proxy servers run on the Linux operating system and use custom-developed filtering proxy server software.

Client Solution (N2H2 for Home and Internet Filtering Manager)

The Company marketed a client-based filtering solution for individual personal computers (PCs) aimed primarily at the home user, called N2H2 for Home. The revenue generated from sales of N2H2 for Home was insufficient to offset the costs associated with this product. As a result, the Company decided to cease the distribution of N2H2 for Home during the fiscal year ended September 30, 2002 (fiscal 2002). The product and associated technology remain property of N2H2, and may, at some point in the future, be re-released if the Company feels that market conditions are appropriate for a product of this type.

N2H2’s competitors include Surf Control, Websense, Elron Software, Symantec, Secure Computing and 8e6 Technologies.

Business Line
Engaged in the provision of content filtering, reporting and usage management software and related services
Subsidiary

Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
7/1999
US SIC Code
7373
Company Address
Suite 3600
900, Fourth Avenue
City province or state postal code
98164, SEATTLE, WA
Phone: +1 206 336 1501
Fax: +1 206 336 1556
Country address: UNITED STATES OF AMERICA
Website url: www.n2h2.com