He's No Technologist, But Moves in Tech Circles

By Ellen McCarthy
Thursday, December 29, 2005

Virginia's new secretary of technology is not a technologist and has never served in government before.

No matter. Aneesh Chopra has a few other characteristics that put him in line for the position, which oversees the state's technology infrastructure and is responsible for fostering the development of Virginia's technology industry. The 33-year-old is a policy junkie, a rising star in Washington's Indian American executive circles, and he's got friends with tight ties to Gov. Mark R. Warner 's administration.

Timothy M. Kaine , Warner's lieutenant governor and successor to lead the commonwealth, told Chopra two weeks ago that he got the job.

Chopra is a somewhat surprising choice to replace Eugene J. Huang , who has held the position since September 2004, following the resignation of George C. Newstrom , a longtime executive with Electronic Data Systems Corp . Chopra studied health care policy at Johns Hopkins University and Harvard University and in 1997 landed at the Advisory Board Co ., where he runs a group that advises executives on ways to make health care operations more effective.

In his off hours, Chopra became increasingly involved with the local tech community. With a group of second-generation Indian Americans he started Avatar Capital , a venture fund that invested $11 million into 18 start-ups. ("We have a few [companies] that are still alive and a lot that are dead," Chopra admits.) And he joined Tie-DC , an organization of entrepreneurs of Indian heritage.

That group led to a crucial friendship with Hemant Kanakia , who helped make Gov. Warner (D) a very rich man. Warner's venture fund, Columbia Capital , was the leading investor in Torrent Networking Technologies , a firm Kanakia founded and sold to Ericsson for $450 million. Today Kanakia, who remains close to Warner, and Chopra serve as co-presidents of Tie-DC.

One of Chopra's biggest challenges will be to oversee the implementation of a $2 billion contract that will outsource the state's technology infrastructure and calls for hundreds of government workers to join the private sector.

Donald W. Upson , the technology secretary under Gov. James S. Gilmore III, said Chopra will have a steep learning curve. "He's got a lack of experience, that's against him, but if he recognizes that and uses that office to bring people together, he can make a difference -- I hope he does," Upson said.

Chopra concedes that he's not an expert on the inner workings of technical systems. "What I brought to the table was an understanding of the capabilities of new technologies and how they might advance a particular agenda," he said.

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Another old name is resurfacing again.

Savvis Inc. , a Web-hosting firm that used to have its headquarters in Herndon, is back in town with a familiar mission: breaking into the federal market.

Today the firm will announce the formation of Savvis Federal Systems , a subsidiary created to do business with the government. For many years, Savvis, which posted huge losses after the tech bubble burst, was based in Herndon and St. Louis, but last year it consolidated its executives in St. Louis.

The company still has some operations in Herndon, making it the obvious choice for the new federal business. To lead the subsidiary Savvis hired Donald E. Teague, who previously ran government sales divisions for both Sprint Corp. and AT&T Corp.

Savvis has struggled in the past year. The company continues to lose money, and last month its chief executive, Robert A. McCormick, resigned following a scandal over $241,000 in charges run up at a Manhattan strip club.

Acting chief executive Jack Finlayson says Savvis has 2,000 employees, "focused on moving the company forward." We'll have to wait to see how much the new federal business can aid that effort.

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The holiday season was sweetened for Alon S. Moritz last week, when his company, Annapolis-based Moozatech Inc ., was wired the first part of a $2.5 million round of venture funding.

The investment, from Althone Global Security , the venture arm of a Toronto investment firm, is the eight-year-old cyber-security company's first round of institutional funding. Moritz said the company, now housed in the Chesapeake Innovation Center , an incubator for homeland security start-ups, will use the funds to expand its marketing team and set up a sales office in Arlington.

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Washington's technology community fared quite well in 2005. Government contracts fueled job growth in the region, dozens of companies were gobbled up in pricey acquisitions, and local techies were once again able to engage in their favorite topic of debate: the fate of America Online .

Of course, there's always room for improvement, so we checked in with a few industry notables from around the Beltway to find out what they'd like to see from Washington's tech sector in 2006.

Jonathan Silver , of Core Capital Partners , a District venture fund, said he's hoping more seasoned executives will make the risky jump to start-up companies. The area has plenty of ideas, talent and capital, he says, but not enough "experienced executives to lead these new ventures."

Jennie Hunter-Cevera , president of the University of Maryland Biotechnology Institute , is hoping for public-private funding for product commercialization at local universities, while John Sanders of the DC Tech Council simply wants the District to "be better recognized" for its tech economy.

Ray Rice , of Reston executive recruiting firm KenRay Partners , is hoping 2006 will bring the return of entrepreneurs like WebMethods Inc. founder Phillip Merrick .

Julian Waits , chief executive of Brabeion Inc ., would like the region to develop more programs to help start-ups grow, and Bobbie Kilberg , president of the Northern Virginia Technology Council, wants some relief from the traffic nightmares. "The employees of our member companies cannot move on the roads anymore -- it's impacting their ability to transact business and taking time away from their families."

Blackboard Inc. chief executive Michael Chasen , however, is just hoping the local tech community can start generating as much buzz as Tai Shan , the baby panda. "We'll have to work on how to boost our cute factor," he says.

Ellen McCarthy writes about the local tech scene on Thursdays. Her e-mail address ismccarthye@washpost.com.