Scott Goldman knew video conferencing was going to be big back in 1996 when he saw live footage of Dan Richmond’s newborn son in Phoenix on a computer screen in the San Fernando Valley. But it wasn’t until 2004, with years of experience in software development behind them, that the two friends came together to launch MegaMeeting, LLC., an Internet-based video conferencing service for businesses. Unlike other applications available at the time, they set out to differentiate themselves following the premise that for the technology to be prevalent, it had to be easy to use and work well. Their formula: no software to download or install, high quality video, affordability, and flexibility in their business model, has proven successful. In the last three years their 23-employee enterprise in Sherman Oaks has seen revenues go up close to 700 percent and the company was recently named among Inc. Magazine’s list of the 500 Fastest Growing Privately held companies. “We really pride ourselves in our philosophy that if you’re having a meeting in a room with 50 people you want those doors to be wide open so everyone can come to your meeting,” said Goldman, Chief Technology Officer. “We’ve really built a system where people can get into the meeting, it doesn’t matter if you’re on Windows, if you’re on a Mac, if you’re on Linux or whatever the next operating system is, because it all works inside the Internet browser which is key.” From churches to colleges and hospitals, high tech companies such as General Dynamics, attorneys offices, law enforcement and government agencies, their range of clients has grown wide and varied. President Barack Obama was among the high profile elected officials who used the system during the last presidential primaries, they said. From coast to coast in the United States, and as far away as the UK and South Africa, 1,800 clients spread around the globe are hosting online conferences through MegaMeeting, some paying the minimum $45 a month, which allows for three concurrent connections. At any given time there could be as many as 10,000 people using the system. “We got really lucky,” said Richmond, MegaMeeting CEO. The platform they chose for their system, Flash Media Server from Adobe, gave them the ubiquity to work across all different computers and computer systems. “We chose the right platform at the right time, and came out with the right product that has evolved as time has gone on,” he said. “All you need is an Internet browser, Internet connection and you’re good to go,” Goldman added. A flexible business Part of the success of their company they say, is the flexibility with which they’ve allowed the market to dictate the direction of their business. The company even accommodates those clients who want to use the technology under their own private branding, and customizes products to fit the demands of their clients. The result has been amusing to both of them. Sitting at their office, the two chuckled at the new ways clients have begun to use their system. “I love the e-Bayer who makes himself available from 1 p.m. and 4 p.m. Pacific Time to answer any questions face to face,” said Goldman. There’s also the vacuum distributor that is using MegaMeeting to help customers fix their vacuums on the spot, saving huge amounts of money in shipping costs, they said. A prison system in the U.S. is using it as a venue for inmate visitations held remotely, and an Ivy League school on the East Coast is using MegaMeeting in anticipation of the upcoming flu season, so students can attend lectures and meet with professors from their homes. Real estate brokers, camera on hand, are also showing homes to clients far away, and a local Yoga instructor will be soon broadcasting her sessions through the system. MegaMeeting has also been used by preachers to broadcast sermons and weddings. Philippe Hartley, General Manager for PHAT Energy Solar Options, a company based in La Crescenta, said his business uses MegaMeeting to hold conferences with sales representatives scattered from San Luis Obispo to multiple areas in Southern California. The company also uses the system as a vital sales tool. “I can’t believe this technology isn’t more prevalent right now,” he said. The future Both Richmond and Goldman are banking on the technology becoming increasingly prevalent in the coming years. “We compare it to e-mail ten years ago. At first it was like, ‘do I have to e-mail?’, now people can’t live without it.,” Richmond said. “It’s that sort of technology that ten years from now it’s going to be second nature for people to say ‘let’s jump on a MegaMeeting’.” As cell phone devices become more sophisticated, the pair is sure soon enough people will be holding MegaMeetings from their phones. Despite the economic recession, the company will be launching significant efforts in the coming months- a push to grow more aggressively. “We’ve sort of been kept quiet for the first five years, we’ve been growing the business at a very fast rate, but not too fast,” said Richmond. Now the company is looking into setting up servers in datacenters in Singapore and South Africa, moving forward with plans to build their own concentric network around the globe. “We just hired a marketing director and the company is going to do a big marketing push over the next 6-12 months, really getting us to that next level,” said Richmond. MegaMeeting will also be releasing version 3 of its application by the end of the year. “We’re really excited about that,” said Goldman. “It’s a total re-write of our technology, and it does give us a lot of functionality that a lot of our customers have been asking for.” “And we’re having a blast. You’ve got to have fun, and enjoy what you’re doing or you shouldn’t be doing it.” SPOTLIGHT – MegaMeeting LLC Year Founded: 2004 Co-Founders: Dan Richmond, CEO; Scott Goldman, CTO Revenues in 2007: $1,671,000 Revenues in 2008: $2,744,000 Employees: 23
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