Classmates.com 2004 Annual Report Download - page 12

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Another major component of our access technology is our server software, written primarily in the Java and C++ development languages,
which consists of a group of software applications running on multiple servers that manage each user's account and online sessions. Our server
software interacts with the access client software to send and receive information such as authentication data, telephone lists, advertisements and
usage data. Database servers store session information, account information and advertisement data. Advertisement targeting servers manage
advertising inventory and determine which advertisements accounts will view and which will be downloaded to computers during online
sessions. Other major server software systems include our email server software, our accelerated dial-up services server software and our billing
server software.
We license a number of our software applications and components. Our principal billing system is based on a software application that is
licensed from Portal Software, Inc. and our customer support system utilizes a software application that is licensed from Remedy, a BMC
Software, Inc. company. The majority of our database systems run on Oracle database applications and we use Oracle financial and human
resources management applications for internal administrative purposes. We license Sun Microsystem's Java technology for our client and server
software applications. Our accelerator services use software technology components licensed from SlipStream Data Inc. These licenses generally
have terms ranging from at least three additional years to perpetual.
Support for our community-based networking business and its Web services is provided by a combination of open source, internally
developed, and licensed software. One of the principal internally developed applications uses Art Technology Group's Dynamo software
environment, which we license. Internally developed software is principally written in C++ and, in some cases, Perl. Billing is done by internally
developed software. Web pages are served via the Apache open source software system. User information is stored in an Oracle database, which
is also used to support Web sites, target advertising, and prepare email campaigns.
PROPRIETARY RIGHTS
Our trademarks, patents, copyrights, domain names and trade secrets are important to the success of our business. We principally rely upon
patent, trademark, copyright, trade secret and contract laws to protect our proprietary technology. We have filed numerous patent applications
relating to a variety of business methods and technologies. We generally enter into confidentiality or license agreements with our employees,
consultants and corporate partners, and generally control access to, and distribution of, our technologies, documentation and other proprietary
information. We consider our NetZero, Juno and Classmates trademarks to be very valuable assets, and we have registered all of these
trademarks in the United States and certain of them in some other countries.
COMPETITION
Internet Access Competition
Competition in the Internet access market is intense. We compete with established online service and content providers such as AOL,
AOL's Netscape subsidiary and MSN; independent national ISPs such as EarthLink and its PeoplePC subsidiary; companies combining their
resources to offer Internet access in conjunction with other services such as Yahoo! and SBC Internet Services, and AOL and Walmart.com;
national communications companies and local exchange carriers such as AT&T WorldNet, Qwest Communications International, Inc. and
Verizon; cable companies such as Comcast Corporation, Cox Communications, Inc., Charter Communications, Inc. and Adelphia
Communications Corporation; local telephone companies; and regional and local commercial ISPs.
We believe that the primary competitive factors determining success in the market for Internet access users include price, speed, a
reputation for reliability of service, effective customer support, ease of use and reliability of software, geographic coverage and scope of
features. Other important factors
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