Interwise's Graduation From E-Learning Pays OffInterwise's Graduation From E-Learning Pays Off

Investors are betting that the interest in Web-conferencing and other distance-collaboration tools won't fade any time soon. Interwise last week disclosed it raised $34 million in third-round financing, released a new Internet-based collaborative platform, and signed two new customers.

The company broadened its appeal by pushing into the Web-conferencing market from its roots--building infrastructure for live E-learning. "Had we come out with a simple E-learning story, we would have never raised that kind of money," Interwise president and CEO Frank Zvi says. Its new product, the Enterprise Communication Platform, is a suite of applications to stream audio and video to online groups as big as several thousand.

Two recent customers are IT services provider Fujitsu FIP, a subsidiary of Fujitsu Ltd., and Key3Media Events, the organizer of IT conferences such as Comdex, which plans to use the platform to broadcast training sessions and company programs.

Research from a September survey--done before and after the terrorist attacks--shows many companies plan to increase the use of Web-conferencing apps, says International Data Corp. analyst Mike Brennan, who envisions the applications being used not just for internal communication but also for customer presentations and shareholder meetings. Annual subscriptions start at $75,000.