Wednesday, Dec. 1, 2004 (No. 46)
Editor & Publisher 
Milt Capps
For previous issues or date of next issue, visit the news archive.

Baker Donelson
Bearman Caldwell & Berkowitz, PC
NTC Tech Underwriter
NTC Sponsors

Jay Graves
In the Spotlight







Venture Innovation Enterprise

Partnership & Recognition



East/West Tenn.& Region

Research & Education


Scheduled Events

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Mid-TN Sprint PCS call center operated by Convergys via IBM will layoff  825 and close, five years after opening, Tennessean, Dec. 1. City Paper, p. 3., Dec. 1.
Nashville's Satellite Phone Source goes international with Canadian office, City Paper, Dec. 1.

Oak Ridge/Knoxville "Innovation Valley" branding to be announced today will seek to establish E.TN for instruments, nanotechnology, homeland security, other categories, Knox. News Sentinel, Dec. 1.
TN Regulatory Authority Director Debi Tate says she will work with TN Economic and Community Development to conduct a broadband inventory of Tennessee, Knox. News Sentinel, Nov. 17, story no longer on web. Tate says State may need to do more to protect consumers of VoIP, telecom services, Knox. News Sentinel, Nov. 23.

Songwriters Guild of America, with Nashville-based Rick Carnes as president, makes the web its headquarters, City Paper, Nov. 29.

Digital Dog snatches TN Performing Arts Center contract for website redesign, release Nov. 16.

Is your IT ad in the NTC 2005
Technology Directory? Inquire here.

Inc. 500 Reveals America's Fastest Growing Companies. Related, Ranked technology companies headquartered and/or operating locally: Passport Health Communications, (120), Franklin; PureWorks (d.b.a. PureSafety), (206) Nashville; Stinger Industries, (300) Murfreesboro; Navarro Research and Engineering (360) Oak Ridge; Beacon Technologies, (365) Nashville; The Whitestone Group (411) Knoxville; ComFrame Software Corp. (428); NovaCopy (438) Franklin.

Nashville Technology Council Technology Census of tech firms continues (participate HERE).

Need a Management Skills tune-up for 2005 tech enterprise? Nashville Technology Council offers it, beginning in January, details
right here.

(Tomorrow, Dec. 2) Tech Roundtable - "Software Wise Guys - Foundations of a Successful Software Company," with David Condra, NTC; Mike Cain, LBMC; Chris Sloan, Boult Cummings; Tim Choate, Bondware. Details here.
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Agility: Nashville's SmartDM survives and thrives in Database Marketing space

SmartDM President Jay Graves says that thanks to the crucible of the Bust that began in Winter 2000, his 34 years on earth must be translated into "dog years." By the time the Internet meltdown was recognizable, he says, "We watched 99 percent of any market value we would've seen disappear in a 90-day period."

Faced with industry-wide calamity, SmartDM quickly reoriented itself from internet data-collection services to database and e-mail marketing services for its clients, drawing on the previous direct-marketing experience of founders Graves and CEO Rich Maradik.

While the past four years have been a wild ride, the company has emerged among what Forrester Research (SmartDM release, Aug. 3; June 30 FR Wave report) describes as "The Best Email Marketing Service Providers." The company is much-studied in business and academic circles, and as Graves made clear during his recent NTC Tech Roundtable appearance, the company also intends to be a leader in confronting the Spam challenge.

A steady stream of press coverage of the firm during the past ten years suggests that the founders learned early-on to quickly leverage advantages and to cut their losses. A SmartDM office in Las Vegas opened with a flurry, reflecting sights set on the Gaming and Energy sectors, but the office was subsequently closed. A once-touted partnership with a company in the People's Republic of China, as well as SmartDM's sister company have quietly "gone away," says Graves. Meanwhile, other SmartDM offices have opened (New York City, Dallas, Little Rock); and, partner-or-no, SmartDM now e-mails thousands of messages per year to China in behalf of the National Basketball Assn., an anchor client in their sports-marketing division, thanks largely to the popularity back home of the Houston Rockets' Yao Ming, the 7'6" 24-year-old.

SmartDM was founded in 1995 as DataMark Inc., with $15 in cash and a PC bought with a credit card. Graves was 23, not long out of Vanderbilt political-science studies, and Co-Founder/CEO Richard Maradik was 25. The pair had just left the staff of the Tennessee Republican Party, where Maradik led fundraising and Graves managed technologies.

By leveraging their political track-record and adding a couple of Nashville business clients, by 1997 the firm had 10 employees and $1.8 million in sales. Today, Graves estimates political accounts amount to no more than 1 percent of the company's annualized revenues.

In 1998, the same year the company boasted 200 customers and $4 million in revenues, Graves explains they barely survived a time-consuming, humbling and ultimately fruitless attempt to bring investors into the company. Graves and Maradik regrouped, and by late 1999, they had 26 employees and were lionized in Inc. Magazine's (Aug. 99) report, "Great Companies Started for $1,000 or Less." The next year, they were listed 127 among the Inc. 500, with 40 employees, and $9 million in revenues.

Today, Graves says a more focused SmartDM has $14 million in revenues, 100 employees and is profitable. Graves says the more focused company reports more than 50 customers in six vertical markets: financial services, professional and collegiate sports teams, hospitality, entertainment, non-profits and retail.
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Nashville Capital Network's Sid Chambless announced details of NCN's Feb. 16 program, "Organizing Your Company": Moderator, Paul Wallace (American Healthways); Stuart Campbell, Stites & Harbison; Paige Davidson, Bass Berry; Carig Buffkin, Buffkin Assocs.; Jon Billington, Ernst & Young; Stuart McWhorter, Clayton Assocs. No charge or advance registration required. 5:30 p.m.-7 p.m., Averbuch Auditorium, VU Owen Graduate School of Management.

"Determing the Valuation of Your Technology Business" will be the topic of the Jan. 13, 2005, NTC Tech Roundtable, with lead presenter Owen GSM's Bruce Lynskey, and panel to be announced. 4 p.m., venue to be announced. Cosponsors: NTC, Nashville Capital Network and Owen Entrepreneurship Center.

Kyzen ends SEC stock registration, as anticipated, Tennessean, 2E, Nov. 20. 

Inflow and its Nashville operations center now part of SunGard Availability Services (Denver), following merger,, Nov. 17. Nash. Bus. Journal, Nov. 17. Tennessean, 2E, Nov. 20.

VoIP and Broadband Coverage:  ISDN-Net bolsters its flagship Voice over IP business through partnership with WF Fiber unit of Wilhagan Ventures that enables ISDN-Net to reach 60% of U.S. population, Release Nov. 25, here. Nash. Bus. Journal, Nov. 26. ISDN-Net in WV Fiber partnership, Tennessean, 3E, Nov. 26, scroll here. Advanced Network Solutions adds VoIP to its infrastructure business, Nash. Bus. Journal, p. 3, Nov. 26. US LEC sales director emphasizes T-1 variation on VoIP, Nash. Bus. Journal, Nov. 26. MidSouth VoIP resells Champion services, Commercial Appeal, Nov. 29. Banks' adoptions of VoIP indicates level of comfort with security, services, Memphis Bus. Journal, Nov. 26. Optical Solutions and United Telephone (Chapel Hill, TN) expand IP Triple-Play package into Tennessee, release Nov. 30.

HealthLeaders now part of acquiring Decision Resources (Waltham, Mass.), but remains here as DRI managed-care research and information unit,, Nov. 19. Nash. Bus. Journal, Nov. 19. Tennessean, 2E, Nov. 20. Related release.

Orbison estate digital distribution of the legend's music,, Nov. 29.

VU seed capital helps Galloway-led Pathfinder image-guided liver-surgery technology grow legs, but venture awaits word on NSF grants applications, Nash. Bus. Journal, p. 8, Nov. 19, not on web.

William Young forms
Lil'bit Computer Help F1, Urban Journal, p. 20, Nov. 17, story not on web.

SmartFurniture expands board of directors,, Nov. 24.

In-flight audio system created by E. Tenn. manufacturer is competitive globally, without outsourcing, Knox. News Sentinel, Nov. 28.
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ClientLogic Wins Customer Care Triple Crown in United Kingdom CRM industry awards, release Dec. 1.

Anode's Night Train to Nashville: Country Connection Interactive Kiosk Scores Bronze World Medal, Nov. 18 release.

PayMaxx and Indiana bank partner, p. 4, Nash. Bus. Journal, Nov. 19, not on web. NBJ Online version, Nov. 17, here.

Financial-planning technologies (Emoney Advisor, Money Guide Pro) adopted by Capital Financial
and Bolen Asset Management, Nash. Bus. Journal, p. 15, Nov. 26.

Dell, Microsoft in new Air Force contract for shipping half-million PCs to military,
Wall St. Journal, Nov. 19.

LOGISCO, warehousing and logistics provider in Brentwood, received the Quest for Quality Award from Logistics Management, ranking in top five for performance, information technology and equipment. Chuck Cline is president. Tennessean, Nov.21.

Staff of Nashville Metropolitan Transit Authority received awards during the annual Tennessee Public Transportation Association's awards ceremony: Rob McElhaney, information technology administrator, received the Extra Mile Award. Tennessean, Nov. 21.

Some law firms adopting Postini to fight spam, Nashville Sols. Grp. represents software locally; Nash. Bus. Journal, p. 15, Nov. 26. Columnist Murray examines spam-fighting options, Nash. Bus. Journal, p. 17, Nov. 26.

SCSI adds former Lamar Alexander aide as marketing director, Nash. Bus. Journal, Nov. 24.

Sy.Med Development Inc. becomes Microsoft Gold Partner, Nash. Bus. Journal, Nov. 19. Release Nov. 22.

Iris Networks names Ebner chief manager, Nash. Bus. Journal, Nov. 22.

Boult Cummings ' move to Roundabout Plaza calls for special care with information systems, and allows firm to add VoIP technology, stories pp. 32 and 33, Nash. Bus. Journal, Nov. 19.

Jim Thorpe to vp-gm Cingular Wireless Kentucky/Tennessee, p. 19, Nash. Bus. Journal, Nov. 19, not on web.

ashville's InfoCode executive has Christmas Tree business running in background, Tennessean, Nov. 26.

IHL Consulting Group, which trips POS trends, adds former 'rocket scientist' Sheldon to team, Nash. Bus. Journal, Nov. 15.
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BlueCross BlueShield of Tennessee and Caremark announce Electronic Prescribing for Tennessee Physicians, release Dec. 1.

CTI Molecular Imaging Announces the Release of PEG.CONNECT IT services, release Dec. 1.

WebMD Corp. announced WebMD Business Services contracts to provide outsourced, managed EDI gateway services to ten healthcare payers representing in excess of 35 million covered lives, release Nov. 15.

MedCom USA engages Nashville-based former HealthStream and WebMD/Envoy sales exec Jaqueline Lancio to market MedCom System, release Nov. 18.

Gordian Health Solutions presents to consumer-directed healthcare conference this week, release Nov. 29.

UT Cancer Institute at Memphis will use federal grant for telemedicine, Commercial Appeal, Nov. 24.

Response to RFI on HIT interoperability due ONCHIT by Jan. 18, conference convenes Monday, Dec. 6. WTOnline. Brailer interview, Health Informatics Extra, Nov. 3. ONCHIT funding less than sought, citing Modern Physician, Nov. 23. ONCHIT site.

Conferees stress advent of "predictive medicine" depends largely on spread of Electronic Medical Records, NY Times, Nov. 22.

IT execs leading big-ticket projects often confront skepticism of ROI, but spending continues to build, HealthLeaders, November 2004.
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Link to key in-state government bid-tracking resources, here. Also, see previous issues, here.

NEW: TN Dept. of Personnel issues RFP 319.02-012 for Development and Hosting of Web-based Training Services, deadline Jan. 7.

NEW: TN F&A Capital Projects seeks help through RFP 317.10-003 for Asset Information Management System Maintenance and Support Services, due Dec. 23.

Update: TN Teacher Recruitment Campaign (web, database support subsumed), RFP 331.01-005, MediaCross deemed best offeror.

(Revised) TN Dept of Safety seeks electronic Customer Management System (queuing) via RFP 349.02-401, due Jan. 11.

DCS automated financial database to correct payment problems, Times Free Press, Nov. 19.

Metro Government invites responses to RFP 04-69 for Local Telephone Services (dial tone, analog, T1, PRI) eligible for E-rate discounts, due Dec. 6.

State Merchant Services RFP 317.05-029 for e-check acceptance
, POS, debit/credit clearance, etc.

State RFP 335.02-535 for review of corporate IS and automated financial-examination systems, by Dept. of Commerce & Insurance.

Website and CRM development and maintenance for TN Tourism, via RFP 326.01-501, due Dec. 10.

TN Dept. of Ed. online formative assessments, online development and maintenance subsumed, RFP 331.04-001.

Coverage of effort to extend ban on taxes on Internet services: Sen. Frist supports ban, WashPost, Nov. 18. Frist supports ban,, Nov. 18. NY Times, Nov. 20.

Lenoir City considers launching Broadband over Power Lines, Knox. News Sentinel, Nov. 24.,1406,KNS_18096_3347178,00.html

Army deploys more intelligence-analysis system infrastructure in Iraq to increase intel
reporting, Army News Service, Nov. 18.

Hamilton County 911 reliability depends on state of technology, among other things, Times Free Press, Nov. 25.

After-action report on states' regulators' NARUC meeting in Nashville, Knox. News Sentinel, Nov. 22. See previous for more detailed stories on issues such as VoIP, here.

Citing Memphis rape victim, TRUE urges legislation to reinforce Online Dating safety, release Nov. 24. Background here.

Federal contract for FirstContact national web portal for inquiring Americans goes to ICT Group, release Nov. 26.

NIST gets funding for cybersecurity, IT R&D, sensors, Fed. Comp. Week, Nov. 24.
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The Oak Ridge NL "brand" is crucial to building world-class sci-tech economy in East Tennessee,  Knox. News Sentinel, Nov. 22.

TVA launches effort to determine how to attract life-sciences industries to the Valley,, Nov. 24.

Bristol-Kingsport public-private initiative seeks World Trade Center Association charter for region, leveraging regional airport, Elizabethton Star, Nov. 23.

Memphis leaders rally to defend city's status as logistics leader, after rankings of 'logistics-friendly' cities
that shows Memphis losing ground, Commercial Appeal, Nov. 19.

Merastar Insurance in Chattanooga adopts GuideWire ClaimCenter software,, Nov. 8.

Entrepreneurs, government officials in East Tennessee discuss importance of cooperation for economic development, Knox. News Sentinel, Dec. 1.

Knoxville's National Transportation Research Center unveils technology project to ensure trucking safety, Knox. News Sentinel, Dec. 1.

Columnist updates tech activity in Fairview Technology Center, Knox. News Sentinel, Dec. 1.

Memphis Light Gas and Water may invest in Metro Networx cable venture, Commercial Appeal, Dec. 1.

Plan Express leverages technology and FedEx presence to address shipping of construction drawings, Commercial Appeal, Dec. 1.

Computer system manages Chattanooga Area Rapid Transit (CARTA), Times Free Press, Nov. 19.

Aviall adoption of Catalyst supply-chain execution solution affects Aviall's Memphis inventory location service, release Nov. 19.

Idleaire Technologies has licensed VoyenceControl to manage network configurations across its rapidly expanding network, release Nov. 29. Idleaire award from CALSTART for emissions technology, Knox. News Sentinel, Nov. 22.

Town of Red Bank enters the computer age, Times Free Press, Nov. 17. 

Computerized Payroll Solutions founder discusses payroll providers' obligations, Times Free Press, Nov. 4.

East TN Better Business Bureau fighting Internet scams, Knox. News Sentinel, Nov. 24.

Brother dedicates 500K-sq.-ft. state-of-the-art warehouse and logistics center at Bartlett (Memphis), Commercial Appeal, Nov. 18. Release Nov. 23.

Dyer County Tech Center needed to prepare workforce, State Gazette, Nov. 19.
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Bagel 1: Vanderbilt IT unit details computer virus-fighting strategy, tested by recent Bagel virus, release Nov. 22.

Bagel 2: VU mathematicians' Bagel theorem could reshape computer graphics, Space Daily, Dec. 1.

Vanderbilt Engineering-based Institute for Space and Defense Electronics studies ways to protect electronics from radiation, site here. Key Staff here. Military, NASA, other sponsors. ISDE brochure.

U.S. and Russian scientists discuss nuclear-waste security and terrorism at VU, release Nov. 18. Background on event,, Nov. 4.

Oak Ridge NL will benefit from supercomputing revitalization legislation, NY Times, Nov. 18.

(further) VU study of tree frogs and computer nets, Tennessean, Nov. 29.

Adventure Science Center attempts to leverage recent attendance surge, Nash. Bus. Journal, p. 9, Nov. 19, not on web.

Siemens Westinghouse winner from Lausanne Collegiate School, Germantown, is among students honored, Commercial Appeal, Nov. 25. 

Computer-science courses at Memphis schools given NSF boost, Commercial Appeal, Nov. 25. Memphis schools receive NSF support for technology, Commercial Appeal, Nov. 28.

Hamilton County Schools get new IT system, Times Free Press, Nov. 4.
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BusinessTN Tech reports, December 2004:
The new magazine's latest tech offerings include reports on HCA PLUS Software development and litigation around that work; a story on Chattanooga's Tricycle Inc. software venture; and, an update on East Tennessee's IPIX venture. Also, the new Fast 50 listing includes numerous technology firms, notably Rentech, Beacon Technologies, Cybera, Iris Networks, MailNet, Passport Health Communications and others. Subscription.

Comments on value of key IT assets in any enterprise you consider buying, InformationWeek, Nov. 29. In Memphis, Microsoft VP Robert McDowell discusses adding value to business with information technology, CommercialAppeal, Nov. 18.

Nashville drops sharply, Memphis rises slightly in Milken ranking of best-performing cities, Memphis Bus. Journal, Nov. 18. Knoxville among Best-Performing cities, Knox. News Sentinel, Nov. 24. Milken rankings here.

Freecycle Nashville site provides e-commerce for trading unused items.

Roy Orbison estate digital distribution deal,, Nov. 29.

Boom in celebrity ring-tones, Tennessean,
Nov. 20.

RIAA total lawsuits against downloaders now totals nearly 7,000, with about 1,300 already settled for average $3K each, USA Today, Nov. 19. Economists not certain of impact of dowloading on music sales, NY Times,
Nov. 21.

Attorney Chris Sloan details nine common mistakes in dealing with intellectual property in technology sector, p. 18, Nash. Bus. Journal,
Nov. 26.

BearingPoint may be under pressure to be acquired, CEO plans shakeup, sales to sm/med business disappointing, Washington Post,
Nov. 22.

Another technology game appears: Geocaching, using GPS to find cache owners' deposits and log your find, Commercial Appeal,
Nov. 25.

Mid-TN economist Haskew stresses importance of education in propelling economy, Tennessean,
Nov. 21.
Expanson of broadband to homes means designers freer to build more robust E-commerce sites, NY Times, Nov. 29.

How'd you like to be in charge of intercepting the Spam within Bill Gates' 4 million e-mails each day? CNN,
Nov. 18.

Powerful computer algorithms and miniaturization are key to technologies that draw bio-sensory information from unusual body sources, NY Times,
Nov. 23.

Canada gets much high-end outsourcing business, particularly where customer interface is key, for which India found less effective, NY Times,
Nov. 30.

India creating "Smart City" IT trade zone near Cochin, AP via WashPost,
Nov. 19

TechNet CEO views legislation agenda for tech industry during Bush II, Washington Post, Nov. 23.
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For frequent updates, check the NTC home page and the NTC "Tech Links" page, found here. Check business calendars of The Tennessean; The City Paper ; and Nashville Business Journal. And, visit Tennessee's technology councils' sites:
CALENDAR ( * indicates new or revised item)
(Dec. 1-3) Tennessee Education Technology Conference, link here.
(Dec. 2) NTC Tech Roundtable, "Software Wise Guys," panel discussion of building foundation of successful software business, with panel featuring NTC President David Condra; Boult Cummings attorney Chris Sloan; LBMC co-managing partner Mike Cain; and moderator Tim Choate, chairman of the Software Developers Roundtable and founder of Bondware. Details here.
* (Dec. 2) Memphis Technology Council program on Shader technology for video games' experiment with PointToExistence. 7 p.m. at CyberNet. Write for more info, here.

(Dec. 3) Chatta. Tech. Council, workshop: Coaching for Performance: The Compensation Imperative (Dr. Takeda); 8 a.m., info
here or (423) 755-7481.

(Dec. 7) The Riverbend Technology Institute at UT Chattanooga, with NASA Ames Research Center (Center for Nanotechnology), Moffett, CA, the Girvan Institute of Technology (Santa Clara) and the University of Memphis FedEx Institute of Technology present Dr. Meyya Meyyappan, Director of the Center of Nanotechnology, 4:30-6 p.m., UT Chattanooga, Fletcher Hall, Room 212. Limited space. Information,
here  or call (423) 425-2177.

* (Dec. 8) WiTT December meeting, 5 p.m., at The Mouse Pad at Cool Springs. Program details

(Dec. 9) Nashville Technology Council Holiday Mixer, Dan Mcguinness Pub, 1538 Demonbreun, 5 p.m., Details here.
* (Dec. 9) AITP Nashville chapter meeting, "Team-building," James L. York, Facilitator and Trainer for the ETA Company. 5:30 p.m., Sheraton Music City Hotel, details here.

(Dec. 14) InfraGard: Maj. Gen. Jerry D. Humble, TN. Office of Homeland Security. 7 p.m., Belmont Univ., details

(Dec. 15) Chatta. Tech Council Luncheon: Network Security and Information Security Management, Joseph Dell, Chief Technology Officer for Vigilar, Inc., 11:30 a.m., info here or (423) 755-7481.

(Dec. 15) East TN Technology Council luncheon, Speaker: U.S. Rep. John Duncan, visit here or write, call (865) 220-2020.

(Dec. 16) InfraGard chapter meeting, Belmont University. Speaker TBA. Write
here for info.
* (Dec.  21) PMI Nashville chapter meeting, 11:30 a.m.-1 p.m., Holiday Inn Select. Details here.

* (Jan. 11) NTC Management Skills series begins. Presenter Jay Ress. Details here.

(Jan. 13) NTC Tech Roundtable, program on IT corporate valuation.  See Venture section above. 

* (Jan. 19-20) Tennessee Cyber-Infrastructure Initiative: Conference on Computational Applications, papers invited. Murfreesboro, TN. For further information, write Penny Morris or George Garrison.

* (Jan 25) WiTT monthly meeting, with Alan Tackett and Mary Dietrich, Directors of Vanderbilt University’s ACCRE (Advanced Computing Center for Research and Education) will speak.  Vanderbilt Hill Center, 1231 18th Avenue South, 4:30 p.m. Details here.

* (Jan. 26) HealthLeaders regional IT leadership conference, Memphis.

(Feb. 15) NTC Technology! Nashville 2005. NTC's annual flagship event. For sponsorship info, write 

* (Feb. 16) Nashville Capital Network program on "Organizing Your Business," see Venture section, above.

* (March 17) – MTSU Emerging Technology in Manufacturing event. Details here. Contact: 
Dr. Charles Perry, Russell Chair of Manufacturing Excellence, Inst. Engineering Technology and Industrial Studies, College of Basic and Applied Sciences.
* (May 18) – NTC Nashville Technology Innovation Conference will be Wednesday, May 18, 2005, with emphasis on innovations that address current and emerging technology needs of enterprises large and small. The unprecedented NTC event will be at BellSouth Auditorium, downtown Nashville. Speakers currently confirmed include execs from Symantec, IBM, Brooktrout, CapGemini, Tacit Networks, J.P. Morgan. Registration, sponsorship, exhibit and related details are forthcoming. Info, write 

* (July 12-15) Tenn. Valley Corridor 2005
National Summit, Washington, D.C.
(Aug. 24) – NTC's InfoSec Nashville 2005 information-security conference will be Wednesday August 24, with CSI information-security training Aug. 22, 23, 25, 26. For further information, write
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Nashville Technology Council
211 Commerce Street, Suite 100,  Nashville, TN 37201
p: 615-743-3160  |  f: 615-256-0393  |  e: