SlipStream: Catching Tomorrow

Consider the benefits of a mathematical formula that is so advanced, it could speed up every moment of your Internet experience. Enable you to download files and load Web pages up to ten, or even twenty times faster. Compress data to transmit at record speeds with zero loss of vital information – whether sending sensitive documents or high quality graphics. This same algorithm could help streamline, optimize and accelerate the digital flow of any data delivery system: from dial-up and broadband networks to wireless and whatever comes next.

Inventing such a breakthrough would require far more than fast thinking. In reality, it took two highly accomplished Electrical and Computer Engineering professors from the University of Waterloo with a genius for complex algorithms and software. Plus timely support from Ontario Centres of Excellence (OCE).

Even the most brilliant minds need help to bring their ideas to market. That is where OCE fits into the equation – ready to chart the fast-track to success, just like they did with SlipStream Data.

SlipStream: Lossless Data Compression The SlipStream patented algorithm enables data to be compressed as much as 50 times smaller than its original size and then reconstituted at the other end – with no loss of data and minimal processing involved. This technology, resulting in up to 20 times acceleration, can prove immensely useful anywhere there are large amounts of data involved: especially with the rise of data-rich media sources like broadband Internet, wireless and handheld devices. Thanks to the original formula, SlipStream technology is now the global de facto standard in acceleration, adaptive data compression and network optimization technology. Quotation: “OCE’s investment came at the exact right time in the development of the technology into a product. It allowed us to reach the stage where we could raise our first round of venture funding. But their contribution went far beyond funding: with introductions to people, pointing us in the right direction and really going out of their way to help us get on our feet.” Ron Neumann, President, SlipStream Data (acquired in 2006 by Research in Motion Inc.)

No loss. All gain.

It began with a highly unusual formula. Seven years ago, nearing the end of an OCE supported research cycle at Waterloo, Dr. En-Hui Yang brought up the new development with his OCE business development manager. The promise of the discovery was immediately apparent to the OCE representative.

A gifted mathematician, Professor Yang had managed to formulate a quite remarkable ‘lossless compression algorithm’ – vastly superior to anything at the time. He had also teamed up with fellow professor, Dr. Ajit Singh, to develop a software component.

OCE sensed the potential of the idea and pitched in to figure out where it might fit in the marketplace. They were thunderstruck by what they discovered; it turns out that the algorithm solved a critical issue regarding the lossless transmission of Internet and wireless content – ensuring data integrity for everything from email to image-rich Web pages to future applications.

OCE worked with the two professors to develop a business plan from scratch, conduct the market analysis and help build a new enterprise, which is now called SlipStream Data. SlipStream’s President, Ron Neumann, remembers: “The professors went for the toughest problems first. During the testing phase, the first application of the new technology was wireless, even though dial-up internet access was still the standard at the time.”
Truly a sign of things to come.

OCE contributed an early stage investment of $150K to accelerate the opportunity – and help finance staffing, market analysis and equipment. According to Neumann, this modest influx of seed capital proved to be “the perfect amount of cash at the exact right time in the development from technology to product. The $150K really allowed us to accomplish a lot and reach the stage where we could raise our first round of venture funding.”

The SlipStream President recalls how the OCE contribution went far beyond funding: “with introductions to people, pointing us in the right direction and really going out of their way to help us get on our feet.”

From Dial-up to Wireless.

The time and energy proved to be wisely invested.

SlipStream capitalized on OCE’s contribution and focused on dial-up Internet service providers. For Neumann, this strategy laid the foundation for the opportunities to come: “We decided to prove ourselves in the dial-up market and essentially changed the landscape – extending the life of dial-up service – still a viable and active component which would not have survived without technologies like ours.”

SlipStream succeeded in selling their patented software packages to all the major North American ISPs. Four years later, they expanded their market to Europe and Asia – in the many regions that still use phone modems. They also extended their reach over broadband and lower speed DSL networks and focused development on accelerating an increasing amount of content types.

Around this time, SlipStream recognized that more and more rich content, like pictures and Flash, was being ‘pushed’ to handheld devices – and began applying their solutions to the wireless space. It proved to be a perfect fit: Research in Motion® (RIM), creators of the renowned BlackBerry® solutions, saw the wireless potential of SlipStream and acquired the company in Summer of 2006. In one bold move, RIM outpaced its global competition – ensuring a better experience for users of their handheld devices.

Potential Realized.

SlipStream illustrates how OCE can go beyond the call to make things happen. Indeed, OCE leveraged its status as a not-for-profit agency to support the young start-up with time and guidance to help it grow.

SlipStream flourished into a global powerhouse, servicing 2200 customers in more than 50 countries. And now, together with RIM, they form a critical centre for Information Technology R&D in the province.

Recently named 2006 winners of the Gold Global Export Trading Award for market expansion of a product, SlipStream is ready to keep raising the Internet speed limit. Right on track to a future that first took off right here in Ontario.