Mediaboss Marketing

In the run-up to Facebook's initial public offering expected next month, a host of other tech companies have been rushing to Wall Street. And three soaring stock market debuts within 24 hours may hint at what's next for Silicon Valley as the social-networking craze nears its peak.

The valley's newest public companies are a trio of commercial software-makers -- Infoblox, Proofpoint and Splunk -- all of which saw overwhelming demand for shares and big jumps in their stock prices during initial public offerings Thursday and Friday.

While the results are a positive sign for the tech industry as a whole, analysts say the response to all three companies shows investors believe there is money to be made in the commercial tech sector. That's where companies compete to supply corporations and other large organizations with innovative tools for cloud computing and "big data" crunching.

On the surface, those companies may be less sexy than social networks or smartphone apps, but experts say they are a crucial part of the tech economy.

"These three should be a big reminder that the back-end architectures are just as important as the consumer sites we get all hot about," said industry analyst Tim Bajarin at the Creative Strategies firm, adding that commercial tech companies help maintain the "pipes" through which the Angry Birds and iTunes of the world flow.

"The money is moving into

Santa Clara-based Info-blox, which makes networking software, saw its stock rise more than 30 percent on its first day of trading Friday after raising its asking price. Fellow newcomer Proofpoint, a Sunnyvale maker of data security software, also raised its IPO price, but still opened more than 30 percent higher before falling to an 8.3 percent increase.

One day earlier, San Francisco-based Splunk saw its IPO price of $17 more than double on its debut day, and it held onto those gains Friday, closing at $36.20. Splunk makes analytics programs that help companies sort through a variety of data from electronic sensors, Web pages and other sources.

After a relatively slow period since the recession, analysts say several factors have made it easier for tech startups to go public.

An improving economy is giving small investors the confidence to put money into tech IPOs, Bajarin said. He added that Facebook's looming debut, with its promise of a $100 billion valuation, is clearly igniting broader enthusiasm.

Excerpt from:
Pre-Facebook IPOs show investors may 'like' enterprise software more than social networking