Smart solutions put Intelligence Data Systems over the top

by Heather B. Hayes
Virginia Business
May 2005

Mike Canney isn’t one to back away from a challenge. That is probably why, at 46, he has started seven businesses, including a vineyard, a car-racing company and Intelligence Data Systems. IDS is an information technology services company that focuses on solving technical problems faced by the U.S. intelligence community. “We like this set of customers because they’re smart, they know what they want, and they’re looking for like-minded people to help them,” Canney says. “And it’s our job to basically exceed their expectations.”

Canney and his team of systems engineers must be doing something right because the 8-year-old company has yet to lose any of its customers. Those customers include the U.S. Department of Defense, Army, Navy, Marine Corps, Office of Naval Research, National Geospatial Intelligence Agency and some 30 or so other players in the intelligence community. “I think that there’s a passion for what we do here,” Canney says, noting that the company frequently partners with large companies such as Titan Corp. and smaller firms like Blackbird Technologies. “We actively want to be the best at applying new technologies and finding creative ways to solve our customers’ problems.”

IDS develops high-performance computing systems and provides systems engineering, systems integration, and network and communications services, as well as linguistic services. It is by far Canney’s most successful venture to date. The company’s revenue grew more than 533 percent from 2002 to 2003 as it sold a large number of supercomputers.

Last year, though, IDS placed a greater emphasis on expanding its staff, doubling the work force from 50 to 100 employees. That move enabled the company to open three new offices — in San Antonio, Fort Gordon, Ga., and Fort Meade, Md. — while experiencing a much lower rate of growth. Canney believes that this year will be another exceptional year for IDS, with revenue projected to top $45 million and the number of employees expected to rise to 200. He also expects to open another three offices, bringing the total number of locations outside of the company’s Reston headquarters to 10.

Clearly one reason for growth in the company’s market has been the increasing need for counterterrorism intelligence after the 9/11 terrorist attacks. But Canney says that much of IDS’ success can be attributed to its nimbleness and responsiveness. “Our customers want results faster than they ever have before,” he notes, and the company makes it a point to deliver within 90 days.“Big companies oftentimes can’t even do a contract in three months.”

Intelligence agencies also are looking for solutions that help them share and analyze information. Canney expects to go after major opportunities of this type in 2005. That strategy is one reason why he worked so hard last year to enlarge his staff. “All of this plays right to our strengths,” he says.

Canney notes that his team now is developing computer systems “that operate at the speed of thought” to help analysts find links between people, places and events. “If the computer is one step ahead, offering you choices, giving you ideas, then it provokes that analyst’s mind to go very fast and greatly improves their ability to do the kind of detective work that’s required,” he says.

At present, IDS is completely owned by its employees, the company’s board of directors having granted stock and options to employees since its founding. A long-term goal for the company is to position it to be sold or go public, says Canney. Already, he fields two offers a week from would-be buyers. “It’s flattering, but it’s not where we want to be yet when we finally do take that step,” he says. “The company still has a lot of growth ahead of it.”

In the meantime, Canney and his employees remain focused on understanding the needs of customers and giving them results. “My goal right now is really to create a fun, challenging place for people to work and to continue to pursue projects that involve doing important things for the country,” he says. “I think that’s what ultimately motivates us.”