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Wednesday, July 9, 2014

Former resident finding entrepreneurial success

Wednesday, October 7, 2009

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A former Brazil resident is cutting his teeth and seeing expansion in a multi-billion dollar industry.

Scott Loughmiller, a 1992 graduate of Northview High School, has been very prolific in the Internet startup industry since founding a company in his senior year at the Rose-Hulman Institute of Technology,

He is seeing great success with his company. Scale Computing, a data storage company he founded with five other people, four of whom he went to college with.

Loughmiller said Scale makes storage for various companies, including hospitals and schools. He said what differentiates his company from other businesses in this industry is that it's more expansive. Scale equipment is expandable, making for more space in a computers hard drive, where as other systems programs make things more cluttered, creating the need for installation of a new system.

Loughmiller also said his company operates at a much lower rate than most, at around one-half to one-third of their competitors prices.

Loughmiller serves as the company's Chief Product Officer, saying the job puts him in charge of "what gets built when."

Loughmiller said Scale was his fifth venture in the startup industry, which dates back to his senior year at Rose-Hulman, when he and classmates founded Terre Haute Internet Services. This proved to be a great outlet for Loughmiller, who said he "always wanted to do (his) own thing," and that the internet storage industry proved to offer a great opportunity to do just that.

For the start of his second business, Radiate, Loughmiller and his associates moved headquarters from Indianapolis to Mountain View, Calif., which offered a wider array of engineering talent for which they could expand their business. He currently lives in San Francisco with his wife Christen.

In 2008, Loughmiller and his associates, Jeff Ready, Ehren Maedge, Mike Olson, Jason Collier and Nate Haret began their current expedition Scale Computing, and have quickly become the beneficiaries of notoriety in the industry.

Forbes recently ranked Scale at no. 16 on their list of America's 20 Most Promising Young Companies. The list was compiled from more than 4,000 submissions. Loughmiller said he and his co-workers were pleased to receive such high praise.

"It's great to get recognition like that," Loughmiller said. "We certainly feel like there's a lot of potential (in the company) and when other people recognize your work, it offers some nice validation."

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With potential comes the need to expand, and that's exactly what Scale has done. They recently made the decision to split their company into two headquarters; one in San Carlos, Calif. and the other in Indianapolis. Loughmiller said he ran into the exact opposite problems that forced he and his associates to relocate from Indy to California the first time, as while there were multiple engineers in the California location, but few people who could carry out the necessary manufacturing side of the business. He said splitting the company into two separate entities would prove to be the best of both worlds.

"Lots of stuff gets built (in California), but not a lot of people know how to manufacture it," Loughmiller said. "There is a much bigger manufacturer base in Indy, and we have a chance to really build by moving part of the company there."

Jeff Ready will be the only founding member of Scale to work out of Indianapolis, with the rest staying in California. In addition to being able to find new talent to help expand the company product, Loughmiller said Scale will also save money, as building rental costs are considerably lower in Indy.

Working in a $40-$60 billion industry, Loughmiller thinks the sky is the limit for he and the 25 workers who currently make up the Scale employee list. With all their recent success, mixed with the impending new talent, he expects he and his associates will be able to become very successful and exceedingly wealthy.

"We feel we have a product that can meet the needs of our clientele," Loughmiller said. "If we can only grab a small amount of the money that is out there, (this company) has the potential to be really big."



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