AppRiver co-founders Joel Smith and Michael Murdoch have grown their email security company into a $50 million business and an anchor of the Pensacola area's tech community. Photo credit: Innovation Coast

There’s a river running through Gulf Breeze, but it’s not the kind where you can fish or water ski.

It’s a river of technology, innovation and ideas.

And it has brought a $50-million business to Northwest Florida in the form of AppRiver, an email security firm built in 2002 in Gulf Breeze by Michael Murdoch and Joel Smith. It now employs 233, with 211 of them in Gulf Breeze.

Murdoch and Smith “conceived a company that would answer businesses’ needs by successfully combating the rapidly evolving (information technology) threat landscape,” said Dana Holway, AppRiver’s director of corporate communications.

“These applications would flow from developers to downstream users much like a river – AppRiver,” Holway said.

Murdoch and Smith, who were living in the Pensacola area when they founded AppRiver, decided to open the company in Gulf Breeze because of the pro-business policies of state and local government, Holway said.

AppRiver's headquarters in Gulf Breeze. Photo credit: Innovation Coast

Even as the company has grown, they have never considered moving to a larger city.

“Many of our industry peers in larger metropolitan areas face long commute times, expensive housing costs and more transient workforces,” Holway said. “The Pensacola area is affordable, most of our employees spend less than 15 minutes getting to work, and we enjoy an exceptionally low turnover rate.”

Shannon Ogletree, Santa Rosa County's economic development officer and a member of the Innovation Coast board said AppRiver’s presence in Northwest Florida is critical.

The company’s revenue stays in the Pensacola area in the form of salaries, local purchases, tax revenues and charitable contributions.

“AppRiver's 'product' is really the thoughts, ideas and efforts of people who live here,” Ogletree said. “That’s not only a renewable resource, it’s also one that gets better the more it’s used. AppRiver's software services are then sold to customers around the world — and the revenue flows back here. "

The recruiting challenge

Being in a relatively small metropolitan area does pose workforce challenges for the high-tech company.

“We have smart, talented people here with a great work ethic,” Holway said. “What we're missing is the seasoned, experienced tech professionals with years of development under their belts.”

But that is an issue AppRiver hopes Innovation Coast can help with.

Innovation Coast is an alliance of tech businesses, economic development experts, the University of West Florida and Pensacola State College aimed at growing, sustaining and showcasing the tech community in Pensacola and along the northern Gulf Coast.

Donovan Chau, executive director of Innovation Coast, said attracting, retaining and growing talent is one of the organization’s core objectives.

“It’s important to take the long view,” said Chau, who is also the director of strategy and engagement for UWF’s Center for Research and Economic Opportunity.

“Silicon Valley, the exemplar of a tech community, did not appear overnight,” Chau said. “The community grew organically. It was nurtured and supported, both politically and financially.

“It is in this sense that Innovation Coast strives to attract good, talented people to our tech and knowledge-based community,” Chau said. “It will take time, lots of effort, political support, financial capital and, most of all, driven and creative people. Innovation Coast is at the early stages of pursuing all of these efforts.”

Bringing more tech companies is part of the answer to bring in more tech talent for existing companies, he said.

“Tech and knowledge-based companies need talented individuals and, in some cases, their talented family members,” Chau said. “The more tech-oriented opportunities there are for talented individuals, the more likely these individuals might relocate to our beautiful slice of Florida.”

Diversifying the economy

Murdoch and Smith are both still active with the company. Murdoch serves as CEO, while Smith is the chief technology officer.

AppRiver also has offices in Houston, Atlanta, Spain and Switzerland. Recently, the company expanded its executive team, adding a new executive appointment and three promotions to round out its management team.

The company provides spam and virus filtering, Web malware protection, email encryption, eDiscovery and archiving, secure exchange hosting and Office 365 Plus.

Chau said that AppRiver is very desirable company for Northwest Florida.

“First and foremost, the presence and existence of AppRiver diversifies the local economy and provides sustainable high-wage jobs for our community,” he said. “AppRiver’s products and services impact daily individuals and business around the country and, indeed, the world. It brings awareness to our locale, wherever AppRiver’s customers may be.”

Innovation Coast ((LINK: www.innovationcoast.com)) is an alliance of technology and knowledge-based companies in Northwest Florida. Its mission is to grow, sustain and showcase the region's successful, vibrant technology community while attracting new business and investors to the area. Innovation Coast works in cooperation with other economic development agencies, including University of West Florida’s Center for Research and Economic Opportunity (CREO), to help grow the area’s successes, talent and potential.