Ounce Labs

About Ounce Labs

Ounce Labs, established in 2002 by founder Jack Danahy, carved a significant niche in the application security sector before its acquisition by IBM in 2009. The Waltham, Massachusetts-based company specialized in enterprise source code security-testing solutions, designed to help organizations identify and eliminate business risks stemming from software vulnerabilities. Danahy, a serial entrepreneur with several technology ventures including Qiave Technologies and Cylent Systems, led the company as its CEO.

The firm's core business centered on analyzing application source code to provide a comprehensive and precise evaluation of security weaknesses. This allowed clients to prioritize and allocate resources effectively to resolve the most critical issues. Ounce Labs catered to a high-profile clientele that included large enterprises and government bodies such as GMAC, Lockheed Martin, and the U.S. Navy. Its business model focused on providing software solutions that addressed the growing need for robust application security to protect sensitive information and ensure compliance with regulations like PCI, FISMA, and Sarbanes-Oxley.

The company's main product was a software analysis tool that scanned source code for a wide range of security flaws. It supported numerous programming languages, including C++, Java, C#, and .NET languages, and operated on platforms like Windows, Solaris, and Linux. The solution's primary benefit was its ability to give a complete and accurate picture of an application's vulnerabilities, enabling IT professionals and business users to mitigate risks proactively. After raising approximately $29.5 million over four funding rounds from investors like Greylock, Commonwealth Capital Ventures, and BlueStream Ventures, Ounce Labs was acquired by IBM on July 28, 2009. The acquisition led to the integration of Ounce Labs' technology into IBM's Rational Software business, specifically within the IBM Rational AppScan family of products.