Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Development
    • Development

    A Leaner, Faster Interpath

    By
    Dawn Bushaus
    -
    January 15, 2002
    Share
    Facebook
    Twitter
    Linkedin

      After getting bailed out of financial trouble by Bain Capital Partners a year a half ago, application service provider Interpath looks like a whole new company. By most accounts, Interpath grew too quickly under its former ownership, Carolina Power & Light (now Progress Energy). During the dot-com heyday, the company employed about 700 people and operated in several lines of business.

      When Bain Capital stepped in in May 2000, the investment firm replaced Interpaths then-CEO Chris Darby with Joel Schleicher. Under Schleicher, Interpath is a 200-employee company with a sharper focus on application hosting. Schleicher recently spoke with Services Editor Dawn Bushaus about where Interpath has been and where the ASP is headed.

      Q: How has Interpath changed?

      A: The Interpath of today really is not the same as the old Interpath. The only commonality is the name. When CP&L owned it, Interpath was an ISP, a CLEC, a long-distance reseller, an ASP and a consulting company. Today were down to 200 employees and were a pure-bred ASP.

      Q: When we spoke a year ago, you said that Interpath was going to shift its focus away from enterprise resource planning applications because businesses arent interested yet in outsourcing that function. Is that still the case?

      A: We felt all along that we would have to have some ERP apps, but that they should not be our focus. We wanted to focus on e-business, CRM (customer relationship management) and e-commerce, and weve done that. In terms of ERP, we have a partnership with Deloitte & Touche where were the back end for their ERP applications – sort of an application infrastructure provider. We dont want to do the systems integration work, so that works out well. In addition, in July we bought the PeopleSoft practice of Interliant. That gave us a back-up data center in Columbus, Ohio.

      Q: What percentage of your business comes from your work as an application infrastructure provider, and do you see that percentage shifting over time?

      A: Today 90% of our business is still the traditional ASP, but over time deals like the one we have with Deloitte could represent 20% to 30% of our business.

      Q: Do you sell application infrastructure services to smaller ASPs as well?

      A: No, we dont, and we dont have any plans to.

      Q: Interpath has two data centers. Will you add more?

      A: We were looking at the idea of having PODs, or points of delivery, where we would operate several small 1,000-to-5,000-square-foot data centers, but the addition of the Columbus center gave us more than enough space.

      Q: A year ago, you said Interpath was on track to be cash-flow positive some time this year. Will that still happen?

      A: The events of 9-11 may have caused us to slip a quarter but, yes, were still looking to be cash-flow positive by the fourth quarter this year, possibly the first quarter next year.

      Q: In May 2000, Interpath received $50 million from Bain and $50 million from CP&L. Will you need more funding than that?

      A: Were about halfway through the funding we got, so the remainder will see us through.

      Q: Bain Capital recently stepped in to rescue another ASP, USinternetworking, with a promise of $106 million when USi emerges from bankruptcy. What does this mean for Interpath?

      A: By entering the transaction with USi, Bain has affirmed its confidence in the outsourced IT space. But even though USi has entered a pre-negotiated bankruptcy proceeding, theres no guarantee that the Bain transaction will close. There could even be a topping bid. So well continue to run our business the way weve been running it.

      Q: What happens if the Bain-USi deal does go through? Do you foresee Interpath and USi merging?

      A: Once the USi deal closes, the parties will look at the options. Well have to look at whether there is a strategy synergy between the two companies. If there is, those discussions might take place. If not, were very confident well continue to move forward. Were going to win either way.

      Dawn Bushaus
      Senior WriterDawn Bushaus has been covering the telecommunications industry as an editor and freelance writer for 10 years. She has held editorial positions at several publications including Telephony, CommunicationsWeek and tele.com. Most recently, Bushaus freelanced for Interactive Week and InformationWeek. She also has written technical documentation for corporate clients. Bushaus, who works out of her home in the Chicago area, holds a bachelor of arts degree in German from the University of Illinois.Dawn covers network, hosting and application services, focusing on ASPs.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×