ASPects: April 23, 2001

Is the general-purpose enterprise ASP wheezing toward extinction?

Simplify to Survive

Is the general-purpose enterprise ASP wheezing toward extinction? Industry pioneer Interliant is going back to basics by focusing on messaging services at the expense of a broad-based commitment to providing other applications such as Enterprise Resource Planning, customer relationship management and e-commerce. The company, blaming the poor economy and slower-than-expected adoption of application services, also laid off nearly 200 people. It will continue to service existing customers until it figures out what else to do with them. Meanwhile, ASP aggregator Agiliti has made a similar move away from packaging complex applications in favor of messaging and other basic services. Other horizontally focused providers of high-end application services have quietly shifted to a vertical market strategy. The model may not be dead, but its not looking so healthy, either.

Nice Numbers at Portera

One highly focused ASP, Portera Systems, announced new sales to 21 new customers and 13 existing customers for the first quarter, along with revenue growth of 300 percent. The private company does not release financial results. Portera got better-than-expected growth in its newest niche, government contracting, and saw continued strength in its professional services markets. Non-U.S. companies accounted for more than 20 percent of new customers.