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April ASPnews Top 50 By ASPnews.com Staff April 8, 2003
The continuing consolidation trend among ASPs who specialize in application outsourcing
brings BlueStar Solutions back into the ASPnews Top 20 Providers list this
month. BlueStar left the list early last year at a time when confidence in
the ASP model was at its lowest nadir, and the company moved to focus on its
outsourcing credentials.
The addition of Agilera, which itself rejoined the Top 20 last year after
buying messaging ASP United Messaging, significantly broadens BlueStar’s
offerings. Most Agilera customers run either JD Edwards or Lawson Software
business applications, whereas BlueStar has until now exclusively offered
SAP software. It’s interesting to note that the timing of the acquisition
coincides with SAP’s announcement of its SAP Business One software,
targeting small and medium-sized businesses. Perhaps BlueStar sees some
synergy between Agilera’s customer base and this new SAP offering.
More Acquisitions on the Horizon?
Some other players have already been snapped up, although not in deals large enough
to bring them onto our Top 20 list. In February, JD Edwards partner Prentice
Technologies was acquired by technology outsourcer Fortrust Solutions.
In March,
venture-funded startup OpSource
acquired the managed services division of professional services group EYT,
formerly the ASP and outsourcing unit of one-time systems integrator Ernst &
Young.
No Rest for NaviSite
One company that
hasn’t ever made the list is Worldcom. The company’s new CEO, Michael
Capellas, recently announced a new strategy centered on providing IP
infrastructure for Internet and Web services. Unfortunately, a similar
strategy did no good for rival telecom company Cable & Wireless, ultimately
leading to that company’s demotion out of the Top 30 last year. This doesn’t
imply that a merger of C&W; with Worldcom is on the cards, but it does
suggest Worldcom had better find a buyer before it, too, succumbs to a similar
meltdown.
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