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A Winning Combination: Software-as-Services Plus Business Consulting and Process Services
By Laurie McCabe
January 30, 2004

While things have been quiet on the Providers list this month, our Top 50 list sees a change on the Enablers side of things for July. The June decision by Sprint to shutter its money-losing hosting and co-location businesses by year’s end (See Sprint Quits Hosting Business) opens up a spot for a former Top 50 resident, Agiliti.

ASPnews Top 50 Archive
»  June 2003 Top 50 
»  May 2003 Top 50 
»  April 2003 Top 50 
»  March 2003 Top 50 
»  February 2003 Top 50 
»  January 2003 Top 50 

»  2001 and 2002 Archive 
Agiliti, a St. Paul, Minn.-based managed IT services firm, was taken off the list in October 2002 to make room for SAP, citing a de-emphasis of its ASP-enabling services. Since that time, Agiliti has recapitalized the company, paying off its debt and giving 100-percent board control to founder and CEO Tom Kieffer rather than it’s VC investors. It has also rededicated itself to selective outsourcing and on-demand computing, launching a professional services practice as an extension of its managed IT offerings.

Agiliti has several ISV customers using its services to offer their own software-as-a-service solution. These ISVs make up more than half Agiliti’s revenue, a company spokesman told ASPnews. Agiliti is focusing its efforts on the Twin Cities and surrounding areas, a sort of a regional version of Digex, with added advantages of local control and home-town presence.

As a private company, Agiliti is not required to make its finances public, but a company spokesman told ASPnews that the company was EBITDA-positive in the first quarter and breakeven is expected by the end of 2003.

Things have been quiet in the mergers and acquisition arena this month, but that could easily change in a moment’s notice this month. We’re also keeping an eye on developments between PeopleSoft , J.D. Edwards and Oracle (See Oracle Shakes Up Industry in Hostile Bid), to see how the eventual resolution of that sticky situation will affect our list.


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