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Trellix See Big Potential in Small Business By Phil Wainewright January 4, 2002
The Interliant deal is something of a landmark in that it will see Trellix
supplant IBM's venerable HomePage Creator tool, built in-house in Java as a
browser-based tool and originally launched in October 1997. Interliant, which now
provides IBM's small business hosting on a private-label basis, has already
started working on phasing in Trellix to replace HomePage Creator. Other
Interliant customers for whom it expects to roll out the Trellix solution include
Dell and Sprint (see Interliant, Trellix Team to Reach Small Businesses.
Smooth as ICE
"ICE is critical because it gives a facility for Interliant to brand its service
uniquely for each of its private label customers," Bulens explained. A built-in
version management framework allows each client to implement new versions and
features as they wish, rather than being forced to upgrade as soon as new features
are added to the system. "There's no one in our market that provides the version
management and enterprise control that we provide as a tool to our partners," he
said.
The ICE architecture includes a set of interfaces for integrating external
services. Trellix already supplements its own feature set with a portfolio of
services from a range of third parties such as MapQuest, Moreover and Groove Networks. Customers are free to
integrate their own features too, or to add further third-party services, using
the same interface set.
Around half its customers, such as Domain Direct, opt to have Trellix host the
service on their behalf, although still under the customer's brand name. Trellix
confines itself to hosting and managing the software, leaving all end user billing
and support in the hands of its customers.
Offering the intuitive and easy-to-use Trellix solution to an existing small
business customer base is a combination that eliminates two of the most costly
overheads taht others have faced when attacking the small business sector
those of customer acquisition and end-user support.
"The cost of acquiring and maintaining a relationship with a small business often
cannot support the sort of pricing that's been prevalent in the market," said
Bulens. With subscription rates generating just a handful of dollars a month from
each customer, support is an extra burden to be avoided at all costs. "If they
take one phone call, that eradicates months of revenue, let along months of
margin," he said. Across its customer base, a meager 2 percent to 5 percent of active
Trellix users require support.
While others have begun to shift their attentions upmarket in an effort to capture
higher revenues per customer, Trellix is determined to continue focusing on
delivering the best platform for its private-label partners into the sub-20
employee company sector.
"We believe the small business market is one of the hidden gems worldwide today,"
said Bulens. "The adoption of Web sites is very much active and will grow for the
next few years. We believe the scale opportunity will be turning to targeting
trusted relationships. We intend to be the dominant private-label provider of Web
services to those customers."
Phil Wainewright founded ASPnews.com in 1998 and is the publisher of Loosely Coupled. He can be contacted at
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