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NEWS
Verio-Ciber venture strides out

Mar 2nd 2000: Agilera emerged as a new leading name in the ASP industry this week, giving notice even as it launched that it will pursue an aggressive growth strategy to achieve its aim of dominating the market.

The new venture has been formed out of the application outsourcing division of leading IT services company Ciber, together with a $30m investment from top Web hosting company Verio and $15m from Centennial Ventures, the venture capital firm that co-founded Verio.

Targetting emerging and middle market businesses, it offers enterprise solutions backed up by what it says is a combination of Fortune 500 substance and dot-com agility.

"Enterprises very much want the values that ASPs bring. They value the agility. We don't think of this as a cost-of-ownership issue. We think of this as, how can you react quickly?" senior VP of strategic development Steve Dryden told ASP News Review in a briefing on Tuesday (Feb 29th).

Agilera has created its own enterprise portal platform to deliver applications to clients, either via the Internet or across a virtual private network (VPN) link. The browser-accessed portal can be personalised to individual users according to their role within the organisation.

In addition to implementing and managing the software and any necessary enterprise integration, the Agilera portfolio includes fulfilment services such as distribution, printing and operating employee self-service schemes for benefits and payroll management.

Agilera inherits the pre-existing vendor relationships and track record of its predecessor Ciber Enterprise Outsourcing. The product portfolio includes enterprise resource planning (ERP), customer relationship and other applications from vendors including Lawson Software, JD Edwards and PeopleSoft. The range will remain adaptable, said Dryden: "We think that's an ever-changing set. You can't be too closely aligned with a single vendor."

The ASP has an existing pipeline of clients and announced three live customers at launch. It will target verticals, such as retail, manufacturing, professional services, said Dryden, and will also offer ASP hosting services to ISVs.

Verio's strength among smaller businesses will give Agilera a sales channel not only for its own services but also "a channel for our customers to sell into," said Dryden. The ASP sees its role as not merely providing technology, but also advising and assisting them in reaching new markets. "If I can link them up with a set of suppliers and a set of customers, that's a better proposition," he said.


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ANALYSIS
If Agilera were a startup, its $45m in cash plus Ciber's existing operation - valued at around $32m - would add up to an impressive first round of funding. Its backing makes it likely it will easily win similarly large second and third rounds, giving it resources that more than equal those of today's leading ASP names such as USi, Interliant and Futurelink. Indeed, those names may even end up as acquisition targets for this aggressive new competitor. Agilera's execution of the enterprise portal concept and its readiness to offer operational services such as distribution are valuable differentiators. There is hidden treasure too in its access to Verio's customer base of net-savvy small businesses. While it still has to prove its potential before it can confidently walk tall, this newcomer certainly has stature.

LINKS

� Agilera
� Ciber
� Ciber Enterprise Outsourcing
� Verio

Related ASP News Review content:
Verio, Ciber create $75m ASP (news, Dec 15h)
� Ciber Global Outsourcing was profiled in the April 1999 ASP News Review newsletter ... click here>>