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Nupremis Nets $30 Million In Funding

Nupremis Inc. this week impressed investors with its novel business plan that won the application service provider more than $30 million in first round equity funding.

The ASP is putting a twist on the current model of outsourced software solutions, by taking its services directly to broadband providers to brand and re-sell their own flavor of online services.

Ken Zita, Nupremis executive vice president, said that while telecom carriers and Internet service providers possess institutional knowledge, they aren't as sophisticated when it comes to outsourcing software services.

"We let our customers put their name on the applications while we do all the work, acting like a back office," Zita said. "We have a good idea of the gap between what a carrier can and cannot do, because a lot of our managers came from those carriers."

First-round funding will pay to finish construction on the eight data centers Nupremis plans to launch by year's end. Two data centers are up and running in the U.S. and Hungary. The company wants to build more than 20 data centers by the end of next year to be located throughout the U.S., Europe and Asia.

Nupremis specializes its product porfolio to accommodate the growing popularity of broadband Internet access. Its June acquisition of Centera Information Systems, an e-business integrator and Web solution company, solidified Nupremis' presence in the ASP arena.

Chuck Cadle, Nupremis chief executive officer, said the acquisition brought together high-speed Internet access with quality Web applications.

"It is time to bring the customer's broadband expectations and their online experiences into alignment," Cadle said. "Our new premise is to deliver managed applications and rich media content at the edge of local high-speed access networks. By hosting, integrating and managing e-Business applications, we enable carriers and their consumers to benefit from the true power of broadband."

According to Cahners In-Stat Group, digital subscriber line providers need to look past connectivity and address content delivery.

Mike Lowe, Cahner's senior industry analyst for advanced carrier strategies, said DSL is becoming common enough that providers will need to do more to attract customers.

"The winners in the DSL race will be those that provide a combination of varied access products and IP services," Lowe said. "It is no longer enough to just provide access, as my access is no different than yours. The next battleground for DSL has been laid out and if a carrier expects to be a player in the DSL space, they will need to differentiate through value-added services. Otherwise, they'll be nothing more than a broker of lines."

Funding for Nupremis' first round of trading came from Callahan Associates International, the Edward P. Bass Group; Angelo, Gordon & Co., Investcorp and Compaq Computer Corp.



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