RealTime IT News

Major Consulting Firm Emancipates ASP Unit

Proof positive that there is no shortage of money or acronyms in the application service arena, former Ernst & Young Technologies this week christened its ASP offering as the duly dubbed EYT.

The well-established consulting firm has cast off its ASP business as a standalone firm that is set to feature integration, hosting, implementation, and support applications for clients worldwide.

Just to get the ball rolling, EYT picked up $50 million in first round financing from Charterhouse Group International, SOFTBANK Venture Capital, fellow ASP Interliant, Inc. and EYT management.

Because nepotism is just another term for marketing advantage, EYT struck deals with Ernst & Young LLP to be its preferred provider for ASP products. It took a separate deal with Cap Gemini Ernst & Young U.S. LLC, to act is its exclusive ASP for its core applications. Both firms took an equity interest in EYT to establish the working relationship.

Jim Hunt, EYT president and chief executive officer said the firm is experiencing significant demand for its ASP solutions from current customers and that the investments are a credit to EYT's ability to thrive.

"We are extremely pleased to have the resources to further expand our offerings," Hunt said. "The investments speaks highly of EYT and the confidence our investors have in the company's capabilities and long term potential."

Hunt added that EYT's association with Charterhouse, SOFTBANK Venture Capital and Interliant could only help it successfully grow its clientele in the rapidly expanding ASP marketplace.

In addition to EYT's current NetSet Web hosting services, the company intends to focus on delivering financial and customer relationship management applications, and message collaboration services at the core of its Web-delivered portfolio.

Herb Hribar, Interliant president and chief executive officer said EYT represents a tremendous partnering opportunity for the ASP.

"We intend to enter into a strategic relationship with EYT where they will outsource our messaging and web-hosting platforms and we will offer their complete suite of Lawson financial and HR products," Hribar said. "In addition, we plan to continue to deepen our relationship through offering each other's products and services."

EYT's Hunt is credited for successfully growing the burgeoning systems integrator from a dot-com start-up to attaining a run rate of more than $100 million in just four short years.

Watch for EYT to quickly beef up its service offerings in order to pursue full service provider aspirations. The ability to establish a relationship with business clients as a financial consulting service and step the customer through a variety of EYT-based solutions is a definite advantage for the well-funded ASP.