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cMeRun Outsources its Infrastructure

Consumer-focused ASP cMeRun Corp. (OTCBB:CMER) announced Tuesday (Feb 13) that it has reached a strategic alliance with ASP enabler ApplicationStation under which it will outsource a significant part of its operating infrastructure to the Bellingham, WA-based company.

"The synergies between the two organizations in terms of both people and the complementary technologies is a natural fit," said Douglas Dittrick, cMeRun's chairman. "In addition to the reduction in operating costs which the company expects, the sales and marketing aspects of the product offerings of both cMeRun and ApplicationStation complement each other perfectly".

The arrangement will allow cMeRun to focus its energies and resources on the development of new technologies for the ASP industry and possible acquisitions in that arena. Both ASPs are portfolio companies of Chell Merchant Capital Group, an investment bank led by ASP pioneer Cameron Chell.

"This is a perfect example of the type of economies we hoped to achieve when we established the Chell Merchant Capital Group," said Cameron Chell, vice chairman of cMeRun and CEO of the Chell Merchant Capital Group. "By sharing resources and the strengths of the various operating companies, we look to take a leadership position in the ASP industry."

Chell founded FutureLink (NASDAQ:FTRL) and co-founded the ASP Industry Consortium and JAWZ Inc. (OTC BB: JAWZ).

"The network technologies that cMeRun has in place will interface seamlessly with ApplicationStation's delivery engine and allow both companies to experience lower operating costs and strengthen their product offerings. We look forward to pioneering with the industry innovators at cMeRun," said Jim Pennington, CEO of ApplicationStation.

In addition, Jim Lovie, cMeRun's CEO and president, has resigned to accept the position of president of Accent, a Toronto based CLEC. Lovie will remain on cMeRun's Board of Directors. Chell will assume the role of Interim CEO. David Hayden, executive chairman of Critical Path, has also resigned his position on the Board of cMeRun. Paula Hunter, president and co-founder of the ASP Industry Consortium, has been appointed as a member of the Board.

Founded in 1999, Hudson, Mass.-based cMeRun offers consumer-focused ASP services to ISPs, telecom companies and broadband providers. The company's service offering enables consumers to access brand-name software programs via a secure Web browser and store files through an Internet portal or ISP. It is the first company to emerge from Chell.com. Other companies in the Chell Merchant Capital Group portfolio include Engyro, cDemo, NTN Interactive Network Inc., Magic Lantern Communications Ltd., GalaVu Entertainment Network Inc. and Interlynx Multimedia Inc.