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Xevo Cuts Workforce, Restructures

Xevo, an infrastructure independent software vendor (ISV) and key player in the ASP industry, told ASPnews that it has laid off approximately 15 percent of its 92-person staff.

The Marlborough, Mass.-based maker of service management software told ASPnews that the cuts were spread across departments, as it tightens its focus on certain customer segments. However, according to Xevo's Paula Hunter, none of the cuts were in sales. In fact, Hunter said, there has been increased emphasis on sales, both in channels and sales support. The restructuring has created a small number of positions, which Xevo is actively recruiting to fill.

As part of the restructuring, Hunter becomes vice president of marketing. Previously, she was the company's chief market strategist, a role she was appointed to in February (see Xevo Names ASPIC President as Chief Market Strategist. Hunter was elected chairman of the ASP Industry Consortium in May (see ASPIC Names New Officers).

In her new position as vice president of marketing at Xevo, Hunter's role will be expanded to include business development. Meanwhile product management, customer support and professional services will be combined under Robert Dana, who becomes vice president of the newly created Solutions Delivery division.

"We're working with very large customers — with large, major telcos — and we find our product management and professional services need to be working very closely together," Hunter told ASPnews.

"We have several large customers that we've contracted with but that we can't announce yet," she added. "We seem to be landing the top players in their field," such as USinternetworking (NASDAQ: USIX), which recently announced it will use XevoWorks suite to automate its hosted Microsoft Exchange 2000 provisioning, metering and backup (see USi Chooses Xevo).

USi is one of several industry players, along with Portera, that have quietly laid off staff this month. Hunter agreed that there is a trend within the industry to focus on proven customer segments while cutting back on broader business development — a strategy that Xevo has also embraced with its latest cutbacks.

"We have scaled back on marketing. Our [customer] targets are pretty well known," Hunter told ASPnews. "What your investors want to see is terrific focus. Going after new market segments right now is something the investors have not been very accepting of. [But] we have not laid off any sales support staff or channel staff whatsoever."

Xevo, USi and Portera have all been selected for ASPnews' list of Top 20 ASPs and Infrastructure Providers.