A Profitable ASP? Ask Prentice Technologies

Enterprise ASP Prentice Technologies Inc. announced Thursday (August 30) that as of June 30, 2001, it completed one full year of profitable ASP operations.

“As many xSPs struggle to survive the economic downturn, we continue to achieve a greater economy of scale,” commented Shawn Richmond, CEO for Prentice. “It’s all about focus and building operational efficiency.”

Unlike other leading ASPs, Prentice does not compete with established service delivery channels, such as consulting firms, systems integrators and value-added resellers. The company participates in a more traditional value chain for service delivery by partnering with such firms. Prentice focuses exclusively on managing the applications infrastructure, providing application hosting and remote administration services for select tier-1 enterprise software packages.

According to Prentice, this business model is substantially differentiated from other leading ASPs, such as Usinternetworking (Nasdaq:USIX), Corio (Nasdaq:CRIO), and Interliant (Nasdaq:INIT). By decreasing competitive channels and leveraging focused resources, Prentice was able to achieve ASP profitability much sooner than its competitors. Other leading ASPs will require substantial additional capital, in addition to highly accelerated market penetration, to achieve the scale necessary to offset their initial infrastructure investments and ongoing cash burn.

Founded in 1996, Prentice provides tier-1 solutions while mitigating the risk, time and cost associated with in-house deployment. Powered by software from industry-leading vendors, such as Business Objects, J.D. Edwards, Microsoft and Siebel Systems, Prentice provides an integrated suite of services and rapid implementation methodology to address the advanced IT requirements of its enterprise customers.

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