Feeds

Freecom.net buy shows up teenage Web firms

And lo! Good business sense prevails. Clicks for bricks

  • alert
  • submit to reddit

Security for virtualized datacentres

Freecom.net has coughed up 31.9 million for accounting software business Systems Union. Billed as a rejection of the dot.com model, it is simply a case of a businessman, Michael Williams, using the inflated price of Net ventures intelligently, rather than running headlong into a wall like a hormone-crazed teenager. The blind faith and frequent stupidity of Web companies has made Williams' business sense look like a next-generation model. It is far from that - in fact, it is the classic case of buying stability with cash. It's not even new within the Internet economy. There are many companies doing just this (some well, some not so well) but then "Net firm buys into safe bet" is hardly a sexy headline. Williams, Freecom's chief executive, has done a grand job. As well as Systems Union, Freecom has also acquired another accountancy software company, Pegasus (lowish/medium-end, Systems Union is medium/highish-end) and Web site designer Oneview.net. He has used the dotcom cash pile (and of course shares in itself) to build as a firm foundation and allow Freecom to go one of several ways. Becoming an ASP (applications service provider - hiring out software to firms over the internet) is certainly one of them. Then, with this initial setup completed, Williams says he will concentrate on developing e-commerce services for the recently acquired customer base, and throws in the catchline about leaving the flawed dotcom "cash-burn" model behind to get the press interested. Shares have barely budged though. But as we know, the City is always right when it comes to Internet stocks. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.