Feeds

Trad integrators rule e-business roost

The Future belongs to the Past

  • alert
  • submit to reddit

High performance access to file storage

In July last year. Morgan Stanley Dean Witter forecast a move by corporates away spending from traditional IT projects. Instead, the money would be shovelled into Web integration work.

The beneficiaries of this move was supposed to be the Razorfishes, the Framfrabs, the Scients etc. And the losers were supposed to be the traditional corporate resellers and consultancy operations.

It appears the customers weren't listening: there have been a string of redundancies at the biggest Web-specialist developers, most notably MarchFirst, Razorfish, which made 43 people redundant in its UK operation a couple of weeks ago, and Framfrab, the Swedish e-consultancy which lurches from crisis to crisis.

And on a local UK level, Entranet, the UK's eleventh biggest Web developer , according to New Media Age, issued 30 redundancies, while lossmaking TW2.com went into liquidation, following the withdrawal of backing by its major shareholder, Specialist Computer Holdings.

SCH says it will integrate TW2 operations, but considering that is a reseller, while TW2 is a Web developer, it's difficult to see what's left to integrate.

However, it does appear that the future does not belong to the new-style Web design agencies.

A lot of Web developers grew very quickly on the back of overpriced paper. But with the current state of the world's stock markets, there is very little chance for loss-making Web developers to raise capital through IPO. Web developers never deserved skyhigh multiple as there billable hour businesses are not exactly scalable.

It seems that very few companies from this sector have been able to make the transition to becoming proper integrator.

Building multimillion pound database Web sites requires those boring project management skills which live within the traditional integrators and consultancies. In February, Arthur Andersen bought the UK arm of Xpedior, a big US Web developer, for an undisclosed sum, but gaining in the process "65 highly skilled employees". Expect more deals along these lines. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.