Feeds

Trad integrators rule e-business roost

The Future belongs to the Past

  • alert
  • submit to reddit

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.