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Start-up speeds e-business initiatives

May 2, 2001, 10:21 AM —  Computerworld — 

Considering the gloom around initial public offerings and technology start-ups in general, not many emerging companies are making ambitious claims about the future. But Asera Inc. CEO and President Warren Weiss is. He predicts that in five years, "we are going to be the next Microsoft" by selling software and services that help customers create Web-enabled business applications much more quickly and cheaply than they could before.

Asera's customers can deploy such systems within 90 days at a cost of $3 million to $5 million, he says. That's compared with months of work and $25 million to $250 million using conventional application integration techniques.

What does the Belmont, Calif.-based company have to back up its claims? For starters, it has 2 million lines of proprietary code, $175 million in funding and star power in the person of founder and board member Vinod Khosla, the founding CEO of Sun Microsystems Inc. The company also has at least five onetime high-level Oracle Corp. executives, including former Oracle President Ray Lane, who joined the board last November.

Asera also has satisfied early customers. "We went from the kickoff meeting to having the [Web customer portal] up and running for our customers in just under 90 days," says Phil Underwood, vice president of administration and field operations at Wyse Technology Inc. in San Jose. Other vendors could have done the job, says Underwood, but they would have charged more and taken longer. "We wanted something that wasn't going to suck up quarters and quarters [of time] in management and implementation," he says.

Asera Inc.

Location: 600 Clipper Drive, Belmont, Calif. 94002

Telephone: (650) 769-1237

Web: www.asera.com

Niche: Software and services for developing Web-based applications and integrating them with back-end systems; e-commerce sell-side applications

Why it's worth watching: Innovative technology; board-level involvement from respected Silicon Valley veterans.

Company officers: Warren Weiss, CEO and president Kurt Garbe, chief operating officer Anil Nori, vice president and chief technology officer

Milestones: October 1998: Company founded September 1999: Launched e-commerce integration services August 2000: Raised $115 million in second-round funding

Employees: 350

Burn money: More than $170 million from Kleiner Perkins Caufield & Byers, Nortel Networks Corp., Accenture, Cisco Systems Inc., SAP Ventures and Bowman Capital Management LLC

Products/pricing: Asera's eBusiness software starts at $1.25 million; its sell-side application suite starts at $500,000. Both are available as a hosted service starting at $1 million per year.

Customers: BP Amoco, Wyse Technology, Itochu Techno-Science Corp., Stinnes Interfer AG

Partners: Accenture, Cap Gemini Ernst & Young, Bain & Co.

Red flags for IT: Less expensive than custom coding but still pricey (most Asera customers pay $3 million to $5 million per year). Can Asera maintain its technology edge over its larger competitors?

Since launching its integration services in September 1999, Asera has signed 35 customers and wants to double that number by year's end, says

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