Qwest Cyber.Solutions

By Edward Cone  |  Posted 2001-12-10 Email Print this article Print

Qwest Cyber.Solutions hosts, manages and integrates big hard-to-handle software packages from vendors including Oracle, SAP, and Siebel.

Learning on the Job

Qwest Cyber.Solutions hosts, manages and integrates big hard-to-handle software packages from vendors including Oracle, SAP, and Siebel.

PDF DownloadQCS lost $65 million from July 1999, when it was founded, to December 2000, and executives don't expect the company to be profitable before next year.

But parent company Qwest Communications International likes the revenue driven to its networking and hosting businesses. "We are unequivocally committed to the ASP industry and to QCS," says Lew Wilks, Qwest's chief strategy officer and executive vice president for Internet development.

QCS co-founder KPMG Consulting wrote off its 49% stake, taking a $63.3 million charge, when divesting non-core businesses earlier this year. Neither KPMG nor QCS will say why KPMG didn't find a buyer for its half of the business. Customers were alarmed but not panicked by the pullout, which left QCS with much experienced former KPMG talent.

Customers seem satisfied with QCS' service. The company says 42% of those customers significantly increased their initial contracts. One caveat: the young company did seem underprepared for basic project planning, says David Whitton, director of IT at Mitsubishi Silicon America. "We had to guide them more than expected," he says.

Lars Rabbe, CIO of Redback Networks, worries that QCS may not have a broad enough skillset to handle some additional projects. And he also says tight management is required. "We rotated almost 50% of the people out on the initial job, even when good people were hard to find," says Rabbe. "That's one reason it took six months instead of four."

1899 Wynkoop St., Denver, CO 80202
(303) 291-6400 www.qwestcybersolutions.com

Shareholder: Qwest Communications International, 100%
Cyber.Solutions: Employs 650, plus Qwest data center personnel and sales force.
Qwest, as a Whole, Has: 66,000 employees

John C. Charters
CEO/President, Qwest Cyber.Solutions
Before he was named CEO, Charters served as vice president of business development of Qwest Communications. He previously held a number of positions at U S West including VP of Internet services and application development. He holds a B.S. and an M.B.A. from Gonzaga University in Spokane, Wash.

Rick Fresia

Denzil Samuels
SVP/Marketing and business development

A.V. (Sandy) Hamilton III

Marty Snella

Marty Barrack
SVP/General counsel

Cyber.Solutions Revenue

The company says it's larger than the largest public ASP, USinternetworking, which had revenues of $134 million for the trailing 12 months


Application management and hosting (QCS Ultimate Free-dom); management of hardware, security administration, disaster recovery (QCS Free- dom for Hosted Applications); installation and configuration of applications, database administration and customer care (QCS Freedom for Managed Applica-tions); an offering that includes ADP's payroll services, Cap-tura's expense reimbursement software and PeopleSoft's human resources offerings (QCS Complete Employee)


USinternetworking, Corio, BlueStar Solutions (formerly eOnline), Agilera, Oracle.com, PeopleSoft e-Center

Reference Checks

Ulrich J. Seif
(408) 721-5000
Project: Host SAP HR and financials for chipmaker

Joe Bologna
Director of IT infrastructure and services
(303) 300-6300
Project: Host and manage Oracle ERP, Siebel CRM for this provider of networked communications services to small- and medium-sized businesses

Lars Rabbe
(408) 571-5000
Project: Host and manage Oracle ERP. This is the core enterprise software of this $300 million (sales) networking systems company

(formerly Host Marriott Services)
Martyn Holland
E-mail: martyn.holland@hmshost.com
Project: Host and manage PeopleSoft HR and payroll services. Added a new process-scheduling tool to original contract earlier this year at largest food, beverage and retail service for travel industry

Clarence Bastarache
(203) 750-7100
Project: Host and manage SAP ERP system, SAP Business Ware-housing for the financing unit of the global automaker

Jim Fisher
Assistant VP for finance and
(716) 475-6020
Project: Host and manage Oracle ERP including finan- cial and human resources systems

David Whitton
IT director
(503) 315-6058
Project: Host and manage SAP ERP software from QCS

Senior Writer and author of the Know It All blog

Ed Cone has worked as a contributing editor at Wired, a staff writer at Forbes, a senior writer for Ziff Davis with Baseline and Interactive Week, and as a freelancer based in Paris and then North Carolina for a wide variety of magazines and papers including the International Herald Tribune, Texas Monthly, and Playboy. He writes an opinion column in his hometown paper, the Greensboro News & Record, and publishes the semi-popular EdCone.com weblog. He lives in North Carolina with his wife, Lisa, two kids, and a dog.

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