NaviSite Announces New Microsoft ASP Program

Web hosting company NaviSite will host Microsoft e-commerce applications as part of an enhanced application service provider (ASP) program that includes services for Windows NT Server, Site Server Commerce Edition, SQL Server and Windows Media Technologies.

NaviSite says that the new services will help customers launch e-commerce sites faster, at reduced cost and with monitoring and management to ensure reliability 24 hours a day. Navisite’s Site Server Commerce Edition solutions will offer customized architecture, enterprise system monitoring and management, traffic analysis, problem resolution management and remote management access.

“The success of online business hinges on a company’s ability to offer customers the same quality of experience as brick and mortar ventures,” said Jay Seaton, vice president of marketing for NaviSite.

The new services expand upon a strategic relationship with Microsoft that was announced in June. The relationship has enabled NaviSite to offer ASP services built on Microsoft technologies. Microsoft is a minority investor in Navisite.

“As competition online continues to grow, it is critical to provide companies with a highly integrated, reliable solution as a framework for online business,” said Mark Chestnut, director of the network solutions group at Microsoft.

About NaviSite

NaviSite, based in Andover, Massachusetts, is majority owned by CMGI, with Microsoft and Dell Computer as minority investors. NaviSite provides outsourced Web hosting and application services for e-commerce businesses. NaviSite’s SiteHarbor solutions hosting services include Internet access and server management solutions through load balancing, clustering, mirroring and storage services.

In addition to its alliance with Microsoft, NaviSite has strategic partnerships with Cisco Systems, Oracle, Compaq, Sun Microsystems and Cybercash.

CMGI Synergy Has Been Big Key

NaviSite is also partnered with profile-driven marketing company Engage Technologies, which is also controlled by CMGI. Indeed, NaviSite has benefited greatly from the presence of CMGI. NaviSite’s current customers include AltaVista and Ancestry.com, which both also have CMGI as an investor.

NaviSite has filed for an initial public offering that could raise $66 million. The current proposed offering size is $5.5 million shares, with a proposed price range of $10 to $12. The offering is expected to do well, largely because of the quality of its investors. In addition, lead underwriter BancBoston Robertson Stephens has had a good track record with IPOs recently.