In IBD today
IBS INTERACTIVE INC. Cedar Knolls, New Jersey Using The Net To Catch Consulting Clients
Date: 4/13/99
Author: Alan R. Elliott
The list of Internet service providers begins with big names like America Online Inc., AT&T Corp. and Yahoo
Inc. But it quickly tapers down to thousands of tiny operations across the U.S.
For IBS Interactive Inc., that list of more than 6,800 companies reads like a roster of potential acquisitions.
IBS runs two complementary businesses. On one side, it's an Internet service provider, offering Internet
access accounts, Web pages, e-mail and other basic online services.
On the other side, it's a thriving systems integration and information technology consultant. The company's IT
clients include such big names as Aetna Inc., Mobil Corp. and Black & Decker Corp.
IBS is quickly extending its network reach and bolstering its customer base, largely through acquisitions.
The company bought three companies in Alabama this year: Renaissance Internet Services, AdviCom and
Spectrum Information Systems Inc. It's also expanding into North Carolina, pending the purchase of
Millennium Computers Applications Inc.
IBS now has more than 15,000 Internet subscribers, up from just 3,800 at the end of 1998. But being an
Internet service provider wasn't the original plan, says co-founder, President and CEO Nicholas Loglisci.
The company was started in 1995 to house, manage and maintain servers owned by businesses with Web
sites. But the market wasn't quite ready for what Loglisci calls the ''server farm'' concept. So IBS changed
course and chose instead to be a traditional ISP.
It established itself in the field by acquiring two small Internet service providers in 1996 and a third in 1997.
The firms gave IBS 1,800 subscribers in New York and New Jersey.
Many of those subscribers were businesses. IBS soon found that once those businesses got a taste of the
Internet, many of them wanted more -more elaborate Web sites, more capacity and a greater variety of
services.
''We're a bunch of network engineers and programmers,'' Loglisci said. ''So we said, 'Sure we have those
capabilities.' ''
In less than a year, IBS had become a systems integration and IT consulting firm swamped with demand. And
it soon realized that, though strong in building and managing networks, it needed to boost its programming end.
To fill the gap in programming talent, IBS went shopping again, buying four companies last year. The new
companies did more than bolster IBS' programming strength. They also opened doors to distance learning and
online trading markets, and added network planning and installation capabilities.
By the end of 1998, IBS had found its focus. What had begun with a stumble had become an operation able
to introduce business clients to the Internet and then guide them through networking and e-commerce.
''Internet integration, network setup and enabling are really IBS' strengths,'' said David Lavigne, research
director with EBI Securities Corp. ''If a thousand businesses use them for ISP services, those are all potential
clients for (more high-end services).''
Those potential clients can start with an IBS-hosted Web site for about $100 a month or get basic Internet
access accounts for $19.95 a month. Several of those clients will go on to sign Web development, systems
integration and consulting contracts. Those contracts start at $50,000.
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(C) Copyright 1999 Investors Business Daily, Inc.
Metadata: AOL T YHOO IBSX AET MOB BDK I/3241 I/4891 I/7392 I/1009 I/1314 I/3548 E/IBD
E/SN1 E/NAM
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