Five Questions With Arthur Becker, NaviSite

Since taking over the top post in September 2002, Arthur Becker, CEO of NaviSite (No. 282 on the VARBusiness 500), has had his hands full integrating companies purchased on his watch--Avasta, Interliant and Surebridge. Now Becker runs an application-management firm expected to post $120 million in sales this year, and he expects more growth.

Are you looking to acquire additional companies? And, if so, what type do you want to purchase?

Yes, part of our sensibility is to continue to grow. We won't create value if we don't create more revenue than the month before. While we have nothing specifically in the works, we think three types of companies would fit with us. One [would be] a company that does what we do, so we can scale. The second would be a fill-out acquisition [a company that enhances a technology, like storage]. And the third would be...to broaden a practice...in a geography."

What's the most difficult thing about being a midlevel VAR?

We tend to get penalized on both ends. Small customers sometimes say we don't care about them because their revenue might be too modest. And the large customers say we might not be comprehensive enough to provide all the services they need.

How do you handle that?

To our large [enterprise] customers, we explain that we are much more flexible than large integrators. We say, "We are the smallest company with the broadest set of services." To the small customer, we say, "We're not that big, and every single dollar is important to us. We treat you with love and affection."

Surebridge has a lot of PeopleSoft customers. What are you telling them in the aftermath of the Oracle acquisition?

We are telling them that NaviSite will provide support regardless of what Oracle does. They are hosted with us, and they are our customers.

How do you distinguish yourself from the competition?

We have a strong ability to deliver software electronically, and we manage apps. And we see a convergence in the market, the coming together of software delivered electronically that will be delivered as a service. So far, we have 40 ISVs that deliver their software using our platforms.