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(March 16, 2004) - We had an interesting conversation with the folks at cBizSoft. At $30/month, they appear to be carrying the low end of the pricing spectrum in the ATS market. Licensed software with embedded update functionality, the product evolved from the company's early history as an IT contracting shop.

With 1400 users (and growing fast), cBizSoft 2.0 is not enterprise class software and doesn't try to be. It's a multifunctional tool for seasoned recruiters. While the tool has strong individual based marketing and CRM capabilities, you'd never use it in a Fortune 50 setting with high demands for collaboration. Their market is staffing firms and operations with four or five recruiters. It would be a great launch tool for a new search firm.

We're moving quickly into an era where XML driven, web services based tools are custom assembled to meet the functionality needs of a given client. One look at Peoplesoft's declining license revenues suggests that big box computing has reached the limits of the market. Mass customization of software and associated services is an idea that is emerging quickly.

That process will begin with the rapid spread of small, lightweight, low maintenance tools in the small to medium business sector. The basic idea of XML/web service is the deconstruction of large packages into small bits of useful functionality, so we're expecting a rash of micro vendors, built along the lines of cBizSoft, who integrate customer service and updates into an online feed.

The interesting possibility in all of this is the evolution of new consulting companies that serve as the 'outfitters'. With broad ranges of choice and incremental value developed from the assembly of small tools, someone is going to have to keep track of who's who and what's what. The implication for large enterprise houses is a fairly rapid shift into service delivery as a prime contractor with lots of minor pieces from small shops.

It would be useful to get to know cBizSoft. Sleek (in terms of cost and organizational structure), they are the prototype of things to come.

John Sumser

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