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USinternetworking buys systems integrator

USinternetworking acquires Conklin and Conklin, a Lawson Software business partner, to sell software to mid-sized business partners.

USinternetworking today said it has acquired Conklin and Conklin, a Lawson Software business partner.

Financial terms of the deal were not disclosed.

Under the deal, application service provider (ASP) USi said it will work with Conklin to sell Lawson's business management software to mid-sized business customers. From its data centers, USi will host and manage the software that helps automate a company's human resources, financial, and supply chain needs.

Lance Conklin will be president and general manager of the USi Lawson business unit. USi will retain Conklin's facilities in Milford, Connecticut. With 65 employees, Conklin provides consulting and integration services to 150 Lawson customers.

Outsourcing advocates argue that hosting is a sensible route for small or mid-sized businesses that want to use business software but can't afford to hire staff to manage it. The ASP market is expected to grow to $2 billion by 2003, according to market research firm International Data Corporation.

Recently, a growing number of business software companies have inked deals with hosting partners to offer outsourcing as an alternative to mid-sized companies, many who have been reluctant to invest in ERP software.

Business software maker SAP has already partnered with services giant EDS, telecommunications firm Qwest Communications International, and start-up eOnline. Meanwhile, Oracle rents its software through Oracle Business Online and rival PeopleSoft partners with Corio and USinternetworking.

USi competes in the emerging ASP space against companies including Corio and Breakaway Solutions.