BUSINESSWEEK ONLINE : JUNE 19, 2000 ISSUE
COVER STORY Everdream: Turning on the Tap for Small Biz The Information Age hasn't been especially welcoming to the little guy. For the most part, only big companies have had the time and money to exploit information technology to its fullest. As a result, just 9% of small U.S. companies even have a Web site, according to Deloitte & Touche. And at many such companies, file sharing is done by hand rather than through a local area network or e-mail. The Technology Tap could change all that, with companies like Everdream Corp. leading the way. Based in Mountain View, Calif., Everdream is like a big-time management information systems department for companies with just 20 or so employees. For a fee of $150 per employee per month, it will provide and install Everdream-branded PCs, set up a high-speed DSL link to the Net, and provide e-mail and software, including Microsoft's Office suite of productivity tools -- via the Web. That way, Everdream's support staff can take care of bug fixes, release upgrades, and be on the lookout for viruses on behalf of its customers. When the Love Bug hit, for example, Everdream's round-the-clock antivirus team sent a warning in big type that covered customers' monitors, so they'd know not to open the offending "I Love You" e-mails. It then quickly deployed a software patch to combat the virus. And when one PC did get corrupted, it was no big deal, since Everdream backs up all its customers' data every day. "If you want a computer, call Dell. If you want to run a business, call us," says Everdream CEO Gary Griffith. SUPPER SERVICE. This goal of no-hassle technology may sound dreamlike, but so far it seems to be working. Take Robert M. Young, owner of All-Premiums, which makes promotional T-shirts and such. Also based in Mountain View, he heard about Everdream after going through what he calls "the worst nightmare of my career" last year. Upon trying to upgrade the accounting system at his 17-person company last winter, he forked over $10,000 for a whole new setup of software and computers -- not to mention $5,000 to an overpaid $150-per-hour techie to make it all work. Unfortunately, it didn't. After weeks of haggling and nights spent knee-deep in computer cords at the office, Young simply gave up. But with Everdream, his systems are working pretty much glitch-free. Indeed, he finally agreed to sign up the night he tried to install his Everdream printer at his home office. Struggling to get the job done as his kids screamed for supper, he called Everdream's help desk in a huff -- and was told to relax and go make the chow. Returning to the den after the dishes were done, Young was thrilled to find the printer up and running, with a test page already printed out. "It's absolutely incredible. Stuff just works!" How can Everdream make money on top of this service? It starts with falling prices for PCs and other gear. And thanks to the Web and special software that lets Everdream control its PCs remotely, one agent can take care of 200 customers, says Griffith. Everdream is out to boost its profits with other services. It's now rolling out such offerings as an online store where customers can buy office supplies, a Web-hosting service for an additional $20 per-person per-month, or full-blown e-commerce capability so customers can take orders online for an additional $59 per person per month. If it works, Griffith will be able to maintain 30% gross margins. Still, it's a high-risk business model. Should Everdream's staff miss a few too many Love Bugs, or should customers start experimenting with their PCs in ways that drive up support costs, profits could disappear. Despite the risk, Everdream's service-first approach is probably closer to the way technology will be sold in the future than today's do-it-yourself model. Says Griffith: "Regardless of whether we're successful, this will change the way small businesses use technology." By Peter Burrows in San Mateo _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Technology on Tap COVER IMAGE: The Info Tech 100 TABLE: The Leading Public Info Tech Companies TABLE: The Leading Private Info Tech Companies TABLE: Who Wins When the Web Is On Tap TABLE: As PCs Take a Back Seat, New Technology Drivers Emerge TABLE: Three Who Are Tapping In ONLINE ORIGINAL: How Four Pioneers Are Turning on the Tech Tap ONLINE ORIGINAL: Yipes Communications: Bandwith on Demand ONLINE ORIGINAL: Equinix: The Mother of All Hosters ONLINE ORIGINAL: DiCarta: Providing "Apps on Tap" ONLINE ORIGINAL: Everdream: Turning on the Tap for Small Biz INTERACT E-Mail to Business Week Online

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