To
hear Rich Shapero tell it, the monumental changes wrought by the
Internet have been a mere warm-up act. A decade from now, says the
53-year-old managing partner of Crosspoint Venture Partners in Silicon
Valley, the widespread use of broadband will lead to a veritable
revolution. "It makes the [invention of the] telephone look like
child's play," he says. Shapero and his partners believe in the
revolution so much that they have sunk $350 million into 14 Internet-based
vertical service providers (VSPS). They contend that companies will
be able to ditch their own tech staffs and systems in favor of outsourcing
essential services to VSPS. That would completely redefine the role
of the computer and communications sectors. It's a bold gambit,
especially in light of the tech slowdown. But Crosspoint has bet
big before: The $3.5 million it invested in software upstart Ariba
turned into $1.7 billion. Shapero says the pay off from VSPS could
make that look like small change.
By Linda Himelstein in San Mateo, Calif.
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