2005's Fastest-Growing VARs

As consolidation continues in the channel, a small number of solution providers became beneficiaries of the trend in 2004, which saw numerous mergers and acquisitions, bankruptcies and closures. Some VARs acquired multiple competitors, as our No. 1 Fast 50 solution provider Tectura did; Others simply benefited from weakened or depleted competition.

But there's more to the Fast 50 than consolidation, like strong management and sound strategies, and the ability to grow a business while maintaining superior profitability.

Here's a look at the 50 fastest-growing companies on this year's VARBusiness 500.

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No: 1

Tectura

VARBusiness 500 rank: 170

Revenue: $155.0 million

Growth: 416.7%

Tectura specializes in Microsoft software and accounting-based solutions for midmarket customers, and the decision to focus on both segments has paid off. The company made the leap from a $30 million-a-year business in 2003 to quintuple that amount last year by making a series of acquisitions, including fellow Microsoft partners Concord Business Systems and Aston Business Solutions, making Tectura the fastest-growing VAR in the industry in 2004 and a leading Microsoft business partner. The solution provider, led by CEO Terry Petrzelka, also made its first splash in the government market, and expanded its overseas operations.

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No: 2

Burgess Computer Decisions

VARBusiness 500 rank: 460

Revenue: $23.5 million

Growth: 167.0%

Burgess Computer Decisions, based in Northbrook, Ill., has continued to grow its sales through the recent recession and IT spending slump by sticking to its model of offering high-volume IT products with attractive pricing and consistent delivery. Currently, the reseller offers 600,00 different SKUs.

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No: 3

CyberCore Technologies

VARBusiness 500 rank: 194

Revenue: $122.2 million

Growth: 119.2%

CyberCore has become one of the largest solution providers in the Baltimore area. The company more than doubled its sales in 2004, thanks to a surging government business that generated high-profile deals with such agencies as the U.S. Department of Homeland Security.

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No: 4

Jeskell

VARBusiness 500 rank: 244

Revenue: $85.7 million

Growth: 114.5%

An IBM Premier Business Partner, Jeskell improved its sales last year by expanding its business across a number of Big Blue product lines, such as the pSeries eServer, TotalStorage and even ThinkPad computers. Headquartered in Sunnyvale, Calif., the solution provider focuses on both commercial and government clients.

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No: 5

Perficient

VARBusiness 500 rank: 306

Revenue: $58.8 million

Growth: 94.9%

After growing 35 percent in 2003, Perficient improved its growth rate last year and increased sales nearly 100 percent via three major acquisitions. Based in Austin, Texas, the solution provider has emerged as a top IBM business partner for software integration, consulting and e-business solutions.

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No: 6

International Integrated Solutions (IISL)

VARBusiness 500 rank: 376

Revenue: $40.1 million

Growth: 91.3%

Founded in 1990, IISL hit its sweet spot in 2004 with enterprise management and infrastructure solutions, and strong partnerships with top vendors, such as IBM, HP and Microsoft.

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No: 7

Optimus Solutions

VARBusiness 500 rank: 281

Revenue: $70.0 million

Growth: 89.2%

Headquartered in Norcross, Ga., Optimus Solutions nearly doubled its sales in 2004, which was its sixth straight year of revenue growth. The solution provider attributes its most recent jump in revenue to enhanced partnerships with top vendors, such as Cisco and IBM, as well as a thriving storage-services practice.

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No: 8

Epiq Systems (Returning Fast 50 Member)

VARBusiness 500 rank: 192

Revenue: $125.4 million

Growth: 84.7%

Epiq Systems sold off its infrastructure-software business in 2004, but still managed to boost its revenue growth rate by building out its specialized bankruptcy consulting services, while also making a key acquisition.

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No: 9

Digital Connections

VARBusiness 500 rank: 416

Revenue: $30.2 million

Growth: 81.9%

Founded in 1993, the solution provider, headquartered in Hendersonville, Tenn., has continued to expand regionally throughout the Southeast and Midwest while increasing its sales in a variety of IT services, such as network management and security.

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No: 10

MNJ Technologies Direct

VARBusiness 500 rank: 450

Revenue: $25.0 million

Growth: 78.6%

MNJ Technologies, based in Buffalo Grove, Ill., is a certified woman-owned solution provider that specializes in providing government and commercial customers with a variety of hardware and software products via its e-commerce Web site.

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No: 11

Atos Origin (U.S.)

VARBusiness 500 rank: 164

Revenue: $166.2 million

Growth: 74.7%

A major IT services firm in Europe, Atos Origin's North American business surged last year as demand increased for the French solution provider's managed services, application-development and application life-cycle management solutions. Atos Origin also has built strong partnerships with IBM, SAP and other major vendors.

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No: 12

Global Technology Resources Inc. (GTRI)

(Returning Fast 50 Member)

VARBusiness 500 rank: 415

Revenue: $30.9 million

Growth: 74.4%

After debuting on the VARBusiness 500 list last year, GTRI increased its growth rate in 2004. The Denver-based solution provider excelled in the ultrahot IP telephony market, while also building up its enterprise-storage and security practices with government and commercial customers.

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No: 13

Kanbay International

VARBusiness 500 rank: 154

Revenue: $182.6 million

Growth: 70.3%

After upping its revenue just 3 percent in 2003, Kanbay's sales exploded last year, thanks to strong demand for its IT services. The company, based in Rosemont, Ill., celebrated its 15th anniversary in 2004, as well as its IPO.

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No: 14

JDM Infrastructure

(Returning Fast 50 Member)

VARBusiness 500 rank: 284

Revenue: $68.0 million

Growth: 70.0%

Founded in 2001, Rosemont, Ill.-based JDM Infrastructure has experienced rapid growth as a high-volume IT hardware reseller. The company has built out its business by teaming up with other solution providers via the company's JDMI Coast to Coast program.

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No: 15

Helio Solutions

(Returning Fast 50 Member)

VARBusiness 500 rank: 240

Revenue: $88.3 million

Growth: 66.9%

After less than five years in the market, Helio Solutions continues to emerge as one of the top Sun Microsystems solution providers in the country. Based in Santa Clara, Calif., Helio last year expanded its business in enterprise software, security and networking.

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No: 16

MacDonald, dettwiler and associates (MDA)

VARBusiness 500 rank: 76

Revenue: $578.0 million

Growth: 64.2%

MDA, based in Richmond, British Columbia, has become one of Canada's strongest IT services firms for the public sector. In 2004, the company won a number of new contracts, including a major deal with the Canadian Department of Defence.

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No: 17

Rose International

(Returning Fast 50 Member)

VARBusiness 500 rank: 288

Revenue: $67.0 million

Growth: 63.4%

Rose, located in Chesterfield, Mo., recently expanded its headquarters after another year of strong sales growth. The IT services firm, led by CEO Himanshu "Sue" Bhatia, has been recognized as one of the fastest-growing woman-owned companies in the industry.

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No: 18

Modcomp

VARBusiness 500 rank: 328

Revenue: $52.8 million

Growth: 62.5%

Modcomp, based in Fort Lauderdale, Fla., continued to boost its sales last year, thanks to strong demand for the company's server and storage solutions. Modcomp, a wholly owned subsidiary of IT services firm CSP, also expanded its European business in 2004.

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No: 19

Business Objects

VARBusiness 500 rank: 195

Revenue: $121.0 million

Growth: 61.8%

The San Jose, Calif.-based software maker, which specializes in business-intelligence solutions, had a banner year in 2004 as overall revenue nearly reached $1 billion, and demand for its services swelled. Business Objects also enjoyed a number of big customer wins last year.

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No: 20

Midwave

VARBusiness 500 rank: 363

Revenue: $44.1 million

Growth: 61.8%

Midwave was founded in 1999 by CEO Jim Leslie and has been profitable every year since then. Located in Chanhassen, Minn., the solution provider has built a solid following with customers in the Midwest with its systems-integration services and data-management solution.

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No: 21

Cognizant Technology Solutions

(Returning Fast 50 Member)

VARBusiness 500 rank: 75

Revenue: $586.7 million

Growth: 59.3%

One of the largest VARBusiness 500 members on the Fast 50, Cognizant, headquartered in Teaneck, N.J., has become one of the leading U.S. IT firms in the offshore outsourcing market, with more than a dozen locations in India. The solution provider has seen its stock price soar and was named to the Nasdaq 100 index late last year.

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No: 22

Digital System Technology

VARBusiness 500 rank: 446

Revenue: $25.5 million

Growth: 58.9%

Digital System Technology is a niche-focused integrator that specializes in IT consulting for the broadcasting and television market. The company's growth last year forced it to relocate from Irwindale, Calif., to a larger headquarters in Norcross, Ga.

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No: 23

TeleCommunications Systems (TCS)

VARBusiness 500 rank: 178

Revenue: $142.7 million

Growth: 55.0%

Headquartered in Annapolis, Md., TCS specializes in wireless data solutions for enterprise and government customers. Last year, the solution provider won a number of new contracts with its new Voice over IP-based E9-1-1 Service for emergency 911 centers.

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No: 24

ZSL

VARBusiness 500 rank: 396

Revenue: $34.0 million

Growth: 54.5%

Founded in 1995, ZSL focuses on IT outsourcing solutions and enterprise business applications. Last year, the solution provider, based in Edison, N.J., expanded its offshore development presence in India and Singapore, as the IT outsourcing trend continues to gain momentum.

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No: 25

Advanced Systems Group

VARBusiness 500 rank: 252

Revenue: $82.2 million

Growth: 53.9%

After seeing its revenue decline more than 20 percent in 2003, Advanced Systems Group, based in Thornton, Colo., stormed back last year, thanks to strong showings in storage and data management sales. The company's top vendors are Sun Microsystems, IBM, Hitachi Data Systems and Veritas.