Razorfish Buoyed By Enterprise Portal Strategy

"We've gone through a lot of emotional highs and lows, and that makes for a better team," said Bob Lord, COO of Razorfish. "We know what we need to do."

Razorfish has stayed afloat with about 70 percent of its business coming from existing clients, Lord said. The company, which had 2001 revenue of $104 million, is leveraging its existing technology investments into specialty enterprise portal development under the new leadership of Lord and CEO Jean-Philippe Maheu.

To survive the market collapse that finds Razorfish stock trading at about 14 cents per share, compared with a February 2000 high of $56.94, the company closed offices and downsized to 300 employees from about 2,000 at the beginning of 2001.

The lumps and bruises are beginning to pay off, Lord said. Razorfish has refocused, leveraging partnerships with vendors such as Plumtree and Microsoft, and has built a body of client work that's attracting new customers, he said.

David Rauktys, managing director at Boston-based FAC/Equities, said Razorfish's situation isn't unique among Web integrators. Its new focus on enterprise portals, however, may make its transition easier, he said.

"The reality for almost every firm that went public in the last era that had a highly visible brand is that they effectively have to start over and behave as private companies with a discreet, razor-sharp focus," he said.

Razorfish is not alone in its proposition to leverage technology investments and move work to the Web. Larger integrators such as PwC Consulting have recently introduced similar offerings and established partnerships aimed squarely at competing in the midmarket.

Simon Yelsky, director of portal services at Hackensack, N.J.-based Ness Technologies, said enterprise portal work presents a viable opportunity, at least until corporate America becomes comfortable with the concept of Web services.

"If you are [an integrator trying to come back with Web services, it's just not reality yet," he said. "If you need real cash today, then portal work is a real thing, and corporate America understands it."