Partnerware Closes Shop

Partnerware

Starting last summer, the company was trying to transition from the rocky ASP model to more traditional licensed software game plan and foundered along the way, sources said. In February, the company announced TCX Insight, its enterprise software offerings.

Partnerware CEO Donna Troy could not be reached for comment, but AMR Research Analyst Louis Columbus said the company told him Wednesday that it was ceasing operations and was "shopping its technology around." Troy joined the company 18 months ago from IBM's Tivoli group.

A former employee said Troy called employees together for the bad news earlier this week. "It was basically come in and clear out," he said.

Partnerware "focused on the wrong thing at the wrong time and was in the midst of big product transitions [to J2EE as well as moving from the ASP to a license model. It takes a very skilled sales force to do that and they did get a couple customers, just not enough," Columbus said.

The former employee said the company was down to about 27 employees after layoffs, from about 100 two years ago. Partnerware raised venture capital from companies including Polaris Ventures, Adams Capital Management and Lucent Venture Partners, according to its still-active Web site.

Partnerware is not answering phone calls.