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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
No: 26
SS&C Technologies
VARBusiness 500 rank: 260
Revenue: $78.6 million
Growth: 53.3%
Headquartered in Windsor, Conn., SS&C specializes in financial-management services and software solutions. Last year, it launched a financial-software and data laboratory at the University of Connecticut.
No: 27
ProSys Information Systems
VARBusiness 500 rank: 131
Revenue: $245.0 million
Growth: 53.0%
Founded in 1997 by president Michelle Clery, the Norcross, Ga.-based solution provider experienced strong demand for its IT consulting services, life-cycle and desktop-management solutions.
No: 28
Digital River
VARBusiness 500 rank: 171
Revenue: $154.1 million
Growth: 52.3%
Digital River improved its growth rate last year, thanks to its industry-leading e-commerce solutions. In 2004, Digital River, Eden Prairie, Minn., continued to win blue-chip clients and also launched a new suite of e-marketing services for its customers.
No: 29
Web Commerce
VARBusiness 500 rank: 149
Revenue: $201.8 million
Growth: 50.9%
Founded in 2001, Brooklyn, N.Y.-based Web Commerce provides client-driven computing solutions, and manufactures customized notebooks, desktops, servers and workstations, while also providing integration, training and support services.
No: 30
Oroday (dba Digital Consulting Services)
VARBusiness 500 rank: 467
Revenue: $22.6 million
Growth: 50.1%
OroDay/DCS is a federal government systems integrator and certified small business in Newbury Park, Calif. The company, founded in 1994 by Joel Orepesa and Jeff Daymude, concentrates on GSA Schedule authorized products from Sun Microsystems, HP, IBM and Cisco.
No: 31
Net Direct Systems
VARBusiness 500 rank: 418
Revenue: $30.0 million
Growth: 50.0%
Net Direct Systems' sales improved last year as demand increased for security, voice and data-networking services, and IP telephony solutions. The solution provider's two biggest end-user markets are government and telecom.
No: 32
Regan Technologies
VARBusiness 500 rank: 484
Revenue: $20.5 million
Growth: 49.6%
Regan Technologies was created in 1997 as a solution provider for high-end Unix environments and enterprise software. The Cheshire, Conn.-based company's storage business grew around top vendors, such as Network Appliance, Hitachi Data Systems, Veritas and IBM.
No: 33
TechTeam Global
VARBusiness 500 rank: 187
Revenue: $128.0 million
Growth: 49.2%
TechTeam Global in Southfield, Mich., concentrates on business-process outsourcing services. The solution provider has cultivated an increasingly large offshore outsourcing presence in Europe, establishing its newest presence in Bucharest, Romania.
No: 34
Harbor Technologies
VARBusiness 500 rank: 377
Revenue: $40.0 million
Growth: 48.1%
Based in Mount Laurel, N.J., Harbor Technologies has cultivated a strong enterprise-network consulting business. In addition to its network operations center (NOC), which offers remote monitoring and management, Harbor also offers security and VoIP solutions.
No: 35
Expert Server Group
VARBusiness 500 rank: 268
Revenue: $74.0 million
Growth: 48.0%
Located in Bedford, N.H., Expert Server Group won new enterprise business in 2004 with its storage, data-management and server-consolidation solutions, and technologies from top vendors, such as EMC, IBM, Microsoft and HP.
No: 36
Nexxlink Technologies
VARBusiness 500 rank: 218
Revenue: $100.3 million
Growth: 47.9%
Nexxlink received a strong boost to its sales in 2004 with the acquisition of fellow VARBusiness 500 member CGI's ERP solutions and services business. As a result, the Canadian solution provider built up its ERP sales, especially in the midmarket.
No: 37
FusionStorm
(Returning Fast 50 Member)
VARBusiness 500 rank: 238
Revenue: $88.6 million
Growth: 47.7%
FusionStorm returns to the Fast 50 this year after being the second-fastest growing VARBusiness 500 member in 2004. The San Francisco-based solution provider, which specializes in managed services, recently agreed to acquire Marathon International, a Sun Microsystems VAR.
No: 38
Logos Communications
VARBusiness 500 rank: 454
Revenue: $25.0 million
Growth: 47.0%
Founded in 1989 as a networking solution provider, Westlake, Ohio-based Logos has established a thriving business in convergence technologies, IP telephony and branded-managed services, which includes Logos Care and SmartNet Cisco services.
No: 39
Melillo Consulting
VARBusiness 500 rank: 303
Revenue: $60.2 million
Growth: 46.8%
Based in Somerset, N.J., Melillo Consulting experienced strong growth with its HP business in 2004 and has solidified its presence as one of the top HP enterprise partners in the Northeast. Led by CEO Mark Melillo, the solution provider added several new vendors to its lineup in areas such as systems management and IT monitoring.
No: 40
Epicor Software
VARBusiness 500 rank: 313
Revenue: $56.9 million
Growth: 46.5%
Located in Irvine, Calif., Epicor specializes in integrated ERP, CRM and supply-chain-management software solutions. The company got a boost in both license and services revenue last year with new acquisition Scala Business Solutions, a European software developer.
No: 41
Microgear
VARBusiness 500 rank: 389
Revenue: $35 million
Growth: 45.8%
Founded in 1985, San Francisco-based Microgear has grown into an all-purpose reseller and IT consultant, offering a variety of commercial and public-sector clients everything from storage solutions to network integration to printer maintenance and repair.
No: 42
Sirius Computer Solutions
(Returning Fast 50 Member)
VARBusiness 500 rank: 97
Revenue: $430.9 million
Growth: 45.0%
A top IBM eServer partner, Sirius, based in San Antonio, Texas, made a major acquisition in 2004, purchasing fellow VARBusiness 500 member and IBM Business Partner Denver Solutions Group. The move added DSG's IBM zSeries mainframe business to Sirius' already-potent lineup of Big Blue hardware solutions.
No: 43
Fidelity Information services
VARBusiness 500 rank: 43
Revenue: $1,796.5 million
Growth: 44.2%
Fidelity Information Services, which specializes in financial IT solutions, made several pivotal acquisitions in 2004 that gave the company a sizeable revenue boost, including Sanchez Computer Associates and Aurum Technology.
No: 44
Micro System Enterprises
VARBusiness 500 rank: 172
Revenue: $150 million
Growth: 44.2%
Founded in 1986, Houston-based Micro System Enterprises serves health care, education and government clients as a trusted IT adviser. The company provides products from a host of major vendors as well enterprise consulting services.
No: 45
Berbee Information Networks
VARBusiness 500 rank: 139
Revenue: $228 million
Growth: 43.4%
Berbee was created in 1993 and concentrates on three core business practices: infrastructure design and deployment, application development and enterprise data centers. Last year, Berbee acquired fellow Wisconsin solution provider Network Engineering Associates.
No: 46
Information Systems Support (ISS)
VARBusiness 500 rank: 138
Revenue: $229 million
Growth: 43.1%
With more than 1,200 employees across the country, ISS, headquartered in Gaithersburg, Md., continued to expand its business in 2004 with big government contract wins with such organizations as the U.S. Air Force and U.S. Army Corps of Engineers.
No: 47
ApPtis
VARBusiness 500 rank: 85
Revenue: $500 million
Growth: 42.9%
Formerly known as PlanetGov, the company renamed itself last year as Apptis, which stands for "Applying Technologies, Inspiring Solutions." Apptis, Chantilly, Va., made two major acquisitions in 2004 in the federal-government and health-care solutions market, which improved the company's sales.
No: 48
Omicron Consulting
VARBusiness 500 rank: 406
Revenue: $32.3 million
Growth: 42.7%
Philadelphia-based Omicron Consulting provides IT consulting and software development for midmarket and enterprise clients. The solution provider, a Microsoft and HP Gold-level partner, has its own branded software-development practice, dubbed "SmartSourcing."
No: 49
The Computer Merchant
VARBusiness 500 rank: 222
Revenue: $99.3 million
Growth: 42.3%
The Computer Merchant, Norwell, Mass., was founded in 1980 by CEO John Danieli, a former Marine Corps database programmer. The company specializes in "extended enterprise" solutions around ERP, CRM and supply-chain-management technology.
No: 50
3MD Technologies (dba Denali Advanced Integration)
(Returning Fast 50 Member)
VARBusiness 500 rank: 245
Revenue: $85 million
Growth: 41.7%
3MD continued to increase its sales after posting a mammoth 200 percent revenue jump in 2003. The solution provider, based in Redmond, Wash., offers a variety of IT services around applications, data centers and enterprise networks.