InBox: A lot of ASPs that are failing focused on file transfer and asset management. But now it seems the ones that are still hanging on are focusing on project collaboration and marrying the production side of the workflow with the accounting and business side. Is that something that you think will potentially work, and is that a direction Xinet may also go in the future?
Seebass: When you look at collaboration software, there's certainly a need for that and it's not a very well-served need. But the need will likely be met by boxed software rather than a service. If you look at the newest Acrobat, that's certainly a step towards providing better collaboration tools. As far as marrying accounting, costing and those sorts of things, you really have to be involved in a company's internal accounting and bookkeeping, and that's something companies do not want to put out on the Internet where others could potentially see and know what they're doing. And it's a very specialized to the company. Most companies already have an MIS system in place, and the tools to connect those systems with their production with their Internet service will provide an interesting place where efficiencies can be gained and money saved but the solution will be a boxed software model sold to companies as opposed to a service out on the Internet.
InBox: What changes do you predict within this rocky market? Long term and short term? And how do you think past changes affect what is happening today, such as how the dot-com fallout inspired hesitation among many consumers?
Seebass: Certainly we're going to see a lot of these dot-coms that were founded later than the earlier dot-coms run out of money and fail. That's inevitable. We're going to see continued consolidation cause really stiff competition in the market, especially in the printing and prepress market. There's a lot of very adept and very maneuverable companies with a lot of capital, and competing against them is going to require companies to be very on top of it. The number of people in this business will reduce because the same number of companies can be more efficient and do more work, and as those companies consolidate and generate larger, more efficient companies, they are going to be able to do even more work. Meanwhile, there will be a continuing string of failures of small, prepress shops and small printers, and a continuation of the growth of the average-sized printer until they reach a size more appropriate of the capitalization required.