posted 07-14-1999 09:31 AM
Forbes picked USIX's co-founder as one of a dozen internet revolutionaries in its latest issue. Here's what they said:CHRISTOPHER MCCLEARY, 46, stepped into the Net in 1996 when he joined Digex, an early Internet service provider near Washington, D.C. Back then the Net was a novelty. Digex, like many isps, had a simple business plan: Hook people up and charge them for it.
Three years later the technology has grown up. So, too, should Net businesses, McCleary says. "We have to go to the next level up." The business shouldn't be focused simply on selling some high-tech widget; it should be about making things work.
That ethos defines the firm he cofounded, USinternetworking in Annapolis, Md. "Here was our thesis: Forget how any business model operates today. Let's ask instead, 'What would our customer most desire?'" says McCleary, the firm's chairman.
USinternetworking gets a flat fee for running a client's in-house software, but only when the system functions well. It guarantees the systems will stay up and running; fixing any glitches comes at no extra cost.
That is a sharp departure from the on-line world's nascent days. It grew up mirroring the classic division of responsibility in the software world: One company made and sold the program, another (typically a consulting firm) set up the system, billing by the hour. Neither got paid more for making the stuff work.
McCleary sees riches in filling that gap, but it hasn't been easy to convince Wall Street of this. Now, investors reward companies for booking sales of hot wares, not for investing to ensure that everything will work. But they will change. "We are a technology enabler rather than a technology innovator," McCleary says.