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Home / Technology

'Housekeeper' poised to go global

11 Dec, 2001 09:19 PM2 mins to read

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By MICHAEL FOREMAN

Technology startup SiliconBlue is preparing for the international launch of OcoLoco, an internet management platform that takes care of common online housekeeping tasks.

Chairman Laurie Weake says OcoLoco simplifies activities such as setting up e-mail boxes or registering domain names, without requiring software to be downloaded to the PC.

"It's not another Cold Fusion. Everything is browser-based and it works from a single login."

Mr Weake says the tasks OcoLoco performs, such as e-mail routing or arranging server hosting space, are not difficult but are time-consuming using manual methods.

Of the 100 web designers and other internet intermediaries who now use OcoLoco, the largest is Wellington's TBD, which manages about 150 domains through the platform.

OcoLoco operates as a monthly pay-as-you-go pricing model, which allows intermediaries to sell services to their customers without incurring upfront costs.

For example, a shopping cart module that costs $20 or $35 to a web designer might be sold to a client for between $75 and $150 a month.



Last December, Masterton-based SiliconBlue secured financing from Jenny Morel's No 8 Ventures Technologies, which put up $2 million in return for a 48 per cent stake in the company.

Mr Weake says there is an option of a further $1 million but this will probably not be taken up for another year.

About 1500 domains are managed through OcoLoco and business is growing at the rate of six to 10 domains a day.

Revenue averages $25,000 a month, but Mr Weake admits this is not yet matching the company's costs, which are about $60,000 a month.

"Most of our costs are in wages for our 10 employees.

"We own all our infrastructure, including a server farm based on Cyclone hardware that will give us enough capacity for the next 12 to 18 months.

"Our phone system is the only thing that's leased."

SiliconBlue's mainly New Zealand-based revenue has doubled over the past year, but business levelled off when the company stopped promoting OcoLoco for four months while it prepared to offer product worldwide.

A revised platform, version 4.0, is being promoted in New Zealand via a direct-mail campaign to the estimated 2000 web companies with more than one employee.

OcoLoco is already attracting customers from North America, Europe and Asia, but Mr Weake says the platform will be promoted on the international market in March, by which time he believes the company will be breaking even.

Silicon Blue

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