News

NetShift closes U.S. office

June 3, 2003

BERKSHIRE, United Kingdom -- A woman answering the phone in the public relations office of NetShift Software Ltd.'s headquarters confirmed that the company has shuttered its Cooper City, Fla., office, but would not elaborate on how resources will be reallocated.

The office opened in Feb. 2002 with four staff members. Each was an employee of kiosk firm Cybertotems, which had ceased operations. At the time, NetShift Software Ltd. chief executive officer Nigel Seed said, "We have to be in the U.S. and we have to be there in a big way." See related story, "Crossing the Atlantic."

On May 31, kiosks.org reported that NetShift would restructure its U.S. office. The brief said NetShift would maintain a limited U.S. representation.

There could be several reasons for the office closing, according to industry watchers. Francie Mendelsohn, president of analyst firm Summit Research Associates Inc., speculated that the U.S. office was not getting the support it needed from the U.K. to succeed. Conversely, another analyst, who declined to speak on the record, said the U.S. office "wasn't pulling its weight."

One former U.S. employee said the Cooper City closing doesn't necessarily mean NetShift is in trouble, but he noted that the company needs to convey that message. "They have had an opportunity to take a negative situation and put a positive spin on it," said Bob Gallner, former vice president of sales for NetShift USA. "People will immediately think they are in trouble. Customers can get spooked."

"This business is all about relationships," added Gallner, who left NetShift in April 2003, prior to the closing of the office. Gallner said he will remain in the kiosk industry, though he would not disclose his next stop. Gallner said he did not know NetShift planned to close the office before he left.

Mendelsohn said she was surprised to learn of the closing. "I thought they were doing very well," she said. "I guess they are saying that they want to concentrate on their business in the United Kingdom. Well, why did they come here?"

According to its website, NetShift has significant customers in the states, including Pepsico, AOL TimeWarner and Planned Parenthood.

MontegoNet, a full-service kiosk provider, has had a strategic alliance with NetShift for the past seven years.

Tim Kerns, director of marketing for MontegoNet, said his company will continue the partnership. "We still work closely with NetShift and will continue to do so. It's business as usual." Asked whether the office closing will mean more business for MontegoNet, Kerns said, "That is certainly possible."

MontegoNet has gained exclusivity in certain U.S. markets with respect to NetShift products and services. MontegoNet also acts as NetShift's service and support center in the U.S., particularly for hosted Enterprise Remote Management services.