Case  Presenta*on  Jamcracker  

Informa*on  Management    Summer  Term  2013  

Birte  Gröger  Pratyay  Modi  Hanna  Napp  Carolin  Schwägler    

Agenda  

•  Company  Overview  

•  Applica2on  Service  Provider  

•  Jamcracker’s  business  model  

•  Challenges  

•  Conclusion  

Company  overview  

•  Founded  in  1999  (first  named  “VitalTone”)  •  CEO:  K.  B.  Chandrasekhar  (“Chandra”)  •  CFO:  Herald  Chen  •  Corporate  Development  SVP:  Mark  Terbeek    •  Opera2ng  in  instable  sector  of  economy  –  NASDAQ  stock  index  î  

Jamcracker  unifies  the  aggrega2on,  delivery  and  management  of  soVware  applica2on  services.  

Applica*on  Service  Provider  •  Provides  soVware  func2onality  

over  the  Internet  –  Email,  word  processing,  accoun2ng  

services,  etc.  

•  Companies  can  outsource  their  IT  infrastructure  and  make  use  of  service  delivered  by  an  ASP  –  Ren2ng  instead  of  buying  

•  SoVware  is  located  off  the  customer’s  site  

•  Data  gets  stored  remotely  on  hardware  owned  and  operated  by  the  ASP  

•  Monthly  fee    

Emergence  of  ASPs  

Speedy  implementa2on  

Cost  reduc2on  

Favorable  cash  flow  profile  

Support  for  24x7  businesses  

Shortage  of  skilled  IT  workers  

Support  for  mobile  workforce  

Jamcracker  in  the  ASP  Space  

ASP  Cafeteria  

An*virus  

Document  Editor  

Payroll  App  

Online  Mee*ngs  CRM  

ERP  

Oracle  Financials  

ASP  Aggrega*on  

Aggrega*on  func*on  solved  issues  such  as:      

•  High  customer  acquisi2on  cost  

•  Conflict  between  breadth  of  ASP  offerings  and  scale  economies  

•  Data  sharing  

Jamcracker  Technology  Overview  Customer’s  Exis*ng  Infrastructure  

Web-­‐Enabled  In-­‐House  Applica*ons   ASPs   In-­‐House  Intranet  

Jamcracker  Enterprise  

Provider  

Managed  Services  

Managed  Hos*ng  

Co-­‐Loca*on  Services  

Jamcracker  

IT  Management  PlaPorm  

Applica*ons  Catalogue  

Support  Services  

Business  Model  

Primary  Revenue  Sources    

•  Setup  of  services  

•  Access  to  Jamcracker  service  infrastructure      (per  user  per  month)  

•  Each  applica2on  service  they  choose  to  use    (per  user  per  month)  

Challenges  

•  Need  for  professional  services  

•  Addressing  customer  concerns  

•  Technical  challenges  

•  Compe22on  growth  

•  Timing  issues  

Timing  Issues  

•  ASP  and  aggregator  market  s2ll  developing  

•  Consider  carefully  moment  of  launching  •  Economic  crisis  with  budget  cuts  and  struggling  companies  

•  Poten2al  customers                                                            need  to  be  educated    

Technical  Challenges  

•  No  technical  industry  standards  established  •  Issues  to  integrate  all  ASPs    •  Include  customer’s  legacy  systems  •  Must  stay  at  cu_ng  edge  of  technology  •  Quickly  adapt  to  changes  while  maintaining  high  service  level  and  reliability  

Customers  Concerns  and    Professional  Services  

•  Integra2on  of  larger,  more  complex  applica2ons  

•  Customer  needs  help  with  system  setup  and  data  transfer  

•  Concerns  about  service  level,  reliability  and  data  security  (JC  and  ASPs)  

•  Past:      Consul2ng  partners  •  Need:      Professional  Service  

Conclusion  

•  Manage  challenges  efficiently  •  See  poten2al  and  adapt  business  accordingly  •  Keep  an  eye  on  compe2tors    •  Capital  +  talented  employees  +  right  business  model  

 Jamcracker  will  be  successful      in  the  long  run!  

Ready  for  ques*ons!  

Birte  Gröger  Pratyay  Shashank  Modi  Hanna  Napp  Carolin  Schwägler