Case Study - Jamcracker

Situation

Started in 1999 by the founder of Exodus Communications, K.B. "Chandra" Chandrasekhar, Jamcracker had a clear and simple vision: allow businesses to consume applications like a utility. The vision was simple, but the implementation was difficult. Jamcracker became the pioneer in delivering Software-as-a-Service in the On Demand World. Jamcracker provides software solutions and expertise that Software Companies and Service Providers need to efficiently deliver and manage their On Demand, or Software-as-a-Service Solutions. Jamcracker's Delivery and Management software is a fully integrated solution that provides the process efficiencies to profitably scale an On Demand delivery model and to effortlessly add new applications/services and distribution channels. Focusing on how well its management team negotiated ongoing issues of business model adjustment, competitive positioning, distribution, and especially operational execution would be the company's ultimate success.

Problem Statement

Although Jamcracker has reached such great success, they still face many challenges ahead. Bottom line is that Jamcracker needs to be the world's greatest service-oriented organization, find a way to deliver this world-class support, and make their customers happy.

Alternatives

In order to achieve these goals, Jamcracker will have to learn faster than other companies about how the market evolves, about how they can turn challenges into opportunities.

* Become a next-generation outsourcing vendor: Expand into the broad ASP market, becoming more than just and ASP aggregator.

* Extend distribution efforts upmarket as well as downmarket:

In getting Jamcracker off the ground, its managers decided to focus sales efforts on midsize companies. With the success of current Jamcracker operation, there should be more focus put towards efforts to extend into both bigger companies as well as smaller companies.

* Continue business operation as an ASP aggregator: Continue operation as is and remain in the niche market as an ASP aggregator.

Recommendation

Given the current situation of the ASP market, Jamcracker