Essay About Large Set Of Application Service Providers And Value Proposition

Jamcracker – Value Proposition, Financial Analysis and Future Growth
Jamcracker
What is the value proposition of the Jamcracker model of business?
Jamcracker’s business idea, to begin with, was an aggregation of various applications from a large set of Application Service Providers onto a single platform thus being an ASP aggregator. It kept revisiting its business model so as to be in sync with the latest IT trends and developments, so it gradually shifted to a network that delivers Service for instance it brought in a new standard for providing Software as a Service (SaaS). Thus it was leveraging its ASP aggregation capabilities to stand out in the market. In addition to this, its value proposition in this Information technology aspect is that it was making deals with software bundlers and vendors to offer and deliver its infrastructure as a service with a cost fee per user per month or other attractive offers. It also has four major IT technologies as a backbone apart from having ‘almost’ a first-mover advantage.

What are the income and expenditure components of the business model? Do you think they have got a viable business idea?
Income Components: From its value proposition, it is obvious that this business model earns from hosting services, ASP integration, SaaS, IaaS which it delivers to various vendors, ISVs, ISPs etc. Hosting Services earn the company some revenues in the form of the setup fees, IaaS’ monthly fees (per user) and application service’s monthly fee from each end-user. IaaS solutions are also sold as a bundled or group service which would be levied a charge on the basis of group pricing. It also offers On-Demand Enablement Kit that costs $25,000 per ISV as per the material costs. Integration consultancy also earned it some income for it takes a lot effort to educate ISV and ASP people to integrate their services with other services of Jamcracker such as SaaS, IaaS etc.

Expenditure Component: The services that it provides to the customers require the help of Engineering, product development, sales, service delivery, support etc. all of which make it incur some major costs. It is obvious that initially, the fixed costs for setting up IaaS (Infrastructure from its end) is pretty huge. Though it could be gradually offset by signing up more and more customers while providing multiple or bundled services with attractive prices by adopting competitive pricing strategies through Jamcracker’s capabilities thus helping it to be able earn generous margins.

Viewpoint on Jamcracker’s Business idea: Jamcracker which is gradually adopting latest IT technologies is gradually diversifying its business while simultaneously making it robust, so as to gain almost a first mover advantage. Though, large software vendors and cloud service integrators such as MySAP, IBM, MS etc. were quickly moving to capture the market