Jamcracker

Chandra and Mr. Jagadeesh founded Exodus Communications in 1995. As first web browsers appeared, these two entrepreneurs immediately saw a tremendous tool. They wanted to take advantage of the new opportunities, and started themselves asking: ¡§how can we make computing available for companies looking to operate 24x7?¡¨ The answer to that question was Exodus. The objective was to create a service provider with many customers that could realize economies of scale in facility construction and management that most companies could not achieve on their own.

In 1998 Chandra decided to finance an independent study project. Mr. Chen and Mr. Terbeek, business students at Stanford, were responsible for this project. Both students based their study on the following question: is there a way to deliver IT services that leverages the Web? The project would finally evolve into the company called Jamcracker.

By June 2001, Jamcracker had more than 100 customers and 250 employees and was offering m

The Jamcracker business model is one that transcended the confines of history, by becoming the first of its kind to achieve long-term success.

The customer would maintain a single contractual relationship with Jamcracker rather than numerous relationships with specialized ASP¡¦s. Jamcracker guaranteed service levels and provided a single point of contact for technical support. Users would log onto Jamcracker¡¦s platform once rather than separately onto each ASP platform.

„« Outsourcing to an ASP can also reduce or even eliminate the need for internal IT staff.

„« Also as opposed to large up-front cash outlays and only eventual and uncertain benefits, the ASP model requires only modest setup fees, with additional payments due after service delivery begins. This provides ASP users with a better match between benefit and risk than the traditional requirements to acquire IT capabilities.

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