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Introduction

Introduction. Many different types of ‘hosting’ Virtual server and traditional websites/email Smaller companies or organizations that do not need a large web presence. Collocation servers and application hosting Larger organizations Managed server hosting Middle ground. Research Question.

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Introduction

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Presentation Transcript

  1. Introduction • Many different types of ‘hosting’ • Virtual server and traditional websites/email • Smaller companies or organizations that do not need a large web presence. • Collocation servers and application hosting • Larger organizations • Managed server hosting • Middle ground

  2. Research Question • What are the strategies for generating revenue from a hosted networked environment?

  3. Concept • Provide mid-sized company with: • Rack space • Bandwidth • Technical support • Server management • Insurance • Relationship with datacenter

  4. Market Analysis • Market Segmentation: • Geographic Location • Located within King, Pierce, Snohomish, Skagit and Whatcom counties • Close proximity to property • This may not be the case (unknown variable) • Company Size • Small and medium sized businesses • Contain between 10 - 100 employees

  5. Market - Geographic Location • Number of business entities by County - 2004

  6. Market - King County & Revenue

  7. Target Market Strategy • Businesses not currently using managed servers • Small companies that want to upgrade • Companies that currently house their own servers • Temporary hosting environments

  8. Competition • There are many ‘hosting’ companies. • There are no competitors that offer to managed the clients’ computer • Only a handful of companies offer platform independent server hosting. • They own the server - not the customer • Competitors (In Seattle - include): • Adhost (owns their own datacenter) • Internap (based in Atlanta)

  9. Total Business Process • How to get the product to the customer? • Pre-production • Research Vendors • Datacenters with available space • Startup time for new account • Establish relationships • Proof of insurance • Develop product • Platform Support • HR requirements

  10. Total Business Process • Pre-Production (Continued) • Develop price structure • Develop contract structure • Production • Sales & Marketing • Customer setup • Find rack space • Sign contracts with data center and customer • Install Server • Invoice Customer

  11. Total Business Process • Post-Production • Customer Support • Relationship Maintenance • Hardware upgrades • Platform upgrades • Continue to negotiate low data center fees

  12. Financial Overview • Income: • Rack is 42 units • 1 unit is ~$140 - ~$230 per month • Rack income = $5,880 - $9,660 per month

  13. Financial Overview • Expense (per month): • Full Rack costs ~ $675 • Bandwidth ~ $200 • FTE (20%) ~ $1,070 • Insurance ~ $30 • Non-earning rack units (electricity, appliances) ~$80 • Indirect Costs ~ $2,000 • Total Expense (estimated): $4,055

  14. Financial Overview • Income $5,880 - $9,660 / month • $70,560 - $115,920 / year • Expense $4,055 / month • $48,660 / year • Net $21,990 - $67,260* • Assumptions: The rack is full of paying customers (best case) Does not include marketing expense

  15. Questions?

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