Appirio: New Venture on a Cloud Harvard Case Solution & Analysis

Introduction

Appirio was launched in 2006, having a mission and vision to accelerate the adoption of the cloud. Appirio normally focused on the Statistical Analysis System and computing cloud. Appirio is involved in delivering benefits to the companies which were medium sized or small. The company was started by three partners Narinder, Glenn and Chris, who had an aim of growing from zero to 10 million dollars in annual sales. The company focused on finding and developing the vital strategic partnerships, which included relationships with Google and Salesforce.com. After achieving the milestone of 10 million, the company aimed to achieving the target of growing from 40 million to 100 million-plus.

Appirio is based on providing the consultancy to the companies and it’s headquarter is situated in San Francisco, California (USA) that offered the technology and the professional services to the companies which were wishing to adopt the cloud applications.

The company was a three-person startup, they had a goal of becoming the thousand-person company following the first year of its operation. They wanted to build IT infrastructure supporting a number of employees of 100 and later on 1,000 employees. They were involved in building the IT infrastructure which provided services other than the hardware and networking. The team thought of the ways through which their Customer Relationship Management could be in touch with their finances and how that helped in disclosing the information to the clients and employees.

Appirio believes that their IT was implemented on the hardware of someone else’s and the management thought that it would be not a great idea of revising the Google network as part of their infrastructure. The machines carrying the bits of Appirio were located in the Google hosting centers, salesforce.com hosting centers and Amazon.com server farms (Voorsluys, 2011).

Case Analysis

1)

Appirio is the company which operates in the Information Technology industry and also in the Cloud Computing industry. Their main work is to offer consultancy and also implementing the services in Cloud Computing solutions. Whereas, it provided the software-as-a-service also and it aimed the small companies for this. Similarly, the company focused on providing the consultancy and hosting the applications which could be very useful for the applications and those applications should be kept up to date.

The competitors of Appirio include Boomi, Acumen Solutions and Bluewolf who were also involved in providing consultancy in the Cloud Computing Services, but the popular companies like IBM or Accenture are also providing the consultancy and services in the Cloud Computing. Appirio is also expecting future competition as many companies are diversifying their activities, furthermore the solutions of Cloud Computing are increasing. Since 2006, Appirio has been helping the firms in adopting the cloud services to enhance their business performance and also the relationship with customers. Appirio has strategic partnerships with the Salesforce.com, Google and Workday.

Key Characteristics of Business Model

Cloud computing has been featuring the services consistently on every technology, for providing the changes and innovations in the Information Technology to develop new ways of working, increasing performance and relationship with the customers. The computing is delivered as a service not a product and it also creates the opportunity for new, large, small, commercial or non-profit organizations. Hence, it opens doors for different companies to take advantage of cloud computing. Different companies like Google, IBM, Amazon, Salesforce and even Apple offers Software as a service (George,G 2011).

Appirio was founded on the basis that the companies could get more advantage and increase the productivity of their systems and software by approaching the cloud for their IT systems. The current model of Appirio includes the delivering of IT services, licensing the software from the vendors, maintaining, hardware updates, support and hosting. Whereas, Appirio also uses the most recent technology, cloud computing, which is useful in eliminating the old model of computing and giving access to the specialists to give services on the technical aspects regarding the software. Whereas, it helps the companies to focus on their business activities rather than focusing on the technical issues and the delivery aspects of the software.

Moreover, Appirio also focuses on providing both products and services for helping the companies to increase the process for adopting the cloud......................

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Appirio, Cloud Computing services and business consulting, is experiencing explosive growth buoyed by its successful strategic partnership with Google and Salesforce.com. The company practices what it preaches - the choice to keep all of its systems in the cloud. Appirio senior management is convinced that builds its business on the cloud offers highly competitive advantages in terms of agility, the ability to expand and empower staff to manage rapid innovation. Appirio will rise to a height of a rocket or a darkening sky with the problems that will hurt cloud pure play, such as Appirio? What lessons, if any, for other entrepreneurs, hoping to transform its IT systems to drive business growth? "Hide
by Bala Iyer, Eric Noyes Source: Babson College 12 pages. Publication Date: February 1, 2012. Prod. #: BAB694-PDF-ENG

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