CloudCo Harvard Case Solution & Analysis

CloudCo

Market of CloudCo

CloudCo is an IT service company, which offers client with consulting services along with IT outsourcing and cloud solutions. Basically, the company is focused on providing customers with all IT solutions that can enhance their overall business with competitive IT solutions. Along with this, CloudCo even offers hosting, consulting, custom development and a catalogue of application offered in SaaS mode.

Size

The size of the industry where CloudCo competes is quite aggressive and is increasing with every passing year. As the case states, CloudCo has won more than 40 clients since it has established. Out of the initial 40 clients, 8 clients are the companies that operating in service industry, 10 clients are manufacturing firms, 2 clients are banks that have acquired services of CloudCo and 2 clients are companies that have acquired the services of CloudCo to compete in the public sector. The company has been largely viewed as a company, which offers high quality services and products where employees give positive support to each client.

Growth Rate

Projected Numbers201320142015
Revenue1mio$2mio$3mio$
Profit-75k$+120k$+350k$
Investment Plan150k$300k$300k$
Employees51015

The above chart explains the strategic growth plan, which CloudCo expects to achieve in the coming years. The company gross margin on recurrent business is 40% for now. However, the gross margin on development services is still less than 10% and the consulting services gross margin is 25%. The company is looking to open up new branch in Zurich; whereas, for now it has a branch in Geneva. The future prospect or the growth rate that CloudCo wants to achieve in the future is to become cloud computing company in the private sector.

Consumer Behavior

Needs

The need of customer in cloud computing industry is to fulfill the desired of its clients by providing them with expert solutions to make the services customized and personalized as per their demands. The needs of the industry are to have a service provider who can look after their particular needs for Information technology solutions. CloudCo over here has played a major role in attracting customers to acquire support and help of CloudCo. In fact, CloudCo has been quite keen to look after each client by articulating their needs, priorities and goals for future. Once the company identifies the needs of the client, then they develop the best IT solutions to match their business objectives and requirements.

Motivators

The motivators in the industry are the people who are satisfied customers for the services offered by the company, CloudCo in the industry. CloudCo is dedicated to serve the customers by providing a long-term relationship to each customer, which is entirely based on the integrity, intimacy and the mutual trust with the customers. CloudCo over a period of time have motivated the clients through tradition of excellence with the common aim of helping each client by enabling them to achieve their business objectives by providing innovative and technical solutions that is built upon high performance along with superior quality services and foundations. Basically, the motivators for the industry is the cloud computing companies that can actually help the company to grow by providing maximum support and technical solutions for the customers within the industry.

Purchase Decisions

The purchase decision for the industry players is to buy services that can be customized for the customers and which are in accordance with customer specifications and requirements. The step of purchase decision for CloudCo is to make sure that the services are according to the needs for each client and should be customized as per his preference and requirements.

Competition

The size of the market where CloudCo competes is quite large with the Information Technology sector growing worldwide. However, direct competitors for CloudCo are OldCo, Psidoe, Cadolys and NalExpertise. They are the major cloud computing companies in the industry. Along with them some other major competitors are Google, Amazon and the Swisscom Interoute and SaaS companies. However, the biggest competitor for CloudCo is OldCo that provides local IT material as it is an established brand; which is operating in Geneva since 1980. OldCo is a major threat to CloudCo because of its strong clientele and market reputation.CloudCo Case Solution

Segmentation

Market segmentation is the involvement of various customers into different segments who respond to a certain action in similar manner where a pre-defined marketing strategy can help companies to develop an action plan. The segmentation for CloudCo should be based on customers who can be the potential acquirers of cloud computing services offered at the company. These customers can include: small business, private sector, banks, manufacturing firms and the private sector who can be the potential customers for the company. Although, all the businesses compete in different industries but the requirement of cloud computing is quite similar for each company. All the companies look to acquire support in their internal services and support. However, the company can .............................

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