Application Service Providers

Thomas R. Eisenmann; Sanjay  Pothen

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Background Note | HBS Case Collection | January 2001

Application Service Providers

by Thomas R. Eisenmann and Sanjay Pothen

Abstract

Examines the Application Service Provider (ASP) business model. First, defines the ASP model and describes different ways to categorize ASPs. Next, summarizes the various ways that ASPs create value for their clients. Then, analyzes the economic model for ASPs, focusing on their revenue and cost drivers. Last, examines the payoff to ASPs from pursuing aggressive growth strategies.

Keywords: Business Model; Web Services Industry;

Format: Print

12 pages

Educators Purchase

Citation:

Eisenmann, Thomas R., and Sanjay Pothen. "Application Service Providers." Harvard Business School Background Note 801-310, January 2001.

About the Author

Thomas R. Eisenmann

Howard H. Stevenson Professor of Business Administration

Entrepreneurial Management

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Case | HBS Case Collection | August 2019

Baroo (A): Pet Concierge

Thomas R. Eisenmann and Susie L. Ma

Baroo CEO Lindsay Hyde was facing unrest from the board of her pet services startup in August 2017. One board member (and lead investor) was alarmed that Baroo’s growth was slowing while its appetite for funding was accelerating. Hyde wanted to hit the gas and continue expanding to new cities, which meant she needed to raise venture capital. How could she convince the board and potential investors that the business opportunities were too good to pass up and an infusion of capital could help her steer Baroo through the speed bumps?

Keywords: Service Industry; United States; Massachusetts;

Citation:
Eisenmann, Thomas R., and Susie L. Ma. "Baroo (A): Pet Concierge." Harvard Business School Case 820-011, August 2019. View Details

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Supplement | HBS Case Collection | August 2019

Baroo (B)

Thomas R. Eisenmann and Susie L. Ma

Baroo CEO Lindsay Hyde must secure venture capital funding if she wants to save her pet services startup. If she is unable to finance a series A, she will need to sell or shut down.

Keywords: Entrepreneurship; Outcome or Result; Failure; Service Industry; United States; Massachusetts;

Citation:
Eisenmann, Thomas R., and Susie L. Ma. "Baroo (B)." Harvard Business School Supplement 820-026, August 2019. View Details

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Supplement | HBS Case Collection | August 2019

Rand Fishkin at Moz (B)

Thomas R. Eisenmann

In 2016, senior management at Moz, a venture capital-backed startup providing software tools for digital marketing professionals, must decide how to address a looming cash flow crisis precipitated by failed efforts to broaden its product line. Seattle-based Moz had originally focused only on search engine optimization (SEO) software. Aiming to accelerate growth, over the past three years the startup had launched products targeted at content marketers, social media marketers, and small local businesses. Adoption of these new products had been disappointing, and the resource drain and distraction of launching them had reduced the growth of Moz's core SEO product. Management was wrestling with whether to either: 1) shut down or sell the new products; or 2) double down on the new products, funding further investment in them by selling the core SEO business or milking it as a "cash cow."

Keywords: Startups; scaling; Entrepreneurship; Failure; Business Startups; Diversification; Growth Management;

Citation:
Eisenmann, Thomas R. "Rand Fishkin at Moz (B)." Harvard Business School Supplement 820-003, August 2019. View Details

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Application Service Providers

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