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Server Vault: “Reliable, Secure, and Wicked Fast”

In: Business and Management

Submitted By coneil9988
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Server Vault: “Reliable, Secure, and Wicked Fast”

Case: Server Vault: “Reliable, Secure, and Wicked Fast”
University of Virginia – UVA F-1304

According to the information of Sever Vault’s case, in early 1999, Patrick Sweeney and Jim Zin started their own hosting company “Server Vault” with the two of them acting as the CEO and CFO of the company. Within the hosting industry, Server Vault served a segment of hosting customers who were Internet-reliant and security-savvy (Server Vault, UVA-F-1304, 2011). Moreover, the company always offered customers the ability to create their own basic- outlook website as well as a more complex-outlook page used for marketing. Inside the hosting market, Server Vault had specialized in the “secure and reliable” parts differentiating themselves from their competitor’s product. The firm had seven layers of security protection as a secure -building for their main desktop. They used their seven layers as the key to protect their data center (the vault) and all the information of their customers. To earn revenue, customers pay the setup-fee and monthly-fees. This revenue allowed Server Vault to maintain the servers and supporting servers as well as advertise their product on the Internet. When Sweeney and Zin started up Server Vault, they had already loaned money from their friends and small investors to run the company. However, for Server Vault to continue to grow at the rate that they would like, they will need to gain further investors which would be taking equity stake in Server Vault in exchange for cash. Both Sweeney and Zin had their growth plan of the company; they wanted to build additional facilities as quickly as possible because the variable cost of adding servers and maintaining them was small. Second, once a facility had been built, every additional server hosted would contribute a large profit over its…...

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