Pivotal software is a service software company headquartered in San Francisco, California. The company was founded in 2012. Pivotal delivers application related services to Multinational companies (Pivotal Software, 2019a). Organisation deploy application and pivotal services to work on JAVA, Node apps, and NET on pivotal cloud foundry (Pivotal Software, Inc 2019).
Business model is a tabular strategic template, which is used to describe key activities, channel, value proposition, key partners, consumer segments, consumer relationship, cost structure, and revenue streams for the organisation (Pivotal Software, Inc 2019).
Nine building approach elaborates business model canvas of pivotal software.
The company provides various software assistance to asset management organisations, real estate organisation, and banking institutions (Pivotal Software, Inc, 2019). Pivotal software provides service to high profile customers such as IRS, BMW, Mercedes, Lockheed Martin, and Comcast (Businesswire, 2019).
The company operates with different companies that has developed, distributed, and integrated its products. Some of the strategic partners include Cisco, Microsoft, and Google who share their resources in order to work together for investment and joint projects (Salesforce, 2018). Below are the key partners of the company-
(Source: Tasevska, 2017)
Pivotal software is a renowned software company that involves solving software. It involves creation of software application in order to solve software problems. The main products are platform services and pivotal CF that will help the development teams to design and update applications on cloud (Tech target, 2019). The company offers a wide range of ancillary services such as security, telecommunication solutions, and analytics. The company entertains commercial customers across several sectors such as health, media, public, technology, and other industries (Sedano, Ralph, & Péraire, 2017).
The company pace up its sales with the assistance of in-built sales team which directly interact with customers so that it can serve service to individual needs. Once, the sales is incurred then the company provides self-service facilities, which allow the customers to access organisation`s products, information, resources, and services from the website of the company (Sedano, Ralph, & Péraire, 2017).
Pivotal software offers cloud-hosted online platform, which provides easy access to homepage of the website so that customers can be registered easily and can have an account with Pivotal. The company has the core network of 19 offices across Dublin, Singapore, North America, and Toronto (Pivotal software, 2019).
The company incurs expenses that has resulted in development of solutions related to software, manage partnership, and retain efficient personnel (Pivotal software, 2019).
The company receives revenue after generating the sales of different software. The company can derive the revenue from the subscription fee from the regular customers. The company generates revenue by providing certain professional services such as training and consulting (Pivotal software, 2019a).
US patent and trademark agency has identified more than 30 patent application that has been registered from the name of Pivotal. The company owns intellectual properties, which is a key for successful business operations (Pivotal software, 2019).
The company creates value for its customers. It serves to huge network of international customers and clients who operates offices in Germany, US, Ireland, and US (Pivotal software, 2018).
In order to prove its software, Pivotal software has chosen cloud foundry as a platform so that it can encourage and empower its customers to extend its customised application. While integrating and extending the enterprise application, the company faces challenges related to software. Cloud foundry has a significant role while prioritising it as its critical success factor. In order to decide an estimate for growth, the company will head forward with higher sales growth in the first quarter of 2019 (EMA Pivotal, 2018). CEO of the company has said that they have achieved a revenue growth of 69% and 28% of entire revenue is driven to expand the use of software and get subscription amount from the current customers (Toolshero, 2018).
(Source: EMA Pivotal, 2018)
In financial terms, the company can face problem and risk if it raises from IPO because it is associated with dell related investments. Whereas, funds raised with the name of the company will remain with the company in future. IPO provides a solution for the cash shortage situations faced by Silver Lake Partner and Dell. Analysts of the company have predicted that silver lake has expected higher returns after investing in relation to dell. Pivotal software is aiming to improve security postures that have complied with Pivotal Cloud Foundry (PCF) built-in capabilities (Pivotal Software, 2019a). Pivotal Cloud Foundry helps the company to keep and convert the code language with IP sec Add-on by using the code method of securing data. In order to protect the data from the advanced threat, the company uses Pivotal Cloud Foundry. The company have started generating double revenue of $509 million in 2018 whereas it was $280.8 million in 2016 (EMA Pivotal, 2018).
The company has improved its strategies in order to reduce the losses that it has incurred when it started operating-
|
Fiscal Year |
2016 |
2017 |
2018 |
|
Net losses |
$282.7 million |
$232.9 million |
$163.5 million |
The company reserves has faced a deficit of $1.1 billion (EMA Pivotal, 2018). The company has elaborated in the prospectus of this year`s operating expenses will increase because the company hire new employees and will also incur additional sales, open new offices and set-ups, research and development, additional cost of legalities and other expenses of getting registered as a public company (Businesswire, 2019).
Strength of the company lies in its core values that give it an opportunity to reshape potential of cloud computing. The sustainable business model identifies some opportunity factors that will improve the future of cloud computing (Pivotal Software, 2019b). Some of the strengths are-
Cost factor- cost intensity in IT sector plays significant part in decision-making. Flexibility opens new opportunities by considering reduction in pricing ability. It has reduced the fixed costs as it was converted to variable costs that further reduces the assets of the company indicating that software is developed with low capital (Pivotal Software, 2019b). It is important for the company to retain the customers, which will be executed when customers are satisfied with company`s security services. Cloud computing offers extensive range of services such as security control, monitoring, and maintaining in order to protect the data (Enterprising Oxford, 2018).
Trust issues have remained a risk in cloud computing. Major weaknesses and risks are related to security and trust. Performance, control, and security issues enforce company to make business model and this business model will help the company to give greater priority to sustainable growth. Any category of services and loss of control can discomfort the customers that affect the company`s operation positively (Enterprising Oxford, 2018).
Until now, traffic on the applications had to pass through cloud foundry router. Addition of CF networking stack and users creating policies, which directly communicate to each other by improving the security and performance (Pivotal Software, 2019b).
The company uses container-to-container networking which offers a method of communicating with one another. This includes core components such as garden external networker, cloud foundry, policy server, command line interface, and application security group that can affect traffic from app usage at the same time (Pivotal Software, 2019b).
The company should become customer centric and understand customer behaviour. Further, the company should strive to understand the security of cloud that will attract more subscription from the current customers and induce new customers to buy application. San Francisco office branch of the company will teach client`s engineer so that customers can execute same kind of application as lab product of Pivotal. Apart from this, the company should improve some metrics in order to better its software (Green, 2018).
Speed- Company should build more such applications in order to serve customers’ needs as soon as possible (Pivotal software, 2019c).
Stability- the company must appoint another internal team that remained a reliable dial tone for all the software platform services (Green, 2018).
Conclusion
The above discussion brings out an analytical report on business canvas model on a software company. Report on Pivotal software has identified opportunities and threats available in the dynamic business environment. It has been seen that the company has not successfully raised money through IPO. Cloud computing offers ability in order to develop web application. Companies often use communication channels with the help of cloud foundry that gives communication chances for micro services. The company offers cloud-computing services to various sectors such as healthcare, and financial services.
References
Alexander, (2018). First Look at Pivotal Software’s IPO. Retrieved from: https://seekingalpha.com/article/4158851-first-look-pivotal-softwares-ipo
Businesswire, (2019). Pivotal Reports Third Quarter Fiscal Year 2019 Financial Results. Retrieved from: https://www.businesswire.com/news/home/20181211005901/en/Pivotal-Reports-Quarter-Fiscal-Year-2019-Financial
Choudhury, S. R., (2017). Ford, Microsoft, and Dell EMC-backed start-up Pivotal could IPO by mid-2018, sources say. Retrieved from: https://www.cnbc.com/2017/05/24/ford-microsoft-backed-start-up-pivotal-could-ipo-by-mid-2018.html
EMA Pivotal, (2018). Perception of cloud vs. On-Premises Use. Retrieved from: https://image.slidesharecdn.com/ema-pivotalcloudanalyticswebinarapr2016-160519183517/95/analytics-in-the-cloud-getting-the-most-out-of-analytics-deployments-7-638.jpg?cb=1463682962
Enterprising Oxford, (2018). Business Model Canvas Explained. Retrieved from: https://www.eship.ox.ac.uk/business-model-canvas-explained
Green, T., (2018). 7 Things to Know About Pivotal Software. Retrieved from:https://www.fool.com/investing/2018/09/05/7-things-to-know-about-pivotal-software.aspx
Pivotal software, (2018). UNITED STATES
Pivotal software, (2019a). Company Overview of Pivotal Software, Inc. Retrieved from: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=236608865
Pivotal Software, (2019a). Delivering exceptional user experiences. Retrieved from: https://pivotal.io/about
Pivotal Software, (2019b). SEC Filings. Retrieved from: https://investors.pivotal.io/financials/sec-filings/default.aspx
Pivotal software, (2019c). The way the future gets built. Retrieved from: https://pivotal.io/
Pivotal Software, Inc (2019). SEC Filing 10-K Annual report for fiscal year ending, Feb 1, 2019. Retrieved from: https://last10k.com/sec-filings/pvtl
Salesforce, (2018). What is cloud computing? Retrieved from: https://www.salesforce.com/what-is-cloud-computing/#
SECURITIES AND EXCHANGE COMMISSION. Retrieved from: https://www.sec.gov/Archives/edgar/data/1574135/000104746918002636/a2235132zs-1a.htm
Sedano, T., Ralph, P., & Péraire, C. (2017). Software development waste. In Proceedings of the 39th International Conference on Software Engineering. USA: IEEE Press.
Tasevska, M. (2017). Top 10 Procurement Software Vendors and Market Forecast 2016-2021. Retrieved from: https://www.appsruntheworld.com/top-10-procurement-software-vendors-and-market-forecast/
Tech target, (2019). Cloud computing. Retrieved from: https://searchcloudcomputing.techtarget.com/definition/cloud-computing
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