Pivotal Software Business Canvas Model Essay Is Essential.

Pivotal software

Discuss about the Pivotal Software Business Canvas Model.

Pivotal software is a software company headquartered in Palo Alto, California founded in 2012. Pivotal provides application services to many established large brand companies. Companies work and deploy pivotal application services to work on NET, Java and Node apps on Pivotal Cloud Foundry (Lucovsky, Collison, Spivak, Chen, & Laddad, 2010). Pivotal delivers every application to every big private and public cloud on a single platform. The world is growing rapidly towards software-driven future. Pivotal assists company to develop software so that they can differentiate product or service to stay competitive and grow the business.

Business Model Canvas is a strategic tabular formed template used to describe consumer segments, key activities, value proposition, channel, customer relationship, key partners, cost structure, and revenue streams of an organization.

Nine building blocks approach describes Pivotal Software business model (refer to Appendix 1- Pivotal Software Business Model Canvas).

Pivotal Software offers a wide range of products & services to various commercial institutions across numerous sectors such as in a financial firm; Pivotal provides different software assistance to banking institutions, real estate organization, and asset management firms. Pivotal software has high-profile customers such as Mercedes-Benz, Lockheed Martin, the IRS, Comcast, and BMW. Pivotal software offers its services at international level to various countries including Europe, America, and Asia Pacific.

Pivotal Software works with various companies in order to develop, integrate, and distribute its products. Channel and distribution partner comprises value-added resellers that help company to make marketing strategies. Strategic partners named Google, Cisco and Microsoft share their resources to work together on joint projects and investment.   

Pivotal software is renowned as Software Company. Majorly, it involves in solving software.

Pivotal software is renowned as Software Company. Majorly, it involves in solving software problems by creating software application. The core products are Pivotal CF, platform services designed to help development teams for updating applications on cloud. Pivotal software provides a wide range of ancillary services such as analytics, security and telecommunication solutions. Pivotal software serves commercial customers across various sectors such as technology, public sector, health, media, and other industries.

Pivotal software increases its sales through in-built sales team that interact to customers directly in order to provide the services to individual needs. One`s the sale is incurred, the company provides self-service facility that enables the customers to access the company`s products and services, resources and information from Pivotal software website.  

The company operates cloud-hosted online platform that provides easy access to their homepage, which offers customer to get register an account with Pivotal.  The company has core network of 19 offices across Toronto, North America, Dublin, New York and Singapore.

Pivotal Software incur expenses which results in development of software solutions, manage its partnership and retain efficient personnel.

Pivotal software receives revenue by generating sale of various software. The company derive

its revenue from collection of subscription fee from regular customers. Pivotal software generates revenue from various professional services such as consulting, and training.

Business Model

The US patent & trademark agency identifies more than 30 patent application registered in the name of Pivotal software. Pivotal owns many intellectual properties, which are key for a successful business operation.  

Pivotal software creates value to customers. The company provides service to extensive network of international clients and operates offices in US, Germany, UK, and Ireland.

Proving software as a service, the company has chosen cloud foundry as a base platform to encourage and empower customers to extend customized application. Extending and integrating enterprise application with software brings challenges. Cloud foundry plays important role in prioritizing it as success factor. The company said that 2019 would head with fiscal year in its first quarter to achieve sales growth. The CEO of organization achieved revenue growth of 69% & 28% of total revenue is driven to expand the usage of software and to get the subscription amount from existing customers (Pivotal investors, 2018). 

Money raised from IPO creates risk, which associates with dell related investments. Although, money raised in the name of Pivotal will remain with the company. However, IPO gives a way for cash shortage with dell and Silver Lake Partner. Analysts are predicting that silver lake is expecting higher returns on investments related to dell (Backaitis, 2018). The company is focusing on improving security postures complied with PCF (Pivotal Cloud Foundry) built-in capabilities. PCF help the data to convert to code language with IPsec Add-on. Use coding method to secure data. The company uses PCF to protect the data against advance threat (Pivotal Software, 2018). The company generates revenue double from $280.8 million in 2016 to $509 million in 2018. The company relies on cloud development product (PCF) Pivotal cloud foundry for revenue. This shows that the company is interested in creating and developing applications to run in data centers.

It has been seen that pivotal incurred net losses every year from the time it came into existence. However, these losses have reduced.

These losses have created accumulated deficit in its reserves $1.1 billion. Pivotal described in its prospectus that this year operating expenses increase to hire and incur additional sales, opening of new offices, costs additional legal, research and development and other expense to register it as a public company (Fortune, 2018). The company should move to understand its customer behavior. The company should strive to precisely understand the security of its cloud, which will attract more subscription from the existing customers and attracts new customer to buy their application. From consumer app to enterprise technology, the company should help its customers to build software. The San Francisco branch office teaches the client`s engineer to make same exact application as Pivotal lab`s product (Rodriguez, 2016).

Existing strength of core values in the company gives the opportunity to shape the potential of cloud computing. The sustainable business model identify the opportunity factors which improves future of cloud computing. The strengths are-

Cost factor in cost-intensive IT sector plays an important role in decision-making. Flexibility opens up new circumstances while considering price reduction ability. Flexibility affects the reduction of fixed costs that can be converted to variable costs, which reduces the asset of company indicating that software has developed with less capital. Retention of consumers, one`s the customer is satisfied with security issues after using Pivotal`s application (Penzel, Kryvinska, & Strauss, 2015). They stick to company as they start trusting on security needs. Cloud computing provides extensive services such as monitoring, security control, and maintenance to the business to protect their data.  

Building blocks

Trust issues are critical in cloud computing. Major risk and weakness is related to trust and security. Control, security, and performance issues enforce the company to create business model and this type of business model is given greater priority in sustainable growth. Every category that discomforts customer can affect the company`s operation positively. The loss of control is another weakness. When company keep outsourcing the service, they lose their ability to make and implement decision on operability, functionality, and design. The customers do not much idea where the data is stored and it is not even guaranteed. The business model focuses on transparency to win and create trust among the customers.

Until now, all traffic among applications had to pass through cloud foundry router. After the addition of CF-networking stack, user create policies that communicate directly to one another by enhancing performance and security (Pivotal documentation, 2018).

Container to container networking offers app a way to communicate with each other (Pivotal, 2017). It includes some core components such as Cloud Foundry Command Line interface, garden external networker, policy server, and application security groups can affect traffic from app usage at the same time.

The company should try to improve five important metrics to get better software.

Speed- Company should strive to provide more apps and go faster to fulfil customer needs as early as possible.  

Stability- Company should appoint internal team, which has reliable dial tone for all software platform services.

Scale- Company has to keep a check whether apps stay online when consumers need them. Pivotal should access its apps comfortably even when traffic surges.

Security- How quickly company strengthen its system such as apps and its personal website. If the company is not able to cover its security and monitoring issues. It becomes risky for business.

Conclusion

The above report reveals and analysis business model of Pivotal software. The company is able to identify threat and opportunities available in the environment. The company is trying to win trust of customer clients by providing them security services. It has been identified that the company could not successfully raise fund through IPO. The expectation of silver lake partner started heightening after knowing of dell association. Cloud computing provides the ability to enhance web application. The application container demands the web application package, which helps in developing applications. Company uses communication channels through cloud foundry networking which gives direct communication chance for micro services. Pivotal provides cloud-computing services to various sectors such as healthcare, financial services, infrastructural services & many more.

References

Alexander, (2018). First Look at Pivotal Software's IPO. Retrieved from: https://seekingalpha.com/article/4158851-first-look-pivotal-softwares-ipo

Backaitis, V. (2018). The hidden risk in Pivotal`s IPO. Retrieved from: https://seekingalpha.com/article/4163782-hidden-risk-pivotals-ipo

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

Fortune, (2018). 3 Takeaways from the New Pivotal Software Upcoming IPO. Retrieved from: https://fortune.com/2018/03/23/pivotal-software-ipo-dell-emc-vmware/

Lucovsky, M., Collison, D., Spivak, V. Chen, G. C. & Laddad, R. (2010). Cloud platform architecture. Retrieved from: https://patents.google.com/patent/US8627426B2/en

Penzel, D., Kryvinska, N., & Strauss, C. (2015). The Future of Cloud Computing A SWOT Analysis and Predictions of Development. International Conference on Future Internet of Things and Cloud, 102(1).

Pivotal documentation, (2018). Understanding Container-to-Container Networking. Retrieved from: https://docs.pivotal.io/pivotalcf/1-12/concepts/understand-cf-networking.html

Pivotal investors, (2018). Pivotal Reports First Quarter Fiscal Year 2019 Financial Results. Retrieved from: https://investors.pivotal.io/news/financial-news/press-release-details/2018/Pivotal-Reports-First-Quarter-Fiscal-Year-2019-Financial-Results/default.as

Pivotal Software, (2018). Pivotal cloud foundry. Retrieved from: https://pivotal.io/platform

Pivotal, (2017). Cloud Foundry Networking: Enabling Direct Communication for Microservices - Chin, McClure. Retrieved from: https://content.pivotal.io/youtube-all-videos/cloud-foundry-networking-enabling-direct-communication-for-microservices-chin-mcclure-2

Rodriguez, S. (2016). Why this $3 Billion Company Wants to Put Itself Out of Business. Retrieved from: https://www.inc.com/sal-rodriguez/pivotal-labs-2016-company-of-the-year-nominee.html

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/