Cachet Technologies Essay

1919 WordsApr 13, 20158 Pages
This case concerns the decisions of Jonathan Seelig, Danny Lewin, and Tom Leighton as they consider pursuing their business plan for Cachet Technologies, a company hoping to enter the Internet traffic management business. The team has just finished last in the MIT $50 K business plan competition and must decide what to do. Please prepare a report that suggests them what to do. You can structure your advice around the answers to the following questions: 1. What is the nature of the problem that Cachet Technologies is addressing? During the 1990’s the world wide web has evolved significantly and became a new information medium that is used more and more. In combination with the development of HTML, the internet gave space to huge potential for consumers and businesses: for example file transferring and the use of multimedia applications, complex websites and also e-commerce. However, these increased features that the internet enables, in combination with the increased amount of internet users and ever growing number of webpages, caused the traffic on the internet to increase significantly. This increased amount of traffic causes serious problems, such as overload of the existing routing system, which created a delay in the system or the feeling of slow webpage access during peak times. This problem was called the ‘hot’spot’ problem and is caused when too many users accessed the system during a specific peak time or period. This resulted in a decreased user experience and significant costs or losses for companies since their webcontent wouldn’t be sufficiently available during thse periods. With new applications such as voice-over-the-internet and media streaming in the pipeline, this overload is a serious and increasing problem. Current solutions to the problems were threefold. First, the Internet Service Providers themselves tried to build larger

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