This is a case study regarding Hosted SP: Outsourced Sharepoint

1. Analyze the profitability of Hosted SPs eight key customers (see case Exhibit 4) using the activity-based costing method.

Table 1 in excel should clearly identify the different activities, their related monthly expenses, the cost driver for each activity, the number of drivers, and the cost per driver (i.e., rate).

Table 2 in excel should provide the profitability of each customer. List each activity and the drivers that were used to allocate cost. The following profitability measures should be included: total profits and profit margin (%).

Exhibit 4:

Clients	Cloud	Monthly Recurring Revenue	Initial Hardware Costs	Seats	Tickets
Boo.com	Private Cloud	$ 55,232.00	$ 458,425.60	13020	106
GovWorks	Private Cloud	$ 54,018.45	$ 637,417.71	12963	104
InfoSpace	Private Cloud	$ 48,863.40	$ 547,270.08	12036	94
Webvan	Private Cloud	$ 53,407.35	$ 582,140.12	13689	101
Inktomi	Multi-Tenant	$ 13,408.80	$ 56,316.96	8036	75
MicroStrategy	Multi-Tenant	$ 13,231.65	$ 78,066.94	8603	76
Pets.com	Multi-Tenant	$ 10,500.65	$ 48,302.99	8123	69
Think Tools	Multi-Tenant	$ 11,827.50	$ 43,761.75	8210	80

Hosted Monthy Expenses
Microsoft Licensing Fees	$ 447,363.80
Data Center Costs	$ 82,900.00
Sales and Marketing	$ 79,659.00
Software Development	$ 57,632.00
IT Delivery	$ 36,937.00
Technical Support Services	$ 35,467.00
Management	$ 34,885.00
IT Operations	$ 16,987.00
Data Center Costs	$ 82,900.00

Client	IT Delivery Hours	Escalated minutes
Boo.com	10	61
GovWorks	8	67
InfoSpace	9	60
Webvan	8	50
Inktomi	5	43
MicroStrategy	5	38
Pets.com	7	42
Think Tools	6	40
All other Multi-Tenant	365	521