Analysis of Pivotal Software's Business Model Canvas Report

This report provides a detailed analysis of Pivotal Software's business model, utilizing the Business Model Canvas framework. It examines the company's customer segments, value propositions, channels, customer relationships, key resources, key activities, key partnerships, cost structure, and revenue streams. The analysis includes an introduction, a breakdown of the nine building blocks of the Business Model Canvas, and discussions on customer relationships, channels, key partners, value proposition, key resources, cost structure, critical success factors, downside risks, revenue streams, and key activities. The report also covers changes in the business model, critical thinking on strengths and weaknesses, attributes of communication, and recommendations. The report concludes with a summary of the findings and references used in the analysis, providing a comprehensive overview of Pivotal Software's strategic approach and financial performance, including an examination of the company's financial risks, revenue generation, and the impact of cloud computing.

THING BIG

Executive Summary
The report comes up with the elaboration of business canvas model of Pivotal Software.
Business Canvas model is a tool through which it can assess, visualise, elaborate, and then
change business models because organisation can create, deliver, and capture values by
describing the infrastructure, customer, finances, and value proposition for the stakeholders
who uses this model before investing in this business.

Contents
Introduction................................................................................................................................3
Business canvas model...............................................................................................................3
Building blocks..........................................................................................................................3
Customer segment......................................................................................................................3
Customer relationship................................................................................................................3
Channels.....................................................................................................................................3
Key partners...............................................................................................................................3
Value proposition.......................................................................................................................3
Key resources.............................................................................................................................3
Cost structure.............................................................................................................................3
Critical success factors...............................................................................................................3
Downside risk.............................................................................................................................3
Revenue streams.........................................................................................................................3
Key activities..............................................................................................................................3
Changes in business model........................................................................................................3
Critical thinking for strengths and weaknesses..........................................................................3
Attributes of communication......................................................................................................3
Recommendation........................................................................................................................3
Conclusion..................................................................................................................................4

Introduction
The report comes up with the discussion on business canvas model for Pivotal Software. This
business canvas model is an effective tool through which it can focus and clarify of what
business can try to achieve. It can eliminate all the traditional business plans, which is
allowing technology-enabled business. Pivotal Software, Inc. is a software, which is a service
based company in San Francisco, California, Palo Alto, and several other offices. Sub
departments include Pivotal Cloud Foundry (PCF), Pivotal Labs (consulting services), and a
set rising big data merchandises (Keane, Cormican, & Sheahan, 2018).
Business canvas model
This tool is used to improve the focus and clarification of what business wants to achieve.
Furthermore, it will eliminate all the unnecessary employment of resources in wasteful
manner.
Building blocks
There are nine elements in building blocks, which allow lying important assets needed to
work for business model. These resources can allow the enterprise to offer value proposition,
encroach market, maintaining relationships, research for the markets, earn maximum
revenues, and target them. These blocks are the basic blocks that practices and improve the
trade to attain competitive advantage above its competitors (Li, Seering, & Wallace, 2018).
Customer segment
Pivotal software provides mainly software assistance to the companies who conduct asset
management techniques, banking institutions, real estate, and property organisations. The
company caters services to highly profiled customers such as automobile companies, retail
fashion, and technological companies. It assists companies such as Mercedes, Comcast,
BMW, IIRS and Lockheed martin.

Customer relationship
Pivotal software can pace up the sales by assisting the in-built sakes team that will directly
interact with the clients because it also serve to personal needs regarding software. The
company’s operation is based on facilities and services because once the sales has been
incurred then it allows self-service facilities that permit the clients to have greater access to
company`s information, products, services and resources from the online portal of Pivotal
software (Keane, Cormican, & Sheahan, 2018).
Channels
Pivotal software can offer cloud based online platform that can avail easy availability to
homepage one the customer completes the process of registering himself. As customers of the
company are MNCs then the company has availed them facilities of having account on
Pivotal website. The network range of Pivotal software is in 19 nations, which includes North
America, Toronto, Dublin, and Singapore (Salesforce, 2018).
Key partners
Organisation operates with many businesses, which grow, distribute, and then integrate
products and services with the business operations. Most significant key partners for
company will include Google, Cisco, and Microsoft who can share the resources so that it can
work together join projects and incur investments. Here are some of the key partners for the
company-

Value proposition
Pivotal software can create value for the clients, as it will serve wide range of network of
local and international customers who operate in US, UK, Ireland, and Germany.
Key resources
Trademark agency and US patent has been identified as nearly more than 30 patent claim,
that are currently listed in the file of Pivotal Software. Currently, the company can own
intellectual properties, which is the key to success for the business operations in long term.
Cost structure
The organisation incurs expenses, which will result in developing the solutions, retain
efficient personnel, and managing the collaboration with other companies (Businesswire,
2019).
Critical success factors
These factors will comprise of chosen cloud foundry as the tool, which can empower and
motivate the clients so that they can prolong the customised application. As far as integration

and extension of enterprise application, the organisation started facing threats and risks in
relation to software. Cloud foundry plays an important role when the company targets to
achieve something (Payne, Frow, & Eggert, 2017). With an aim to decide the estimated
growth, it is seen that company will head forward towards 2019 by achieving higher growth
for sales for the first quarter in 2019. The top-level management of the company asks for
making a plan so that they can achieve a growth rate of at least 70 percent where 28 percent
of the proceeds is determined to widen the use of software and then enlarge the use of
software and get payment from the current clients (EMA Pivotal, 2018).
(Source: EMA Pivotal, 2018)
Revenue streams
The organisation can receive revenue while generating the revenue from different software.
Pivotal Software can come up with revenues from subscription fees from regular clients. The
organisation can generate revenue by availing and investing in professional services such as
training and consultation, which can be fruitful in long term (Payne, Frow, & Eggert, 2017).
Key activities
Organisation can resolve the software issues related to its uses, which is renowned for
availing software services. The main products and services offered will be related to resolve
software issues. The offering include pivotal cloud Foundry (PCF), which will support them
(development teams) to project and modernize application on cloud. The organisation must

offer wide range of services and ancillary services, which includes telecommunication,
security, and analytics. The organisation will avail self-service facilities that can allow clients
to access resources, service, information, and organisational products from the company`s
portal (EMA Pivotal, 2018).
Downside risk
As far as the financial risks has been focused in the total capital structure where company will
issues if they keep debt its capital. The company faces problems and other risks related to
IPO as it is related to investments made in dell. IPO is a source of solution for cash shortage
circumstances faced by the silver Lake Partner. Analysts of organisation can predict whether
silver lake will be able to generate higher profits after participating in dell (León et al., 2016).
Pivotal software has been improving security attitudes, which have obeyed with (PCF)
pivotal Cloud foundry that have built in capabilities. PCF (Pivotal Cloud Foundry) assists the
company to ascertain and change coding verbal with Add-on to secure data by maintaining
code method (Liang, 2017). With an aim to protect data from threat, the organisation uses
PCF (Pivotal Cloud Foundry). After employing this tool, the organisation have underway
generating proceeds of $509 million in 2018 that was only $208.8 million in 2016.
Changes in business model
Pivotal can improve the strategies that reduce losses, which has to incurred while operating-
Fiscal Year 2017 2018 2019
Net losses $232.9 million $163.5 million $141.9 million
This data reserve faced the deficit of $141.9 million in 2019 where the organisation has
elaborated prospectus that shows increase in operating expenses due to hiring of new
employees and incurring additional sales and procurement, set-ups, research, additional costs

of legalities, opening new offices, development, and expenses in being registered as the
public organisation (EMA Pivotal, 2018).
Critical thinking for strengths and weaknesses
Core value gives the occasion to reform the power of cloud computing. This business model
can find out prospects, which can enhance the sustainable future of cloud computing and
further private issues can be resolved (Securities and Exchange Commission, 2018).
Strengths
In the IT sector, Cost intensity plays an significant role in executive. Liberal policies can
open new opportunities after considering decrease in price. It will lead to manage the fixed
expenses, and convert it into variable costs so that the price can be managed and reduced,
which indicates that the assets will be reduced by maintaining low capital (Liang, 2017).
Weaknesses
Trust issues is one of the major risks related to cloud computing. It is seen that risks and
weaknesses can be related to trust and maintaining trust. Control, performance, and other
security issues can make business model more efficient to achieve greater sustainable growth.
Services and loss of controlling system can also discomfort the clients affecting company`s
operations (Chadee, Sharma, & Roxas, 2017).
Attributes of communication
Traffic on portal of the company has to pass through (CPR) cloud foundry router. The
company can use networking stack and then use to create policies that is directly related to
communication (Pivotal Software, Inc 2019).

The organisation can use appropriate networking that can offer tool of communication with
another. This will include main components such as cloud foundry, command line interface,
and application of security groups, which will affect traffic from the use of application.
Recommendation
It is quite important to retain the clients that will executed as customers are satisfied. Cloud
computing can offer extensive range of services, which will include security services,
maintaining to protect the data and monitor it (Choudhury, 2017).
Conclusion
The report comes up with a conclusion that says that reporting on business canvas model on
Software Company. Pivotal software will identify the threats and risks associated with the
business. It is seen that money raised through IPO. Cloud computing offer the ability to
develop web application, which will communicate chances for micro services. Furthermore,
the organisation can offer cloud-computing services to several sectors.

References
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
Chadee, D., Sharma, R. R., & Roxas, B. (2017). Linking and leveraging resources for
innovation and growth through collaborative value creation: A study of Indian
OSPs. Asia Pacific Journal of Management, 34(4), 777-797.
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
Keane, S. F., Cormican, K. T., & Sheahan, J. N. (2018). Comparing how entrepreneurs and
managers represent the elements of the business model canvas. Journal of Business
Venturing Insights, 9, 65-74.
León, M. C., Nieto-Hipólito, J. I., Garibaldi-Beltrán, J., Amaya-Parra, G., Luque-Morales, P.,
Magaña-Espinoza, P., & Aguilar-Velazco, J. (2016). Designing a model of a digital
ecosystem for healthcare and wellness using the Business Model Canvas. Journal of
medical systems, 40(6), 144.

Li, Z., Seering, W., & Wallace, D. (2018, March). Understanding value propositions and
revenue models in open source hardware companies. In ICIE 2018 6th International
Conference on Innovation and Entrepreneurship: ICIE 2018 (p. 214). Academic
Conferences and publishing limited.
Liang, Z. (2017). Analysis of the Competitiveness of Growth Enterprise Market Listed
Companies IPO in 2015 in China. Open Journal of Modelling and Simulation, 5(4),
232-240.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
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, (2018). Retrieved from:
https://www.sec.gov/Archives/edgar/data/1574135/000104746918002636/
a2235132zs-1a.htm

Appendix-1
Pivotal Software