Jamcracker was founded in July 1999 under the name: VitalTone. In February 2000 the company renamed itself Jamcracker. Three men formed the company: Kilaiyur Balakrishnan Chandrasekhar(Chandra), Herald Chen and Mark Terbeek.
Chandra and Mr. Jagadeesh founded Exodus Communications in 1995. As first web browsers appeared, these two entrepreneurs immediately saw a tremendous tool. They wanted to take advantage of the new opportunities, and started themselves asking: "how can we make computing available for companies looking to operate 24x7?" The answer to that question was Exodus. The objective was to create a service provider with many customers that could realize economies of scale in facility construction and management that most companies could not achieve on their own. .
In 1998 Chandra decided to finance an independent study project. Mr. Chen and Mr. Terbeek, business students at Stanford, were responsible for this project. Both students based their study on the following question: is there a way to deliver IT services that leverages the Web? The project would finally evolve into the company called Jamcracker.
By June 2001, Jamcracker had more than 100 customers and 250 employees and was offering more than 35 different applications services. The company was well-financed and growing, but it was operating in a tremendous volatile sector of the economy.
WHAT IS AN "APPLICATION SERVICE PROVIDER"?.
An Application Service Provider (ASP) provides software services across the Internet. .
These services include e-mail, word processing, accounting software, and any other services that companies could obtain from software. .
With the ASP model, when a computer user launches a software package, the software executes off the customer's site, in a facility and on hardware owned and operated by a company that specializes in running such packages for many customers. The functionality provided by the package travels to the user across the Internet.