Cachet Technology Case Study

Q1: What is the nature of the problem that Cachet Technologies is addressing? Is it a big problem? Is there any competition? The company proposed a new way to distribute content over the Internet. The reason why this technology is invented is a real problem related to the Internet. The main problem is that existing routing systems on the Internet are not able to serve new needs of consumers. Consumers moved to more sophisticated multi-media applications and routing system became overloaded. It resulted with delays in the system and slowness of the web in peak periods. This problem is big and important. As the promise of Internet was to represent global, interactive, transactive new medium, due to this problem this promise and function of Internet was not able. If it is not possible to serve huge number of users in peak period, than how Internet could be global, new and different than other mediums. The benefits and advantages of Internet were not able to be used due to the nature of this problem. Internet has limitations due to “hot spot problem” when a lot of users access the system. Cachet Technologies does not have direct competitors who offer solutions with the same benefits and advantages. Catchet Technologies’ spftware represented a dramatic improvement over alternative solutions in the marketplace. However indirect competitors exist. They differ in the way how they approach the problem and which advantages and disadvantages they offer. As a substitute for Cachet Technologies, ISPs (Internet service providers) could invest in infrastructure to build their system to accommodate larger network. However, this is very expensive and time consuming. The other possible solution is mirroring. The entire content of a particular web site would be replicated on a number of different serves at different locations. This is also costly, time consuming and with low level of efficiency. Another potential competitor technology is caching.