RedBus: looking up to the clouds

Abstract

Subject area The case can be introduced in the information technology (IT) strategy course. The case can also fit well in courses like emergent technologies where the case forms the vehicle to show how cloud-based solutions can provide leverage to an organization. Study level/applicability The case is aligned more for management participants, for example, students who are enrolled in master's or executive program in management. Considering the master's program in management, the case can be introduced in the IT strategy course. The case can also fit well in courses like emergent technologies where the case forms the vehicle to show how cloud-based solutions can provide leverage to an organization. Assignment questions addressed below are designed from the perspective of teaching this case to a business student audience. The case could certainly be adjusted to fit the needs of students in more technical disciplines. Case overview Set in March 2009, Charan Padmaraju, the CTO of redBus was grappling with his companies IT infrastructure and scalability issues. He was considering cloud computing as a solution to all his worries. redBus was founded in August 2006 as a bus ticketing company in India. From INR 50 lakhs of gross bookings in their first financial year 2006-07 to an estimated INR 300 million in gross bookings in the financial year ending 2008-09, redBus had registered phenomenal growth. From selling 10 tickets a day, it now sold more than 4,000 tickets a day for more than 5,000 routes across 15 states in India. However, the IT infrastructure of redBus could not match up with their business needs and required frequent upgrades. Charan thought “The procurement of new servers, upgrading existing servers and most of the developer's time went into circumventing scaling issues which were not adding values to our core business.” He wondered “Can cloud computing be an answer to all my worries? “But what exactly is cloud computing? Will it solve my existing scalability issues? How reliable it is? Is it expensive? What is the time for deployment?” Expected learning outcomes To understand what is a business model; to appreciate the technical issues related to business expansion decisions; to explain the concepts behind cloud based solutions; and to demonstrate how adoption of the cloud solution can enable an organization to achieve competitive advantage. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.