This spreadsheet supports INSTRUCTOR analysis of the case, "ServerVault: 'Reliable, Secure, and Wicked Fast'" (Case 11).

Please note: 1) This is a working model. Assumptions / Inputs presented can be changed to vary the results. 2) As long as default spreadsheet calculation is set as "automatic" impact of changing assumptions will be computed in real time. Alternatively F9 function key may need to be invoked to recalculate.

Revised: Marrch 7, 2006. Copyright 2000 by the Trustees of the University of Virginia Darden School Foundation.

ServerVault Statement of Cash Flows (Direct Method)

Jan-00 Cash Flows from Operating Activities Operating Revenues Setup Hosting Services Total Sources Operating Expenses Bandwidth Marketing Salaries G&A (including corp.) Total Uses

Feb-00

Mar-00

Apr-00

May-00

Jun-00

Jul-00

Aug-00

Sep-00

Oct-00

$ $ $

500 per new server 750 per server per month 50 per server per month

$ $ $

25,000 per facility per month 175,000 per facility per month 50,000 per month

Net Cash Produced (Used) by Operating Activities Cash Flows from Investing Activities: Capital Expenditures Computer Hardware $ Facilities $

3,000 per new server 5,500,000 per new facility

Net Cash Produced (Used) by Investing Activities Cash Flows from Financing Activities: External funding Net Cash Produced (Used) by Financing Activities

NET MONTHLY CASH INFLOW (OUTFLOW)

CASH POSITION Beginning balance Ending Cash Balance

ServerVault Statement of Cash Flows (Direct Method)

Nov-00 Cash Flows from Operating Activities Operating Revenues Setup Hosting Services Total Sources Operating Expenses Bandwidth Marketing Salaries G&A (including corp.) Total Uses Net Cash Produced (Used) by Operating Activities Cash Flows from Investing Activities: Capital Expenditures Computer Hardware Facilities Net Cash Produced (Used) by Investing Activities Cash Flows from Financing Activities: External funding Net Cash Produced (Used) by Financing Activities

Dec-00

Jan-01

Feb-01

Mar-01

Apr-01

May-01

Jun-01

Jul-01

Aug-01

Sep-01

Oct-01

Nov-01

NET MONTHLY CASH INFLOW (OUTFLOW)

CASH POSITION Beginning balance Ending Cash Balance

ServerVault Statement of Cash Flows (Direct Method)

Dec-01 Cash Flows from Operating Activities Operating Revenues Setup Hosting Services Total Sources Operating Expenses Bandwidth Marketing Salaries G&A (including corp.) Total Uses Net Cash Produced (Used) by Operating Activities Cash Flows from Investing Activities: Capital Expenditures Computer Hardware Facilities Net Cash Produced (Used) by Investing Activities Cash Flows from Financing Activities: External funding Net Cash Produced (Used) by Financing Activities

Jan-02

Feb-02

Mar-02

Apr-02

May-02

Jun-02

Jul-02

Aug-02

Sep-02

Oct-02

Nov-02

Dec-02

NET MONTHLY CASH INFLOW (OUTFLOW)

CASH POSITION Beginning balance Ending Cash Balance

ServerVault Three-year Growth Forecast for Servers

New Facilities Total Facilities New Servers Total Servers

Jan-00 0 1 3 3

Feb-00 0 1 5 8

Mar-00 0 1 6 14

Apr-00 0 1 10 24

May-00 0 1 12 36

Jun-00 0 1 15 51

Jul-00 0 1 25 76

Aug-00 0 1 35 111

Sep-00 1 2 65 176

Oct-00 0 2 90 266

Nov-00 0 2 115 381

Dec-00 0 2 135 516

Jan-01 1 3 206 722

Growth of Servers
16000

14000 Number of Servers

12000

10000
8000
New Servers

New Servers Total Servers

6000
4000

2000
0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0

Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02

Month

ServerVault Three-year Growth Forecast for Servers

New Facilities Total Facilities New Servers Total Servers

Feb-01 0 3 221 943

Mar-01 0 3 236 1179

Apr-01 1 4 271 1450

May-01 0 4 291 1741

Jun-01 0 4 311 2053

Jul-01 1 5 351 2404

Aug-01 0 5 376 2780

Sep-01 0 5 401 3182

Oct-01 1 6 447 3628

Nov-01 0 6 477 4105

Dec-01 0 6 502 4607

Jan-02 1 7 547 5153

Feb-02 0 7 547 5700

ServerVault Three-year Growth Forecast for Servers

New Facilities Total Facilities New Servers Total Servers

Mar-02 0 7 582 6282

Apr-02 1 8 647 6929

May-02 0 8 692 7621

Jun-02 0 8 737 8358

Jul-02 1 9 807 9165

Aug-02 0 9 862 10027

Sep-02 0 9 917 10945

Oct-02 1 10 997 11942

Nov-02 0 10 1062 13004

Dec-02 0 10 1132 14137

ServerVault Three-year Growth Forecast for Servers

New Facilities Total Facilities New Servers Total Servers

Jan-00 0 1 3 3

Feb-00 0 1 5 8

Mar-00 0 1 6 14

Apr-00 0 1 10 24

May-00 0 1 12 36

Jun-00 0 1 15 51

Jul-00 0 1 25 76

Aug-00 0 1 35 111

Sep-00 1 2 65 176

Oct-00 0 2 90 266

Nov-00 0 2 115 381

Dec-00 0 2 135 516

New Facilities Total Facilities New Servers Total Servers

Jan-01 1 3 206 722

Feb-01 0 3 221 943

Mar-01 0 3 236 1179

Apr-01 1 4 271 1450

May-01 0 4 291 1741

Jun-01 0 4 311 2053

Jul-01 1 5 351 2404

Aug-01 0 5 376 2780

Sep-01 0 5 401 3182

Oct-01 1 6 447 3628

Nov-01 0 6 477 4105

Dec-01 0 6 502 4607

New Facilities Total Facilities New Servers Total Servers

Jan-02 1 7 547 5153

Feb-02 0 7 547 5700

Mar-02 0 7 582 6282

Apr-02 1 8 647 6929

May-02 0 8 692 7621

Jun-02 0 8 737 8358

Jul-02 1 9 807 9165

Aug-02 0 9 862 10027

Sep-02 0 9 917 10945

Oct-02 1 10 997 11942

Nov-02 0 10 1062 13004

Dec-02 0 10 1132 14137