Year: 2013
Type: dissertation
Abstract: Software-as-a-Service (SaaS) refers to the means of supplying functionalities of a software application to end-users over the Internet.The concept may also incorporate the use of cloud computing technologies as part of the service offered to the end-user.This dissertation investigates the business models of software firms providing Software-as-a-Service through examination of their value propositions, activities, structural aspects and revenue logic.In particular, this dissertation focuses on the characteristics of different business models for Software-as-a-Service firms and to the changes in software firms' business models induced by the adoption cloud computing technologies and service provisioning over the Internet.Moreover, this dissertation considers the effects of competitive forces to the business models of Software-as-a-Service firms.Findings from the quantitative and qualitative studies in this dissertation demonstrate that both software product firms embracing cost efficiency approach and the software services firms focusing on customer intimacy are adopting cloud computing technologies and unifying what they essentially offer, to transform into Software-as-a-Service companies.As a result, the new Software-as-a-Service firms inherit several characteristics of the software product companies or software services companies.Findings from comparative case study and analysis of 500 survey responses indicate that both types of the Software-as-a-Service firm are changing their value proposition to include a uniform set of software functionalities across different end-users and changing their activities and structure to support more direct customer relationship.However, the changes in the revenue logic of Software-as-a-Service firms are dependent on whether the firm decides to follow the cost efficiency of the customer intimacy approach.These findings provide practical insights into how the software companies are changing their business model and consequently how the market of software products and services is evolving.These conclusions also provide means of conceptualizing Software-as-a-Service for the studies in the adoption of information systems, and outsourcing of information technology.
Author: Eetu Luoma
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
Funder: Tekes
OpenAlex ID: W1928786635