Competition Between Software-as-a-Service Vendors

A Model of Competition Between Perpetual Software and Software as a Service

Notation Definition t 0 [0, 1] Time within the software life cycle [0,1] q Quality of the old perpetual software product ρ New perpetual software quality improvement ratio over the old version θ The SaaS initial quality improvement ratio over the old perpetual software, 1 < θ < ρ α Rate of software quality improvement for the SaaS product pu One-time upgrade price for existing users to upgrade ...

Revenue and Pricing Models for Software Vendors with a Focus on Software-as-a-Service

At present the way software is offered to customers is changing. Software vendors expand their product portfolio by providing software that can be accessed via the Internet. These Software-as-a-Service solutions require the (re-)design of existing business models, particularly with regard to revenue and pricing models. The contribution of the research described below is to derive strategies for...

Pricing and Upgrade Strategies for Software Vendors in the Software-as-a-Service Market

This study examines the competition between an independent software vendor (ISV) who offers a standard fixed-price software product and a cloud software vendor (CSV) who adopts a usage-based linear pricing scheme for its cloud-based software. Using a game theoretic approach, we set up a duopoly model to derive the optimal pricing and product feature choice decisions for both the ISV and the CSV...

Competitive Strategies for Software Vendors amid Software-as-a-Service Business Model

This study examines the competition between an independent software vendor (ISV) who offers standard but customizable software and a cloud software vendor (CSV) who charges users based on actual software usage and features requested. Using a game theoretic approach, we set up a duopoly model to derive the optimal pricing and product feature choice strategies for both the ISV and the CSV in a ma...

Exploring the organizational impact of software-as-a-service on software vendors: the role of organizational integration in software-as-a-service development and operation