Exploring Business Model Changes in Software-as-a-Service Firms

Eetu Luoma (Corresponding author), Gabriella Laatikainen, Oleksiy Mazhelis

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

Abstract

This paper reports the findings from research on the changes in the business models of Software-as-a-Service (SaaS) firms. The extant literature defines these firms through the use of cloud computing technologies as part of their products and service. However, current literature is missing consideration of the effects of adopting these technologies on the elements of business model, including value proposition, activities, structure and revenue logic. This paper presents findings from 324 responses to a questionnaire survey on how these business model elements of software firms have changed as a result of adopting cloud computing technologies and competitive pressures, and identifies the differences in changes between the SaaS firms originating from software product and software services business. The findings suggest that the SaaS firms are generally unifying their core product offering and pricing across customers and increasing their sales efforts. Besides, the two types of SaaS firms are different in terms of their software-related activities. The present study therefore provides insights into development of the software market, where SaaS firms are claimed to challenge the proprietary software vendors. The findings also imply that the conceptualization of SaaS in IS adoption and IT outsourcing studies can be improved.
Original languageEnglish
Title of host publicationSoftware Business
Subtitle of host publication9th International Conference, ICSOB 2018, Tallinn, Estonia, June 11--12, 2018, Proceedings 9
PublisherSpringer
Pages108-124
Number of pages17
ISBN (Electronic)978-3-030-04840-2
ISBN (Print)978-3-030-04839-6
DOIs
Publication statusPublished - 2018
MoE publication typeA4 Article in a conference publication

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