Software-as-a-Service Business Models
Authors: Eetu Luoma, Mikko Rönkkö
Category: research article
Keywords: Software-as-a-Service, Business model, Classification, Cluster analysis, Software Industry
Abstract: Software-as-a-Service (SaaS) offering is beneficial to both SMEs and corporations, who wish to outsource software-related activities and use simple and low-cost software systems. The expected pros and cons of SaaS offering and technological details are well represented in the contemporary academic and trade literature. However, comprehensive understanding on SaaS as a business model seems to be missing. By synthesizing existing literature and using survey data collected from Finnish software industry, this article reveals two different configurations and the typical factors of SaaS business model. The resulting classification contributes to understanding how software companies need to align and balance otherwise separate business model elements in order to run successful business.
Permanent link to this page: http://urn.fi/URN:NBN:fi-fe201110215737
The paper discusses the different business models associated with software as a service. As such, the paper is really a survey on what has been published before, and consequently it would be fair to add word 'survey' somewhere in the title. Otherwise there is an impression that the authors are working out the different business models from ground up instead of reviewing what has already been proposed or addressed in previous publications.
In general, the paper is well written, and the plot of the paper is easy to follow from the initial introduction all the way to the main conclusion towards the end of the paper. The part that could be emphasized is the interpretation of the results, in other words spelling more directly and in particular sharply out what the numbers in the tables truly mean in terms of research and business. While the present text addresses these, it is partly written in a fashion that unnecessarily attempts to be polite and dull and to bury the real observations rather than highlighting them. Agreed, this is partly due to the academic style of writing, but I still would like you to be more frank.
I did not understand why there are two empty slots in Table 1; did you not find any remark on SaaS in these papers, or what does this mean?
Section 3 starts to talk about software companies; could you be more specific with the term? What does a software company do and how are they from other companies?
Finally there are some small typos especially in the early parts of the paper:
p. 1: "... understanding on SaaS..:" -> "... understanding of SaaS..:"
p. 1: "... refers to a type software ..." -> "... refers to a type of software ..."
p. 1: "... served from the same ..." -> "... served by the same ..."
p. 5: Something is missing from the beginning of section 4.
p. 6: "... contractor where the ..." -> "... contractor were the ..."
p. 7: "...[25] as an analysis method." -> "...[25] as the analysis method."
p. 7: "... and, thus, the consideration leaves out e.g. online games and other services for individual customers." -> "..., and thus the consideration leaves out numerous services intended for individual customers, including for example online games."