Software as a Service (SaaS) as an outsourcing model: An economic analysis (original) (raw)

The SaaS Payoff: Measuring the Business Value of Provisioning Software-as-a-Service Technologies

Measuring the Business Value of Cloud Computing, 2020

Creating and capturing value with new digital technologies such as cloud computing is often fraught with complexity and ambiguity for incumbent information technology (IT) firms. Using the business model concept as a lens, the objective of this chapter is to address a current gap in our knowledge about the impact of Software-as-a-Service (SaaS) on incumbent IT supply-side organisations. The empirical findings from a cross-case study analysis of two incumbent IT service providers lead to a number of in-depth insights that are discussed in this paper. The study

Explaining Software-as-a-Service Outsourcing: Economic and Social Considerations

Communications of the Association for Information Systems, 2017

Software as a service (SaaS) offers an innovative way to deliver software over the Internet to distributed organizations. While more and more SaaS providers are joining the market and competition among providers becomes more intense, we need to understand the considerations of potential clients. Built on transaction cost theory and social exchange theory, this study empirically investigates, with a national survey of IT/IS executives, the role of economic factors and the impact of social relationships on the economic factors in firms' deciding to adopt SaaS. We found that cost savings are a critical consideration in SaaS and that social relationships exert a strong, positive direct impact on cost savings and positively moderate the impact of cost savings on SaaS. This paper expands our theoretical understanding of the SaaS phenomenon and provides some managerial insights.

Analysis of Software as a Service (SaaS) for software service provision alternative: A case study of e-Office on Demand service of PT. Telkom Indonesia

This research aims to explore how service providers can transform their focus from product-based into service-based by examining the e-Office on Demand offered by PT. Telkom Indonesia. We conduct a structured interview to evaluate the benefits, risks, challenges, sources of value creation in SaaS adoption and to study how the providers implement SaaS solution within their on-premise application. Our study shows that service providers have successfully managed the risks of SaaS and reaped SaaS benefits compared to project-based application. However, they consider customization and integration are those issues that are still needed to be resolved

Analysis of Software as a Service (SaaS) For Software Service Offering Alternative: A Case Study of E-Office On-Demand Service of PT Telkom Indonesia

2011

Recent Internet technology development has enabled software to be delivered as a service, or well known as Software as a Service (SaaS). Through SaaS, customers no longer need to purchase software license, instead they only need to subscribe and access it via Internet connection. For service providers, SaaS adoption means they have to change their business focus from product-based into service-based, which requires some fundamental change in several aspects. This research based on qualitative method case study, evaluates benefits and risks of SaaS adoption by service providers and study how the providers implemented SaaS solution to their on-premise application. The object of this case study is an electronic business letter management software namely E-Office on Demand. Result of the study shows that service providers have successfully managed the risks of SaaS. However there are still some issues related to customization and integration in SaaS service. Complementary product and partnership between Independent Software Vendor and System Integrator give added value to the offered solution

BUSINESS AND TECHNICAL REQUIREMENTS OF SOFTWARE-AS-A-SERVICE: IMPLICATIONS IN PORTUGUESE ENTERPRISE BUSINESS CONTEXT

There is a considerable adoption rate, with companies already using more than two services for over two years. However, while some companies have plans to put more business processes supported by these services in the near future, others do not know if they will. They have several concerns regarding the software providers' service level. These concerns are mainly technical and functional issues, service availability and payment models. There are major changes compared to the traditional software that have implications on how the software is developed and made available to the users. The existing research addresses specific aspects and few studies give a broader view of the implications of SaaS for anyone who develops and provides software, and also for those who consumes it as an end user. What are the real needs of the Portuguese market? What fears and what is being done to mitigate them? Where should we focus our attention related to the SaaS offering in order to create more value? Thus, to analyze these questions four exploratory case studiesare used to assess the possible implications of SaaS on software developers or software providers based in Portugal and also on end-users.

Software as a Service: Implications for Investment in Software Development

2007 40th Annual Hawaii International Conference on System Sciences (HICSS'07), 2007

Software as a Service (SaaS) is a rapidly growing model of software licensing. In contrast to traditional software where users buy a perpetual-use license, SaaS users buy a subscription from the publisher. Whereas traditional software publishers typically release new product features as part of new versions of software once in a few years, publishers using SaaS have an incentive to release new features as soon as they are completed. We show that this property of the SaaS licensing model leads to greater investment in product development under most conditions. This increased investment leads to higher software quality in equilibrium under SaaS compared to perpetual licensing. The software publisher earns greater profits under SaaS while social welfare is also higher.

Software as Service Cloud

Computer Science & …, 2012

Software as a Service (SaaS) has the potential to transform the way information-technology (IT) departments relate to and even think about their role as providers of computing services to the rest of the enterprise. The emergence of SaaS as an effective software-delivery mechanism creates an opportunity for IT departments to change their focus from deploying and supporting applications to managing the services that those applications provide. A successful servicecentric IT, in turn, directly produces more value for the business by providing services that draw from both internal and external sources and align closely with business goals. Despite the promised benefits of cloud computing and software as a service (SaaS) -greater flexibility and scalability, infrastructure cost avoidance, "anywhere access" to applications and data -concerns about security and governance have made some organizations hesitant to turn over a chunk of their IT systems to a third-party service provider

Bu AND TECHNICAL REQUIREMENTS OF SOFTWARE-AS-A-SERVICE: IMPLICATIONS IN PORTUGUESE ENTERPRISE BUSINESS CONTEXT

There is a considerable adoption rate, with companies already using more than two services for over two years. However, while some companies have plans to put more business processes supported by these services in the near future, others do not know if they will. They have several concerns regarding the software providers' service level. These concerns are mainly technical and functional issues, service availability and payment models. There are major changes compared to the traditional software that have implications on how the software is developed and made available to the users. The existing research addresses specific aspects and few studies give a broader view of the implications of SaaS for anyone who develops and provides software, and also for those who consumes it as an end user. What are the real needs of the Portuguese market? What fears and what is being done to mitigate them? Where should we focus our attention related to the SaaS offering in order to create more value? Thus, to analyze these questions four exploratory case studiesare used to assess the possible implications of SaaS on software developers or software providers based in Portugal and also on end-users.

How to Sell SaaS: A Model for Main Factors of Marketing and Selling Software-as-a-Service

Software-as-a-Service providers have been growing fast while the contemporary research literature has neglected analysis of their business-critical marketing and sales processes. In this paper we collect the key factors characterizing how to market and sell SaaS to business customers into an eight dimensional model. We also use an explorative multi-case study to observe six SaaS providers and validate the model. The interviewed providers emphasized use of the Internet for marketing communication while personal direct sale was the dominating sales approach. Customer acquisition cost was the key performance indicator for marketing and sales while customer lifetime value and churn were the KPIs in customer relationship management.