Software-as-a-Service Business Models

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.