Examining Business Models of Software-as-a-Service Firms

The paper focuses the attention to different business models and intended strategic aims of the firms providing Software-as-a-Service (SaaS). SaaS vendors have been said to challenge the business practices of the existing vendors providing proprietary or customer-specific solutions. The current studies on the topic have shown that SaaS is different from preceding software business models, but consider and emphasize SaaS business model as an invariable configuration. This case study compares two SaaS firms with different backgrounds and reveals characteristics of two very different SaaS business models. The findings indicate that along with SaaS vendors providing only standard software applications and focusing on cost efficiency, there are vendors who provide more specialized software applications and complement the SaaS offering with services required by larger customers.