6533b82afe1ef96bd128c359

RESEARCH PRODUCT

Software Renting in the Era of Cloud Computing

Arto Ojala

subject

ta113Software rentingcompetitive strategybusiness.industryComputer scienceSoftware as a servicecloud computingCloud computingCompetitor analysisRevenue streamCompetitive advantageSaaSRentingSoftwareRevenue modelbusinessLicenseIndustrial organization

description

In the new era of computing, software can be sold and delivered as a cloud service, and software renting has become as a strategic tool to compete in the market. Software renting has several advantages from the customer's point of view. However, for software providers it is challenging to ensure a profitable revenue stream when a license fee is replaced by a periodic rental fee. In this study, software renting was found to help the case firms to differentiate themselves from competitors; it also increased their competitive advantage by making the software available for a larger customer group. However, the negotiating power of larger customers impacted on software pricing, rental agreements, and the revenue model. peerReviewed

yearjournalcountryeditionlanguage
2012-06-012012 IEEE Fifth International Conference on Cloud Computing
https://doi.org/10.1109/cloud.2012.71