Pricing Strategies of Software Vendors

Pricing and Upgrade Strategies for Software Vendors in the Software-as-a-Service Market

This study examines the competition between an independent software vendor (ISV) who offers a standard fixed-price software product and a cloud software vendor (CSV) who adopts a usage-based linear pricing scheme for its cloud-based software. Using a game theoretic approach, we set up a duopoly model to derive the optimal pricing and product feature choice decisions for both the ISV and the CSV...

Revenue and Pricing Models for Software Vendors with a Focus on Software-as-a-Service

At present the way software is offered to customers is changing. Software vendors expand their product portfolio by providing software that can be accessed via the Internet. These Software-as-a-Service solutions require the (re-)design of existing business models, particularly with regard to revenue and pricing models. The contribution of the research described below is to derive strategies for...

Competitive Strategies for Software Vendors amid Software-as-a-Service Business Model

This study examines the competition between an independent software vendor (ISV) who offers standard but customizable software and a cloud software vendor (CSV) who charges users based on actual software usage and features requested. Using a game theoretic approach, we set up a duopoly model to derive the optimal pricing and product feature choice strategies for both the ISV and the CSV in a ma...

Quality, Pricing, and Release Time: Optimal Market Entry Strategy for Software-as-a-Service Vendors

Quality, Pricing, and Release Time: Optimal Market Entry Strategy for New Software-as-a-Service Vendors

As a new software licensing model, software-as-a-service (SaaS) is gaining tremendous popularity across the globe. In this study, we investigate the competition between a new entrant and an incumbent in a SaaS market, and derive the optimal market entry strategy for the new entrant. One interesting finding is that, when its product quality is significantly lower than that of the incumbent, the ...