Mobile Security as a Service

The purpose of this paper is to study how a software product company can expand its product-based business with the Software as a Service (SaaS) model in the mobile setting. In this research study we examine how the SaaS model can be implemented by a software company with existing PC-based software business and conduct a case study on F-Secure and its mobile security as a service offering. The differences between the product and service business are considerable and the change of focus from one to the other is not easily done. For example, the scale economies, which are associated with product business, are not easily achieved in service business. However, the SaaS business model has many benefits to offer to SaaS providers. To providers, SaaS offers e.g. expanded customer base, lowered production and distribution costs, more predictable cash flows, and shortened sales cycle. Our findings include that by successfully solving the risks associated with the SaaS model and by fulfilling the customers’ demands of customization and at the same time benefiting from economies of scale, scope, and aggregation, F-Secure has managed to leverage its domain area expertise with its SaaS offering: F-Secure has expanded its PC-based antivirus and security application business to cover also mobile devices. F-Secure has also increased its potential customer base amongst smart phone users (both end-users and businesses) with the help of its partners: mobile operators and handset manufacturers.