Software-As-A-Service: Implications For Business And Technology In Product Software Companies

Many software organizations are currently transitioning from an on-premises deployment model to the Software as a Service (SaaS) model. If a company restricts changes only in the business or technical perspective, the transition leads to higher costs, poor adoption of the SaaS model, and in the worst case, the company can lose its business. Much literature focuses on changes within one domain and is generally also limited to one perspective. This paper provides stakeholders (i.e. product managers, and business managers) an integrated perspective (business and technological) with a comprehensive framework that covers changes in four domains: business/product structure, revenue logic, customer relationships, and partnerships. The applicability of the proposed framework is assessed with a case study of a large software product vendor. The paper also contributes by providing a new avenue to study SaaS, with an integrated perspective for the organizational transition period. For the industry, this paper suggests a way to assess the impacts of organizational transition towards the SaaS model. With this overview in hand, softwareproducing organizations can use the comprehensive framework to successfully transition to become SaaS vendors.