Journal ArticleDOI
The Changing Software Business: Moving from Products to Services
TLDR
A dramatic shift is under way in the enterprise-software industry as established vendors embrace services in the wake of declining product revenues and it remains to be seen whether life-cycle dynamics or business-model choices are behind the long-term trend.Abstract:
The dramatic changes in the software business over the past few years have important implications for both users and producers of software products and services. Traditional product sales and license fees have declined, and product company revenues have shifted to services such as annual maintenance payments that entitle users to patches, minor upgrades, and often technical support. A dramatic shift is under way in the enterprise-software industry as established vendors embrace services in the wake of declining product revenues. It remains to be seen whether life-cycle dynamics or business-model choices are behind the long-term trend.read more
Citations
More filters
Proceedings ArticleDOI
A sense of community: A research agenda for software ecosystems
TL;DR: This paper presents a research agenda on software ecosystems to study both the technical and the business aspects of software engineering in vibrant ecosystems to enable software vendors to develop software that is adaptable to new business models and new markets.
Journal ArticleDOI
Services, industry evolution, and the competitive strategies of product firms
TL;DR: In this paper, the authors identify three categories of product-related services from a product firm: smoothing and adapting services, complementing products, and substitution services, which enable customers to pay for the use of a product without buying the product itself.
Journal ArticleDOI
Cloud computing and SaaS as new computing platforms
TL;DR: To become an industry platform, vendors must open their infrastructure technology to other product companies to be able to compete on a global basis.
Journal Article
Technology Strategy and Management Cloud Computing and SaaS as New Computing Platforms
TL;DR: To become an industry platform, vendors must open their infrastructure technology to other product companies as discussed by the authors, which is the goal of this paper. But, it is not an easy task.
Journal ArticleDOI
Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry
TL;DR: The authors examined the role of services in the financial performance of firms in the prepackaged software products industry standard industrial classification code 7372 from 1990 to 2006 and found a convex, nonlinear relationship between a product firm's fraction of total sales coming from services and its overall operating margins.
References
More filters
Book
The Innovator's Dilemma
TL;DR: Christensen as discussed by the authors argues that outstanding companies can do everything right and still lose their market leadership, or worse, disappear completely, and he not only proves what he says, but also tells others how to avoid the same fate.
Book
Mastering the Dynamics of Innovation
TL;DR: The dymanics of onnovation in industry dominant designs and the survival of firms product innovation as a creative force innovation and industrial evolution innovation in non-assembled products invasion of a stable business by radical innovation are discussed in this paper.
Journal ArticleDOI
The business of software
TL;DR: If software is not a product but a medium for storing knowledge, then software development is not an product-producing activity, it is a knowledge-acquiring activity.
Journal ArticleDOI
The changing labyrinth of software pricing
TL;DR: Exploring the malleable revenue pathways among the different varieties of pricing strategies shows the need to consider the elasticity of revenue pathways in the context of complex pricing environments.
Making Profits after the Sale
TL;DR: Knecht et al. as mentioned in this paper pointed out that the after-sales business accounts for 10 to 20 percent of revenues and a much larger portion of total contribution margin in most industrial companies.