Exploring the Organizational Impact of Software-as-a-Service on Software Vendors

The Role of Organizational Integration in Software-as-a-Service Development and Operation

by Sebastian Stuckenberg (Author)
©2014 Thesis XVI, 170 Pages


Software-as-a-Service has gained momentum as a software delivery and pricing model within the software industry. Existing practices of software vendors are challenged by a potential paradigm shift. This book analyzes the implications of Software-as-a-Service on software vendors using a business model and value chain perspective. The analysis of qualitative data from software vendors highlights the role of organizational integration within software vendors. By providing insights regarding the impact of Software-as-a-Service on organizational structures and processes of software vendors, this study advances the understanding of Software-as-a-Service which is also highly relevant for practitioners who are involved in the development and operation of enterprise software solutions.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the Author
  • About the Book
  • This eBook can be cited
  • Contents
  • Acknowledgements
  • List of Figures
  • List of Tables
  • List of Abbreviations
  • 1. Introduction
  • 1.1. Problem Statement
  • 1.2. Research Objectives
  • 1.3. Research Design
  • 1.4. Study Organization
  • 2. Terminological and Conceptual Foundations
  • 2.1. The Software Industry
  • 2.1.1. Characteristics of Software and Services
  • Software
  • Services
  • 2.1.2. Characteristics of the Software Industry
  • Network Effects
  • Lock-in and Switching Costs
  • 2.1.3. Software Delivery and Payment Models
  • Software Delivery and Operation Models
  • Software Pricing
  • 2.2. Software-as-a-Service
  • 2.2.1. Software Service Characteristics
  • 2.2.2. Software Product Characteristics
  • 2.2.3. Related Concepts
  • 2.3. Previous Work on Implications of Software-as-a-Service
  • 2.3.1. The Industry Perspective
  • 2.3.2. The Software Vendor Perspective
  • 2.4. Summary
  • 3. Research Design
  • 3.1. Selection of Research Strategy
  • 3.2. Specification of the Case Study Research Strategy
  • 3.2.1. Epistemological Position
  • 3.2.2. Case Study Design
  • 3.2.3. Data Collection and Analysis Procedure
  • 3.3. Summary
  • 4. Exploring the Organizational Impact of Software-as-a-Service
  • 4.1. Research Framework
  • 4.1.1. Business Models
  • 4.1.2. Value Chains
  • 4.2. Data Selection and Analysis
  • 4.3. Results and Observations
  • 4.3.1. The Business Model of Software-as-a-Service
  • Value Proposition
  • Customer Segments
  • Revenue Streams
  • Channels
  • Customer Relationship
  • Key Partnerships
  • Key Resources
  • Key Activities
  • Cost Structure
  • Discussion and Summary
  • 4.3.2. The Software-as-a-Service Value Chain
  • Research
  • Development
  • Production
  • Marketing
  • Implementation
  • Education
  • Operations
  • Maintenance
  • Support
  • Replacement
  • Discussion and Summary
  • 4.3.3. Discussion
  • 4.4. Re-evaluation from a Coordination Perspective
  • 4.4.1. Theoretical Perspectives on Organization
  • Specialization
  • Coordination
  • Configuration
  • Delegation
  • Formalization
  • Discussion
  • 4.4.2. Coordination & Interdependence
  • Types of Interdependence
  • Coordination Mechanism
  • 4.4.3. The Role of Releases in Software-as-a-Service Development and Operations
  • Development – Operations
  • Marketing – Development and Operations
  • 4.4.4. Discussion
  • 4.5. Summary
  • 5. The Role of Organizational Integration for Software-as-a-Service
  • 5.1. Research Framework
  • 5.1.1. Organizational Integration
  • 5.1.2. Organizational Integration in the Software-as-a-Service Context
  • 5.2. Data Selection and Analysis
  • 5.3. Results and Observations
  • 5.3.1. The Role of Organizational Integration in Software-as-a-Service Development and Operations
  • Awareness
  • Continuity
  • Increment
  • Timing
  • Feedback
  • 5.3.2. Enablers and Inhibitors of Organizational Integration
  • Service Mindset
  • Company Size
  • Technical Harmonization
  • 5.4. Discussion
  • 5.5. Summary
  • 6. Discussion
  • 6.1. A Holistic View on the Impact of Software-as-a-Service
  • 6.2. Implications
  • 6.2.1. Theoretical Implications
  • 6.2.2. Managerial Implications
  • 6.3. Limitations and Outlook
  • 7. Conclusion
  • Bibliography
  • Appendix
  • A. Interview guidelines
  • A.1. High Level Interview Guidelines of the First Phase
  • A.2. High Level Interview Guidelines of the Second Phase

List of Figures

1.1.Research approach
2.1.Stack model of enterprise application software
2.2.Partition of the software industry
2.3.Two types of software vendors
2.4.Software-as-a-Service architecture maturity model
2.5.Cloud Computing stack model
4.1.Types of interdependence and suggested coordination mechanism
4.2.The role of releases for Software-as-a-Service
5.1.Changing business model
5.2.Dimensions of organizational integration
5.3.Themes of organizational integration
5.4.Model of organizational integration in the Software-as-a-Service context

← xi | xii → ← xii | xiii →

List of Tables

2.1.Service content measure of Cloninger & Oviatt
2.2.Common software licensing models
2.3.Parameters of pricing models for software products
2.4.Selected definitions of Software-as-a-Service in the literature
2.5.Design choices for Software-as-a-Service business models
3.1.Dimensions to select a suitable research strategy
4.1.The business model building blocks of Osterwalder & Pigneur
4.2.Activities of the software value chain
4.3.Case study sample
4.4.Interview partners in the case study
4.5.Initial coding scheme of first empirical phase
4.6.Key observations within Value Proposition
4.7.Key observations within Customer Segments
4.8.Literature topics with regard to Customer Segments
4.9.Key observations within Revenue Streams
4.10.Literature topics with regard to Revenue Streams
4.11.Key observations within Channels
4.12.Literature topics with regard to Channels
4.13.Key observations within Customer Relationship
4.14.Literature topics with regard to Customer Relationship
4.15.Key observations within Key Partnerships
4.16.Literature topics with regard to Key Partnerships
4.17.Key observations within Key Resources
4.18.Literature topics with regard to Key Resources
4.19.Key observations within Key Activities
4.20.Literature topics with regard to Key Activities
4.21.Key observations within Cost Structure
4.22.Literature topics with regard to Cost Structure
4.23.Summary of implications on different business model components
4.24.Definitions of coordination in extant literature
4.25.Generic types of software releases
5.1.Analyzed companies and conducted interviews
5.2.Enabling and inhibiting factors of integration

← xiii | xiv → ← xiv | xv →

List of Abbreviations

APIApplication Programming Interfaces
ASPApplication Software Provisioning
BIBusiness Intelligence
CRMCustomer Relationship Management
ERPEnterprise Resource Planning
ITInformation Technology
PLMProduct Lifecycle Management
SCMSupply Chain Management
SDKStandard Development Kits
TCOTotal Cost of Ownership

← xv | xvi → ← xvi | 1 →



XVI, 170
ISBN (Hardcover)
Publication date
2014 (April)
Cloud Computing: Software-as-a-Service technical harmonization Softwareentwicklung
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2014. XVI, 170 pp., 33 tables, 18 graphs

Biographical notes

Sebastian Stuckenberg (Author)

Sebastian Stuckenberg completed his studies of Information Systems at the University of Mannheim (Germany). He conducted his research at the Chair of General Management and Information Systems of Prof. Dr. Armin Heinzl and the Research Institute for Software and Service Ecosystems and was a Visiting Researcher at the City University of Hong Kong.


Title: Exploring the Organizational Impact of Software-as-a-Service on Software Vendors
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192 pages