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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

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Sebastian Stuckenberg

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.
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4. Exploring the Organizational Impact of Software-as-a-Service

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4.Exploring the Organizational Impact of Software-as-a-Service

The following chapter will introduce the first phase of empirical research addressing the impact of Software-as-a-Service on software vendors. The chapter is building on the work of Stuckenberg et al. (2011) and Stuckenberg & Heinzl (2010). After an introduction to the research framework that guided the analysis, the specific sampling strategy for the first case study will be introduced. This will be followed by a detailed presentation of the case data and the matching literature.

To understand the potential organizational impact of the Software-as-a-Service concept on software vendors, a structured analysis approach is required. On the one hand, it is not only necessary to gain a solid understanding of the key aspects of the Software-as-a-Service concept itself, but also about the context software vendors that adopt the concept as a software delivery and pricing model are exposed to. On the other hand, knowledge about the central value creating activities of the context is needed. The research framework that guides the first phase of exploratory research should therefore incorporate these two perspectives.

With regard to the Software-as-a-Service concept, the definition of Software-as-a-Service in Section 2.2 describes various characteristics that are commonly linked to the concept. When defining Software-as-a-Service as a software delivery model that provides users with up-to-date software via the Internet on a pay-by-usage basis, the value to the customer is emphasized. In order to be able to understand the full consequences of the Software-as-a-Service concept for software...

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