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This motivates our research, which investigates the shift from on-premise software to cloud services from the perspective of enterprise software vendors. Although several authors have emphasized cloud computing's disruptive nature, , we still lack a systematic analysis of cloud computing's profound impact on software vendors. In terms of competencies and resources, delivering cloud applications implies that software vendors operate data centers and manage applications in addition to their traditional software development activities.
COMPARTIR LICENCIAS EN AUTOMATION STUDIO 6.1 SOFTWARE LICENSE
For them, cloud computing implies profound changes: Not only does it force them to deliver their solutions via the internet and to replace their software license model with service fees it also requires them to rework their solutions to become fully web-enabled and to serve multiple customers with the same instance, whereas traditional applications are installed and often extensively customized for a single customer. However, this slow migration towards cloud enterprise software may also be explained from the supply side, where vendors are reluctant to introduce cloud offerings.
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Accordingly, the business user perspective has been extensively investigated in recent studies on cloud adoption drivers and challenges, as well as approaches for migrating to the cloud. Given the business criticality of these systems, companies are more concerned about security and peformance issues, but also face significant switching costs when migrating to new technologies. The relatively slow migration towards cloud solutions in the enterprise software domain can be explained by different factors: Looking at the demand side, business users have more complex information technology (IT) needs than private users, since they use enterprise software, such as enterprise resource planning (ERP) or customer relationship management (CRM) systems, to support their core business operations. Whereas cloud offerings such as Amazon's Elastic Compute Cloud and Google Apps are rapidly gaining a large user base, enterprise software's migration towards the cloud is still in its infancy. Analysts project that the cloud services market will grow from $25.5 billion in 2011 to $159.3 billion by 2020, and expect that almost all computing resources will move towards the cloud. In 2013, cloud computing is among the top 10 technologies considered strategic for most organizations. As is often the case in a new technology concept's early phases, expectations are high and growth projections are impressive. Keywords: Cloud computing, Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), business model, Enterprise systems, Enterprise resource planning (ERP), Customer relationship management (CRM), Revenue modelĬloud computing is an emerging concept that allows users to conveniently access computing resources as pay-peruse services. By deriving two alternative business model configurations, SaaS and SaaS+PaaS, our research synthesizes the strategic choices for enterprise software vendors and provides guidelines for designing viable business models.
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It thus underpins cloud computing's disruptive nature in the enterprise software domain.
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From multiple case studies covering traditional and pure cloud providers, we find that moving from on-premise software to cloud services affects all business model components, that is, the customer value proposition, resource base, value configuration, and financial flows. This motivates our research, which investigates cloud computing's implications for enterprise software vendors' business models. Not only are they forced to deliver fully web-enabled solutions and to replace their license model with service fees, they also need to build the competencies to host and manage business-critical applications for their customers. For software vendors the move towardscloud solutions implies profound changes in their value-creation logic. University of Lausanne, Faculty of Business and Economics (HEC), Lausanne, Switzerland 1 2 computing is an emerging paradigm that allows users to conveniently access computing resources as pay-per-use services. From On-Premise Software to Cloud Services: The Impact of Cloud Computing on Enterprise Software Vendors' Business Models