From On-Premise Software to Cloud Services: The Impact of Cloud Computing on Enterprise Software Vendors' Business Models

Provided by: Creative Commons
Topic: Cloud
Format: PDF
Cloud computing is an emerging paradigm that allows users to conveniently access computing resources as pay-per-use services. 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. For software vendors the move towards cloud solutions implies profound changes in their value-creation logic. 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.

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