AIS Electronic Library (AISeL)
This paper analyses business models of software firms. The underlying framework comprises eight variables derived from a comprehensive software industry business model conceptualization. Using this framework, the authors classify the business models of the global top 100 software firms based on their annual reports. Then, they run clustering algorithms in order to identify business model patterns. Clustering allows comparing patterns within and between business model clusters on different levels of granularity. Based on the business model clustering, they then analyze the firms' financial performance in three categories: market value, profitability, and operating efficiency.