Cloud challenges for an ERP vendor: Business model implications

Abstract

The method by which software companies provide and distribute their products and services has dramatically changed over the last decades. Today, most software is bought off-the-shelf and distributed over the Internet. This transition is greatly influencing the business model of software providers. In this paper, we present a case study of small and mid-sized Nordic ERP vendor. The case study describes company evolution and challenges when starting to compete strategically with SaaS offerings. We conclude by presenting a phased business model that deals with the old on-premises business as well as the companies’ new SaaS initiatives.