Impact of cloud computing technologies on pricing models of software firms - Insights from Finland

Abstract

In this paper we study the changes in the pricing models of software firms that use cloud computing technologies as part of their products and services. This paper presents findings from 324 responses to a questionnaire survey on how pricing model elements of software firms have changed as a result of adopting hardware virtualization, multi-tenancy, online delivery and configurability. The findings suggest that Software-as-a-Service firms - making use of the cloud computing technologies - are generally simplifying their pricing model, increasing the use of usage-based pricing, reducing the customers' influence and unifying their pricing across customers. These changes occur together with standardization of their products or services. The findings provide a view to the transformation of the software industry, characterized by both technological and business model redesigns. © Springer International Publishing Switzerland 2014.