However, in some cases, powerful customers are able to limit the revenue and pricing options. The software renting model has several advantages which significantly help software vendors to expand their business opportunities. Depending on the competitive situation in the market, firms apply mixed revenue models, or else a hybrid pricing mechanism, to protect their business against rivalry and substitutes. The findings indicate that servitization of the software offering makes it possible to adjust revenue and pricing strategies relative to market competition. Based on 37 interviews with software professionals from five case firms, this paper focuses on the connection between competitive forces and the factors influencing the selection of a pricing model. However, it is still unclear how software providers can use software renting as a competitive strategy in the software market. Thus, instead of selling software licenses, software vendors can rent software as a service to customers. Recent research has recognized cloud computing as a new paradigm of servitization in which software products are offered based on service contracts.
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