Software Renting in the Era of Cloud Computing
Ojala, A. (2012). Software Renting in the Era of Cloud Computing. In IEEE (Ed.), IEEE Fifth International Conference on Cloud Computing (pp. 662-669). Yhdysvallat: IEEE. doi:10.1109/CLOUD.2012.71
© 2012 IEEE. This is an author's final draft version of an article whose final and definitive form has been published by IEEE.
In the new era of computing, software can be sold and delivered as a cloud service, and software renting has become as a strategic tool to compete in the market. Software renting has several advantages from the customer's point of view. However, for software providers it is challenging to ensure a profitable revenue stream when a license fee is replaced by a periodic rental fee. In this study, software renting was found to help the case firms to differentiate themselves from competitors; it also increased their competitive advantage by making the software available for a larger customer group. However, the negotiating power of larger customers impacted on software pricing, rental agreements, and the revenue model.