Financial aspects of business models : reducing costs and increasing revenues in a cloud context
The emergence of cloud computing induces opportunities for software vendors
and for organizations with great storage needs. Indeed, software companies have
begun to adopt cloud technologies and offer their software as a service to
customers instead of selling software products. As a result, their revenue models
have changed, and the diversity and complexity of the resulting pricing models
have created both opportunities and impediments to competition in the market.
On the other hand, due to the exponentially growing volume of digital content,
organizations have an increasing demand for storage and need to choose
between private, public, and hybrid storage solutions. This decision requires
consideration of various determinants; cost is one of the most vital factors. This
dissertation investigates the impact of cloud computing technologies on the IT
industry, with a focus on the financial aspects of business models. That is, this
research uses quantitative, qualitative, and analytical-mathematical research
methods, as well as simulations, to find ways to improve companies’ financial
performance by enhancing their pricing models and reducing their storage costs.
In particular, this research contributes to the cloud pricing literature by
proposing a pricing framework developed specifically for the cloud industry, by
providing insights into the relationship between software architecture and
pricing, and by providing a view on how cloud technology adoption has changed
software pricing models. In addition, this research contributes to the cloud cost
literature and to the concurrent sourcing literature by providing analytical
models that capture the effects that various cost determinants have on the cost-
efficiency of private versus public storage and the cost of hybrid storage. This
research indicates that, in the case of exponentially growing storage demand,
reestimating future needs and acquiring the necessary in-house infrastructure
usually makes the private cloud more cost-effective than the public cloud; the
total cost of hybrid storage decreases as well. In addition, this research sheds
light on various details regarding storage cost reduction, such as the roles of
volume uncertainty and volume variability in hybrid storage costs, the time point
when reestimating hybrid storage needs results in the greatest cost benefits, and
the magnitude of these achievable cost benefits.
...
Publisher
University of JyväskyläISBN
978-951-39-7408-4ISSN Search the Publication Forum
1456-5390Contains publications
- Artikkeli I: Laatikainen, G., Ojala, A., & Mazhelis, O. (2013). Cloud services pricing models. In International Conference of Software Business (pp. 117–129). Springer, Berlin, Heidelberg.
- Artikkeli II: Laatikainen, G., & Ojala, A. (2014). SaaS architecture and pricing models. In 2014 IEEE International Conference on Services Computing (SCC) (pp. 597–604). IEEE. DOI: 10.1109/SCC.2014.84.
- Artikkeli III: Laatikainen, G., & Luoma, E. (2014). Impact of cloud computing technologies on pricing models of software firms–Insights from Finland. In International Conference of Software Business (pp. 243–257). Springer, Cham.
- Artikkeli IV: Laatikainen, G., Mazhelis, O., & Tyrväinen, P. (2014). Role of acquisition intervals in private and public cloud storage costs. Decision Support Systems, 57, 320–330. DOI: 10.1016/j.dss.2013.09.020.
- Artikkeli V: Laatikainen, G., Mazhelis, O., & Tyrväinen, P. (2016). Cost benefits of flexible hybrid cloud storage: Mitigating volume variation with shorter acquisition cycle. The Journal of Systems & Software, 122, 180–201. DOI: 10.1016/j.jss.2016.09.008.
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