A mixed-methods research approach to investigate the transition from on-premise to on-demand software delivery

  • Authors:

  • Francesco Novelli

  • Affiliations:

  • SAP Research, Darmstadt, Germany

  • Venue:
  • GECON'12 Proceedings of the 9th international conference on Economics of Grids, Clouds, Systems, and Services
  • Year:
  • 2012

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Abstract

Verdicts on the advisability for software vendors to adopt on-demand delivery models are widespread in the business and technology press. Incumbent software vendors, in particular, are prompted to transition to on-demand and cannibalize their on-premise customer-base, in order to supposedly enjoy market expansion, economies of scale and revenue predictability. Yet, academic research addressing this strategic move is scarce. Relying on a mixed-methods research approach, I examined the transition of two software companies which originally entered the market as on-premise vendors and turned into pure on-demand players over time. Specifically, I performed a qualitative analysis of financial reports and transcripts to identify possible milestones in the course of the transition, followed by an econometric analysis of quarterly financial results to shed some light on the impact such milestones may have had on the vendors' performances.