A Historical Retrospect of the Software As A Service Business Model: Implications for the Future of Software

Anthony Kuo ； Ming-Sung Kao ； Hung-Yi Lu ； Yi-Chieh Chang

《Business and Technology Innovation Journal》 2卷2期 (2022/12) Pp. 33-51

https://doi.org/10.29680/BTIJ.202212_2(2).0003

摘要

"Software as a service" (SaaS) is a novel business model that rejuvenates the definition of software. In this paper, we conduct a historical review on the evolution of the SaaS business model. We first examine how the business model morphed from the first-generation application service providers (ASPs) to the second-generation proprietary SaaS firms. Then we elaborate the driving factors of the prevalence of SaaS, compare the two generations of the SaaS model, and describe the phenomenon of business model isomorphism-not only did ASPs and proprietary SaaS firms proliferate, but other companies in the IT industry have also adjusted their business models to exploit post-Internet technologies, moving toward the common notions of subscription pricing and the nature of "use-it-when-needed". Finally, we discuss implications of this new business model and its impacts on the future of software and the IT industry as a whole. We conclude that the SaaS business model connotes a reshuffling of user operations, computing algorithms, and data storage. Each part will thus be offered or managed by different business actors, including vendors and customers. Moreover, once the SaaS business model reaches the mainstream, the economic nature of software will shift toward the service end on the service-product continuum. Companies of all sorts in the IT industry need to prepare in advance for the paradigm shift so they can sustain in the long run.

關鍵字

SaaS ； IT Industry ； Post-internet Technologies

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