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Software Licensing in the Case of No Network Effects

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E-Life: Web-Enabled Convergence of Commerce, Work, and Social Life (WEB 2011)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 108))

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Abstract

Traditionally, consumers purchase software by paying the price upfront and install the software on their computers. However, allowing consumers “pay as you go” by subscribing to the software has become increasingly popular. The two licensing models are referred to as “on-premises model” and “Software as a Service (SaaS) model” respectively. This paper studies the software vendor’s choice of the two models considering consumers’ uncertainty on the software quality and the software upgrading issue.

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References

  1. Cheng, H., Liu, Y.: Optimal software free trial strategy: The impact of network effects and consumer uncertainty. Information Systems Research (2011)

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  4. Hall, K.G.: SaaS sales will grow 16.2% to $10.7bn (2011), http://www.computerweekly.com/Articles/2010/12/14/244489/Gartner-SaaS-sales-will-grow-16.2-to-10.7bn-in-2011.htm (retrieved June 27, 2011)

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Author information

Authors and Affiliations

  1. Department of Information Systems and, Operations Management Warrington College of Business Administration, University of Florida, USA

    Shengli Li & Hsing Kenneth Cheng

Authors
  1. Shengli Li
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  2. Hsing Kenneth Cheng
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Editor information

Editors and Affiliations

  1. The University of Illinois, Urbana-Champaign, IL, USA

    Michael J. Shaw

  2. The University of Maryland, Baltimore County, MD, USA

    Dongsong Zhang

  3. HKSAR, City University of Hong Kong, China

    Wei T. Yue

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© 2012 Springer-Verlag Berlin Heidelberg

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Li, S., Cheng, H.K. (2012). Software Licensing in the Case of No Network Effects. In: Shaw, M.J., Zhang, D., Yue, W.T. (eds) E-Life: Web-Enabled Convergence of Commerce, Work, and Social Life. WEB 2011. Lecture Notes in Business Information Processing, vol 108. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-29873-8_30

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  • DOI: https://doi.org/10.1007/978-3-642-29873-8_30

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-29872-1

  • Online ISBN: 978-3-642-29873-8

  • eBook Packages: Computer ScienceComputer Science (R0)

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