The Services Pricing Strategy on Software as a Service

The pricing of "pay-per-use", which is usually viewed as the application of Differential Pricing in Software As A Service(SAAS) become more popular in IT society. Differential Pricing has greatly promoted the development of software industry, but it could not reflect the substantive relationship in terms of the services price, cost and quality. In this paper, we apply bargaining theories, static games of complete information and dynamic games of complete information to analyze the pricing behavior of the oligarchic software enterprises. We use the value of services quality to measure the longitudinal differentiation degree, and study the pricing strategy based on the fluctuant market of homogeneous or heterogeneous consumers with static games. Finally we discuss the dynamic games between the enterprise with cost advantages and with cost disadvantages, and get the subgame perfect Nash equilibrium. The conclusion indicates that the pricing strategy could normalize the price mechanism of SAAS and promote the development of SAAS fairly and effectively.