• DocumentCode
    3368730
  • Title

    Customized pricing strategy for software-as-a-service

  • Author

    He, Yumei ; Sun, Yang

  • Author_Institution
    Sch. of Econ. & Manage., Beijing Univ. of Posts & Telecommun., Beijing, China
  • fYear
    2011
  • fDate
    28-30 Oct. 2011
  • Firstpage
    375
  • Lastpage
    378
  • Abstract
    Pricing process is significant for the development of SaaS industry, which has not largely researched yet. Aiming at exploring a ripe pricing strategy system for SaaS, we mainly consider cost, the choice of pricing model, and customization as the key elements influencing the price, especially customization (on-demand service). To help decision makers set a sensible pricing strategy, we build our Optimal Pricing Model on providers´ profit and market analysis. After that, we illustrate the effect of the uncertainty of customization of SaaS on the strategy. Then, we propose to calculate the optimal scale of customization. It presents that, with different quality levels of customization, the prices react variably to the expansion of the customization´s scale. It also suggests an optimal customization scale for providers supplying both standardized and customized services.
  • Keywords
    cloud computing; decision making; market opportunities; pricing; SaaS industry; customized pricing strategy; customized service; decision making; market analysis; on-demand service; optimal pricing model; pricing process; provider profit analysis; software-as-a-service; standardized service; Economics; Equations; Investments; Mathematical model; Pricing; Software; Uncertainty; Customization; Pricing Strategy; SaaS;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Broadband Network and Multimedia Technology (IC-BNMT), 2011 4th IEEE International Conference on
  • Conference_Location
    Shenzhen
  • Print_ISBN
    978-1-61284-158-8
  • Type

    conf

  • DOI
    10.1109/ICBNMT.2011.6155960
  • Filename
    6155960