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Software Renting in the Era of Cloud Computing

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1 Author(s)
Ojala, A. ; Dept. of Comput. Sci. & Inf. Syst., Univ. of Jyvaskyla, Jyvaskyla, Finland

In the new era of computing, software can be sold and delivered as a cloud service, and software renting has become as a strategic tool to compete in the market. Software renting has several advantages from the customer's point of view. However, for software providers it is challenging to ensure a profitable revenue stream when a license fee is replaced by a periodic rental fee. In this study, software renting was found to help the case firms to differentiate themselves from competitors; it also increased their competitive advantage by making the software available for a larger customer group. However, the negotiating power of larger customers impacted on software pricing, rental agreements, and the revenue model.

Published in:

Cloud Computing (CLOUD), 2012 IEEE 5th International Conference on

Date of Conference:

24-29 June 2012