An adaptability-driven model and tool for analysis of service profitability

• Main Authors: OUH, Eng Lieh, STAN, Jarzabek
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Service provider; Service profitability; Service architecture; Service variability; Service engineering; Computer and Systems Architecture; Systems Architecture
• Online Access: https://ink.library.smu.edu.sg/sis_research/4007; https://ink.library.smu.edu.sg/context/sis_research/article/5009/viewcontent/an_adaptability.pdf
• Institution: Singapore Management University

Profitability of adopting Software-as-a-Service (SaaS) solutions forexisting applications is currently analyzed mostly in informal way. Informalanalysis is unreliable because of the many conflicting factors that affect costs andbenefits of offering applications on the cloud. We propose a quantitative economicmodel for evaluating profitability of migrating to SaaS that enables potentialservice providers to evaluate costs and benefits of various migration strategiesand choices of target service architectures. In previous work, we presented arudimentary conceptual SaaS economic model enumerating factors that have todo with service profitability, and defining qualitative relations among them. Aquantitative economic model presented in this paper extends the conceptualmodel with equations that quantify these relations, enabling more precisereasoning about profitability of various SaaS implementation strategies, helpingpotential service providers to select the most suitable strategy for their businesssituation.