Revenue Streams of Cloud-based Platforms: Current State and Future Directions

Markus Eurich, Andrea Giessmann, Tobias Mettler, Katarina Stanoevska-Slabeva
2011 Americas Conference on Information Systems  
Platform as a Service is at the peak of inflated expectations. The term denotes some of the latest developments in the Information and Communication Technology industry, which are significantly changing the way services are produced, consumed, and deployed. While companies are investing in the underlying technology of cloud-based platforms, the emphasis on business model innovation and re-thinking the revenue streams falls behind. This study shows that current revenue streams of cloud-based
more » ... forms are unpretentious and follow simple patterns. Most cloud-based platform providers focus only on direct revenue streams, which are typically based upon subscription fees. Multi-sided business models and innovative ways of revenue generation are rarely present, even though the manner in which cloud platforms are commercialized is the deciding factor for the economic outcome. Keywords Business model, cloud computing, platform as a service, revenue streams. subsequent section, in which revenue streams of cloud-based platforms are described. The discussion section summarizes the findings and outlines managerial implications and future trends. The paper concludes with an outlook on future research. BACKGROUND Just as the revenue model is widely accepted as a key element of a business model with connections to many other business model components, PaaS is at the core of the cloud computing architecture since it is connected to the Infrastructure as a Service (IaaS) and the Software as a Service (SaaS) layer. In order to assess revenue streams of PaaS solutions, insights are relevant into both: the business and the technological perspective. In the business sub-section, a short introduction to the business model element "revenue stream" is provided; in the technological sub-section, PaaS is defined and positioned into the cloud computing architecture. Business Perspective: Business Model and Revenue Stream The revenue streams refer to the money an organization generates from each customer segment. The revenue model is the blueprint that defines how the organization creates value for itself by defining the sources of the revenue (revenue stream) and mechanisms to generate the revenue (revenue generation mechanism).
dblp:conf/amcis/EurichGMS11 fatcat:ibwlmwp7z5cxffvgvrcvzpexvi