35:
20:
935:
390:
Cloud-based software provides the software services in relatively more flexible way and with more variations. The reason of this exists in the architecture of cloud-based software platform that consists of a number of different platforms with different specialty and functions. The most representative
364:
Some vendors, particularly for those who have originally been offering on-premises software, are not willing to shift their software service to cloud-based as they will need to change their business model entirely and this requires a large amount of cost, time and efforts. Besides the demand-side (or
126:
On the other hand, in general, the initial costs required for the use of software services are considered relatively low for cloud-based software and thus suitable to small enterprises without a large amount of capital. Moreover, cloud-based software users are not subjected to license fees as well as
163:
For cloud-based software, the entity has no requirement of data backup by itself, as this is also a responsibility of the software provider and data backup is perquisite for the provider in offering their services. On the other hand, the control of data by software providers suggests that users have
134:
Although initial costs for the access to services are usually low for cloud-based software, total costs required for the use of software over a specific time period are unsure as cloud-based software requires routine payment (i.e. monthly subscription fee) for the use of services whereas on-premises
113:
For on-premises software, there are several costs expected to incur until the software and its services would be fully available for use. First of all, the construction of on-premises software within the organisation requires high initial costs, including costs incurred for the purchase of hardwares
465:
Customer-tailored software are the software of which the system and the service can be tailored to individual needs of customers. This customization can be achieved through a variety of different combinations of software modules and platforms. The core purpose of this software product is to solve a
179:
over data security between on-premises and cloud-based software is arguable. Some experts claim that cloud-based software is likely to be more secure as they have more amount of capital and other resources to invest in data security system than normal business entities. While others argue that this
342:
Primary customers for relatively new software, SaaS, were the non-users of on-premises software as it was easier for them to make the purchase, installation and implementation of its service due to the factors previously discussed such as the lower installation cost and the lower system management
421:
Software has begun evolving from the beginning of 1990s and there was a big movement in business market trend toward the use of software at the beginning of 2000s. Although, during these periods, IT industry as a whole was in the middle of market boom and experienced a rapid growth in its market
407:
In transition to cloud-based solution for the information management, customers' concern involves the security of data, privacy, and many more that may be better provided by the traditional on-premises solution. In order to deal with this problem, the software market came up with new solution to
399:
As discussed above, on-premises solution and cloud-based solution have both positive and negative sides respectively. Thus, the 'better' choice among 2 software depends on many factors, for instance, customer's business model, financial status and business strategy. However, neither choice would
333:
This is because businesses usually require much more complex structure and system of information management in contrast to private users. In addition, businesses are more prudent to the shift of its software system because they have significant concern over the data security as its failure could
258:
For instance, SAP was originally an on-premises software vendor. In accordance with the change in technologies and customer preferences in the software market, the company has turned itself into cloud-based ERP provider that are available both in public cloud and private clouds depending on the
461:
Unlike pure software product, embedded software products are not traded on its own but rather considered as a part being incorporated in other products. The examples are the software embedded into the mobile phone, computer and other electronic devices. In general, completely different ways of
381:
Cloud-based platform incorporates the functionality of facilitating the interactions and communications among customers and producers due to its feature of being accessible from various stakeholders at the same time, while on-premises software usually limits the access to its platform owner in
355:
Another factor resulted in the difference of the pace of market adaptation toward cloud-based software was the degree of concern and legislation regarding data security. In fact, developing economies where subjected to less restrictions regarding data security and legacy management, showed a
346:
As the convenience of these features associated with cloud-based software becomes widely known, more customers (mainly businesses) start shifting their software system toward cloud-based as they have been realizing that SaaS brings more efficiency to their information and system management.
457:
software is mainly sold or purchased on its own as one independent product and not being incorporated into other products. Although these software are traded as main product, sometimes vendors get more revenue stream from services that are combined with or offered on the software platform.
122:
particular to the software, which involves costs and time for the preparation and required procedures. Furthermore, in order to maintain the software functionality, sustainable maintenance and operations are required and the entity will be subjected to the costs incurred for these as well.
217:
Although on-premises software previously had the huge advantage of being capable of customization and tailoring software services to each business needs, SaaS has also evolved as a platform where customizable services are available to some extent as cloud-based software market develops.
425:
According to
Hietala's research, US has been always the biggest country player in the software business and has been presenting a dominant market position in the market. In 2006, software products of US companies occupied around 60% of the whole world software product turnover. sa..
308:
In accordance to this consumer movement toward cloud-based solutions in software market, more and more vendors, including industry leading software corporations such as
Microsoft, Oracle and SAP, shift their business model and transfer their products to cloud-based solutions.
202:
However, the idea of on-demand service delivery of software was not revolutionary at the time of 2000. Some vendors already had attempted this delivery style of software service in 1900s. The reason the business model was not widely known at that time was the lack of
143:
The entity using on-premises software are fully responsible for the daily operation and maintenance of the system by itself. This results in more time and costs required for the system operation as well as IT personnel who have specialization in managing the system.
210:
As SaaS market evolved in the 2000s, as opposed to on-premises software, the cloud-based software got adopted by the market demand to serve many types of businesses, including small and large corporations, and to automate specific business processes within them.
466:
specific business issues of individual customers and provide a unique solution to that through technology. While standard cloud-based software usually offer standardized solution and service to a broad range of customers within an industry and/or market area.
147:
On the other hand, for cloud-based software, it is a software provider who is responsible for the system operations and maintenance. Thus, no IT professionals need to be hired within the entity specifically for the purpose of operating the software.
301:
system through on-premises software. This suggested that the trend shift in software market is occurring with a slow pace as the businesses are gradually shifting their software system from the traditional on-premises to cloud-based.
164:
no control over the data and software system performance. This may result in some security issues, especially for those who are subject to high level of regulation standards against data security, such as financial institutions.
104:
and it can be accessed by users online regardless of the time and their location. Unlike on-premises software, cloud-based software users only need to install an application or a web browser in order to access its services.
76:
The software consists of database and modules that are combined to particularly serve the unique needs of the large organizations regarding the automation of corporate-wide business system and its functions.
131:. Furthermore, costs incurred for infrastructures are expected to be smaller compared to on-premises software as users only need their electronic devices to be able to get access to the services.
706:
J. Kranz, Johann (2016). "Understanding the
Influence of Absorptive Capacity and Ambidexterity on the Process of Business Model Change – the Case of On-Premises and Cloud-Computing Software".
373:
The movement toward cloud-based software not only implies the change in business's information management system but also result in potential change in their value creation processes.
281:
process through its cloud-based software service, including Sales Cloud that offers best suitable standardized business processes regarding the customer relation to the businesses.
294:
Over the last decade of software market, an increasing trend toward cloud-based software from traditional on-premises software has been appeared with an acceleration to its speed.
192:
On-premises software was invented first mainly for the purpose of corporate-wide process automation of large entities in advance to the evolvement of cloud-based software, SaaS.
195:
SaaS emerged in the early 2000s, and some of businesses that published SaaS products have experienced a failure, as customers wanted SaaS particularly for the purpose of the
221:
On-premises software was prevailing in 2013 in the software market, however, more and more customers and thus software vendors are shifting toward cloud-based software.
266:
for automation of corporate-wide business system of large corporations. In the recent years the company has been publishing many cloud-based piece of software such as
172:
As discussed, users are responsible of data management for on-premises software while for cloud-based software, the responsibility is on the software provider.
408:
combine on-premises and cloud-based solution and its best features. As such, the software will be provided on-demand with customization simultaneously.
365:
customer-side) factors above, this vendor reaction could be another reason for the slow migration toward cloud-based services in software market.
967:
654:
Link, Björn; Back, Andrea (2015). "Classifying
Systemic Differences between Software As A Service and On-Premises Enterprise Resource Planning".
207:
penetration and that there was no sufficient internet accessibility to effectively make all the on-demand software service work effectively.
305:
In 2020, approximately 70% of business customers are planning new or further transitions from on-premises software to cloud-based software.
214:
In addition, SaaS allowed customers to make selections among many functions depending on each customer's needs and economic conditions.
274:
that provide customers internet services that offer automated and standardized business functions for specific area of the businesses.
939:
795:
566:"From On-Premises Software to Cloud Services: The Impact of Cloud Computing on Enterprise Software Vendors' Business Models"
263:
160:
and storage of software data. This implies the ability of the entity to have a full control over its data and its security.
615:
960:
462:
architecture and system construction needed for this type of software compared to that of traditional software products.
1374:
888:
278:
115:
1019:
754:"The shift to Cloud Computing: The impact of disruptive technology on the enterprise software business ecosystem"
434:
There are mainly 3 types of software product from the function point of view and from a commercial perspective:
1379:
953:
391:
example of such platform is
Microsoft Azure. The software consists of a number of distinct business platforms.
1002:
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128:
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Especially for those whose business processes are highly standardized and shared within their industry.
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As for the maintenance and operations, the entity using on-premises software is also responsible for
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potentially result in the loss of enormous amount of data as well as the business's reputation.
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298:
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Key corporate players who have contributed to this software model change as well as associated
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1024:
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90:
On-premises software is established within the organisation's internal system along with the
66:
53:
of the person or organization using the software, rather than at a remote facility such as a
422:
size, software market accounted for nearly 25% of all the spending in IT industry products.
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327:
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At the time of 2016, despite this trend, most of corporations maintained their traditional
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and examination. In addition to this, the entity is entitled to the purchase of the
34:
1167:
984:
876:
854:"Challenges of Software Product Companies: Results of a National Survey in Finland"
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119:
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is questionable as software vendors are usually more exposed to being targeted by
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58:
853:
49:, and often written as "on-premise") is installed and runs on computers on the
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of single specific corporate functions rather than a corporate-wide system.
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solutions as both software do not offer full functionalities to its users.
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Microsoft previously provided on-premises collaborative platforms such as
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and other infrastructures as well as costs required for software
94:
and other infrastructure necessary for the software to function.
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relatively quicker response to the software market trend shift.
1055:
934:
570:
Journal of
Theoretical and Applied Electronic Commerce Research
157:
524:"A Model for On-Premises ERP System and Cloud ERP Integration"
394:
322:
Faster shift from on-premises to cloud-based is expected in
127:
maintenance and operation costs since these are on hands of
65:" software, and off-premises software is commonly called "
323:
247:
875:. Advances in Computers. Vol. 56. pp. 55–95.
188:
Development of software from on-premises to cloud-based
108:
564:
Boillat, Thomas; Legner, Christine (22 August 2013).
376:
284:
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as they hold vast amount of data within the system.
61:. On-premises software is sometimes referred to as "
616:"Cloud vs. On-Premises Software: the Cloud Debate"
385:
359:
1366:
751:
277:Salesforce has brought revolution to business's
521:
81:Comparison between on-premises and cloud (SaaS)
788:Pro SharePoint 2010 Development for Office 365
350:
38:An Example of on-premises software (MediaWiki)
961:
563:
816:"Growing Role of Platforms in Cybersecurity"
656:Journal of Enterprise Information Management
312:
138:
761:Technological Forecasting and Social Change
968:
954:
395:Integration of on-premises and cloud-based
151:
975:
785:
577:
429:
382:exclusion to other group of individuals.
368:
752:J.M. Nieuwenhuis, Lambert (April 2018).
705:
653:
522:Wickramarachchi, Ruwan (10 March 2020).
416:
175:However, the difference in the level of
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18:
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905:"What Is Custom Software Development?"
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377:Change in the role of the platform
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534:
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285:Current software market condition
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614:Harvey, Cynthia (8 March 2018).
167:
897:
864:
579:10.4067/S0718-18762013000300004
386:Variety of on-platform services
360:Vendors' reaction (supply-side)
100:software is usually served via
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773:10.1016/j.techfore.2017.09.037
493:
1:
881:10.1016/S0065-2458(02)80004-3
486:
30:document management software
7:
1251:Software release life cycle
708:Information Systems Journal
481:Self-hosting (web services)
469:
351:Legislation and restriction
85:
10:
1396:
1319:Software protection dongle
1199:Unwanted software bundling
528:IEOM Society International
449:Customer-tailored software
16:Direct information article
1375:Software delivery methods
1314:Digital rights management
1304:
1249:
1191:
1140:
1048:
983:
668:10.1108/JEIM-07-2014-0069
444:Embedded software product
313:Pace of market adaptation
139:Operation and maintenance
1192:Deceptive and/or illicit
852:Hietala, Juhana (2015).
820:The Cyber Defense Review
786:McDonough, Bart (2012).
1344:Software license server
871:Lee, Edward A. (2002).
814:Troup, Eric G. (2017).
500:on-premises (Webopedia)
152:Backup and data storage
1020:Freely redistributable
430:Software product types
400:provide customers the
369:Impact of trend change
299:information management
272:Microsoft Dynamics LCS
39:
31:
1380:Software distribution
1183:Software as a service
977:Software distribution
858:IEEE Computer Society
439:Pure software product
417:History and evolution
67:software as a service
37:
22:
1274:Software maintenance
1148:Digital distribution
1003:Free and open-source
942:at Wikimedia Commons
940:On-premises software
290:General market trend
43:On-premises software
1279:Software maintainer
1061:Commercial software
1049:Compensation models
909:Business News Daily
135:software does not.
1339:Software copyright
1329:Product activation
1284:Software publisher
998:Floating licensing
476:Client (computing)
259:customer's needs.
40:
32:
1362:
1361:
1354:Torrent poisoning
1269:Long-term support
1093:Pay what you want
938:Media related to
911:. 7 December 2019
873:Embedded Software
797:978-1-4302-4182-9
720:10.1111/isj.12102
412:Software industry
318:Type of customers
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1168:Product bundling
1141:Delivery methods
1040:Source-available
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26:, an example of
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71:cloud computing
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714:(5): 477–517.
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1224:Trojan horse
1157:
1153:File sharing
1115:Postcardware
1103:Donationware
1078:Crowdfunding
1025:License-free
913:. Retrieved
908:
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826:(1): 61–70.
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1334:Product key
1264:End-of-life
1259:Abandonware
1209:Infostealer
1158:On-premises
1073:Crippleware
1030:Proprietary
1013:Open source
915:20 November
767:: 308–313.
98:Cloud-based
55:server farm
28:on-premises
1369:Categories
1241:Shovelware
1214:Ransomware
1178:Sneakernet
790:. APRESS.
620:Datamation
487:References
253:Salesforce
197:automation
63:shrinkwrap
1289:Vaporware
1236:Scareware
1132:Trialware
1120:Shareware
243:Microsoft
205:broadband
1098:Careware
1088:Freeware
1083:Freemium
993:Beerware
985:Licenses
832:26267401
728:30495719
470:See also
330:market.
102:internet
92:hardware
86:Location
51:premises
24:Alfresco
1219:Spyware
1204:Malware
1125:Nagware
402:perfect
120:license
47:on-prem
1056:Adware
887:
830:
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343:cost.
233:Oracle
177:safety
158:backup
828:JSTOR
757:(PDF)
724:S2CID
268:Azure
59:cloud
1294:list
1229:Worm
1008:Free
917:2020
885:ISBN
792:ISBN
455:Pure
270:and
238:Sage
877:doi
769:doi
765:129
716:doi
664:doi
574:doi
328:B2B
324:B2C
279:CRM
248:SAP
226:ERP
73:".
57:or
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