The Impact of the Software as a Service (SaaS) Model on Business Outcomes: An Empirical Study

Authors
  • Yuanmuan

    english

    Author

Keywords:
SaaS model, growth, return on investment
Abstract

We investigate whether variables and company traits impact the SaaS development patterns (in-house vs. mergers and acquisitions) of on-premises software suppliers. Companies that excel in marketing and research and development are more inclined to develop their own SaaS, according to our research. Consequently, the firm's market share grows as a result of internal growth. However, decreased gross profits are more common for companies that created SaaS via mergers and acquisitions. Furthermore, acquirers will not see a return on investment from software as a service (SaaS) mergers and acquisitions for quite some time. For companies making the transition from an on-premises to a SaaS model, our findings have management consequences.

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Published
2025-03-22
Section
Articles