extending the able to classify the business model of a soft-Two dimensions are being used: types of goods and services and business model archephysical goods (software but also other (people´s time and effort).

They were derived from a study Available archetypes are creator, distributor, extending the tephysical goods (software but also other They were derived from a study Available archetypes are creator, distributor, Eds: Jansen, Bosch, Ahmed, and Campell

A creator portant to know that the main work done by the creator is designing the product. An example is Apple Apple designs the iPod in A distributor companies in the wholesale and retail ind A lessor ples are landlords, A broker the products and services. An example is a stock broker. Another examp ness, which matches the advertiser Figure 2 sults. Each combination of called a business pattern Since software vendors are focused on providing intangible goods and services like software us investigate what the specifics of the different business Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often this is an expensive task, on his own payroll. After the invention activities have ended, software companies make use of other archetypes for intangible products to make them available to selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu tomers. Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d velopment tools and are integrated and shipped with a softwar IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be software but also other intellectual property, Software companies provide usage rights for th

For the sake of simplicity, let´s assume a business (software company) under consideration has one or more business models and one or more revenue models. creator uses supplied goods and internal assets and transforms them to create a portant to know that the main work done by the creator is designing the product. An example is Apple Apple designs the iPod in distributor buys a product and provides the same product to customers. Obvious examples are companies in the wholesale and retail ind lessor provides the temporary right to use, but not own, a product or service to customers. Exa landlords, lendors of money broker facilitates the matching of potential buyers and sellers. A broker never takes ownership of the products and services. An example is a stock broker. Another examp ness, which matches the advertiser Figure 2 shows the combination of archetypes and type of goods offered, resulting in 16 different r Each combination of called a business pattern : Business patterns from the column titled "Intangible".

Since software vendors are focused on providing intangible goods and services like software us investigate what the specifics of the different business Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often an expensive task, on his own payroll. After the invention activities have ended, software companies make use of other archetypes for intangible products to make them available to selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d velopment tools and are integrated and shipped with a softwar IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be software but also other intellectual property, Software companies provide usage rights for th

For the sake of simplicity, let´s assume a business (software company) under consideration has one or more business models and one or more revenue models. uses supplied goods and internal assets and transforms them to create a portant to know that the main work done by the creator is designing the product. An example is Apple Apple designs the iPod in California. So Apple buys a product and provides the same product to customers. Obvious examples are companies in the wholesale and retail ind provides the temporary right to use, but not own, a product or service to customers. Exa lendors of money facilitates the matching of potential buyers and sellers. A broker never takes ownership of the products and services. An example is a stock broker. Another examp ness, which matches the advertisers shows the combination of archetypes and type of goods offered, resulting in 16 different r Each combination of the type o called a business pattern.

are inside the matrix from the column titled "Intangible".

Since software vendors are focused on providing intangible goods and services like software us investigate what the specifics of the different business Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often an expensive task, e.g. when the inventor designs and programs software leveraging developers on his own payroll. After the invention activities have ended, software companies make use of other archetypes for intangible products to make them available to selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d velopment tools and are integrated and shipped with a softwar IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be software but also other intellectual property, Software companies provide usage rights for th

For the sake of simplicity, let´s assume a business (software company) under consideration has one or more business models and one or more revenue models. uses supplied goods and internal assets and transforms them to create a portant to know that the main work done by the creator is designing the product. An example is Apple California. So Apple uses the business model archetype buys a product and provides the same product to customers. Obvious examples are companies in the wholesale and retail industries, or value added resellers in the software industry provides the temporary right to use, but not own, a product or service to customers. Exa lendors of money or software companie facilitates the matching of potential buyers and sellers. A broker never takes ownership of the products and services. An example is a stock broker. Another examp with potential customers. shows the combination of archetypes and type of goods offered, resulting in 16 different r the type of goods/services provided are inside the matrix [2]. Software companies typically, but not exclusively, use from the column titled "Intangible". Consulting services are classified as "Contractor"

Since software vendors are focused on providing intangible goods and services like software us investigate what the specifics of the different business Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often when the inventor designs and programs software leveraging developers on his own payroll. After the invention activities have ended, software companies make use of other archetypes for intangible products to make them available to selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d velopment tools and are integrated and shipped with a softwar IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be software but also other intellectual property, like knowledge, Software companies provide usage rights for their software to customers and thus act as IP Lessors.

For the sake of simplicity, let´s assume a business (software company) under consideration has one or more business models and one or more revenue models. uses supplied goods and internal assets and transforms them to create a portant to know that the main work done by the creator is designing the product. An example is Apple uses the business model archetype buys a product and provides the same product to customers. Obvious examples are , or value added resellers in the software industry provides the temporary right to use, but not own, a product or service to customers. Exa companies that facilitates the matching of potential buyers and sellers. A broker never takes ownership of the products and services. An example is a stock broker. Another examp with potential customers. shows the combination of archetypes and type of goods offered, resulting in 16 different r f goods/services provided Since software vendors are focused on providing intangible goods and services like software us investigate what the specifics of the different business patterns Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often when the inventor designs and programs software leveraging developers on his own payroll. After the invention activities have ended, software companies make use of other archetypes for intangible products to make them available to customers. Common are IP distributor for selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d velopment tools and are integrated and shipped with a software product.

IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be like knowledge, eir software to customers and thus act as IP Lessors.

For the sake of simplicity, let´s assume a business (software company) under consideration has one or more business models and one or more revenue models. A business model uses supplied goods and internal assets and transforms them to create a portant to know that the main work done by the creator is designing the product. An example is Apple uses the business model archetype buys a product and provides the same product to customers. Obvious examples are , or value added resellers in the software industry provides the temporary right to use, but not own, a product or service to customers. Exa s that license their software to customers facilitates the matching of potential buyers and sellers. A broker never takes ownership of the products and services. An example is a stock broker. Another example is Google shows the combination of archetypes and type of goods offered, resulting in 16 different r f goods/services provided and the business model archetype . Software companies typically, but not exclusively, use Consulting services are classified as "Contractor"

Since software vendors are focused on providing intangible goods and services like software patterns are for intangible goods/services. Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often when the inventor designs and programs software leveraging developers on his own payroll. After the invention activities have ended, software companies make use of other customers. Common are IP distributor for selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d e product. IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be like knowledge, brand image eir software to customers and thus act as IP Lessors.

For the sake of simplicity, let´s assume a business (software company) under consideration has one or siness model uses supplied goods and internal assets and transforms them to create a product portant to know that the main work done by the creator is designing the product. An example is Apple uses the business model archetype creator. buys a product and provides the same product to customers. Obvious examples are , or value added resellers in the software industry provides the temporary right to use, but not own, a product or service to customers. Exa license their software to customers facilitates the matching of potential buyers and sellers. A broker never takes ownership of le is Google´s advertising bus shows the combination of archetypes and type of goods offered, resulting in 16 different r the business model archetype . Software companies typically, but not exclusively, use Consulting services are classified as "Contractor"

Since software vendors are focused on providing intangible goods and services like software are for intangible goods/services. Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often when the inventor designs and programs software leveraging developers on his own payroll. After the invention activities have ended, software companies make use of other customers. Common are IP distributor for selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cu Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with d IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be brand image, trade secrets or patents. eir software to customers and thus act as IP Lessors.

For the sake of simplicity, let´s assume a business (software company) under consideration has one or determines which goods or product. It is important to know that the main work done by the creator is designing the product. An example is Apple creator. buys a product and provides the same product to customers. Obvious examples are , or value added resellers in the software industry. provides the temporary right to use, but not own, a product or service to customers. Examlicense their software to customers. facilitates the matching of potential buyers and sellers. A broker never takes ownership of ´s advertising busishows the combination of archetypes and type of goods offered, resulting in 16 different rethe business model archetype is . Software companies typically, but not exclusively, use business

Since software vendors are focused on providing intangible goods and services like software [3], let are for intangible goods/services. Inventors create intangible services or goods. The main task is inventing (designing) the new service or product. Being an inventor is a widespread business model archetype in the software industry. Often when the inventor designs and programs software leveraging developers on his own payroll. After the invention activities have ended, software companies make use of other customers. Common are IP distributor for selling the intellectual property or IP lessor to provide usage rights for the software to customers.

IP distributors sell their intellectual property rights or another software vendor´s usage rights to cus-Typical ways to distribute intellectual property in the software industry are OEM agreements for software components and distribution rights for redistributables, which are often bundled with de-IP Lessors are providing intangible goods "for rent". As outlined above, intangible goods can be , trade secrets or patents. eir software to customers and thus act as IP Lessors.

For the sake of simplicity, let´s assume a business (software company) under consideration has one or which goods or mportant to know that the main work done by the creator is designing the product. An example is Apple. For the sake of simplicity, let´s assume a business (software company) under consideration has one or which goods or services are provided by a company patterns. type of business, but not how the business is run. models, please review the literature There are flexible ways to create revenue streams for the goods and services provided. Different types of revenue models and attributes All of these attributes except causality also apply to revenue models.

The Compensator is the p creation of a revenue model, you first look at the different parties which could provide the compens tion. A simple case of a compensator for goods and instance of a service that was consumed.

The effect of the compensation tells if is:

A good or a service might have be used without a volunteer.

A good or a service might be compensated with vice from Google is compensated with information about the searching user.

A good or a service might be compensated financially by example is services are provided by a company patterns. A business model is a model on type level, which means that it is a generic model type of business, but not how the business is run. models, please review the literature Business model and revenue model revenue model defines h The compensation usually, but not necessarily, is a payment. A company revenue model for each the A revenue model consists of one or several compensates for each of the SaaS, the customer usually ical Lessor, IP Lessor and Contractor business.

There are flexible ways to create revenue streams for the goods and services provided. Different revenue models and attributes that apply to revenue streams All of these attributes except causality also apply to revenue models.

The Compensator is the p creation of a revenue model, you first look at the different parties which could provide the compens tion. A simple case of a compensator for goods and instance of a service that was consumed.

A good or a service might have be used without monetary a volunteer.

A good or a service might be compensated with vice from Google is compensated with information about the searching user.

A good or a service might be compensated financially by example is a barber, who gets compensated by cash or credit card paym services are provided by a company A business model is a model on type level, which means that it is a generic model type of business, but not how the business is run. models, please review the literature and revenue model defines how a company is compensated for each of the The compensation usually, but not necessarily, is a payment. A company each the companyÁ revenue model consists of one or several compensates for each of the business patterns SaaS, the customer usually pays one subscription fee for the combination of , IP Lessor and Contractor business. There are flexible ways to create revenue streams for the goods and services provided. Different revenue models and revenue streams are created by choosing different values for the following that apply to revenue streams All of these attributes except causality also apply to revenue models.

The Compensator is the party, which provides the compensation ( creation of a revenue model, you first look at the different parties which could provide the compens tion. A simple case of a compensator for goods and instance of a service that was consumed. he effect of the compensation tells if A good or a service might have no compensation monetary compensation under a cer A good or a service might be compensated with vice from Google is compensated with information about the searching user.

A good or a service might be compensated financially by barber, who gets compensated by cash or credit card paym services are provided by a company. Formally, t A business model is a model on type level, which means that it is a generic model type of business, but not how the business is run. [2,3].

and revenue model components ow a company is compensated for each of the The compensation usually, but not necessarily, is a payment. A company company´s business pattern A revenue model consists of one or several business patterns offered. But this is not necessarily the case. pays one subscription fee for the combination of , IP Lessor and Contractor business. There are flexible ways to create revenue streams for the goods and services provided. Different revenue streams are created by choosing different values for the following that apply to revenue streams [2]: All of these attributes except causality also apply to revenue models. arty, which provides the compensation ( creation of a revenue model, you first look at the different parties which could provide the compens tion. A simple case of a compensator for goods and instance of a service that was consumed. he effect of the compensation tells if a compensation takes place and of what type the compensation no compensation compensation under a cer A good or a service might be compensated with vice from Google is compensated with information about the searching user.

A good or a service might be compensated financially by barber, who gets compensated by cash or credit card paym

Formally, the business model A business model is a model on type level, which means that it is a generic model type of business, but not how the business is run. For further definition and information on business s ow a company is compensated for each of the The compensation usually, but not necessarily, is a payment. A company s business patterns. A revenue model consists of one or several revenue streams offered. But this is not necessarily the case. pays one subscription fee for the combination of There are flexible ways to create revenue streams for the goods and services provided. Different revenue streams are created by choosing different values for the following Compensator All of these attributes except causality also apply to revenue models. arty, which provides the compensation ( creation of a revenue model, you first look at the different parties which could provide the compens tion. A simple case of a compensator for goods and services is that a customer pays in cash for each compensation takes place and of what type the compensation no compensation. An example is open source compensation under a certain license. Another example is the social work of A good or a service might be compensated with other goods and services vice from Google is compensated with information about the searching user.

A good or a service might be compensated financially by different forms of payment barber, who gets compensated by cash or credit card paym business model consists of A business model is a model on type level, which means that it is a generic model For further definition and information on business ow a company is compensated for each of the The compensation usually, but not necessarily, is a payment. A company has the freedom to create a revenue streams [4,5] . Usually offered. But this is not necessarily the case. pays one subscription fee for the combination of There are flexible ways to create revenue streams for the goods and services provided. Different revenue streams are created by choosing different values for the following Compensator, Effect, Rating All of these attributes except causality also apply to revenue models. arty, which provides the compensation (e.g. a customer or third parties). creation of a revenue model, you first look at the different parties which could provide the compens services is that a customer pays in cash for each In the aservices is that a customer pays in cash for each compensation takes place and of what type the compensation software, which can tain license. Another example is the social work of r-. An obvious

The relationship between business models and revenue models is based on causality. is always linked to exactly one business pattern sality). relationship, which allows flexibility in

Rating is defined as the done based on amounts or on time or ratings are combinations of both. on the number of goods and services consumed. There are many different r different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software solution or the throughput number of users that have access to the offering. Ratings by time time or for a certain period of time. A cell phone network provider could for example rate for initiation of a call and for each minute of the call by one minute increments

Charging and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or fixed fee per megabyte throughput for a Extreme examples of rating and charging in the software industry are all you can eat licenses. software component, which means that the software can be used forever. So the usage is rated by time for unlimited time, but compensated for perpetual use.

An all you can eat license a software vendor. In this case, the software vendor is bundling is usually done for large customers customer and to lock

The relationship between business models and revenue models is based on causality. is always linked to exactly one business pattern Please note that the relationship between business model and revenue model is an indirect relationship, which allows flexibility in Rating is defined as the done based on amounts or on time or ratings are combinations of both. on the number of goods and services consumed. There are many different r different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software solution or the throughput number of users that have access to the offering.

Ratings by time are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation of a call and for each minute of the call by one minute increments

Charging is defined as the and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or fixed fee per megabyte throughput for a Extreme examples of rating and charging in the software industry are all you can eat licenses. software component, which means that the software can be used forever. So the usage is rated by time for unlimited time, but compensated for perpetual use.

all you can eat license a software vendor. In this case, the software vendor is bundling is usually done for large customers customer and to lock-out competitors from that customer.

Please note that the relationship between business model and revenue model is an indirect relationship, which allows flexibility in is defined as the way to measure done based on amounts or on time or ratings are combinations of both. on the number of goods and services consumed. There are many different r different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software solution or the throughput of a software solution. A software as a service provider usually rates the number of users that have access to the offering. are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation of a call and for each minute of the call by one minute increments is defined as the way to define the compensation amount for a certain rating and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or fixed fee per megabyte throughput for a Extreme examples of rating and charging in the software industry are all you can eat licenses. Perpetual license software component, which means that the software can be used forever. So the usage is rated by time for unlimited time, but compensated for perpetual use.

all you can eat license might refer to the customer having a right to use all software solutions of a software vendor. In this case, the software vendor is bundling is usually done for large customers out competitors from that customer.

The relationship between business models and revenue models is based on causality. is always linked to exactly one business pattern that represents the cause for the revenue stream Please note that the relationship between business model and revenue model is an indirect relationship, which allows flexibility in creating combinations of business models and revenue models.

way to measure the usage or consumption of goods and services. Ratings are done based on amounts or on time or ratings are combinations of both. on the number of goods and services consumed. There are many different r different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software of a software solution. A software as a service provider usually rates the number of users that have access to the offering. are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation of a call and for each minute of the call by one minute increments way to define the compensation amount for a certain rating and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or fixed fee per megabyte throughput for a data cleansing solution or a combination of the above.

Extreme examples of rating and charging in the software industry are Perpetual license mean software component, which means that the software can be used forever. So the usage is rated by time for unlimited time, but compensated for perpetual use.

might refer to the customer having a right to use all software solutions of a software vendor. In this case, the software vendor is bundling of software vendors out competitors from that customer.

The relationship between business models and revenue models is based on causality.

that represents the cause for the revenue stream Please note that the relationship between business model and revenue model is an indirect creating combinations of business models and revenue models.

the usage or consumption of goods and services. Ratings are done based on amounts or on time or ratings are combinations of both. on the number of goods and services consumed. There are many different r different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software of a software solution. A software as a service provider usually rates the are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation of a call and for each minute of the call by one minute increments way to define the compensation amount for a certain rating and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or data cleansing solution or a combination of the above. Extreme examples of rating and charging in the software industry are means that a revenue stream relates to perpetual use of a software component, which means that the software can be used forever. So the usage is rated by time for unlimited time, but compensated for perpetual use.

might refer to the customer having a right to use all software solutions of a software vendor. In this case, the software vendor is bundling ware vendors. It is a good way to sell more products into a out competitors from that customer.

The relationship between business models and revenue models is based on causality.

that represents the cause for the revenue stream Please note that the relationship between business model and revenue model is an indirect creating combinations of business models and revenue models.

the usage or consumption of goods and services. Ratings are done based on amounts or on time or ratings are combinations of both. Ratings by amount on the number of goods and services consumed. There are many different r different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software of a software solution. A software as a service provider usually rates the are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation of a call and for each minute of the call by one minute increments.

way to define the compensation amount for a certain rating and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or data cleansing solution or a combination of the above. Extreme examples of rating and charging in the software industry are used for s that a revenue stream relates to perpetual use of a software component, which means that the software can be used forever. So the usage is rated by time might refer to the customer having a right to use all software solutions of a software vendor. In this case, the software vendor is bundling all of its products into one bundle.

. It is a good way to sell more products into a

The relationship between business models and revenue models is based on causality. A revenue stream that represents the cause for the revenue stream Please note that the relationship between business model and revenue model is an indirect creating combinations of business models and revenue models.

the usage or consumption of goods and services. Ratings are Ratings by amount on the number of goods and services consumed. There are many different ratings possible and many different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software of a software solution. A software as a service provider usually rates the are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation way to define the compensation amount for a certain rating and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or data cleansing solution or a combination of the above. used for perpetual license s that a revenue stream relates to perpetual use of a software component, which means that the software can be used forever. So the usage is rated by time might refer to the customer having a right to use all software solutions of all of its products into one bundle. . It is a good way to sell more products into a A revenue stream that represents the cause for the revenue stream (Cau-Please note that the relationship between business model and revenue model is an indirect creating combinations of business models and revenue models.

the usage or consumption of goods and services. Ratings are Ratings by amount are based atings possible and many different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software of a software solution. A software as a service provider usually rates the are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation way to define the compensation amount for a certain rating of goods and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or data cleansing solution or a combination of the above. perpetual licenses and s that a revenue stream relates to perpetual use of a software component, which means that the software can be used forever. So the usage is rated by time might refer to the customer having a right to use all software solutions of all of its products into one bundle. This . It is a good way to sell more products into a A revenue stream u-Please note that the relationship between business model and revenue model is an indirect the usage or consumption of goods and services. Ratings are are based atings possible and many different ratings are used in practice.Typical ratings by amount in the software industry are the number of processors of a computer that runs software or the number of users that has access to a software of a software solution. A software as a service provider usually rates the are also popular. You could allow the usage of a software or service for a limited time or for a certain period of time. A cell phone network provider could for example rate for initiation of goods and service consumption. There is again tremendous freedom to create charging rules. Typical charging models in the software industry are fixed fees for each processor of a server or fixed fees per user or and s that a revenue stream relates to perpetual use of a software component, which means that the software can be used forever. So the usage is rated by time might refer to the customer having a right to use all software solutions of This . It is a good way to sell more products into a

There are different pricing mechanisms and strategies possible. We omit further discussions on pricing and therefore point to existing literature [2,3,6].

The timing of compensation tells at what time the compensation will happen and what additional conditions apply for the timing of the compensation. Examples we meet often are prepay, which means you pay before you are able to consume goods or services, by payment schedule, which might define certain payments at different points in time under certain payment conditions and post pay, meaning you pay after you were able to consume or have received or consumed the products or services.

If a business model is made up of several business patterns, it is called a hybrid business model. To create a hybrid business model in the real world, you could choose the business patterns Inventor, IP Lessor and Contractor to create a product software company. Hybrid business models can be a source of business model synergies to create competitive advantage, for example: when there is an asymmetric market for companies offering that specific hybrid business model, like the early markets for on demand software or if a hybrid business model creates competitive advantage in markets due to synergies between business patterns or business models.

If a revenue model is made up of several revenue streams, we call it hybrid revenue model. By definition, a hybrid business model always has a hybrid revenue model due to causality. Hybrid revenue models can be a source of revenue model synergies to create competitive advantage. This can be the case if a hybrid revenue model allows to fund cost of a business pattern with a revenue stream that is not connected by causality or to fund cost for a new business pattern. We will see examples later in this paper.

Looking at the software industry, most software companies have a hybrid business model, because they are acting as an inventor and as an IP Lessor at the same time. In addition, software companies can differentiate their business model by offering software as a product, software as a service or a combination of both.

Software as a product (SaaP) means that a copy of the software product gets delivered to the customer and the customers gets usage rights, usually in the form of a license, for using the software for a specified purpose. The customer does not get ownership of a product, but rights to use the software for a compensation back to the software company. Cost of support and of providing maintenance releases is carried by the IP Lessor. The cost of operations of the solution and the license fees are carried by the customer. The typical Software as a product business represents a hybrid business model as shown in figure 5. The hybrid revenue model for software as a product is usually made up of the following revenue streams: pattern in the software product business, the Inventor business pattern is often associated with sunk cost, IP Lessor (license fees) and Software as a service rights for a specified time and a specified purpose. The software runs at a hosting provider or in the cloud and is not delivered physically to the customer The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the service. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). carries the sunk cost of development, tions of the For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not for each of the business patterns contained in SaaS. as follows: pattern in the software product business, the Inventor business pattern is often associated with sunk cost, IP Lessor (license fees) ance and support fees).

Hybrid business model for Software as a product combination if they offer Software as a product.

The hybrid revenue model for software as a product is usually made up of the following revenue Inventor (no pattern in the software product business, the Inventor business pattern is often associated with sunk IP Lessor (license fees) and Software as a service for a specified time and a specified purpose. The software runs at a hosting provider or in the and is not delivered physically to the customer The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). the sunk cost of development, tions of the software.

For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not for each of the business patterns contained in SaaS. as follows: Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk IP Lessor (license fees) ance and support fees). business model for Software as a product combination if they offer Software as a product.

The hybrid revenue model for software as a product is usually made up of the following revenue compensation pattern in the software product business, the Inventor business pattern is often associated with sunk IP Lessor (license fees) and Contractor (service, maintenan Software as a service (SaaS) means that the customer gets access to the software for a specified time and a specified purpose. The software runs at a hosting provider or in the and is not delivered physically to the customer The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). the sunk cost of development,

For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not for each of the business patterns contained in SaaS.

Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk IP Lessor (license fees), Physical Lessor (usage fees) ance and support fees). business model for Software as a product combination if they offer Software as a product.

The hybrid revenue model for software as a product is usually made up of the following revenue compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Contractor (service, maintenan means that the customer gets access to the software for a specified time and a specified purpose. The software runs at a hosting provider or in the and is not delivered physically to the customer The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). the sunk cost of development, the cost of supp

For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not for each of the business patterns contained in SaaS.

Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Physical Lessor (usage fees) business model for Software as a product [7]. Software companies typically use these archetypes in

The hybrid revenue model for software as a product is usually made up of the following revenue since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Contractor (service, maintenan means that the customer gets access to the software for a specified time and a specified purpose. The software runs at a hosting provider or in the and is not delivered physically to the customer. The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). the cost of support and maintenance as well as the cost of oper

For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not for each of the business patterns contained in SaaS. The hybrid revenue model for Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Physical Lessor (usage fees) and oftware companies typically use these archetypes in

The hybrid revenue model for software as a product is usually made up of the following revenue since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Contractor (service, maintenance and support). means that the customer gets access to the software for a specified time and a specified purpose. The software runs at a hosting provider or in the The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). ort and maintenance as well as the cost of oper

For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not The hybrid revenue model for Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk and Contractor (operation, service, mainte oftware companies typically use these archetypes in

The hybrid revenue model for software as a product is usually made up of the following revenue since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk ce and support). means that the customer gets access to the software as well as usage for a specified time and a specified purpose. The software runs at a hosting provider or in the The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP Lessor (usage rights) and Contractor (operating, maintaining and supporting). The software company ort and maintenance as well as the cost of oper

For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not The hybrid revenue model for SaaS is constructed Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Contractor (operation, service, mainte oftware companies typically use these archetypes in

The hybrid revenue model for software as a product is usually made up of the following revenue since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk as well as usage for a specified time and a specified purpose. The software runs at a hosting provider or in the The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP software company ort and maintenance as well as the cost of opera-For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not SaaS is constructed Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk Contractor (operation, service, mainten-oftware companies typically use these archetypes in

The hybrid revenue model for software as a product is usually made up of the following revenue since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk as well as usage for a specified time and a specified purpose. The software runs at a hosting provider or in the The hybrid business model for SaaS consists of the business patterns Inventor, Physical Lessor, IP Lessor and Contractor. The Inventor business pattern creates the software product that is underlying the ervice. The software is operated leveraging the business patterns physical lessor (hardware usage), IP software company a-For most SaaS offerings in the market, the customer pays for the usage of the SaaS offering, but not SaaS is constructed Inventor (no compensation), since there is no direct compensation for the Inventor business pattern in the software product business, the Inventor business pattern is often associated with sunk n-

Now let us apply this framewor availability of information about their business models: SAP, Microsoft and Google. SAP AG, a germa SAP is a [8]. SAP´s focus is on offering software as a product, but SAP is actively working on increasing the software as a service business. In addition, support services.

One part of SAP´s business model is acting as an inventor. development work for SAP if and only if there are the future revenue stream cover for sunk cost of inventions.

Another part of SAP´s business model is the IP distributor business. Here revenue share partner property of SAP Furthermore, While SAP access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus ness. While most of the cu ing the software as a service business.

Yet another business at SAP is the financial lessor business to pay for hardware mand, which are running on hardware in SAP data centers SAP also well as customer specific development SAP´s SaaS Hybrid business model for Software as a service combination if they offer Software as a service. Key difference to SaaP is that the software vendor offers the har ware use and operations services to the customer as part of the SaaS offering.

Now let us apply this framewor availability of information about their business models: SAP, Microsoft and Google. SAP AG, a german company SAP is a 11,5 billion Euro SAP´s focus is on offering software as a product, but SAP is actively working on increasing the software as a service business. In addition, support services.

One part of SAP´s business model is acting as an inventor. development, but there is no direct revenue stre for SAP if and only if there are the future to make the brea revenue streams for IP Lessor and Contractor business (license, cover for sunk cost of inventions.

Another part of SAP´s business model is the IP distributor business. Here revenue share partner for a number of partner solutions property of SAP partners Furthermore, SAP has While SAP owns direct business for v access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus ness. While most of the cu ing the software as a service business.

Yet another business at SAP is the financial lessor business for their license fees. hardware. In addition, SAP offers , which are running on hardware in SAP data centers also acts as a contractor by providing customer specific development SaaS products.

Hybrid business model for Software as a service hey offer Software as a service. Key difference to SaaP is that the software vendor offers the har ware use and operations services to the customer as part of the SaaS offering.

Now let us apply this framework to three software companies, which were chosen availability of information about their business models: SAP, Microsoft and Google.

company selling software and services in the area of enterprise 11,5 billion Euro revenue company SAP´s focus is on offering software as a product, but SAP is actively working on increasing the software as a service business. In addition,

One part of SAP´s business model is acting as an inventor.

, but there is no direct revenue stre for SAP if and only if there are to make the break even for each product IP Lessor and Contractor business (license, cover for sunk cost of inventions.

Another part of SAP´s business model is the IP distributor business. Here for a number of partner solutions partners while avoiding the sunk cost of inventing these solutions SAP has IP Lessor business working in a direct business for v access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus ness. While most of the customers run along the traditional model of ing the software as a service business.

Yet another business at SAP is the financial lessor business their license fees. SAP also . In addition, SAP offers SaaS , which are running on hardware in SAP data centers acts as a contractor by providing customer specific development Hybrid business model for Software as a service hey offer Software as a service. Key difference to SaaP is that the software vendor offers the har ware use and operations services to the customer as part of the SaaS offering. models of successful software companies k to three software companies, which were chosen availability of information about their business models: SAP, Microsoft and Google.

selling software and services in the area of enterprise revenue company, with more than SAP´s focus is on offering software as a product, but SAP is actively working on increasing the software as a service business. In addition, SAP also offers system integrator services and a variety of One part of SAP´s business model is acting as an inventor.

, but there is no direct revenue stream compensating for the inventor activities for SAP if and only if there are enough customers for each product IP Lessor and Contractor business (license, Another part of SAP´s business model is the IP distributor business. Here for a number of partner solutions while avoiding the sunk cost of inventing these solutions IP Lessor business working in a direct business for very large and large enterprises, they engage with partners to get access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus stomers run along the traditional model of ing the software as a service business.

Yet another business at SAP is the financial lessor business also acts as a physical lessor by running SaaS solutions like , which are running on hardware in SAP data centers acts as a contractor by providing consulting customer specific development for SAP´s on premise offerings as well as Hybrid business model for Software as a service [7]. Software companies typically use these archetypes in hey offer Software as a service. Key difference to SaaP is that the software vendor offers the har ware use and operations services to the customer as part of the SaaS offering. models of successful software companies k to three software companies, which were chosen availability of information about their business models: SAP, Microsoft and Google.

selling software and services in the area of enterprise , with more than SAP´s focus is on offering software as a product, but SAP is actively working on increasing the SAP also offers system integrator services and a variety of One part of SAP´s business model is acting as an inventor. SAP´s inventor business means s am compensating for the inventor activities enough customers paying for licenses, maintenance and support for each product invented. By having a hybrid business model, S IP Lessor and Contractor business (license, Another part of SAP´s business model is the IP distributor business. Here for a number of partner solutions. SAP distributes while avoiding the sunk cost of inventing these solutions IP Lessor business working in a direct a ery large and large enterprises, they engage with partners to get access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus stomers run along the traditional model of Yet another business at SAP is the financial lessor business acts as a physical lessor by running solutions like SAP Business ByDesign or , which are running on hardware in SAP data centers.

onsulting services, for SAP´s on premise offerings as well as Software companies typically use these archetypes in hey offer Software as a service. Key difference to SaaP is that the software vendor offers the har ware use and operations services to the customer as part of the SaaS offering. models of successful software companies k to three software companies, which were chosen availability of information about their business models: SAP, Microsoft and Google.

selling software and services in the area of enterprise , with more than 100,000 SAP´s focus is on offering software as a product, but SAP is actively working on increasing the SAP also offers system integrator services and a variety of SAP´s inventor business means s am compensating for the inventor activities paying for licenses, maintenance and support By having a hybrid business model, S IP Lessor and Contractor business (license, maintenance and support Another part of SAP´s business model is the IP distributor business. Here SAP distributes usage rights for the intellectual while avoiding the sunk cost of inventing these solutions direct and indirect ery large and large enterprises, they engage with partners to get access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus stomers run along the traditional model of SaaP, SAP is increasingly targe

Yet another business at SAP is the financial lessor business since SAP offers financing acts as a physical lessor by running customer SAP Business ByDesign or services, support and maintenance services as for SAP´s on premise offerings as well as Software companies typically use these archetypes in hey offer Software as a service. Key difference to SaaP is that the software vendor offers the har k to three software companies, which were chosen for availability of information about their business models: SAP, Microsoft and Google. The first one selling software and services in the area of enterprise applications customers in 120 SAP´s focus is on offering software as a product, but SAP is actively working on increasing the SAP also offers system integrator services and a variety of SAP´s inventor business means s am compensating for the inventor activities paying for licenses, maintenance and support By having a hybrid business model, S maintenance and support

Another part of SAP´s business model is the IP distributor business. Here SAP acts as a reseller usage rights for the intellectual while avoiding the sunk cost of inventing these solutions.

nd indirect way with customers. ery large and large enterprises, they engage with partners to get access to small and medium sized customer companies. SAP offers all models of the IP Lessor bus , SAP is increasingly targe offers financing customer software SAP Business ByDesign or SAP support and maintenance services as for SAP´s on premise offerings as well as operating services for Software companies typically use these archetypes in hey offer Software as a service. Key difference to SaaP is that the software vendor offers the hardfor their size and

The first one is applications. customers in 120 countries SAP´s focus is on offering software as a product, but SAP is actively working on increasing the SAP also offers system integrator services and a variety of SAP´s inventor business means sunk cost of am compensating for the inventor activities. This would paying for licenses, maintenance and support in By having a hybrid business model, SAP´s maintenance and support revenue) SAP acts as a reseller and usage rights for the intellectual with customers. ery large and large enterprises, they engage with partners to get access to small and medium sized customer companies. SAP offers all models of the IP Lessor busi-, SAP is increasingly targetoffers financing to customers software on SAP´s SAP CRM on desupport and maintenance services as operating services for Software companies typically use these archetypes in dtheir size and is countries SAP´s focus is on offering software as a product, but SAP is actively working on increasing the SAP also offers system integrator services and a variety of of would in AP´s revenue) and usage rights for the intellectual with customers. ery large and large enterprises, they engage with partners to get itcustomers on SAP´s esupport and maintenance services as operating services for Last but not least, SAP has an IP broker business place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share from partners if products in the partner ecosystem in order to increase revenue from the ecosystem.

SAP´s Figure 7 listed. The largest stream of revenue for SAP is revenue stream for SaaP rectly for the ecosystem.

SAP´s revenue model synergies SAP´s hybrid revenue model allows to fund revenue models. In addition, funding of Saas activities by revenue nue generated also allows SAP to acquire companies and thus extend their business and revenue mo els.

The second software vendor analysed her ber of different business models is rapidly changing from a company that was solely focused ing software as a service solutions. As a difference to SAP as well as in the business to consumer business Microsoft has done significant steps forward in establishing a software as a service offering in the bus ness to consumer business (with through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are including Microsoft´s databases in their offerings etc.

Microsoft has direct and indirect IP Lessor b cross-licensing business with a number of software vendors. customers to find partner solutions on Microsoft´s website, so they match partner offerings with cu tomers (IP broker business) broker business advertising opportunities via their search engine Bing and as part of Windows Live Last but not least, SAP has an IP broker business place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share from partners if leads for partner solutions are created via SAP Ecohub. products and services tha partner ecosystem in order to increase revenue from the ecosystem.

SAP´s Revenue Model 7 gives a simplified view of SAP´s revenue model, because only large streams The largest stream of revenue for SAP is revenue stream for SaaP rectly for inventor business at SAP. the ecosystem.

SAP´s hybrid revenue model allows to fund revenue models. In addition, funding of Saas activities by revenue nue generated also allows SAP to acquire companies and thus extend their business and revenue mo

The second software vendor analysed her ber of different business models is rapidly changing from a company that was solely focused software as a service solutions. As a difference to SAP as well as in the business to consumer business Microsoft has done significant steps forward in establishing a software as a service offering in the bus ness to consumer business (with through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are including Microsoft´s databases in their offerings etc.

Microsoft has direct and indirect IP Lessor business with most of the revenue being indirect licensing business with a number of software vendors. to find partner solutions on Microsoft´s website, so they match partner offerings with cu (IP broker business) broker business. Microsoft par advertising opportunities via their search engine Bing and as part of Windows Live Last but not least, SAP has an IP broker business place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share leads for partner solutions are created via SAP Ecohub. that are resold by SAP on SAP Ecohub. partner ecosystem in order to increase revenue from the ecosystem.

gives a simplified view of SAP´s revenue model, because only large streams The largest stream of revenue for SAP is revenue stream for SaaP. Revenue from maintenance and support services business at SAP. models.

SAP´s revenue model synergies SAP´s hybrid revenue model allows to fund revenue models. In addition, funding of Saas activities by revenue nue generated also allows SAP to acquire companies and thus extend their business and revenue mo

The second software vendor analysed her ber of different business models and over 60 billion US Dollar revenue is rapidly changing from a company that was solely focused software as a service solutions. As a difference to SAP as well as in the business to consumer business Microsoft has done significant steps forward in establishing a software as a service offering in the bus ness to consumer business (with Windows Live through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are including Microsoft´s databases in their offerings etc.

Microsoft has direct and indirect usiness with most of the revenue being indirect licensing business with a number of software vendors. customers to find partner solutions on Microsoft´s website, so they match partner offerings with cu (IP broker business). But Microsoft is also extending their business models into other types of Microsoft partners with Yahoo in the advertising/matchmaking business advertising opportunities via their search engine Bing and as part of Windows Live Last but not least, SAP has an IP broker business place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share leads for partner solutions are created via SAP Ecohub. t are resold by SAP on SAP Ecohub. partner ecosystem in order to increase revenue from the ecosystem.

gives a simplified view of SAP´s revenue model, because only large streams The largest stream of revenue for SAP is evenue from maintenance and support services business at SAP. Emerging revenue streams at SAP are for SaaS and revenue from SAP´s revenue model synergies SAP´s hybrid revenue model allows to fund new product development from support and maintenance revenue models. In addition, funding of Saas activities by revenue nue generated also allows SAP to acquire companies and thus extend their business and revenue mo

The second software vendor analysed here is Microsoft. and over 60 billion US Dollar revenue is rapidly changing from a company that was solely focused software as a service solutions. As a difference to SAP as well as in the business to consumer business Microsoft has done significant steps forward in establishing a software as a service offering in the bus Windows Live etc.) through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are including Microsoft´s databases in their offerings etc.

IP lessor business with end custom usiness with most of the revenue being indirect licensing business with a number of software vendors. customers to find partner solutions on Microsoft´s website, so they match partner offerings with cu . But Microsoft is also extending their business models into other types of tners with Yahoo in the advertising/matchmaking business advertising opportunities via their search engine Bing and as part of Windows Live Last but not least, SAP has an IP broker business [2]. They place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share leads for partner solutions are created via SAP Ecohub. t are resold by SAP on SAP Ecohub. partner ecosystem in order to increase revenue from the ecosystem.

gives a simplified view of SAP´s revenue model, because only large streams The largest stream of revenue for SAP is revenue for maintenance and support evenue from maintenance and support services Emerging revenue streams at SAP are for SaaS and revenue from new product development from support and maintenance revenue models. In addition, funding of Saas activities by revenue nue generated also allows SAP to acquire companies and thus extend their business and revenue mo is Microsoft. Microsoft and over 60 billion US Dollar revenue is rapidly changing from a company that was solely focused on offering software as a product software as a service solutions. As a difference to SAP [8] as well as in the business to consumer business, Microsoft offers software and hardware solutions Microsoft has done significant steps forward in establishing a software as a service offering in the bus etc.) and Microsoft does most of its revenue through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are including Microsoft´s databases in their offerings etc.

business with end custom usiness with most of the revenue being indirect. In addition, Microsoft has a well established licensing business with a number of software vendors. Microsoft´s Partner customers to find partner solutions on Microsoft´s website, so they match partner offerings with cu . But Microsoft is also extending their business models into other types of tners with Yahoo in the advertising/matchmaking business advertising opportunities via their search engine Bing and as part of Windows Live They host an online place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share leads for partner solutions are created via SAP Ecohub. SAP is also advertising Overall, SAP is extending their partner ecosystem in order to increase revenue from the ecosystem.

gives a simplified view of SAP´s revenue model, because only large streams revenue for maintenance and support evenue from maintenance and support services

Emerging revenue streams at SAP are for SaaS and revenue from new product development from support and maintenance revenue models. In addition, funding of Saas activities by revenue from SaaP nue generated also allows SAP to acquire companies and thus extend their business and revenue mo Microsoft is a very large company with a nu and over 60 billion US Dollar revenue. Analogous to SAP, Microsoft on offering software as a product ], Microsoft is in the b Microsoft offers software and hardware solutions Microsoft has done significant steps forward in establishing a software as a service offering in the bus Microsoft does most of its revenue through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are business with end customers and o

In addition, Microsoft has a well established Microsoft´s Partner customers to find partner solutions on Microsoft´s website, so they match partner offerings with cu . But Microsoft is also extending their business models into other types of tners with Yahoo in the advertising/matchmaking business advertising opportunities via their search engine Bing and as part of Windows Live host an online solution partner marke place called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share SAP is also advertising Overall, SAP is extending their gives a simplified view of SAP´s revenue model, because only large streams of revenue are revenue for maintenance and support is used to compensate ind Emerging revenue streams at SAP are for SaaS and revenue from new product development from support and maintenance from SaaP seems possible. nue generated also allows SAP to acquire companies and thus extend their business and revenue mo is a very large company with a nu . Analogous to SAP, Microsoft on offering software as a product , Microsoft is in the business to business Microsoft offers software and hardware solutions Microsoft has done significant steps forward in establishing a software as a service offering in the bus Microsoft does most of its revenue through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are ers and offers all models of the In addition, Microsoft has a well established Microsoft´s Partner solution finder allows customers to find partner solutions on Microsoft´s website, so they match partner offerings with cu . But Microsoft is also extending their business models into other types of tners with Yahoo in the advertising/matchmaking business advertising opportunities via their search engine Bing and as part of Windows Live. solution partner marketplace called SAP Ecohub. Partners can advertise their solutions there and SAP can get a revenue share SAP is also advertising partner Overall, SAP is extending their activities of revenue are revenue for maintenance and support followed by a is used to compensate indi-Emerging revenue streams at SAP are for SaaS and revenue from new product development from support and maintenance seems possible. The revenue generated also allows SAP to acquire companies and thus extend their business and revenue modis a very large company with a num-. Analogous to SAP, Microsoft on offering software as a product to offerusiness to business Microsoft offers software and hardware solutions Microsoft has done significant steps forward in establishing a software as a service offering in the busi-Microsoft does most of its revenue indirectly through partners. Hardware vendors are bundling Microsoft operating systems, software vendors are ffers all models of the In addition, Microsoft has a well established solution finder allows customers to find partner solutions on Microsoft´s website, so they match partner offerings with cus-. But Microsoft is also extending their business models into other types of tners with Yahoo in the advertising/matchmaking business and provides

Microsoft´s revenue model As mentioned above, the main source of revenue is the ecosystem of partners (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat base platforms. In addition, Mi pliance sales (e.g. XBox).

Microsoft´s revenue model synergies Microsoft´s direct and indirect revenue areas of business.

Google is a business to many other areas business.

What Google does Google has more products and ness model. We start with the products/services offered and the business model archetype.

Besides of Google´s main business as a broker, pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet. Google is mainly focused on inventing products for the like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business models Physical Lessor, IP Lessor and Contractor. operating

This overview is limited to large sources of Google revenue. revenue at Google is from their broker business, which we will analyze in a little more detail below.

As mentioned above, the main source of revenue is the ecosystem of partners (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat base platforms. In addition, Mi pliance sales (e.g. XBox).

is a software company business to many other areas What Google does Google has more products and ness model. We start with the products/services offered and the business model archetype.

Besides of Google´s main business as a broker, pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet. Google is mainly focused on inventing products for the like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business models Physical Lessor, IP Lessor and Contractor. operating systems and content of books.

This overview is limited to large sources of Google revenue. revenue at Google is from their broker business, which we will analyze in a little more detail below.

As mentioned above, the main source of revenue is the ecosystem of partners (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat base platforms. In addition, Microsoft has revenue coming from SaaS (Windows Live) and from a pliance sales (e.g. XBox). revenue model.

company that started business to many other areas. Google´s revenue in 2010 was 29 billion US mainly from broker What Google does successfully Google has more products and services than just advertising and search. Let us have a look at the bus ness model. We start with the products/services offered and the business model archetype.

Besides of Google´s main business as a broker, pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet. Google is mainly focused on inventing products for the like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business models Physical Lessor, IP Lessor and Contractor.

systems and content of books.

This overview is limited to large sources of Google revenue. revenue at Google is from their broker business, which we will analyze in a little more detail below.

As mentioned above, the main source of revenue is the ecosystem of partners (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat crosoft has revenue coming from SaaS (Windows Live) and from a

Microsoft´s revenue model synergies Microsoft´s direct and indirect revenue allows Microsoft for their a that started in the search and advertising business Google´s revenue in 2010 was 29 billion US Dollars, mainly from broker is matchmaking between advertisers and potential customers. But services than just advertising and search. Let us have a look at the bus ness model. We start with the products/services offered and the business model archetype.

Besides of Google´s main business as a broker, pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet. Google is mainly focused on inventing products for the like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business models Physical Lessor, IP Lessor and Contractor.

systems and content of books.

This overview is limited to large sources of Google revenue. revenue at Google is from their broker business, which we will analyze in a little more detail below.

As mentioned above, the main source of revenue is the ecosystem of partners (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat crosoft has revenue coming from SaaS (Windows Live) and from a allows Microsoft for their a in the search and advertising business Google´s revenue in 2010 was 29 billion US Dollars, mainly from broker is matchmaking between advertisers and potential customers. But services than just advertising and search. Let us have a look at the bus ness model. We start with the products/services offered and the business model archetype.

Besides of Google´s main business as a broker, Google is a manufacturer of pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet. Google is mainly focused on inventing products for the broker business and for other SaaS offerings like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business models Physical Lessor, IP Lessor and Contractor. In addition, This overview is limited to large sources of Google revenue. As mentioned above, the main source of revenue at Google is from their broker business, which we will analyze in a little more detail below.

As mentioned above, the main source of revenue is the ecosystem of partners (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat crosoft has revenue coming from SaaS (Windows Live) and from a allows Microsoft for their activities in the SaaS and other new in the search and advertising business Google´s revenue in 2010 was 29 billion US Dollars, mainly from broker is matchmaking between advertisers and potential customers. But services than just advertising and search. Let us have a look at the bus ness model. We start with the products/services offered and the business model archetype.

Google is a manufacturer of pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet.

broker business and for other SaaS offerings like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business In addition, Google acts as a IP Lessor for browser, As mentioned above, the main source of revenue at Google is from their broker business, which we will analyze in a little more detail below.

As mentioned above, the main source of revenue is the ecosystem of partners. Many hardware vendors (computers, cell phones, cars) are delivering Microsoft operating systems as part of their offerings and many SaaS and SaaP software vendors base their solutions on Microsoft operating systems and dat crosoft has revenue coming from SaaS (Windows Live) and from a ctivities in the SaaS and other new in the search and advertising business and has extended its Google´s revenue in 2010 was 29 billion US Dollars, mainly from broker is matchmaking between advertisers and potential customers. But services than just advertising and search. Let us have a look at the bus ness model. We start with the products/services offered and the business model archetype.

Google is a manufacturer of the Google Search pliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are companies, that should use the search appliance for searching their intranet. Inventor business at broker business and for other SaaS offerings like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business Google acts as a IP Lessor for browser, As mentioned above, the main source of revenue at Google is from their broker business, which we will analyze in a little more detail below. is matchmaking between advertisers and potential customers. But services than just advertising and search. Let us have a look at the business model. We start with the products/services offered and the business model archetype.

Google Search Appliance, which is a hardware appliance that includes Google´s Search Engine. Target customers are Inventor business at broker business and for other SaaS offerings like Google Apps, Gmail or Google Voice. The SaaS offerings are created by combining the business Google acts as a IP Lessor for browser, As mentioned above, the main source of revenue at Google is from their broker business, which we will analyze in a little more detail below.

This business model has two striking advantages: The information about the search customers is pr vided to Google for free and Google sells advertising space, perfectly matched with the customer i ertisers via an automatic online auction. tween the search and advertising business. the sunk cost and operations cost of offerings like Gmail and others. Now let us have a look at Google´s revenue model there usually is a compensation for every product and service, not necessarily as a payment. In monetary compensation for you can see that Google´s search business basically provides a search service to search cu ) advertising service to its advertising custom the PPC advertising service is payment per click on an advertisement. The for the search service is data about the user who is searching.

streams.

This business model has two striking advantages: The information about the search customers is pr Google sells advertising space, perfectly matched with the customer i ertisers via an automatic online auction. tween the search and advertising business. The revenue generated in the broker business is used to carry the sunk cost and operations cost of offerings like Gmail and others. Now let us have a look at Google´s revenue model for the broker business there usually is a compensation for every product and service, not necessarily as a payment. In for their search offering is the key to Google´s fortune. you can see that Google´s search business basically provides a search service to search cu ) advertising service to its advertising custom the PPC advertising service is payment per click on an advertisement. The is searching.

This business model has two striking advantages: The information about the search customers is pr Google sells advertising space, perfectly matched with the customer i ertisers via an automatic online auction. So Google leverages a revenue synergy b

The revenue generated in the broker business is used to carry the sunk cost and operations cost of offerings like Gmail and others.

for the broker business there usually is a compensation for every product and service, not necessarily as a payment. In search offering is the key to Google´s fortune. you can see that Google´s search business basically provides a search service to search cu ) advertising service to its advertising custom the PPC advertising service is payment per click on an advertisement. The non This business model has two striking advantages: The information about the search customers is pr Google sells advertising space, perfectly matched with the customer i So Google leverages a revenue synergy b The revenue generated in the broker business is used to carry the sunk cost and operations cost of offerings like Gmail and others.

for the broker business. As you may remember, there usually is a compensation for every product and service, not necessarily as a payment. In search offering is the key to Google´s fortune. you can see that Google´s search business basically provides a search service to search cu ) advertising service to its advertising customers. The compensation for non-monetary

This business model has two striking advantages: The information about the search customers is pr Google sells advertising space, perfectly matched with the customer i So Google leverages a revenue synergy b The revenue generated in the broker business is used to carry . As you may remember, there usually is a compensation for every product and service, not necessarily as a payment. In search offering is the key to Google´s fortune. you can see that Google´s search business basically provides a search service to search cusers. The compensation for monetary compensation

This business model has two striking advantages: The information about the search customers is pro-Google sells advertising space, perfectly matched with the customer in-So Google leverages a revenue synergy be-The revenue generated in the broker business is used to carry . As you may remember, there usually is a compensation for every product and service, not necessarily as a payment. In While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the similarities that all three vendors do tions. But here, again, they also show differences in the target customers. While Microsoft and Google are mainly An interesting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, while its partner ecosystem is still not a significant source of reve ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses.

This article structure of business models nies in the software industry tion. Insights provided Software specific ch racteristics. panies in the software ecosystem.

Hybrid the specific characteristics of hybrid business models tors. But that differenti ecosystem.

Software companies design models to create competitive advantage and to tion, they try to leverage synergies Comparison of the three While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the similarities that all three vendors do tions. But here, again, they also show differences in the target customers. While Microsoft and Google are mainly focused on consumers, SAP is mainly focused on businesses as customers.

teresting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, while its partner ecosystem is still not a significant source of reve ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses.

This article has outlined structure of business models in the software industry . Insights provided Software companies specific characteristics and the combination of them creates a hybrid business model with special ch racteristics. Related to panies in the software ecosystem. ybrid business models the specific characteristics of hybrid business models But that differenti ecosystem.

Comparison of the three revenue While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the similarities that all three vendors do tions. But here, again, they also show differences in the target customers. While Microsoft and Google focused on consumers, SAP is mainly focused on businesses as customers. teresting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, while its partner ecosystem is still not a significant source of reve ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses. outlined a classification of business structure of business models as well as in the software industry showing similarities and differences in their status quo and future dire here are: companies usually have hybrid business models racteristics and the combination of them creates a hybrid business model with special ch Related to software ecosystems, there has to be a fit of business models between the co panies in the software ecosystem. models might differ between the specific characteristics of hybrid business models But that differentiation between companies m

Comparison of the three revenue models and frequently change models to create competitive advantage and to adapt to a verage synergies Figure 11 shows similarities and differences revenue models.

While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the similarities that all three vendors do follow a common trend in the software industry to offer SaaS sol tions. But here, again, they also show differences in the target customers. While Microsoft and Google focused on consumers, SAP is mainly focused on businesses as customers. teresting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, while its partner ecosystem is still not a significant source of reve ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses. a classification of business as well as revenue models.

showing similarities and differences in their status quo and future dire have hybrid business models racteristics and the combination of them creates a hybrid business model with special ch software ecosystems, there has to be a fit of business models between the co differ between the specific characteristics of hybrid business models tion between companies m models and frequently change their business models and corresponding revenue adapt to a changing business environment shows similarities and differences While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the follow a common trend in the software industry to offer SaaS sol tions. But here, again, they also show differences in the target customers. While Microsoft and Google focused on consumers, SAP is mainly focused on businesses as customers. teresting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, while its partner ecosystem is still not a significant source of reve ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses. a classification of business and revenue revenue models. These were applied showing similarities and differences in their status quo and future dire have hybrid business models. Each of the business patterns used has its racteristics and the combination of them creates a hybrid business model with special ch software ecosystems, there has to be a fit of business models between the co software vendors the specific characteristics of hybrid business models might be used to differentiate from the compet tion between companies might also pave the way for a symbiosis in a software their business models and corresponding revenue changing business environment shows similarities and differences While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the follow a common trend in the software industry to offer SaaS sol tions. But here, again, they also show differences in the target customers. While Microsoft and Google focused on consumers, SAP is mainly focused on businesses as customers. teresting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, while its partner ecosystem is still not a significant source of revenue. Microsoft leverages its partner ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses. and revenue models of software companies These were applied showing similarities and differences in their status quo and future dire Each of the business patterns used has its racteristics and the combination of them creates a hybrid business model with special ch software ecosystems, there has to be a fit of business models between the co software vendors to create competitive advant might be used to differentiate from the compet ight also pave the way for a symbiosis in a software their business models and corresponding revenue changing business environment shows similarities and differences of the three business While SAP and Microsoft both are currently focused on software as a product, they show differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the follow a common trend in the software industry to offer SaaS sol tions. But here, again, they also show differences in the target customers. While Microsoft and Google focused on consumers, SAP is mainly focused on businesses as customers. teresting view on the three companies is how they leverage their customer and partner ecosy tem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, nue. Microsoft leverages its partner ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses. of software companies These were applied to three successful comp showing similarities and differences in their status quo and future dire Each of the business patterns used has its racteristics and the combination of them creates a hybrid business model with special ch software ecosystems, there has to be a fit of business models between the co to create competitive advant might be used to differentiate from the compet ight also pave the way for a symbiosis in a software their business models and corresponding revenue changing business environment [9]. In addiof the three business While SAP and Microsoft both are currently focused on software as a product, they show significant differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the follow a common trend in the software industry to offer SaaS solutions. But here, again, they also show differences in the target customers. While Microsoft and Google teresting view on the three companies is how they leverage their customer and partner ecosystem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, nue. Microsoft leverages its partner ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in contrast, leverages the customer and partner ecosystem to massively subsidize new businesses. of software companies and a three successful compashowing similarities and differences in their status quo and future direc-Each of the business patterns used has its racteristics and the combination of them creates a hybrid business model with special chasoftware ecosystems, there has to be a fit of business models between the comto create competitive advantage. So might be used to differentiate from the competiight also pave the way for a symbiosis in a software their business models and corresponding revenue iof the three business significant differences in their revenue models and main target customers. Google in contrast, is focused on its main broker business model and has advertising as main source of revenue. It is interesting to see the utions. But here, again, they also show differences in the target customers. While Microsoft and Google stem. SAP mainly uses revenue from its customer ecosystem to fund innovations and new business, nue. Microsoft leverages its partner ecosystem to create most of its revenue to fund innovations and to subsidize new business. Google, in a ac-Each of the business patterns used has its amo iight also pave the way for a symbiosis in a software Software vendors usually have hybrid revenue models. The structure of revenue models with their combination of revenue streams, often containing one or more non-monetary compensations, can be a source of competitive advantage in a business model. Related to software ecosystems, there are two aspects. One is, that there might be revenue models specific to the software ecosystem like software ecosystem fees or revenue shares. The other is, that Revenue models can be used to fund business patterns or businesses that are not connected by causality. This funding might be used to create competitive advantage, e.g. by establishing lower pricing for other revenue streams. It might also be used to subsidize the software ecosystem, e.g. by donations of a commercial software vendor to the open source community.

Overall, it was proposed that creation of competitive advantage is possible in business and revenue models. It is obvious that this paper only shows an initial view of the subject and further detail research is warranted. Topics of interest for that research might be profitability of different business patterns, new combinations of hybrid business models and hybrid revenue models based on additional software companies analyzed and matching of business and revenue models of different companies in a software ecosystem.