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Software Licensing in Cloud Computing: A CASE STUDY ABOUT RELATIONSHIPS FROM ACLOUD SERVICE PROVIDER’S PERSPECTIVE
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

One of the most important attribute a cloud service provider (CSP) offers their customers through

their cloud services is scalability. Scalability gives customers the ability to vary the amount of capacity when required.

A cloud service can be divided in three service layers, Infrastructure-as-a-Service (IaaS), Platform-as- a-Service (PaaS) and Software-as-a-Service (SaaS). Scalability of a certain service depends  on  software licenses on these layers. When a customer wants to increase the capacity it will be determined by the CSP's licenses bought from its suppliers in advance. If a CSP scales up more than what was agreed on, then there is a risk that the CSP needs to pay a penalty fee to the supplier. If the CSP invests in too many licenses that does not get utilized, then it will be an investment loss.

A second challenge with software licensing is when a customer outsources their applications to the CSP’s platform. As each application comes with a set of licenses, there is a certain level of scalability that cannot be exceeded. If a customer wants the CSP scale up more than usual for an application then the customer need to inform the vendors. However, a common misunderstanding is that the customer expects the CSP to notify the vendor. Then there is a risk that the vendor never gets notified and the customer is in danger of paying a penalty fee. This in turn hurts the CSP’s  relationship with the customer.

The recommendation to the CSP under study is to create a successful customer relationship management (CRM) and a supplier relationship management (SRM). By creating a CRM with the customer will minimize the occurring misunderstandings and highlight the responsibilities when a customer outsources an application to the CSP. By creating a SRM with the supplier will help the CSP to maintain a flexible paying method that they have with a certain supplier. Furthermore, it will set  an example to the remaining suppliers to change their inflexible paying method. By achieving a flexible payment method with the suppliers will make it easier for the CSP to find equilibrium between scalability and licenses.

Place, publisher, year, edition, pages
2015. , 76 p.
Keyword [en]
Cloud computing, Scalability, Software Licensing, IaaS, PaaS, SaaS, PCI DSS, CRM, SRM
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-190962OAI: oai:DiVA.org:kth-190962DiVA: diva2:953911
Supervisors
Examiners
Available from: 2016-08-19 Created: 2016-08-19 Last updated: 2016-08-19Bibliographically approved

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