An extensive literature has studied the benefits for a firm to be the first to invest in innovative technologies such as Information Technologies (ITs). However, investment in innovative technologies often faces high levels of uncertainty. How would such uncertainty affect a pioneering firm's...

Nonlinear usage-based pricing is applied extensively to price software products. Different from other products, software customers often cannot vary their required usage volume, a property we label local demand inelasticity. For instance, a client firm that needs a salesforce automation software...

This paper studies how an important feature of software adoption impacts a software vendor's preference between perpetual and subscription-based licensing: Customers are uncertain about their valuation of the software prior to adoption. We show that customer valuation uncertainty causes the...

Software-as-a-Service (SaaS) is emerging as a viable outsourcing option for clients interested in paying for the right to access a standardized set of business software functions through the network. SaaS model largely replaced the Application Service Providers (ASPs) model, by creating an...

The emergence of open source and Linux has burdened IT managers with the challenge of whether, when, and in what applications to adopt open source software in their firms. We characterize the conditions under which enterprises adopt open source software. We show that adoption depends crucially...

The emergence of open source and Linux has burdened IT managers with the challenge of whether, when, and in what applications to adopt open source software in their firms. We characterize the conditions under which enterprises adopt open source software. We show that adoption depends crucially...