Model for profiting from software innovations in the new era in computing

The purpose of this paper is to create a new model for describing conditions for profiting from software innovations in the software industry. Proprietary software is threatened by the popularity of open source software (OSS), which challenges the traditional business models that have relied on proprietary technologies and closeness. OSS has strongly impacted on the software industry; as a result, the appropriateness of traditional business models should be questioned and alternative models sought. This leads to exploration for a new model to evaluate the conditions for profiting from software. The proposed model includes three dimensions: technology, complementary assets, and ideology. (C) 2006 Elsevier Ltd. All rights reserved.