Adding value to the network: Mobile operators’ experiments with Software-as-a-Service and Platform-as-a-Service models

The environments of software development and software provision are shifting to web-based platforms supported by Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) models. This paper will make the case that there is equally an opportunity for mobile operators to identify additional sources of revenue by exposing network functionalities through web-based service platforms. By elaborating on the concepts, benefits and risks of SaaS and PaaS, mobile operators’ experiments are compared and similarities with these models are identified. Based on the analysis of various case studies, this paper argues that mobile operators mobile web services are decisively shifting from SaaS to PaaS models. However, these platforms incorporate fragmentation at several levels and are likely to face future challenges in order to thrive.