Abstract
When your company buys packaged software, the company needs to determine how many software licenses must be purchased. If the quantity is too small, it will be not enough for the users to access the programs at anytime within the company. Conversely, if the quantity is too large, they will waste a lot of money. In this paper, we surveyed several number of researchers of K institute and derived the using pattern of a specific packaged software. We estimated a proper number of packaged software licenses by Erlang Loss Function, the Engset Model, and simulation model. With the results of the three methodologies, we were able to empirically verify economic benefits of packaged software purchase by comparing NPV (Net Present Value) between user licenses and network licenses. Consequently, TCO of user licenses is much higher than that of network licenses. We had probabilistically calculated proper number of licenses based on the using pattern of users. Hence, this paper will be useful for decision makers who are going to determine package software's type and quantity from an economic perspective.
| Translated title of the contribution | Economic Analysis for Packaged Software Adoption:Considering the Number of Concurrent Users |
|---|---|
| Original language | Korean |
| Pages (from-to) | 119-131 |
| Number of pages | 13 |
| Journal | 한국IT서비스학회지 |
| Volume | 10 |
| Issue number | 4 |
| DOIs | |
| State | Published - Dec 2011 |