Optimal pricing for cloud service providers in a competitive setting

Cloud services are transforming business and government at an ever-increasing rate. As a form of cloud service, software as a service (SaaS) is one of the fast growing segments of the information technology and has become an attractive alternative to the on-premises software. In this paper, we study the optimal pricing strategies of a cloud service provider in an incumbent-entrant setting under user upgrade cost and switching cost. Our results...