Usage Continuance in Software-as-a-Service

Abstract

Software-as-a-service applications are experiencing immense growth as their comparatively low cost makes them an important alternative to traditional software. Following the initial adoption phase, vendors are now concerned with the continued usage of their software. To analyze the influence of different measures to improve continued usage over time, a longitudinal study approach using data from a SaaS vendor was implemented. Employing a linear mixed model, the study finds several measures to have a positive effect on a software’s usage penetration. In addition to these activation measures performed by the SaaS vendor, software as well as client characteristics were also examined, but did not display significant estimates. The findings emphasize the need for proactive activation initiatives to raise usage penetration. More generally, the study contributes novel insights into the scarcely researched field of influencing factors on SaaS usage continuance.