1. WWW.DRKARLPOPP.COM
HYBRID REVENUE MODELS
AND HYBRID BUSINESS
MODELS
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

2. What drives me?
• Modeling, Construction and evaluation of
business models and revenue models for
software companies
• Why? I would like to use that knowledge to
– Select a software partner ecosystem that fits
the business and revenue model of a software
company
– Create new software business and revenue
models
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

3. Background information
http://www.drkarlpopp.com/BusinessMod
Business Models elsintheSoftwareindustry.html
in the software industry
Profit from Software
Ecosystems
ISBN-13: 978-3842300514
Business Models, partnership
models and ecosystems in the
software industry
Examples from over 50
software companies
click here to order
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

4. Business, Business Model and Revenue model
Business
has one has one
or many or many
Business Revenue
model Model
consists consists
of of
Business Revenue
pattern stream
Causality
relationship
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

5. What is a Business pattern?
Business
Patterns
consists
of tuples of
Type of Business
Goods and model
Services Archetype
Based on the work by Weill et. al.
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

6. Business Patterns
Type of Goods/Services offered
Financial Physical Intangible Human
Creator Entrepreneur Manufacturer Inventor n/a
Distributor Financial Wholesaler, IP n/a
trader Retailer distributor
Lessor Financial Physical IP lessor Contrac-
lessor lessor tor
Broker Financial Physical IP broker HR
broker broker broker
Based on the work by Weill et. al.
Copyright ©Intellectual http://www.drkarlpopp.com
IP = 2011 Dr. Karl Popp property

7. Hybrid Business Model for Software as a product
Type of Goods/Services offered
Financial Physical Intangible Human
Creator Entrepreneur Manufacturer Inventor n/a
Distributor Financial Wholesaler, IP n/a
trader Retailer distributor
Lessor Financial Physical IP lessor Contrac-
lessor lessor tor
Broker Financial Physical IP broker HR
broker Software vendors provide broker
broker maintenance
and support services and/or consulting
Business pattern
used in the business model
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

8. Hybrid Business Model for Software as a service
Type of Goods/Services offered
Financial Physical Intangible Human
Creator Entrepreneur Manufacturer Inventor n/a
Distributor Financial
Software vendors provide hardware Wholesaler, IP n/a
usage to customers as part of SaaS
trader Retailer distributor
Lessor Financial Physical IP lessor Contrac-
lessor lessor tor
Broker Financial Physical IP broker HR
broker Software vendors provide operating,
broker broker
maintenance and support services
Business pattern
used in the business model
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

9. SAP Revenue Models (excerpt)
Revenue
Revenue Revenue
Revenue model for
model for model
model for reselling
partner for
SaaS partner
ecosystem consulting
solutions
consists of
SAP
Revenue
consists of
Revenue
Revenue model for Revenue Revenue
model for Software model for model for
SaaP adaption/ support maintenance
extension
Largest share of revenue
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

10. Microsoft Revenue Models (excerpt)
Indirect
Revenue Revenue
Revenue Revenue
model for model
model for model for
appliance for
SaaS partner
sales consulting
ecosystem
consists of
Microsoft
Revenue
consists of
Direct
Revenue Revenue
Revenue
model for model for
model for
support maintenance
SaaP
Largest share of revenue
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

11. Google Revenue Models (excerpt)
Revenue
Revenue
model for
model for
partner
SaaS
ecosystem
consists of
Google
Revenue
consists of
Revenue Revenue Revenue
model for model for model for
SaaP support broker
Largest share of revenue
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

12. Google Search Services and
Compensation
Search customers
compensate for the
search service with
data about their
search interest
Advertising Search
payments Compensation
Advertising PPC Search Search
Google Service
Customers adver- Customers
tising
service
Products,
Assets or
Compensation
Services
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

13. Comparison of the three revenue models
SAP Microsoft Google
Main business Software as a Software as a Broker
model product (hybrid) product (hybrid) (hybrid)
Main source of Maintenance and Indirect license Advertising
revenue support revenue
non-monetary No Yes (Bing) Yes (Broker)
Revenue streams
Revenue synergies SaaP maintenance, Ecosystem and SaaS Advertising and all
between e.g. … support and SaaS other businesses
Impact of existing Customer ecosystem Partner Ecosystem Customer and
ecosystems funds innovations funds innovations partner ecosystem
and subsidizes new and subsidizes new subsidizes new
business business business
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

14. Background information
http://www.drkarlpopp.com/BusinessMod
Business Models elsintheSoftwareindustry.html
in the software industry
Profit from Software
Ecosystems
ISBN-13: 978-3842300514
Business Models, partnership
models and ecosystems in the
software industry
Examples from over 50
software companies
click here to order
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com

15. Video lessons
• Get your education online at
mindbites.com:
• http://www.mindbites.com/lesson/13903-
software-business-model-basics
• http://www.mindbites.com/lesson/13904-
software-revenue-models
Copyright © 2011 Dr. Karl Popp http://www.drkarlpopp.com