It may seem controversial that open-source software (OSS), i.e. software created by voluntary contributions that is available to use, change, and distribute for free, can be utilized for business purposes. Yet, for some firms, commercial OSS software products are the primary source of revenue. In this thesis, these companies are referred to as OSS vendors. Although some OSS vendors have existed for more than thirty years, how they conduct their business has not been extensively studied. Business models as a concept has been widely used in the information and communications technology (ICT) industry, often when describing firms working with OSS. In that context business models often refer to the offering, i.e. the products the firm offers to its customers and how revenues are collected. However, in academia the business model concept has evolved in a broader sense encompassing several fields and into a rich theoretical field itself. This thesis aims to further the understanding on how OSS vendors conduct their business, by using a business model framework, which has been constructed from business model and management theories. This framework was used to study OSS vendors to investigate the configurations of their business models. A cross-case analysis of four carefully selected OSS vendors searched for generic patterns in these configurations. Furthermore, the cases were also studied regarding sustainability and profitability. Two generic business model configurations were found, community immersion and community utilization. OSS vendors found configured according to the community immersion business model are deeply involved with, but also dependent on, the main community project that provides the software for the offering. OSS vendors found configured according to the community utilization business model are not dependent on the OSS project to provide their commercial offerings. Rather, the communities are used in marketing providing brand benefits, a base for recruitment, and in lesser degree functioned as quality assurance. Two of the four studied companies were found to be profitable and sustainable; one operating according to the community immersion business model and the other according to the community utilization business model. The other two companies studied, observed to operate according to the community utilization business model, did not achieve profitability during the time of the study. The findings should further the understanding of how profitable OSS vendors’ business models could be configured, and thus provide practitioners with an understanding on how different business model configurations can affect their strategies and overall business.

One of the most important attribute a cloud service provider (CSP) offers their customers through their cloud services is scalability. Scalability gives customers the ability to vary the amount of capacity when required. A cloud service can be divided in three service layers, Infrastructure-as-a-Service (IaaS), Platform-as- a-Service (PaaS) and Software-as-a-Service (SaaS). Scalability of a certain service depends  on  software licenses on these layers. When a customer wants to increase the capacity it will be determined by the CSP's licenses bought from its suppliers in advance. If a CSP scales up more than what was agreed on, then there is a risk that the CSP needs to pay a penalty fee to the supplier. If the CSP invests in too many licenses that does not get utilized, then it will be an investment loss. A second challenge with software licensing is when a customer outsources their applications to the CSP’s platform. As each application comes with a set of licenses, there is a certain level of scalability that cannot be exceeded. If a customer wants the CSP scale up more than usual for an application then the customer need to inform the vendors. However, a common misunderstanding is that the customer expects the CSP to notify the vendor. Then there is a risk that the vendor never gets notified and the customer is in danger of paying a penalty fee. This in turn hurts the CSP’s  relationship with the customer. The recommendation to the CSP under study is to create a successful customer relationship management (CRM) and a supplier relationship management (SRM). By creating a CRM with the customer will minimize the occurring misunderstandings and highlight the responsibilities when a customer outsources an application to the CSP. By creating a SRM with the supplier will help the CSP to maintain a flexible paying method that they have with a certain supplier. Furthermore, it will set  an example to the remaining suppliers to change their inflexible paying method. By achieving a flexible payment method with the suppliers will make it easier for the CSP to find equilibrium between scalability and licenses.

One of the most important attribute a cloud service provider (CSP) offers their customers through their cloud services is scalability. Scalability gives customers the ability to vary the amount of capacity when required. A cloud service can be divided in three service layers, Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). Scalability of a certain service depends on software licenses on these layers. When a customer wants to increase the capacity it will be determined by the CSP's licenses bought from its suppliers in advance. If a CSP scales up more than what was agreed on, then there is a risk that the CSP needs to pay a penalty fee to the supplier. If the CSP invests in too many licenses that does not get utilized, then it will be an investment loss. A second challenge with software licensing is when a customer outsources their applications to the CSP’s platform. As each application comes with a set of licenses, there is a certain level of scalability that cannot be exceeded. If a customer wants the CSP scale up more than usual for an application then the customer need to inform the vendors. However, a common misunderstanding is that the customer expects the CSP to notify the vendor. Then there is a risk that the vendor never gets notified and the customer is in danger of paying a penalty fee. This in turn hurts the CSP’s relationship with the customer. The recommendation to the CSP under study is to create a successful customer relationship management (CRM) and a supplier relationship management (SRM). By creating a CRM with the customer will minimize the occurring misunderstandings and highlight the responsibilities when a customer outsources an application to the CSP. By creating a SRM with the supplier will help the CSP to maintain a flexible paying method that they have with a certain supplier. Furthermore, it will set an example to the remaining suppliers to change their inflexible paying method. By achieving a flexible payment method with the suppliers will make it easier for the CSP to find equilibrium between scalability and licenses. / Ett av de viktigaste attributen en molnleverantör (CSP) erbjuder sina kunder genom sina molntjänster är skalbarhet. Skalbarheten ger kunden möjligheten att variera mängden kapacitet efter behov. En molntjänst kan delas in i tre serviceskikter, Infrastruktur-as-a-Service (IaaS), Platform-as-a-Service (PaaS) och Software-as-a-Service (SaaS). Skalbarheten av en viss service beror på mjukvarulicenser på dessa skikt. När en kund vill öka kapaciteten bestäms detta av CSP:s förhandsköpta licenser från sina leverantörer. Om en CSP skalar upp mer än vad som avtalats, finns det en risk att CSP:n måste betala en straffavgift till leverantören. Investerar CSP i alltför många licenser som inte utnyttjas, blir det en investeringsförlust. En annan utmaning med mjukvarulicenser uppstår när en kund lägger ut sina applikationer på CSP:s plattform. Eftersom varje applikation levereras med en uppsättning av licenser, finns det en bestämd nivå av skalbarhet som inte kan överskridas. Om en kund vill att CSP:n ska skala upp mer än vanligt för en applikation, måste kunden informera applikationsförsäljaren själv. Dock sker det en missuppfattning då kunden förväntar sig att CSP:n ska meddela säljaren om detta. Det finns en risk att säljaren aldrig blir informerad och kunden hamnar i stor risk för att betala en straffavgift. Detta i sin tur skadar CSP:s relation med kunden. Rekommendationen till CSP:n är att skapa en framgångsrik kundrelationshantering (CRM) och leverantörrelationshantering (SRM). Genom att skapa en CRM med kunden kan förekommande missförstånd minimeras och belysa ansvarsområden som råder när en kund lägger ut sin applikation hos CSP:n. Genom att skapa en SRM med leverantörerna kommer det att hjälpa CSP:n att upprätthålla en flexibel betalmetod som de har med en viss leverantör. Dessutom kommer det att vara ett föredöme för de övriga leverantörerna att ändra sin icke flexibla betalningsmetod. Genom att uppnå en mer flexibel betalningsmetod med leverantörerna kommer det att bli enklare för en CSP att hitta en balans mellan skalbarhet och licenser.