Exploring choices of software sourcing methods among start-ups

In the paper we discuss the following research questions: How do start-ups provide themselves with software and what are the motivations behind deciding on a specific sourcing option? The questions are motivated from the fact that acquirement of software is a challenging question, and it is especially interesting to explore how start-ups do, since they do not have a legacy to deal with. The research was conducted as a mixed approach including a survey among startups followed by interviewing decision-makers in some start-ups. The research indicates that motivations for choosing a specific software application include ease of use, compatibility, reliability, flexibility, and previous familiarity. Right now, sourcing of paid software mostly occurs in a single license set-up, although interviewed start-ups showed to prefer Pay-Per-Use, as it is more flexible and because they feel more in control over how much money they spend. The startups said to consider free software options in case alternatives that fulfilled their requirements were available. In the cases where start-ups paid for software the motivation was either because there were no other options available, or they felt that this sourcing method secured support.