Key Factors Influencing the Adoption of SaaS: A Case Study of Microsoft Exchange Online

Purpose: The purpose of this article is to present the factors behind the choice of cloud services as on-premise alternatives, with a particular focus on services that support electronic communications and office operations. The organization's environment greatly influences decisions on the choice of architectures or service model. Some of the factors of the external environment such as the Covid-19 pandemic or the decisions of large technology companies to update their business models towards a subscription model are presented. Design/Methodology/Approach: The article presents some of the determinants of migration of services from an on-premise solution to a SaaS model using the example of Microsoft's family of email products and online communication tools due to their long embedding in the IT infrastructure of many organizations (since 1996) and the native ability to co-opt both models of operation. The article's literature review section presents advantages and disadvantages regarding cloud and on-premise working models, issues regarding a systemic approach to implementing cloud services, and some aspects related to security and management of cloud or hybrid infrastructure. Details of Microsoft's choices related to the licensing of its products are also presented, as well as the basics of the architecture of Microsoft's cloud solution Exchange -Teams and the ecosystem of integrated applications of the O365 environment. Findings: service providers that offered their solutions in the on-premise model are developing most of their services in the cloud model and this type of model is preferred. Using Microsoft's cloud as an example, it can be seen that in the family of communication tools, the company is targeting the development of cloud solutions at the expense of on-premise solutions and in multiple ways (licensing mechanisms, lack of development of on-premise services, attractive environment of integrated applications, possibility of hybrid architecture and migration to the cloud) stimulates organizations to choose the cloud model. Practical implications: the findigs presented in the article can alert organizations to trends in the development of ICT services and the models in which they are implemented. Understanding the opportunities and risks of using cloud services allows better decisions to be made about the infrastructure used and better weigh the advantages and costs of SaaS services. Originality/Value: The publication addresses topics that largely affect organizations with their own ICT resources.