Software-as-a-Service (SaaS) realizes the transformation from product to Service through put the software into “clouds”. SaaS supply chain is composed of a SaaS ISV (Independent Software Vender) who sells from internet channel and a SaaS dealer. According to different service providers in distribution channel, we sort out three different service patterns, independent service, retailer integrated service and the ISV integrated service. We construct service competition model of three service patterns and study the optimizing decision of the ISV and the dealer. Further more, we explore the impact of customer’s service sensibility, channel preference, service cost of the ISV and the dealer, and customer base on service competition. Finally, from supply chain profit maximization perspective, we compared the three service patterns. We found that the advantages and disadvantages of the service pattern depend on the application scene. The paper extent the dual channel research to software service industry and enrich the theory model of dual channel, the result will guide the supply chain member to decide their service pattern.
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