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Challenges and opportunities for ISVs in the cloud economy



Independent Software Vendors (ISVs) are facing a huge disruption due to the emergence of cloud technology. ISVs need to consider the changes required to their traditional business and software licensing model given the cloud based pay-per-use consumption model presented by SaaS applications for customers to consume software applications. It is not just the business model - ISVs also need to evolve their application architecture to fit the cloud based model. Applications need to be much more scalable, support multiple platforms, and be able to communicate and work with other applications in the cloud. However, it still needs to be backward compatible to provide an easy and comfortable transition for customers to the new cloud based model.

In addition, ISVs need to adapt their sales and license models as well. Sales models and metrics should be focused on monthly customer retention instead of annualrecognition of revenue. The ISV has to build a cloud compatible license model. Success metrics may need to be changed to reflect the new sales and licensing models. 

Evolving to this new model is not easy. Apart from just the application itself, the ISVs need

  • a cloud platform to run applications on like HPE Helion Stackato
  • a datacenter to host this platform and applications from
  • a sales organization and sales structure to sell these applications
  • to meet local compliances and regulations

Luckily, ISVs have options to address these challenges; since they may not have the skills and expertise, nor the huge investment in time and money required to do it all themselves. ISVs should focus on their product, the software, and identify partner programms like HPE Helion Ready that can provide access to datacenter, marketing and other expertise that the ISVs they may not have direct access to. These partners can also help ISVs address local compliance and regulations requirements of the industry/country. 

In this video Terence Ngai and Shisher Wahie discuss the challenges ISVs are facing, the opportunities and how HPE is helping ISVs evolve their business in the age of cloud.

About the Author


I am studying Business Information Systems at Hewlett Packard Enterprise Germany in the DualStudy Program. This program combines 50% high-level academic study at university with 50% practical on-the-job experience. My studies combine business knowledge with IT and technology skills like programming, database development and development of distributed systems. During my studies I worked for Hewlett Packard Enterprise in various positions. In my current internship in Palo Alto I help to run the marketing for the Evolution of the Channel.

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