How ISVs can accelerate transformation and become a SaaS business

Some independent software vendors (ISVs) see their sales grow consistently year after year, while others struggle. What accounts for the difference? One of the main reasons is the ability to sell software as a service (SaaS).

That’s why SoftwareOne and Amazon Web Services (AWS) recently launched a new NextGen ISV Modernization Program. It’s designed to help struggling ISVs quickly transform to a SaaS business model while reducing many of the risks and costs such a transformation typically involves.

Just as digital streaming services have upended traditional cable and TV offerings, ISVs with digital, cloud-based delivery models enjoy great advantages over legacy B2B software providers. They find it much easier to support existing customers, attract new customers and scale their services globally. In contrast, ISVs lacking a SaaS option must expend far more time and energy supporting their customers.

Consider, for example, a billing application that needs to be updated to comply with new government regulations. For an ISV using a SaaS model, this is relatively quick: after the company has revised, tested and validated the update, all it needs to do is switch all of its users over to the new version in the cloud. ISVs that instal their software on customers’ on-premises infrastructure, though, must carry out updates one at a time – which means testing and validating each individual instalation.

Most ISVs recognise the benefits of SaaS. But making that transition takes time, effort and money – resources that are typically in short supply. Our NextGen ISV Modernization Program aims to eliminate those obstacles.

The NextGen ISV journey

AWS in partnership with SoftwareOne, offers the NextGenISV programme to drive product modernisation and transformation assistance to Software Companies (ISVs). This strategic programme helps companies envision their “NextGen” future business and product strategies; and execute those with help from AWS and SoftwareOne So how does the programme work? Working together, SoftwareOne and AWS teams start with an initial assessment to determine if an ISV qualifies for the programme and if there’s a business case for transformation.

Next, we work to discover more about the ISV. What are its products and its value proposition? How many customers does it serve? What does the infrastructure look like? How are products developed? Where are the gaps?

Using this information, we organise an envisioning workshop to start building the case for transformation and creating a go-to-market strategy to grow the ISV’s business in partnership with SoftwareOne and AWS.

From here, we establish a roadmap for product modernisation. This not only fleshes out the business case but also validates the technical details, provides an AWS Well-Architected review, analyses costs and predicts future revenue after transformation. Then it’s on to the actual modernisation project, which typically involves using microservices to create a flexible, scalable and secure application that can be delivered using AWS.

Our programme also offers ISVs the option of ongoing services and support. For instance, after making the ISV’s transformed software available through the AWS Marketplace, SoftwareOne and AWS will also look for other cross-selling opportunities – such as offering the software to our own partners and customers.