The Shift to SaaS: A high-value opportunity for ISVs

ISVs who developed a SaaS version of their software were able to deliver additional value to their customers:

  • New customer segments open thanks to lower adoption costs and operating costs: ISVs were able to sell to customer segments who were previously unprofitable due to the reduced cost to serve enabled by operating SaaS on public cloud
  • Customer TCO drops as infrastructure complexity falls under SaaS: ISVs who adopted SaaS were able to reduce the overall cost of software use for their customer by eliminating the need for customers to build out and maintain supporting infrastructure
  • Integration of value-added cloud services improves ISV product offering: Capabilities that previously would have been time and cost intensive for ISVs to develop are available through cloud platform ecosystem with minimal integration and support requirements
  • Aggregation of usage data through SaaS model and data scale effects drive product improvements: Collecting customer usage data provides ISVs with detailed insight into customer needs and pain points, while aggregated data sets enable benchmarking and rapid improvement of products and ISV algorithms

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