ISV’s will move away from Traditional Hosting Providers

Independent Software Vendors often launch Partner Programs and form partnerships for extend their channel and reach of revenue. Some of these revenue stream are traditional hosting providers (often referred as Technology Partners or Hosting Partners)  – providers of static non-dynamic / non-optimized hosting. Within the next 3-5 years, many ISV’s will be forced to break this relationship to persue new opportunities of self-control and service delivery.

With the launch of Windows Azure, Google Cloud and enterprise cloud solutions like CloudRig and vCloud, ISV’s are able to manage and control their own relationship of hosting – and managed those required resources. Many ISV’s still have legacy offerings and despite Microsoft’s push on Azure, many ISV’s will still not launch service on that platform. Hosting providers have to find new ways of adding value to the ISV’s, but my belief is a certain few cloud vendors will have knowhow to persue the opportunity to bundle the right services and products to prove a gardened relationship to the ISV’s.

The revenue channels and business model for SaaS formes nicely around Independent Software Vendors these days; their opportunity is enormous and only the right focus can help ISV’s pick the right cloud strategy. A resent survey I made with 130 ISV’s in Scandinavia 82% considered SaaS a great opportunity and 67% would invest in this opportunity within the next two years. 16% consider Azure as a platform, while 54% would rather have their legacy application prove their business case for Cloud Computing. Interesting number, but also interesting to follow these ISV’s.