ISV

An independent software vendor (ISV) is a company that develops, markets, and sells software products designed to run on various computing platforms. ISVs differ from hardware manufacturers and system integrators, focusing on standalone applications or add-on software.

ISVs create applications ranging from enterprise tools such as CRM and ERP plugins to vertical-market software and utilities. Their products typically integrate with operating systems, databases, and cloud platforms, and may target ecosystems such as Windows, macOS, Linux, iOS, Android, AWS, or Azure.

Business models include perpetual licenses, subscriptions, or usage-based pricing. Revenue often comes from direct sales, channel partners, or online marketplaces; ongoing income is supported by maintenance, support, and periodic updates.

ISVs frequently partner with platform providers, hardware vendors, or managed service providers. Certification programs and interoperability testing help ensure compatibility and reliability for customers.

Common challenges include competition, dependency on platform APIs, evolving security requirements, and the need to keep software current with frequent platform updates. Effective go-to-market strategies, pricing, and customer support are critical to success.

Trends in the sector include cloud-native and SaaS delivery, API-first development, and expanding marketplace ecosystems. Many ISVs pursue hybrid and multi-cloud models to reach broader customers and reduce platform risk.