ISVs

Independent software vendors (ISVs) are companies that develop and sell software products designed to run on one or more computing platforms or environments. ISVs focus on applications, components, or add-ons that extend or complement existing systems, rather than on hardware or core platform development. They may specialize in specific industries (verticals) or offer general-purpose software (horizontals).

ISVs typically produce standalone applications, plug-ins, or software-as-a-service offerings. Revenue models include perpetual or term licenses, subscriptions, maintenance, and professional services. Distribution often occurs through platform marketplaces such as Salesforce AppExchange, Microsoft AppSource, Oracle Cloud Marketplace, SAP Store, or through direct sales, channel partners, or original equipment manufacturer (OEM) arrangements.

ISVs operate within larger ecosystems and rely on platform providers for distribution, integration, and reach. They use development kits, application programming interfaces, and certification programs to ensure compatibility and security. To succeed, ISVs must align with the platform’s technical requirements and go-to-market programs, and often engage in co-selling or partner marketing with platform vendors or system integrators.

Common challenges for ISVs include maintaining compatibility with rapidly evolving platforms, managing licensing and pricing across markets, ensuring data security and privacy, and funding ongoing development and support. Market trends influencing ISVs include migration to cloud-based and multi-cloud deployments, a shift toward API-first and microservices architectures, increasing emphasis on integration with enterprise systems, and the use of AI and analytics to enhance software offerings.