Emerging ISVs Seen as Viable Partners in Digital Transformation
August 31 2020 - 10:14AM
A large number of independent software vendors (ISVs) are emerging
as potential partners in digital transformation, but enterprises
should look for ISVs that make customer experience a top priority,
according to a new white paper from Information Services Group
(ISG) (Nasdaq: III), a leading global technology research and
advisory firm.
The AWS-sponsored white paper, “An Enterprise Playbook to
Identify and Engage Emerging ISVs,” finds software becoming a
driving force in digital transformation, with enterprises adopting
the IoT, artificial intelligence, cognitive computing and other
software-driven tools. A new breed of ISV offers these software
tools while providing several other competitive advantages,
including flexible pricing models and cloud-ready software.
These software tools give “enterprises the opportunity to
improve customer experiences, reduce costs and change industry
dynamics with new business models built on software-as-a-service,”
write ISG authors and principal analysts Namratha Dharshan and
Aparna Gajanan. “Changing business priorities are compelling
enterprises to modify the way they procure software and are
encouraging them to explore beyond the offerings of established
SaaS providers.”
The ISG white paper points enterprises to some of the
differentiating services ISVs are bringing to the table.
Some emerging ISVs are focused on addressing customer experience
needs, which has become a top priority for many enterprises, the
white paper notes. A proliferation of devices has led to an
abundant inflow of data, and some ISVs specialize in harnessing
data to glean insights and personalize messages to proactively
address customer needs. ISVs are using AI, analytics and other
technologies to provide these services.
Other ISVs offer competitive pricing and flexible pricing models
for their SaaS packages, the paper says. Many enterprises are
concerned about expensive upfront costs or hidden fees, and many
ISVs are offering alternatives. Innovative pricing models offered
by some ISVs include usage-based pricing, monthly or annual
contracts, hybrid pricing, tiered pricing and other options. Many
emerging ISVs also exhibit a culture of agility, including pre-sale
and after-sale support.
In addition, some ISVs stand out by addressing needs in specific
industry verticals. Hyper-verticalization is “the need of the
hour,” the report says. With vertical-focused SaaS players coming
into the market, enterprises are rethinking their software strategy
to prioritize solutions that address the nuances of their
verticals. Vertical-focused ISVs focus on industry-specific
compliance for data governance. These vertical solutions, with
little need for customization, give enterprises the ability to
bring products to market or complete their digital transformations
faster.
Some ISVs also specialize in providing business-ready solutions
built in partnership with best-of-breed infrastructure providers,
the report adds. These cloud-ready software tools minimize the
enterprise effort to integrate with other applications, without the
need to invest in integration software. These ISVs can offer lower
costs than providers of traditional on-premises solutions.
Finally, some emerging ISVs are focused on engaging with
enterprises in a way that makes software procurement simple and
easy, the report says. While choosing the right software can be an
overwhelming task for enterprises, these ISVs are investing heavily
to create awareness about their products, using channels like
analyst citations, peer review platforms and venture capital
references. This gives enterprises the opportunity to move beyond
traditional procurement channels that are cumbersome and
time-consuming.
Picking the right ISVs is important because digital
transformation is essential for enterprises to survive and thrive,
the report says. Emerging ISVs have access to latest technologies,
and with cloud partners such as AWS, they are able to address
factors critical to cloud-based solutions such as availability,
scalability and security.
The report notes that AWS is “playing a pivotal role in enabling
ISVs to build and deliver comprehensive SaaS products for
enterprise consumption.” It says AWS’s global presence, growing
partner network and programs such as the “AWS SaaS Factory” make
AWS an attractive partner to emerging ISVs. A separate ISG study
shows that approximately half of the emerging ISVs based in India
have AWS as their infrastructure partner.
The white paper is available as a free download from AWS, and to
ISG Research subscribers on this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 700 clients, including more than 75 of the
world's top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,300
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
# # #
Will Thoretz
Information Services Group, Inc.
+1 203 517 3119
Will.Thoretz@isg-one.com
Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
jbaptiste@matternow.com
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