Independent Software Vendor – What is an ISV?

Examples of Independent Software Vendors

ISV-built software applications can run on some or all backend platforms, like Windows, Linux or Apple and range from basic utility applications to enterprise-class business solutions including CRM and other automation tools. Many ISVs specialise in building applications for a specific niche or business vertical. This is in contrast to in-house software or custom software, which is designed for in-house use or adapted for a single, specific third party.

Companies that make computer hardware or operating system platforms, such as Microsoft, IBM, Hewlett-Packard, Google, Oracle or Apple often encourage and lend support to Independent Software Vendors with special "business partner" programs. Because the more applications that run on a platform, the more value it generates for the platform provider.

These platform manufacturers, also make their own applications but don't have the resources or specialist knowledge required to make applications for every conceivable market vertical or niche. Software Publishers typically offer products that the primary vendor (e.g. Microsoft) does not offer, enabling the platform provider and the ISV to leverage joint strengths and create new business opportunities. For example, thousands of ISVs partner with Microsoft to develop, market and sell software for Windows, Office, Azure and Xbox.

Recently Independent Software Vendors have also been moving to provide software that runs on virtual machines and appliances, and moving toward cloud delivery as cloud computing becomes more pervasive. In the cloud world, an ISV will typically offer its product on a software as a service basis and may sell through a public cloud or cloud marketplace such as Amazon Web Services (AWS), Microsoft Azure and Salesforce AppExchange.

Key Takeaways

ISVs come in all shapes and sizes—from student start-ups to established solution providers. If you develop, market and sell your own software or applications, especially in the B2B space then you are an ISV.

An ISV can only become a successful business if their software is continuously protected, monetized and updated. Developing a successful software monetization strategy starts with using the right software licensing provider such as 10Duke.

If you are an ISV looking to sell your applications for profit, you should familiarise yourself with the basics of software licensing, or check out what the best software licensing solution looks like.