Independent Software Vendor – What is an ISV?

 

An Independent Software Vendor (ISV) is a business or an individual that builds, develops and sells consumer or enterprise software that is consumed by end users. In other words, an ISV is a company whose main function is to distribute its software.

Independent Software Vendors are also known as Software Publishers. ISVs have become one of the primary groups in the IT industry by creating, distributing and pushing new technologies and solutions.

 
 
 
 

When an Independent Software Vendor sells its software that the end user consumes, the software always remains the property of the software vendor and is licensed for use by the end-user.

Independent Software Vendors differ from software vendors that work for an original equipment manufacturer (OEM) in that they primarily build software applications for human use – not backend, system level applications. Hardware manufacturers that also distribute software (such as IBM and Microsoft) are not Independent Software Vendors.

 
 

Examples of Independent Software Vendors

ISV-built software applications can run on some or all backend platforms, like WindowsLinux 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 MicrosoftIBMHewlett-PackardGoogleOracle 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. Independent Software Vendors 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.

ISVs come in all shapes and sizes—from student startups 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 create successful software company if their software is continuously protected, monetized and updated. Developing a successful SaaS monetization strategy starts with using the right software licensing provider.
 
 
 
18th August 2022

Cloud-based Software Licensing | The Modern Way

Every kid coming out of Harvard, every kid coming out of school now thinks he can be the next Mark Zuckerberg, and with these new technologies […]
11th April 2022
To build or buy a software licensing system

Software Licensing System – The Build vs. Buy Conundrum

To build or buy a licensing system – the huge question all growing software vendors will face. This blog will help you make an informed decision.
13th December 2021

Licensing As a Service – Why It’s the Modern Way of Software Licensing

Licensing as a Service, a new method of software licensing, offers flexible and effective means of monetizing software products quickly and easily.
20th August 2021
10Duke 101 - Understanding 10Duke Licensing

10Duke 101 – Understanding the Basics of 10Duke Licensing

A brief introduction to 10Duke’s Licensing Solution. We will go through its main concepts and how to integrate with 10Duke, including delegation of authentication, product configuration […]
12th May 2021
Software Activation 10Duke

Software Activation – The Good, The Bad and the Modern

Software Activation is a technology that verifies a software product has been legitimately licensed for use. Learn how to do it effectively.
18th February 2021
How to Protect Software IP?

Software IP Protection – How to Protect Software Intellectual Property?

Software IP protection strategy is not just about limiting access. The best IP protection software also aims to enhance customer experience.
25th January 2021
perpetual licensing (1)

Why You Should Stop Selling Perpetual Licenses to Your Product

It’s no longer financially viable for software vendors to offer a ‘one size fits all’ perpetual software license model.
18th January 2021
servers zap white bg

License Servers – A Ticking Time Bomb For Your Software Business?

License server is an outdated legacy solution that is blocking software companies from scaling up. Learn why and how to overcome this licensing problem.
15th September 2020
digital rights management

Digital Rights Management – 5 Basics You Need To Know

Digital Rights Management and Software Licensing both deal with protecting copyrighted materials. Learn the difference and more.
Schedule a Demo