What is an ISV in SaaS?
ISVs (Independent Software Vendors) build IT solutions like any other developer. But what sets them apart is that they also publish or sell those solutions on cloud platforms called PaaS (Platform-as-a-Service). Some examples of PaaS include SalesForce AppExchange, Amazon AWS, etc.
Larger companies are developing these types of platforms to make development more accessible and convenient. In addition to the right infrastructure, ISV developers also get access to millions of registered people on the site, helping to successfully promote their product and find potential customers. Clients, in turn, get better and richer functionality.
This product is based on cloud storage technologies where users can organize their call center with only Internet access. As a result, it eliminates the need to purchase physical electronic devices and allows teams to work remotely. Features include call recording, switching between lines, and more.
This company uses SaaS (Software-as-a-Service) as its business model, and the developer company itself is traditionally called an ISV.
What is SaaS?
SaaS is a model where customers purchase a subscription for an out-of-the-box solution. With Aircall, for example, there are many plans and the user accesses the service through a browser or API.
Compared to traditional application development (where the customer needs to install and configure something), modern software developers using SaaS can develop convenient and fast solutions that significantly improve the quality and usability of the product.
What is a cloud ISV?
Many need clarification on the difference between SaaS and the cloud. In effect, SaaS is a model in which the user pays to access a ready-made solution. In cloud computing, the customer rents the capacity of the server and is responsible for developing and maintaining it.
A good example is Google Docs. It is a cloud-based solution for the desktop version of Microsoft Office Word using sophisticated cloud technologies. Features include real-time change updates, teamwork creation within a single document, and the addition of third-party APIs like Google Keep.
Today’s ISVs are actively moving to the cloud. The main advantages of this include the following:
Cost is one of the most fundamental decision-making points for an Internet Service Provider (ISP). Pricing should be flexible and agile with increasing value as the ISP’s business grows. With proper architectural and operational guidance, the cloud can become more profitable over time.
High level of security
Security is another core building block for ISPs building SaaS cloud products. ISPs can expect to provide secure services to their customers, that is, the tools, guidance, and practices to proactively build and protect against threats.
Quick access via the Internet
Nowadays, almost all development companies tend to focus on cloud technologies as a modern trend. If you have a competitor with a product like yours that has more convenient and faster internet functionality, the modern customer is more likely to choose it over yours.
The progress of ISV migration to SaaS
To migrate your traditional solution to SaaS, you need to prepare properly.
The migration process is technically complex and must be planned with all product features. In fact, it consists of several stages and requires deep communication between technical specialists and managers.
Launching your product in SaaS without preliminary research is risky, even with an existing application.
It is much more difficult to make money with SaaS than it is to sell a product. The subscription model is strong in terms of scalability, but requires a lot of time and money to launch.
The discovery phase is an important first step in any ISV migration to SaaS. During this phase, you’ll dig into your current operations and identify any areas that need to be adjusted or updated to transition to a SaaS model.
This may include reviewing your current software architecture, assessing your current customer base and revenue streams, and identifying any potential roadblocks or challenges you may encounter.
It is important to approach the discovery phase with an open mind and a willingness to be flexible, as you may discover new opportunities or challenges that you had not anticipated. Consequently, you’ll be better prepared for a smooth and successful transition to SaaS if you take the time to fully understand your current situation.
Take Netflix, for example. The company, once a DVD-by-mail service, has invested billions of dollars to completely rebuild its business model for SaaS. This revolutionized the way people consume entertainment media and Netflix is now a powerhouse in video streaming.
Any business considering a move to SaaS should take a hard look at their current product and assess what functionality they will need in the cloud. Take a detailed inventory of all your on-premises systems and architecture. Also, identify features that can add value to your product and plan their implementation.
Map relationships between applications. This helps you determine how systems interact with each other and how you will replicate this fabric in the cloud. Once you’ve identified which applications you need to migrate, the next step is to examine your infrastructure. Includes storage requirements, statistics, data produced, connections, and projected service level agreements.
proof of concept
It’s time to test the product.
Once you’ve completed the above, it’s time to start planning your actual migration.
This is where you’ll develop a detailed roadmap for moving your existing software and customer base to a SaaS model. This may mean things like updating your software architecture to support a subscription-based pricing model, reassessing your pricing and package options, and creating a communication plan to ensure your customers are aware of the changes.
It is important to be thorough and considerate at this stage. A well thought out plan will set you up for long-term success. With this in mind, be sure to involve key stakeholders in the planning process and don’t be afraid to seek outside advice or guidance if necessary. With a solid plan in place, you’ll be ready to start executing your migration.
Seamless Migration with VMware Private Cloud
VMware Private Cloud is a single-tenant cloud designed for enterprise workloads. It has excellent resource flexibility, which means customers are not limited to hardware configurations like some public cloud clusters.
With VMware, you can host your infrastructure in a secure, isolated environment and implement technical solutions of any complexity while using additional information security features. This environment provides the security and stability that businesses need with the management of Most Servel Humans In Hosting®.
ISVs looking to transition applications to SaaS need to understand the difference between the two models and what is required of them. The move to SaaS can be a great opportunity for ISVs to increase their revenue, but they need to make sure they are ready for the change.
If you are an ISV considering the transition to SaaS or have any questions about the process, please contact us. Our team of experts is available 24/7 and will be happy to answer your questions and help you find the best solution for your needs.