Emerging ISVs Seen as Viable Partners in Digital Transformation

31 August 2020

STAMFORD, Conn., Aug. 31, 2020 (GLOBE NEWSWIRE) -- 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.

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Will ThoretzInformation Services Group, Inc. +1 203 517 3119Will.Thoretz@isg-one.comJim BaptisteMatter Communications for ISG+1 978 518 4527jbaptiste@matternow.com