Four Ways ISVs Build Business in the Cloud

In order to remain competitive, ISVs must keep pace with the preferences of their customers. According to a recent study by Microsoft, businesses now report using an average of 4 services in the cloud and expect to use 6 in the near future. Cloud adoption is here.

What is your best approach to take advantage of the opportunity? Four of the most common ways that we see ISVs expand into the cloud include:

Reach new customers

Software as a service allows ISVs to tap into new markets on several levels. For the enterprise-focused ISV, applications can be trimmed down to focus on the need of the SMB market and distributed through developing SMB web marketplaces.

The SMB-focused ISV can target enterprise clients with the cloud-enabled ability to scale quickly.  The ability to scale up and down to meet variable demand gives you the opportunity to approach any market with confidence.

Expand into new geographies

Globalization provides two separate opportunities to ISVs. Companies are now supporting distributed teams while extending into new markets. ISVs can help companies deliver applications to employees no matter where they are located and can serve localized needs more cost effectively.

The second opportunity is to offer applications in other countries. Starting slowly, especially when language transitions are involved, to ensure you can support customers abroad.

Extending your on-premise applications via a hybrid model

The transition to the cloud can be a gradual one. Building a web-based solution to augment current functionality can provide a first step to test processes and user adoption. The flexibility of the cloud allows you to test functionality to add new features quickly and build depth of the cloud-based application over time.

Monetize existing intellectual property (IP)

For companies that are not ISVs yet, but have created IP for customers with the intent to resell, there has never been a better time. System Integrators who have built industry-specific solutions can now cost effectively build out those solutions in the cloud. The Windows Azure marketplace provides a trusted outlet to deliver the solution to the target industry.

To help you find the best path to transition applications to the cloud, we’ve created the Cloud Application Assessment which takes less than 10 minutes and will give you a report with recommended actions.