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A Three-step Plan for ISV Success in the Cloud: Step 3 of 3

31 Jul 2015 by Insight Editor

Global demand for cloud-based Software-as-a-Service (SaaS) has exploded in recent years, with worldwide IT spending on public cloud services expected to grow six times faster than overall IT spending through 2018.

In the face of such widespread adoption by businesses of all sizes, independent software vendors (ISVs) are looking to strike while the market is hot with their own cloud-based solutions.

This post focuses on the third and final step of a three-step plan to help ISVs complete this cloud migration successfully. Click HERE to read the first post focused on differentiation, or HERE for the second post on diversification.

Step 3: Scale

ISVs considering a move to the cloud by running the application on their own infrastructure have a high-stakes decision to make: Do they spend big and hope to grow into the capital investment, or do they procure less and risk not having capacity available when demand rises?

The better alternative is to avoid that decision entirely by selecting an Infrastructure-as-a-Service (IaaS) partner that can:

  • Speed time to market.
  • Avoid dips in revenue during the transition.
  • Allow the ISV to spend more on computing support only as demand grows.

The hidden risk of “Saas-like”

ISVs typically need 12 to 24 months to successfully transition an on-premise application to a cloud-based service. During this transition, ISVs may be tempted to offer instances of cloud-based delivery on an individual customer basis.

This “SaaS-like” offering allows the customer to receive the benefits of the cloud it’s looking for, and takes some pressure off the ISV to deliver a true SaaS solution in the process. However, there’s a significant trap hidden in this arrangement.

Given the global demand for cloud services, it’s safe to assume the “SaaS-like” offering would be quite popular with customers, and individual instances would be created and hosted off premises.

What happens if a vulnerability is discovered in the application code, or the software no longer meets industry compliance standards? Ultimately, the ISV would be stuck supporting not one but many individual installs of its application, resulting in compounded support costs that would deliver a significant blow to profitability projections and delay development milestones in the process.

Conclusion

Rather than risk “SaaS-like” individual instances or massive capital investments for demand that may be years away, make the smarter choice — a solution that helps ISVs:

  1. Assess the infrastructure needs of their application(s).
  2. Create a road map for stable and affordable growth, working with leading cloud IaaS partners.
  3. Implement and develop the infrastructure and environment needed for a true scalable SaaS offering.
  4. Manage and monitor their true SaaS instance to meet all performance, availability and security thresholds on an ongoing basis, letting them focus on their core business: creating great applications.

To learn more, call 1.800.INSIGHT.