I recently came across a good posting from Daryl Plummer at Gartner titled Delivering Cloud Services: ISVs – Change or Die or both!. This article highlights the opportunity as well as issues related to an ISV (Independent Software Vendor) migrating to the cloud. It points out that “the vast majority of ISVs will have a very difficult time” taking advantage of the opportunity that a move to the cloud may offer them.

Why? According to the article, It is not enough to just cloud-enable your software. You still have to deliver it as a service and that is simply not the business of most ISVs. So, you might have to change. Further, “some software vendors will either change their business entirely, or go out of business if cloud computing becomes the mainstream norm for delivery of systems.”

We agree. We at Navatar have been helping several ISVs (large and small), that have an existing On-Premise business, “cloud-enable” their products on salesforce.com’s Force.com platform-as-a-service. We find that, not surprisingly, most ISVs are convinced that simply migrating their product to a cloud platform would turn them into a Cloud Service Provider (CSP) or a Software As A Service (SaaS) provider. Since they do not understand the change required to shift from a product-based to a service-based model, their Cost/Benefit analysis for the effort is often flawed. As a result, they are able to SaaS-enable their product, but they struggle to make money on it.

For more on this subject, download a whitepaper that we recently wrote, at http://navatargroup.com/WhitePaper.html. You will learn about the experiences of ISVs such as Thomson-Reuters and CODA as well as opinions from Deloitte Consulting experts. The whitepaper is free.

Alok Misra