Businesses are on a forward march towards the cloud. Cloud adoption rises each year with 90% of organisations now using it in some way. And this year, according to Gartner, the total public cloud end-user spend is set to reach almost USD 600 billion, a more than 20% increase compared with 2022.
Software as a Service (SaaS) on-demand, subscription models for software services are the future: it is anticipated that most software will eventually be consumed as SaaS. For independent software vendors (ISVs), moving to SaaS frees them from the restrictions of legacy on-premises applications, allowing them to scale, be faster to innovate, support existing customers and attract new ones. By 2030, it’s expected that the global SaaS market will reach to USD 1,298.92 billion, growing at a CAGR of 19.7%. When weighing that value against the 2021 market value of USD 215.1 billion, that’s a huge leap .
With such healthy growth predictions, it’s clear that the time for ISVs to start their modernisation plans is now. Those who delay them risk losing their first-mover advantage and the chance to be part of the drive towards digital transformation. Being able to offer more scalable and resilient software in the cloud, as well as cutting costs and increasing time to value, are benefits that ISVs are well aware of.
Transforming to SaaS is no inconsiderable task. It may feel daunting for many ISVs who are faced with changing not only the way they deliver their product, but also the way they sell. In other words, along with a technical transformation, the ISV also has to rethink its entire business model. This is why it is vital for ISVs to find the right partner to support them on the journey to SaaS.
SoftwareOne created the NextGen ISV programme to provide 360-degree support for ISVs based on our deep experience of application modernisation – drawing on over 30 years’ experience delivering software and cloud solutions. The programme is designed to support ISVs, wherever they are on the road to SaaS. We begin with an art-of-the-possible planning exercise to help ISVs visualise their key technical and business challenges, then build clear and defined execution roadmaps for product modernisation.
Because we can capitalise on our deep partnerships with all the hyperscalers, we believe we can truly help any ISV to create secure and reliable cloud applications that help them maintain service quality while improving product delivery. Our hyperscaler partnerships mean we can apply our deep knowledge of best-practice cloud frameworks so ISVs have a strong cloud technology foundation from the start. We also apply proven FinOps cost controls to help manage, optimise and control all costs as well as lower customer total cost of ownership.
After we’ve guided the ISV through modernisation, we continue to provide go-to-market support to help unlock new customers and new markets with co-sell opportunities, such as cloud marketplaces, along with sales strategy support and marketing guidance. This helps offer scale and reach and supports ISVs in achieving strong and sustained growth.
SoftwareOne believes that every ISV needs to embrace SaaS. This is a rallying call for all ISVs to get started with their modernisation journey today. Those ISVs that don’t get on board with modernisation soon may find themselves out of the race as monolithic architectures and standalone applications become obsolete – cloudifying software is the only way for ISVs to compete in today’s ever-growing digital cloud world.
Through a SaaS-based approach, ISVs can reduce costs, deliver product features faster, add innovation to their offerings, and drive revenue growth.
Through a SaaS-based approach, ISVs can reduce costs, deliver product features faster, add innovation to their offerings, and drive revenue growth.
