As per a new Sandhill Groupsurvey, ISV industry is gearing up for a new growth cycle. Recently Sandhill Group has conducted a survey among more than 100 top executives of ISVs and found that ISVs are planning for significant growth in 2010.
At the same time it has also come out that ISVs will face a new set of challenges on their way to growth. Customer organizations’ increasing adoption of cloud computing and their preference for moving away from the traditional software licensing model will bring not only technical challenges but also business challenge as the metrics that ISVs use to track their business will change rapidly.
This business disruption, along with the technology disruptions in the form of Cloud computing and Mobility enablement, will bring a new set of opportunities to service providers providing Outsourced Product Development services. But to achieve success, like ISVs, outsourced Product Development Service providers will also need to change their value proposition and business metrics. Since ISVs will move away from revenue/pipeline to CMRR (contracted or committed monthly recurring revenue), they would look for strategic partners who would be ready to work in an outcome based model.
Please feel free to contact the author at somenath.nag@bsil.com to discuss about the future trend of the ISV industry and evolving service offering.
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