What Is an Independent Software Vendor (ISV)? (Plus Types)

For the most part, independent software vendors create software applications for human use rather than backend, system-level applications, setting them apart from software vendors who work for an original equipment manufacturer (OEM). Independent software vendors are not hardware manufacturers who also sell software (such as IBM and Microsoft).

What is an ISV?

ISV solution types

ISVs provide a wide range of solutions, including applications like:

Customer relations management (CRM)

One category of solution that many ISVs offer is CRM software. Applications of this kind assist businesses in gathering, organizing, storing, and using customer data for marketing segmentation, tracking sales, and customer communication. Applications for marketing and research are frequently developed and sold by independent vendors of CRM software.

Software as a service (SaaS)

SaaS solutions, such as subscription-based software products, frequently use cloud computing to deliver software applications that adhere to a service model. SaaS solutions can function on both public and private cloud networks as well as inside of cloud marketplaces. Businesses and enterprises can manage and track a variety of processes, including financial, sales, and marketing activities, with the aid of software offered by SaaS providers. Numerous SaaS vendors also focus on particular markets, offering specialized products like project management, analytics tracking, and performance monitoring software.

Cloud applications

Numerous ISVs concentrate solely on the creation of cloud-based applications. Many independent vendors create solutions that aid in optimizing the use of cloud computing for data storage, communications, and business management because ISVs develop specialized software for running on particular operating systems and platforms. Applications from independent software vendors (ISVs) are developed for cloud platforms in a wide range of fields, including finance, technology, sales and administration, human resources, and operations management.

Enterprise risk management (ERM)

Cloud-based platforms are frequently used by ERM software solutions, which aid companies and organizations in monitoring and assessing financial, operational, and strategic risks. Although ISVs may also support businesses in the industrial, manufacturing, medical, and technology verticals, many ISVs provide this kind of solution in the accounting and finance sectors. ERM solutions are used by businesses to analyze risk alerts and create strategies for reducing risk exposure. Document management, compliance management, incident management, mitigation tracking, and reporting tools are some features shared by many ERM software programs.

Enterprise resource planning (ERP)

ERP software includes a variety of programs that can be found in a single, more complicated software package or as a collection of programs. These software tools can increase the effectiveness of business operations regardless of the kind of ERP solutions utilized by businesses. A centralized method of managing several departments within an organization is provided by ERP software. ISVs that offer ERP solutions frequently create features that can consist of modules for supply chain management, sales and inventory, finance and accounting, human resources, payroll, and customer communications.

What is an independent software vendor?

Individuals or businesses that create and market enterprise or consumer software applications are known as independent software vendors (ISVs). As companies that develop their own software solutions independently produce and publish these programs, ISVs can also be software publishers. As computer science and IT continue to advance, ISVs may see growth as more users buy and use different software solutions. ISVs often provide their solutions in certain industry verticals, including:

ISVs market software solutions as retail goods, and customers agree to use the software in accordance with certain license restrictions that forbid product modification, duplication, or redistribution. Software vendors develop applications for human use as opposed to original equipment manufacturers (OEMs), which produce hardware, back-end, and systems-level equipment. This may result in a lot of ISVs teaming up with reputable businesses that produce and market computer hardware and components.

What is an ISV partner?

A developer, reseller, or service provider who creates goods for direct consumer distribution is an ISV partner. Additionally, they create unique features or solutions that can be integrated into joint ISV platforms and applications. Many vendor partners concentrate on software integration, mobile optimization, app development, and add-on features. Some vendor partners can specialize in the distribution of solutions. There are several types of vendor partners, including:

Value-added resellers (VAR)

A VAR develops methods for ISVs to add value to already-existing software solutions. For instance, a VAR might assist ISVs in improving current applications by adding components or features the ISV hasn’t yet included. Many VARs, like software vendors, focus on specific industry niches. By doing this, the vendor solutions’ updates and additions are guaranteed to meet industry standards and requirements.

Managed security service providers (MSSP)

MSSPs offer solutions designed specifically for businesses to defend against cyberattacks and physical risks like power outages and natural disasters and network systems and information. ISVs working with MSSPs frequently incorporate protocols for data backup and restoration, disaster recovery, and risk reduction. Intrusion detection, vulnerability and risk assessments, managed firewalls, and virtual private networks are common extra services offered by MSSPs.

Systems integrators (SI)

SI partners provide a variety of services that aid in the integration of ISV software systems and solutions by businesses and organizations. The SI tests and verifies various system features before integrating them. While many SI partners are solely focused on systems integration, some may also simultaneously act as VARs and software vendors.

ISVs vs. independent hardware vendors

An independent hardware vendor (IHV), as opposed to an independent software vendor (ISV), creates or sells computer hardware and equipment for use in particular market niches. IHVs create hardware that is compatible with a variety of industry tools and operating systems. Equipment for desktop and laptop computers, such as graphics or sound cards, mobile network accessories, or other hardware add-ons, can also be developed and sold by hardware vendors.

As secondary suppliers for computer hardware and accessories, many IHVs also produce and distribute hardware in accordance with the guidelines of well-known and well-liked hardware manufacturers. IHVs concentrate more on the physical characteristics and compatibility requirements that make hardware systems work, even though these components support human use.


What is independent software provider?

An independent software vendor (ISV) creates and markets software applications that work with a variety of hardware and operating system (OS) platforms. ISVs typically work with a hardware, software, or cloud platform provider to provide software.

What is an ISV example?

ISV definition: A software developer is an independent software vendor. It alludes to a business that focuses solely on software and is not a hardware or computer systems manufacturer.

What is the difference between ISV and SaaS?

The inline geometric dimension measurement system from ISV is a non-contact inline measurement system that is based on laser measurement and vision inspection technology, enabling inline inspection of the body in white and key components.

What does a software vendor do?

An independent software vendor (ISV) creates and markets software applications that work with a variety of hardware and operating system (OS) platforms. ISVs typically work with a hardware, software, or cloud platform provider to provide software.

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