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Top 3 advantages of cloud computing for ISVs

Top 3 advantages of cloud computing for ISVs

For independent software vendors (ISVs), there are distinct advantages for moving to the Cloud. Certain challenges, such as finding the resources and developers necessary to invest in cloud-based infrastructure, can make moving to the Cloud difficult.

Yet despite those challenges, established vendors keep hearing the Cloud“levels the playing field” between small to mid-sized ISVs and larger vendors. But how exactly? And is an investment in cloud-based infrastructure really worth it?

We believe it is. To convince you, we’ve laid out the top three reasons that you, an established ISV, need to begin moving to the Cloud today.

Advantage 1: Cloud Computing Drives IT Costs Down

As a small to medium-sized ISV, IT infrastructure is one of your largest costs. Before the Cloud, larger vendors could easily outspend you on infrastructure, allowing them to deliver enterprise-level solutions complete with integrated data centers that you couldn’t match. If you did invest resources in creating and maintaining a data center for your customers there was always the fear it would go unused, making your investment worthless.

With cloud-based infrastructure, you can scale your data center to the exact size and speed of access that you and your customers need. If you increase your customer base and need more capacity, you simply buy that space from an Infrastructure-as-a-Service (IaaS) partner in the Cloud. If you need to walk your storage space or speeds back a bit, you simply stop paying for those services.

Relying on cloud-based storage and services removes the guesswork from IT spending, resulting in less speculative purchases and failed IT investments. You can then direct those resources where they’ve always belonged, into developing and maintaining a quality product.

Advantage 2: Cloud Computing Makes Access and Deployment Easy

Your customers will already be impressed by their new, easy (and less cost-intensive) access to data storage. But your move toward the Cloud will also:

  • Give your customers a secure avenue to access their data and use your product over the web. Your customers can store sensitive data on-site while opening other data and business logic up to devices through the Cloud (a concept called hybrid cloud). If you use an IaaS partner to provide cloud-based access to your product, that partner will likely even handle security for you, making sure your customers’ sensitive data stays safe.
  • Allow you to instantaneously patch or update old products that you transition to the Cloud, as well as provide quick access to new, cloud-based services. Quicker updates and product launches lead to more satisfied customers, who feel you’re listening to (and meeting) their needs, as well as a speedier return on investment for new products.

And of course, deploying via the Cloud doesn’t just help you meet existing customers’ needs. It also helps you reach new customers. Which brings us to our third and final advantage...

Advantage 3: Cloud Computing Expands Your Market

An investment in the Cloud is an investment in increased sales and customer retention. It’s as simple as that.

Offering your product via the Cloud allows you to sell globally without investing a fortune in marketing, sales, and delivery. This is what industry leaders mean when they refer to cloud computing leveling the playing field for small to mid-sized ISVs. By providing a cheap, Software-as-a-Service style offering over the Cloud, you create a great jumping-on point for new customers. From there, you can sell these new customers on your pre-existing software and services.

A move to the Cloud also sends an important signal to your existing customers. It tells them your business will continue to evolve to match the market, and that an investment in your software is sustainable. You can also monetize the new, cloud-based services and products you provide, creating new revenue streams from your existing customer base.


While the Cloud isn’t a panacea for small to medium-sized ISVs, it does create some very real opportunities. And your business will fall behind if you don’t take advantage of them. You should be looking to find a partner (like who can guide your move to the Cloud and make sure your investment in cloud-based products and infrastructure successfully pays off.

Mertech Additional Resources:

This blog was updated by the author on 8/15/2020
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