Defined as an organization that offers a software solution that runs on a third-party software or hardware platform, Independent Software Vendors (ISVs) are seizing the opportunity to leverage the cloud to rapidly grow their business and expand their offerings. But with ISVs focusing their efforts on developing and delivering software products, finding the time and resources to manage a cloud infrastructure isn’t always possible.
With cloud management services, ISVs can outsource the maintenance and management of their cloud infrastructure and environment, so they can focus their internal resources on innovating new software developments and growing their market share.
What is Cloud Management Services?
According to Gartner’s IT Glossary,1 application management is a wide variety of application services, processes and methodologies for maintaining, enhancing and managing custom applications, packaged software applications or network-delivered applications.
Cloud management services is when a third-party vendor oversees another company’s applications in a private, public, or hybrid cloud environment. Complete application support by an experienced third-party vendor (regardless of where the application resides -- your premise, our private cloud, a third-party’s cloud, or a hybrid cloud environment) provides expert technical and functional application assistance to maximize the productivity of customer software applications.
5 Key Reasons for ISVs to Consider Cloud Management Services
1. Improved Customer Satisfaction
Cloud management services provide ISVs with third-party, end-to-end cloud infrastructure and management expertise. This means that ISV team members can offload tasks like patching, replication, redundancy, and security to a third-party team of cloud experts, giving ISV staff more time to focus on internal goals, such as developing new software, troubleshooting customer concerns, and delivering applications, all of which lead to an overall improved customer experience.
2. Simpler Application Scalability
According to IDC, the independent software vendor market is expected to grow and hit $173 billion in 2019 with a Compound Annual Growth Rate (CAGR) of 19% leading into 2023.2 As an ISV grows, their IT and cloud infrastructure needs to grow with it. By partnering with a third-party cloud services provider, growing ISVs have an experienced team of cloud professionals available to be agile and help scale, maintain, and manage applications as the company grows. With the right managed services partner, adapting your current application or migrating to another application that better aligns with the changing needs of your business can be seamless.
3. Reduced Total Cost of Ownership
In our experience, Velocity has found that companies migrating to a public cloud alone achieves an average of a 40 percent reduction in Total Cost of Ownership (TCO). These savings can instead go towards upgrades that can help transform your business, through technology investments or new data collection and analytics strategies. By partnering with a cloud services provider, ISVs will further reduce TCO by only paying for the services required to run efficiently, such as by storage, features, and number of users.
4. Increased Developer Productivity
Having a cloud services provider take over the ongoing application management and data storage saves internal developers time and resources that they can spend on other tasks. With a third-party cloud provider, they ensure the data infrastructure is kept up-to-date on upgrades and compliance requirements, removing these tasks from internal employee’s workloads. This helps your business stay competitive because your team can focus on using the data to promote innovation instead of micromanaging its storage, transfer, and maintenance.
5. Enhanced Data Security
Data breaches can be extremely expensive for any business, costing an average of $3.92 million per breach according to a Ponemon Institute and IBM Security 2019 Cost of a Data Breach report.3 In addition to being a costly fix, a data breach can also negatively affect customer confidence and the likelihood they will engage with the ISV again. Partnering with a cloud services provider who understands compliance regulations and how to manage and monitor security protocols in the cloud can protect your company from costly data breaches.
Achieve Cloud Success with a Managed Services Provider
Understanding the necessity and benefits of the cloud doesn’t make the management process any easier. To help businesses get started and ensure long-term success, consider cloud management services from an experienced managed services provider like Velocity Technology Solutions, that can provide the expertise and support needed to succeed in a cloud environment.