SaaS represents an opportunity for ISVs to fundamentally transform their business to deliver greater value to customers, sell software to a broader range of customers and streamline their internal operations. The market for software is quickly changing to demand this mode of delivery, as software buyers start considering total ownership costs, ease of use and flexibility in their purchase decisions. ISVs need to prepare for such a transition. This paper will discuss the benefits that stem from changes to an ISV’s business model (how it competes in the marketplace) and operating model (how the ISV executes on its business model) as well as suggestions on how to prepare for a SaaS transition, based on the experience of 20 ISVs who successfully transitioned from a traditional software licensing and delivery model to SaaS.
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