Having done a fair bit of work with ISVs over the past couple of years. My most recent outing saw me working with an ISV in the financial services industry, whose applications sit upon IBM Power Systems running AIX.
You need fairly hefty systems and skilled resources to run their system, and as such the ISV has mostly targeted their sales resources on businesses with upwards of 1,000 staff. They did have a few clients in the 500-1,000 bracket, but generally the smaller businesses purchased applications which were cheaper to acquire and operate. Price being an important driver at the lower end of their market and hence the reason they rarely targeted this space.
However, working in collaboration with Blue Chip they have been able to significantly reduce the operational expense for new business clients by avoiding all upfront Capex, and replacing with a Cloud based Opex service. This includes full management of the underlying IT infrastructure and operating system and all at a price agreed at the start of the contract.
The result is increased sales within the 500-1,000 space and better still without discounting their product.
I want to work with more ISVs and see how we can open up their applications to a wider audience harnessing the power of Cloud. If you know an ISV that you believe could benefit from such collaboration, please get them to contact me or send me their details.