Cloud Brokers: Bridging the Gap between Software Vendors and Service Providers with SaaS

By Dharmesh Mistry, ISV Practice Lead, Cognizant

It’s no secret that enterprise IT is undergoing a seismic shift – the likes of which has not been seen in years. Cloud computing has introduced a fundamental change in the way organizations do business – including how they license software and extend “as a service” software models. The days of buying and hosting software internally are numbered; in their place, we’re seeing organizations buy only the number of “seats” they require at any time, saving
money, freeing up resources for more critical core business activities and providing the flexibility to increase/decrease investments as their needs change.

Independent software vendors (ISVs) are increasingly required to act as service providers, offering new capabilities including usage monitoring and billing capabilities. This is driving a rising numbers of ISVs to leverage a software-as-a-service (SaaS) model, which is being facilitated by a new type of cloud provider: the cloud broker.

Because it is typically easier and more cost effectcive for ISVs to test various SaaS business models before committing to business processes and technology infrastructure, a cloud broker can be brought in to provide a full range of platforms and capabilities for these early rollouts. The cloud broker acts a a bridge between the ISV and cloud vendors, helping with activities including platform choices and deployment and integration of applications (IDC: Worldwide and U.S., Cloud Professional Services 2012-2016 Forecast).

Cloud brokers can also add value through their partnerships with vertical solutions providers. For example, we work with Aria Systems to provide industry-proven subscription commerce functions with Business Process as a service (BPaaS). It is part of our end-to-end portfolio of services delivered to ISVs.

Well qualified cloud brokers can ease the transition for ISVs to a profitable SaaS strategy. By using a broker-leveraged model, ISVs can drive faster revenue growth, respond to client business requirements more quickly and optimize their offerings.

Read more about how cloud brokers are helping ISVs shift to SaaS models in this white paper.

About the Author

Dharmesh Mistry

The Forrester Wave: Subscription Billing Platforms, Q4 2015

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