Driven by evolving customer needs and market dynamics, independent software vendors (ISVs) must confront a transformative imperative to adopt cloud solutions. Businesses increasingly demand customized, subscription-based software solutions, planning to depart from traditional licensing models. To meet these expectations, ISVs must leverage the cloud, enabling agile DevOps, seamless AI/analytics integration, and optimized cloud operations. With technology fueling innovation and resilience, organizations are turning to cloud-powered ISVs for comprehensive modernization.
India, with its current thriving tech ecosystem and vast talent pool, is well-positioned to lead this road to cloud. However, to truly leverage the cloud's potential, Indian ISVs must embrace a cloud-first approach, eschewing legacy on-premises models in favor of a more flexible, cost-effective, and future-proof cloud strategy. Let us dive into the whys and hows.
Cloud Adoption Trends in Indian ISVs
India is becoming a huge hub for ISVs after the USA, with currently over ten thousand ISVs and growing!
India's cloud market is witnessing remarkable growth. This surge is driven by the increasing digital transformation initiatives across industries, the growing need for remote work solutions, and the government's push for cloud adoption through initiatives like GCC (Government Community Cloud) and MeghRaj. According to a survey, over 60% of Indian ISVs accelerated their cloud migration plans in the wake of the pandemic.
Benefits of Cloud Adoption for ISVs
By embracing cloud, Indian ISVs can open avenues for numerous benefits, here are some:
Faster Time to Market: Cloud can help ISVs develop, test, and deploy applications without the constraints of traditional, on-premise infrastructure. By leveraging cloud services like serverless computing, containerization, and DevOps, ISVs can streamline development cycles, reducing time to market exponentially.
Digitalization Agenda: Indian ISVs are playing a crucial role in accelerating India's digitalization initiatives. This shift to a digitized economy and the growth of cloud have made SaaS the preferred software-delivery model, opening opportunities for new entrants and startups. The upward trend in digital transformation across sectors like education, healthcare, and BFSI in India is a testament to the transformative power of cloud adoption in the country.
Global Outreach: Cloud offers a borderless platform, allowing Indian ISVs to reach customers worldwide without the need for physical infrastructure in different regions. ISVs can collaborate with international partners, access global markets, and offer their solutions to a broader audience. This global connectivity brings in new opportunities for growth and expansion, positioning Indian ISVs as competitive players in the global software market.
The India independent software vendors (ISV) market is estimated to garner a revenue of around USD 1.37 Billion by the end of 2030.
Accelerated Application Development: Cloud provides a wide range of pre-built services and tools, such as analytics, AI/ML, and Internet of Things (IoT) services, which ISVs can leverage to accelerate application development. ISVs can focus on their core competencies, without the overhead of building and maintaining complex infrastructure.
Enhanced Security and Compliance: For Indian ISVs, cloud adoption is critical to adhere to the nation’s data localization mandate under the Personal Data Protection Bill. ISVs can comply with India's data sovereignty and residency norms by storing data locally, strengthening their overall compliance posture. End-to-end cloud MSPs such as Cloud4C allow ISVs and end customer businesses the choice of hosting the application landscape on any cloud, private or public in compliance with central IT laws and data sovereignty regulations. Firms can also opt for a fully managed hybrid or multi-cloud option to best suit their business and ITOps needs, integrated with advanced security and compliance-as-a-service measures. Hyperscale providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are investing heavily in security and compliance measures, offering robust data protection, encryption, and access controls.
Scalability and Agility: India is one of the major exporters of IT services worldwide, and the rising demand for value-added services (VAS) amongst the end-use industries. This in itself, raises the need for the adoption of customized software. One of the most significant advantages of cloud services is the ability to scale resources based on demand. This elasticity allows ISVs to handle fluctuations in traffic or workloads seamlessly, ensuring optimal performance and cost-efficiency. Additionally, the cloud's agility can help ISVs adapt to changing market conditions, customer needs, and emerging technologies.
The Question Remains, Why Now?
The timing for Indian ISVs to embrace cloud adoption has never been more opportune. It is driven by several key factors:
Cloud Penetration: India's cloud adoption rate is experiencing rapid growth, with the cloud market expected to reach $16.9 billion by 2025, according to IDC. This widespread cloud adoption creates ground for ISVs to deliver cloud-native solutions and capitalize on the increasing demand.
SaaS Adoption: SaaS is gaining popularity among ISVs, offering reduced costs, enhanced performance, and accelerated innovation. ISVs can generate more revenue and valuations with SaaS solutions, making it a compelling reason to move to cloud.
Advent of 5G Technology: In India, 5G tech, with its promise of ultra-low latency and high-speed connectivity, has paved a way for cutting-edge applications and services that leverage edge computing and Internet of Things (IoT) capabilities. This drives the need for ISVs to opt for cloud-based solutions that can seamlessly integrate and support these emerging technologies.
Growth of Smart City projects: This growing trend across India has created a significant need for cloud-based civic engagement and governance platforms that can facilitate efficient citizen services, e-governance, and urban management, presenting a lucrative opportunity for Indian ISVs to leverage cloud technologies.
Cost Optimization: The cloud's pay-as-you-go model enables ISVs to optimize costs, including operational costs, upfront capital expenditures, and align their infrastructure expenses with business growth, making it a financially attractive choice.
Access to Cutting-Edge Technologies: Cloud providers offer a wide range of innovative services, such as AI/ML, IoT, and data analytics, enabling ISVs to integrate these cutting-edge technologies into their solutions.
Telecom Regulatory Authority of India's (TRAI) Initiatives: TRAI has been supporting strong steps to boost cloud adoption in the telecom sector. This has driven the need for ISVs to offer cloud-powered solutions for operations support systems (OSS), business support systems (BSS), and customer experience management, enabling telecom providers to enhance their service delivery and customer engagement.
Establishment of Cloud R&D Centers: Major cloud providers such as AWS, Azure, and GCP have facilitated ISV enablement in India, providing access to resources, tools, and expertise to help in the development and deployment of cloud-based solutions.
Geopolitical Tensions: Disrupted global trade and investment heightens uncertainty for businesses. Understanding and effectively managing these interrelated challenges are crucial for ISVs as they make way in this changing market, shaped by both the pandemic and geopolitical developments.
Hyperscale Cloud Offerings for ISVs:
More and more companies are moving applications and workloads to the cloud. This may not be an absolute transition, as some workloads and applications may fit best in public clouds, others may be better co-hosted, on-premises, or on private clouds, and the rest move around in the multicloud environment. So, what are cloud hyperscalers offering ISVs:
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AWS Partner Network (APN): AWS offers a comprehensive partner program for ISVs, providing access to technical resources, go-to-market support, and co-selling opportunities. AWS also offers specialized programs and competencies for various industries and workloads, enabling ISVs to showcase their expertise and differentiate themselves in the market. |
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Microsoft Azure Marketplace: Microsoft's Azure Marketplace allows ISVs to publish and sell their solutions directly to Azure customers worldwide. They also offer tools and resources to streamline the publishing process, as well as co-selling opportunities, through Microsoft's sales channels. |
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Google Cloud Partner Advantage Program: Google Cloud's (GCP) partner program provides ISVs with technical support, training, and co-marketing resources. It also offers specialized tracks for different solution areas, enabling ISVs to gain access to additional benefits. |
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Oracle Cloud Infrastructure (OCI): ISVs make the move to Oracle Cloud due to its robust security, compliance, and data residency capabilities. Oracle's global cloud infrastructure enables ISVs to rapidly scale and expand their reach while ensuring data sovereignty and adherence to local laws. |
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Cloud4C Hybrid and Multi-cloud: A unique offering, delivering firms the choice of integrating any landscape to any cloud platform, private and public, or consolidate multiple cloud ecosystems in a tailored hybrid and multi-cloud architecture. The entire stack, involving core cloud foundations, platforms, applications, third-party ecosystems can be fully controlled and managed from a single pane of glass, powered by Cloud4C’s proprietary, autonomous Self-Healing Operations Platform (SHOPTM). This comes as a relief for ISVs mission-focused on rolling out innovations for their customers’ business-critical needs without having to worry about the IT foundations running at backend regardless of complexity and size. |
Modern cloud architectures can help with the successful shift of end-to-end processes for ISVs, by categorizing and prioritizing existing applications and workloads. Cloud service providers, after thorough assessment, may determine the right cloud platform that aligns with main business objectives and security requirements of the ISV.
Partnering for Success: Cloud4C’s End-to-End Services for ISVs
While the growing popularity of cloud cannot be undermined, there remains an underlying fact that a ‘one size fits all’ approach would not meet the unique demands of every industry. As more and more ISVs look to transform into digital-first, cloud-led businesses - predictable, transparent and sustainable cloud options will be a must. This is where an experienced cloud service provider like Cloud4C steps in!
With our expertise in cloud migration, modernization, and managed services, we can help Indian ISVs transform their mission critical operations and advance in their global expansion journey. Cloud4C's comprehensive suite of services can help ISVs to optimize cloud infrastructure and leverage the latest cloud-native technologies. Additionally, Cloud4C facilitates the transition to SaaS by offering subscription-based models, go-to-market support, and joint product offerings. Cloud4C's managed services offerings provide ongoing support, ensuring reliable and secure application performance, while providing single SLA at application login for our ISV partners. That’s not it, our in-depth understanding of regional and industry-specific compliance requirements positions us as an ideal partner for ISVs seeking to expand their global footprint.
Moving to Cloud is no longer an option for Indian ISVs; it's an imperative for growth, innovation, and sustained competitive advantage. Contact us to know more.
