Bridging the Gap between ISVs and the Channel

One of the biggest challenges an independent software vendor (ISV) faces is finding routes to market for its wares. One of the biggest challenges solution providers routinely face is that not enough ISVs actually have the resources required to manage a channel program.

AppDirect, a provider of on online marketplace through which cloud applications are sold and distributed, today moved to solve both those issues with the launch of a Monetization Suite of services aimed at ISVs looking to sell application software via the channel.

The core elements of the Monetization Suite are a set of reseller management tools and billing software that AppDirect is making available to every developer that participates in its marketplace. Rather than requiring each developer to build out their channel management and billing software, AppDirect co-CEO Daniel Saks said the Monetization Suite exposes those capabilities to developers as a service.

When AppDirect first launched Saks said the company was able to initially identify roughly 100 cloud applications that could be viably sold through the channel. Now there are tens of thousands of cloud applications targeting a wide variety of vertical markets and geographies. The goal behind the launch of the Monetiziation Suite is to bridge the divide between those developers and the channel in a way that frees up those developers to devote more of their resources to developing their applications versus all the infrastructure need to take them to market, said Saks.

In general, Saks noted that while many initial providers of software-as-a-service (SaaS) applications tried to sell their wares directly, most of them now recognize they need channel partners to not only land the first sale, but also make sure the customer renews. Most SaaS application providers don’t turn a profit on a deal until year two or even three of a contract. More often than not that requires a little local touch from a channel partner to make sure that renewal occurs.

At the same time, Saks noted that IT organizations are exercising more control over the acquisition of cloud applications. That means there is more emphasis on how that SaaS application will be integrated within a larger workflow process; which typically requires the integration expertise of a solution provider to actually implement.

Put all those requirements together and Saks said it’s quite clear that the future of the channel in the cloud is not only assured, it’s actually looks quite bright.