Independent software provider ISV, Independent Software Vendor

The independent vendor (supplier) of the software, ISV, Independent Software Vendor, is business designation of the companies specializing in creation or sale of the software developed to sell it in mass market or in the specialized (niche) markets. Such markets can be various, for example the software for realtors (brokers of real estate), works with schedules for personnel of hospitals, reading of a barcode, service of a warehouse and even the software for care of small children, etc.

Specialized products usually give to the organizations higher performance in work, than more generalized software, it, for example, as spreadsheets or databases as a part of office suites.

The biggest developer companies of the software, such as Microsoft and IBM, have special programs for ISV. However, ISV creates and sells software products which work on one or more computer equipment or platforms of the operating system. The companies which do platforms, such as Software AG, Salesforce, BEA Systems, Microsoft, Novell, IBM, Hewlett Packard and Apple encourage and give support to ISV vendors, is frequent with special programs of "business partnership".

In general, than there are more applications which work at the platform, especially valuable it is for clients. Of course, manufacturers of platforms, such as Microsoft and IBM create applications too, but have no resources and, in many cases, special knowledge which is required to create applications of all types.

Some ISV focus on the specific operating system, such as AS/400 for small business of IBM company for which there are thousands of applications of the created ISV. Other ISV specialize in any private application area, such as support of engineering workers, or develop the software, generally for vysokoproizvditelny Unix platforms of the automated workplace.

ISV create and sell the software which is added to software platforms. Basic manufacturers of the equipment (OEM) use components of the platform of hardware to construct the bigger products. Resellers with added value (VAR, Value Added Reseller) turn on the software of platforms in own packets of software products.

According to Institute of partner education and development, at least 50% of revenues of ISV arrive from development of proprietary solutions for the software or applications. They have a lot of knowledge of standard platforms in the market (Windows, Unix, Linux, Mac OS) and big business solutions for the software.

European market: Russia is in the lead on growth rates

Turnover of 500 largest European ISV grew by 13% in 2011 to 81.35 billion euros ($112.96 billion), according to^[1]. The last year was successful for independent software suppliers. And the highest gain was shown by small suppliers of software – at the level of 17.36%.

According to analysts, data retrieveds confirm once again the fact that the software, but not the equipment, is the driver of growth of the European IT market in general.

Despite economic instability in the Eurozone and reduction of IT of expenses in a public sector, revenues of the European ISV in 2011 continued to grow almost everywhere except for a small number of the national markets: Ireland (-3.02%) and Spain (-5.5%).

To number of the markets which showed the maximum gain of aggregate turnover of ISV, analysts referred the market of Russia, France and Great Britain which increased in 2011 by 27%, 20% and 16% respectively.

According to the expert of IT Europa Auri Aittokallio, as a rule, independent software suppliers are very steady against adverse factors and economic pressure. Nevertheless, according to him, in a number of the large companies which are engaged in similar business reductions of jobs took place.

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