Independent software vendor
eye-ess-VEE
A company that builds and sells software products, often as a partner that integrates with or extends a larger platform.
ISV stands for independent software vendor. In the context of partnerships and GTM, an ISV is a software company that builds on or integrates with a larger platform. Salesforce AppExchange partners, AWS Marketplace vendors, and Shopify app developers are all ISVs in their respective ecosystems.
The term matters in partner programs. When AWS, Microsoft, or Salesforce talks about their 'ISV program,' they mean the program for independent companies that build software products for their ecosystem. These programs offer technical support, co-marketing, marketplace listing, and sometimes co-selling assistance.
For smaller companies, being an ISV in a major ecosystem provides distribution that would be impossible to achieve alone. A startup listed on the Salesforce AppExchange has access to Salesforce's 150,000+ customers.
Examples
A startup joins the AWS ISV Accelerate program.
The program provides co-selling support from AWS sales reps, marketplace listing, and access to AWS customers. When an AWS account manager identifies a need for the startup's product, they make an introduction.
An ISV builds on the Shopify platform.
The company builds an inventory management app for Shopify stores. Shopify merchants discover it through the Shopify App Store. The ISV earns revenue from app subscriptions. Shopify benefits from a more capable platform.
A large platform recruits ISVs to fill a gap.
Microsoft identifies that Teams lacks a good project management integration. They recruit ISVs building project management tools to build Teams integrations, offering API access, marketing support, and marketplace placement.
Frequently asked questions
What is the difference between an ISV and a SaaS company?
All SaaS companies are ISVs, but the term ISV is typically used in the context of platform partnerships. When someone says 'ISV,' they usually mean a software company that builds on or integrates with a larger platform ecosystem.
How do ISV partner programs benefit small companies?
Distribution (access to the platform's customer base), credibility (association with a major brand), co-selling (platform's sales team recommends your product), and marketplace listing (customers discover you through the platform's storefront).
Related terms
A third-party company that purchases a product and sells it to end customers, often adding services or bundling it with other products.
A company whose product integrates with yours, creating mutual value through a shared technical connection.
A plan for building and leveraging a network of partners, integrations, and developers that create compounding value around a platform.
A go-to-market strategy where partnerships with other companies drive customer acquisition and revenue through co-selling and integrations.
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