Points in focus
- Business partnerships are vital for ISVs looking for scaling their business
- IVS-OEM partnerships improve user experience, reduce capital requirements, establish brand credibility, and provide access to new markets.
- An OEM partner should have hardware that is compatible with the ISVs solution, should have a proven track record, and adhere to industry standards.
Chief Knowledge OfficerStrategINK
The global Independent Software Vendors (ISV) market is expected to grow at a CAGR of 14.1% and reach a market value of USD 702.6 Million by 2030. This market was valued at USD 202.85 Million in 2019. An increase in the number of businesses adopting emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), automation, and the use of cloud services has led to a rise in market opportunities for ISVs. Even with increased market opportunity ISVs may find it difficult to grow their business. This could be due to increasing competition, shrinking margins, higher labor costs, increasing customer churn, rising customer expectations, and a rapidly evolving business environment.
There are different ways ISVs can address these challenges like investing more time and resources in product development and diversification, formulating better sales and marketing strategies, improving customer experience, and securing customer loyalty. One way for ISVs to stand out from the crowd and ensure business growth is to establish relevant business partnerships.
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Different types of ISV partnerships
Building business partnerships are vital for ISVs if they are looking to scale quickly. Below are a few business partnership models that ISVs can consider for business growth.
- Reseller Partnerships
- Original Equipment Manufacturer (OEM) Partnerships
- Payment Partnerships
- Investor Partnerships
Benefits of ISV-OEM Partnerships
ISV-OEM partnerships are beneficial for both ISVs as well as OEMs. A few ISV-OEM partnership benefits are highlighted below. ISVs can leverage these benefits to develop and sell their solutions. This will result in long-term association leading to business growth.
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How to choose the right OEM partner?
Choosing the right OEM partner is important as a wrong partnership decision can backfire. Picking out the wrong partner can cost money, time, and resources. The following points should be considered before entering into a partnership with an OEM.
- 1. The first step in the OEM evaluation process is checking the product fit. The ISVs software should be compatible with the OEMs products.
- The OEM partner should have a proven track record and adhere to industry standards.
- An OEM having an established ISV program will be more suited for partnership.
- OEMs should be able to support ISVs with integrations, and customizations and collaborate on product development
Where to look for an OEM partner?
As an ISV finding the right place to look for an OEM partner can be confusing and time-consuming. ISVs need access to the correct platforms to reach out and connect with potential OEM partners.
Different technology and business events that have the participation of industry leaders can be a good platform to reach out to potential OEM partners. Showcasing their solutions in various offline and online marketing events, and conferences can give ISVs the visibility needed to attract OEM partners.
Technology incubation programs
Various organizations and institutions have technology incubation programs that can empower entrepreneurs to grow and scale. OEMs can run their incubation programs themselves or in partnership with different institutions. Being a part of such an incubation program gives ISVs a chance to forge an OEM partnership with an industry leader.
Similar to incubation programs, being a part of a mentorship program gives ISVs access to market leaders and industry experts. The exposure and networking opportunity provided by the mentorship program can help connect ISVs with OEMs.
Market activation catalyst to boost partnership
Finding the right OEM partner is not an easy process. An ISV has to put in considerable time and effort to shortlist, reach out and enter into a successful OEM partnership. A market activation catalyst like StrategINK Startup Pulse can help ISVs get visibility in the right platforms which can help forge long standing partnerships with OEMs to boost business growth. Stay tuned to this space to know about exciting opportunities to connect with OEMs and technology business decision makers.