Someone asked me the other day whether OpenEdge is attracting new ISVs and if so where are they coming from. The answer to the first part is yes – we do attract a number of new ISVs every year who develop brand new applications using OpenEdge. As we’ve been at this for a long time, the numbers of new ISVs are nowhere near where they were back 10 to 15 years ago but there has been a steady flow each and every year for the last 5 years.
The second part of the question is more interesting; where are they coming from? The trend has clearly changed over the last 3 to 4 years. A recent industry study I saw showed a 3% decline in the number of software companies due to consolidation. Clearly fewer new ISVs are being created today than in the past and not enough to offset consolidation.
The vast majority of new ISVs over the past 3 or more years have been pure Software as a Service (SaaS) applications. Many are offshoots of existing ISVs or customers that decide they can attack a new market and create a brand new SaaS application to attract a new base of customers.
There are several advantages to starting a new SaaS enterprise, not to mention the most obvious; it is the only way to attract outside capital. Many traditional, on-premise ISVs that add a SaaS version of their application, quickly realize it is a very different business from traditional applications. Being a separate entity with separate sales, marketing, development and support has its advantages. It allows you to more rapidly respond to the needs of your SaaS customers where “service” and “speed” are the key differentiators.
So will SaaS and Cloud infrastructure accelerate the market for new ISVs? I’m not talking writing an app to monitor golf handicaps but honest to goodness business applications. I’d be interested in your views.
View all posts from Bob Palumbo on the Progress blog. Connect with us about all things application development and deployment, data integration and digital business.
Let our experts teach you how to use Sitefinity's best-in-class features to deliver compelling digital experiences.Learn More
Subscribe to get all the news, info and tutorials you need to build better business apps and sites
You can also ask us not to share your Personal Information to third parties here: Do Not Sell or Share My Info
We see that you have already chosen to receive marketing materials from us. If you wish to change this at any time you may do so by clicking here.
Thank you for your continued interest in Progress. Based on either your previous activity on our websites or our ongoing relationship, we will keep you updated on our products, solutions, services, company news and events. If you decide that you want to be removed from our mailing lists at any time, you can change your contact preferences by clicking here.