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Independent software vendor (ISV)

Independent software vendor (ISV)

Noun

[in-dee-pen-dint sohft-ware venn-der]

An independent software vendor (ISV) creates, markets, and sells software that runs on one or more computer operating systems (OS) or cloud platforms. In other words, an ISV is a company that distributes its own software. ISVs often distribute their software on marketplaces. Hardware providers, operating systems, and cloud platforms can all offer ISVs on their marketplace, but they'll only accept, or ISV certify, the ones with the best or most relevant software.

Independent software vendors build software for human use, which distinguishes them from original equipment manufacturers (OEM) who normally develop software for backend use. Computer hardware and operating system companies (for example, Microsoft, Apple, and Google) often include ISVs in special partnership programs. This is because the more applications that can run on a platform, the more value it can generate for the platform provider.

When it comes to cloud computing, ISVs often sell their software on a software as a service (SaaS) basis, through platforms like SalesForce AppExchange and Microsoft Azure.

Example: Joino developed its own software, which was ISV certified on Amazon Web Services (AWS). AWS sold the software to end users, and Joino enjoyed a healthy profit.

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