As software companies continue to look for innovative methods to grow revenue and improve profitability, the Microsoft ISV Royalty program provides an excellent opportunity for partners to provide high value integrated solutions to end customers that can lower deployment costs. ISV partners are leveraging the ISV Royalty program to provide complete software solutions to customers to achieve accelerated time to value. Examples include:
- Bluespring Software: Business Process Management (BPM) solution provider focused on increasing operational efficiency and profitability for customers. Bluespring leverages Microsoft Office SharePoint Server 2007, SQL Server 2008 and Office 2007 to deliver a complete BPM solution.
- Acorn Systems: Profit Improvement solution provider that enables customers to understand where they are making and losing money and why. Acorn leverages PerformancePoint Server 2007, SharePoint 2007 and SQL Server 2008 to deliver a complete Performance Management solution to customers.
Microsoft supports ISV Partners with tools and programs to sustain the success of their businesses. Microsoft brings new revenue opportunities to ISV partners through the ISV Royalty Program. Microsoft is collaborating with a group of ISV partners to calculate a potential ‘Partner Income Statement’ for ISV Partner Solutions leveraging the ISV Royalty Program for Microsoft products. The goal of the collaboration is to assist ISV Partners with deployment, markup, revenue growth, and other assumptions. For one leading ISV Partner, we were able to collaborate to identify a potential $10 Million USD annual software revenue opportunity that may result in a customer cost savings of over $5Million USD for new solution sales. A win-win-win for the Customer, ISV Partner, and Microsoft!
One example of creative thinking from the Microsoft US Managed ISV Team was the development of a program to support Managed ISV partner revenue and profitability growth opportunities. For each ISV solution deal that results in a specific amount of ISV Royalties to Microsoft, the ISV receives a benefit to be shared with their sales team. This program has driven the right behavior with ISV partners to take advantage of new revenue and profit opportunities, while incenting the sale of high value integrated solutions to end customers.
Rodney Beverly and Shawn Toldo, US ISV Business