Posted by Charles Green on August 8, 2013
Historically, one of the main segments of the product development services (PDS) market has been software product development for independent software vendors (ISVs). My colleague John McCarthy and I have just published a report that outlines how this market is undergoing a significant shift as it splits between serving the traditional ISVs and serving what Forrester refers to as “software-is-the-brand” companies.
- The "not invented here" mentality of large ISVs.
- The number of midmarket ISVs acquired by their larger brethren.
- The high cost of sales that accompanies serving a large number of startups.
- Competition for product sustenance work that is profitable but requires hand-to-hand combat among the vendors.