Upward trend in valuations of ISVs

As ISVs look at the current trends driving value of their business in market by greater adoption of new technologies and trends such as AI/Machine learning, consumption pricing and SaaS becoming the standard.

The tipping point being well and truly passed when it comes to the number of ISVs looking to transform their offerings to SaaS in 2021 (over 70% of the market). The benefits of cloud are clearly accelerating competitive advantage through speed, customer value and scalability.

The recent TechCrunch article highlights the upward trend in valuations of ISV businesses continues to track upwards for those who understand the levers in creating value.

Interesting to note that organisations are creating more value in their business via a consumption based pricing model over the traditional SaaS pricing model due to better retention numbers. That being said the type and size of customer matters when it comes to pricing models and it isn’t a one size fits all.

2021 is likely to be a watershed year for ISVs and their market value as the gap between those who have made the right investments are launched into the 15+X space and those who didn’t will be clear as day for all to see.

All that being said don’t forget the underlying principles of a successful ISV business –

• Growth is king
• Unhealthy obsession with customer success
• Create an ecosystem
• Have a pathway to profitability

Find out more about how we deliver best-in-class Cloud Solutions, unlock opportunity and accelerate business growth, together with ISVs and Microsoft.  https://eighty20solutions.com.au/isv-azure-cloud-technology/