ISVS AND CLOUD COMPUTING
Why should an independent software vendor (ISV) care about cloud computing? The answer is simple:
Using the cloud has the potential to increase an ISV’s revenues and/or decrease its costs. Running code
and storing data on computers in large Internet-accessible data centers owned by somebody else can
offer compelling advantages. Anyone responsible for charting the course of an ISV ought to be thinking
seriously about how cloud computing will affect their business.
One option for an ISV looking to benefit from the cloud is to exploit Windows Azure. Designed to support
highly scalable and reliable applications, Windows Azure is Microsoft’s flagship cloud platform technology.
This paper takes a look at how and why ISVs might use Windows Azure. The goal is to make clear why
cloud computing is important for ISVs and to illustrate how they might use this new platform.
Before diving into the topic, it’s worth summarizing up front some of the main ideas. Here are the key
points to understand:
A primary goal of Windows Azure is to be a platform on which ISVs can create Software as a Service
(SaaS) applications. Customers are increasingly interested in having a SaaS option for the software
they buy. To satisfy this demand and to keep pace with the competition, many ISVs will choose to
offer a SaaS version of their current or future products. Creating a SaaS application requires building a
highly scalable, highly reliable cloud-based service that can be used simultaneously by many
customer organizations. Building your own foundation for this makes no more sense than would
writing your own operating system for an on-premises application. Just as Windows provides a
foundation for traditional on-premises applications, Windows Azure can provide a foundation for
SaaS applications.
Cloud computing needn’t be an all-or-nothing proposition, and so SaaS applications aren’t the only
choice. An existing on-premises application can be enhanced with cloud-based functionality, such as
running some code or storing a subset of data on Windows Azure. This incremental approach to using
a cloud platform can save money and improve a current application’s functionality. It can also provide
a low-risk way to gain experience with this new kind of technology.
Cloud platforms aren’t useful only for firms that create end-user applications. If you’re an ISV that
provides infrastructure add-ons or developer aids for the on-premises Windows environment, it’s
likely that you can also find value-added products to create for Windows Azure. As more computing
moves into the cloud, finding these new offerings is likely to be an important way to maintain your
revenue stream.
A cloud platform such as Windows Azure is different from traditional hosting. From a technical
perspective, Windows Azure provides simpler administration, as well as services designed to create
scalable and reliable applications. The business differences include minimal up-front commitment
and easier ways to increase and decrease the computing resources your application uses. These
differences mean that Windows Azure can potentially provide better technology and lower costs for
ISV applications.
Initially, Windows Azure is likely to be used to support today’s applications in the cloud. It’s worth
pointing out, however, that cloud platforms offer services we haven’t seen before, such as access to large
numbers of cheap CPUs and massively scalable data storage. Along with support for the world we already