Web services present independent software vendors (ISVs) with several new options to repackage applications as "hosted services" that can be sold on a per-seat, per-use, or subscription basis to existing clients and new prospects.
Here is an example of such repackaging:
Sidebar 6-6 |
This Visualize example is interesting from multiple perspectives. As a small company, Visualize needs to find ways to broaden its market share as well as ways to contain costs. By repackaging some of its software products, Visualize is hoping to make it easier for some potential buyers to use them (because those prospective buyers would not need their IT department to install and maintain the software). Making the software easier to buy should help increase market share.
From a cost-of-doing-business perspective, when Visualize ultimately lists its products in public UDDI directories, the company should be able to reduce its cost of doing business by lowering its SG&A costs. Here's how this scenario could work:
Right now Visualize markets its products using a direct sales force and business partners. But, as some of its products are listed in UDDI directories, applications will seek out Visualize services and some day negotiate how to pay for those services. When this happens, Visualize will not have to use a direct sales force for missionary sales instead, applications will find Visualize products and determine whether and how they can use them. Fewer direct sales representatives would be required to "push" Visualize products to market. |