What is the difference between SAAS and ISV?

SaaS (Software as a Service) and ISV (Independent Software Vendor) are both services that enable users to access certain software. However, they are fundamentally different in their function.

An ISV is an organization that creates, publishes, and sells software. They usually use the cloud as a means of delivering this software to the users hence using the SaaS method.

SaaS is the method through which vendors share their products with the market. It is one of the most popular services in the world right now. According to BMC, 99% of the organizations will be using at least one SaaS solution by the end of 2021.

SaaS allows users to access the software via the internet as a service by using a subscription model. It eliminates the need to install and maintain software locally hence liberating the users from managing complex hardware and software.

Advantages of SaaS for ISVs

Most ISV companies prefer SaaS as their delivery medium. This is because SaaS comes with numerous benefits that other outdated delivery channels miss out on. Some of them are listed below.

Low Costs

The SaaS delivery model is beneficial for ISVs who earlier used to sell their software to customers for on-premise usage.  Switching to a more SaaS-based model enables ISVs to save money and time with the help of centralized software distribution and management.

Higher Customer Retention

The SaaS delivery method helps ISVs make changes and upgrades to software easily. The process becomes hassle-free because they do not need to send engineers anymore to install new upgrades physically. Instead, they can be downloaded directly via the internet by the customers.

This process is not only more convenient for the vendors but is also more comfortable for the customers. Customer retention increases owing to this quick and convenient service.


In the case of the traditional on-premise software service, access to the software was limited to a specific area. SaaS is a cloud-based delivery model which allows users to access the subscribed software from anywhere on the planet. All a user needs to access the software is an internet connection and their login credentials. Hence, most customers now prefer SaaS over on-premise solutions.

Free Trials

Free trials are one of the best ways to introduce software to a prospective customer. It is a marketing method that is known to generate good quality leads. SaaS allows ISVs to offer software subscriptions as free trials without incurring any losses.

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