What It Is
An Independent Software Vendor (ISV) is a company that builds and sells software products, usually designed to integrate or extend another platform. In the B2B world, ISVs are often key players in partner ecosystems because they bring functionality and innovation that can create joint value. ISVs typically form technology partnerships to offer co-branded solutions, build integrations, and even co-sell into overlapping accounts. A strong ISV strategy can be a major driver of ecosystem-led growth.
When to Partner with ISVs
Partner with ISVs when your platform needs extended functionality that falls outside your core product roadmap, when customers request specific integrations or capabilities, or when competing platforms have richer ecosystems. ISV partnerships are valuable when building marketplace ecosystems where third-party apps add value, when entering new verticals requiring industry-specific features, or when your API strategy includes enabling external developers to build on your platform. ISVs are particularly important for SaaS platforms, cloud infrastructure providers, and enterprise software companies where ecosystem breadth drives competitive advantage.
How It Works
ISV partnerships begin with identifying software companies whose products complement your platform without competing directly. Partners integrate their software with your platform through APIs, SDKs, or native integrations. ISVs list their solutions in your partner marketplace or app directory, making them discoverable to your customers. Revenue models vary: ISVs may pay platform fees or revenue shares, platforms may refer customers to ISVs, or both companies co-sell bundled solutions. Successful ISV programs include technical documentation, sandbox environments, certification processes, co-marketing support, and joint go-to-market initiatives.
Benefits for Partner Programs
ISV partnerships extend platform value without internal development costs. They accelerate feature delivery by leveraging external innovation and specialized expertise. In partner ecosystems, active ISV communities create network effects that attract more customers and more ISVs. ISV integrations increase platform stickiness because customers build workflows across multiple connected applications. For B2B partner programs, ISVs drive ecosystem-led growth by filling functionality gaps, enabling industry-specific use cases, and providing customers with complete solutions rather than standalone products. Strong ISV ecosystems become competitive moats that are difficult for competitors to replicate.
ISV vs Platform Provider
ISVs build software applications that integrate with or extend other platforms. Platform providers build foundational infrastructure that ISVs and other partners build upon. ISVs depend on platform APIs and marketplaces for distribution. Platform providers create those APIs and marketplaces to enable ISVs. ISVs focus on specific use cases or vertical solutions. Platform providers focus on horizontal capabilities serving broad markets. In partner ecosystems, the relationship is symbiotic: platforms gain functionality through ISVs, ISVs gain distribution through platforms. Successful technology partnerships between ISVs and platforms drive mutual growth and create value neither could achieve alone.
