ISVs are gaining as-a-service benefits and optimized Intel performance

In the financial services industry, full-stack as-a-service models bundle independent software vendor (ISV) hosting, technical deployment, vendor engagement, operations and support functions together into one price and service level agreement (SLA). Variations include the ISV software license and client-outsourced managed services.

These models elevate the client experience by simplifying multi-party relationships (reducing service, support and maintenance costs), enhancing product investment and engaging recurring revenue licensing.

Making the leap

The realization of these benefits depends on the readiness of ISV software to scale and how complex the preparation turns out to be. Originally developed for running on pre-cloud chipsets and distributed architectures, the software is impeded by substantial limitations, rendering it unable to take full advantage of superior cloud performance.

Client leaders expect high returns on cloud-based migration projects and cost benefits across a wide range of integrated services, but migrating software as-is rarely achieves the anticipated returns. Rationalizing ad hoc customizations and maintaining support for previous versions could easily make a full migration too expensive.

In many cases, the ROI is insufficient to warrant commitment.

Refreshing solutions

Transitioning to as-a-service models is a complex and challenging process. Vendors are faced with adapting their software to exploit cloud benefits, such as dynamic scaling, on-demand consumption and cost efficiency.

For established ISVs, maximizing aaS value requires a level of investment that could unbalance a delicately balanced product P&L. In addition, they must address the cost of cloud re-architecting, the setup for running in a cloud environment and incentives for individual client transitions.

Tuning into Intel

However, Intel can realize ISV potential and help launch the transition by enhancing software performance, utilizing its advanced libraries and system configurations, running the latest Xeon processors and injecting run-time cost relief.

That’s where Intel's expertise in tuning application consumption, compute, network and data performance, as well as targeting specific chipsets and architectures, makes a massive difference.

Tuning achieves new levels of performance and scalability without requiring a complete re-architecture.

Joining forces

AWS and Intel collaborated to create the Intel Accelerator Program. The program focuses on leveraging Intel’s latest technology to deliver best-in-class customer experiences on AWS. Targeting ISV partners, the program helps reduce the cost of service delivery, POCs and performance optimization.

Generating revenue

For many ISVs, preserving the status quo leads to fragmented support, low profitability and high maintenance costs, leaving little room for innovation or investment in new technologies.

The transition to as-a-service models opens up new revenue streams via subscription-based pricing and recurring service revenues. This generates a steady income while enhancing customer value through access to the latest features and technologies.

Facing facts

Despite ISVs having impressive account portfolios, many of their clients still run outdated, heavily customized software, which can be costly for both vendor and organization.

One remedy is to create a next-generation migration destination for end clients. However, attempts to sunset critical software are routinely met with stiff resistance, resulting in the ISV managing even more software than before.

The cost of maintaining the status quo increases over time:

• Supporting multiple past product versions and customizations results in low or negative maintenance margins.
• Client or mandatory regulatory updates require backporting to older versions, which impacts service margins.
• New product features must be implemented across several versions, which can eat into investment returns.
• The ISV product P&L erodes, investment wanes and new sales stall.
• Client costs increase, leading to poor TCO.
• The end-client’s ability to move (and confidence in moving) to the cloud to reduce costs becomes a risky proposition.
• The client is forced to upgrade or deploy new software, which is an expensive option.

Partnering with service providers who excel in hyperscaler deployment, application/database optimization, transition, migration and integrated ecosystems, is the way to go. These partners can wrap ISV solutions, presenting them as aaS models and freeing the ISV to do what it does best: take care of the industry solution.

The benefits of partnering in as-a-service delivery models

Intel is continually working with industry leaders to raise awareness of the end-to-end benefits of aaS models, as well as the associated advances that come with cloud-based AI, GenAI, ML and automation.

Its open, unified, cross-architecture programming model, oneAPI, puts transformative AI capabilities within reach of everyone. oneAPI enables users to take advantage of Intel Accelerator Engines, such as Intel AMX, to accelerate their deep learning and GenAI workloads.

In closing

In collaboration with DXC and AWS, Intel supports ISVs with incentives and domain experience to enhance existing software performance and market competitiveness. Together, they provide funding and proof-of-concept (POC) support for customers migrating and modernizing applications and infrastructure.

The Intel Customer Enablement Platform, created by DXC and hosted by AWS, streamlines ISV efforts by providing ready-to-use platforms for common applications (managed by AWS) to help maximize agility and minimize their TCO.