Support for IT companies

7 reasons why cloud giants can hurt an ISV

As a software company, you’ve probably been drawn at some point by the reputation, scale, or range of services offered by one of the major cloud providers. You might have worked with one for years, and although it once seemed like the perfect partner, you may now find yourself exploring other alternatives. In this article, we’ll take a closer look at the main challenges ISVs face when working with the big players in the cloud world.

7 Reasons Why Big Cloud Providers Can Hurt ISVs

1. The complexity of large cloud platforms

Managing services on major cloud platforms can quickly turn into a puzzle — everything is complicated and time-consuming. This complexity takes your focus away from what you do best: developing and selling software. Think about that carefully.

2. Profitability or competitiveness — should it really be a choice for ISVs targeting SMBs?

It’s well known that traditional cloud providers aren’t cheap. You often end up having to choose between maintaining healthy profit margins or offering competitive prices. It’s a tough equation to balance — and rarely in your favor.

3. Paying the price for expertise

Handling large-scale cloud environments is often less a technical challenge and more a financial one. The real cost goes beyond subscription fees — it includes salaries, certifications, and ongoing training for technical staff capable of managing such complex infrastructures.

4. Untangling the pricing puzzle

Ever found yourself lost in a cloud billing report? The pricing structures of big providers can be notoriously opaque. The result: predicting costs and estimating profitability becomes nearly impossible — a deal-breaker when your business depends on stable margins.

5. Questioning data sovereignty

Where is your data really stored and managed? In an era where confidentiality is key, knowing exactly where your clients’ data resides matters more than ever. Don’t overlook this — data location is one of your business’s most critical pillars.

6. Escaping long-term lock-in

Getting favorable pricing from the major providers often comes with lengthy contracts and long-term commitments. Consider whether that loss of flexibility is worth it — agility and adaptability are core strengths for growing ISVs.

7. Debunking the myth of premium support

Customers don’t care about ticket queues or escalation protocols — they want quick, human responses and minimal downtime. Unfortunately, what’s promised as “dedicated support” often turns into long waits, impersonal interactions, and procedural delays at the worst possible times. Sound familiar?

Conclusions

For any ISV, cloud adoption should be a journey toward growth — not a road filled with new challenges. Look for partnerships with cloud providers who truly understand your business model and the software industry’s unique demands. Choose partners who speak your language, share your goals, and help you achieve both profitability and efficiency. If you haven’t found one yet, maybe it’s time to rethink your approach.

If you want to turn your infrastructure into a tool that boosts your business profitability, download the guide:
Are you an ISV? Boost profitability by optimizing your infrastructure. It’s full of insights that might change how you view your current cloud setup.

Manuel Pérez Gómez-Miranda
February 13, 2024