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At an enterprise level, Independent Software Vendors (ISVs) are organizations that create and sell software products, often specializing in specific business needs or industry verticals.  ISVs have traditionally generated their revenue through the sale of software licenses. However, the business model for many ISVs has evolved, with an increasing emphasis on service revenue for platforms requiring implementation, integration and support.  While service revenue can provide a steady income stream, an over-reliance on it can have several negative effects on corporate profitability. This document explores the challenges associated with a high service revenue contribution and its impact on profitability.

Product development from Design & Engineering to Manufacturing & Sustainment is evolving rapidly, driven by technological advancements and changing market demands. A smooth and effective transition to digital transformation isn’t just a goal—it’s now a necessity for manufacturers to remain competitive.

However, this transition comes with many challenges. As companies move to paperless manufacturing, digital thread and onward to smart factories and a Model-based Enterprise, issues arise: integration of multiple enterprise systems, AI & machine learning, cybersecurity, cloud, effective data management, the necessity for constant upskilling, and many more. In most cases, it’s simply not possible for a single vendor to offer a comprehensive solution that addresses