Ep134: Prime Opportunities for ISVs by Leveraging Generative AI

AWS executives reveal how generative AI is fundamentally reshaping ISV business models, from pricing strategies to go-to-market approaches, and provide actionable insights for software companies navigating this transformation.

Topics Include:

• Alayna Broaderson and Andy Perkins introduce AWS Infrastructure Partnerships and ISV Sales
• Generative AI profoundly changing how ISVs build, deliver and market software products
• Two ISV categories emerging: established SaaS companies versus pure gen AI startups
• Legacy SaaS firms struggle with infrastructure modernization and potential revenue cannibalization
• Pure gen AI companies face scaling challenges, reliability issues and cost optimization
• Revenue models shifting from subscription-based to consumption-based pricing per token/prompt/task
• Future-proofing architecture critical as technology evolves rapidly like F-35 fighter jets
• Data becoming key differentiator, especially domain-specific datasets in healthcare and legal
• Balancing cost, accuracy, latency and customer experience creates complex optimization challenges
• Multiple specialized models replacing single solutions, with agentic AI accelerating this trend
• Human capital challenges include retraining engineering teams and finding expensive AI talent
• Security, compliance and explainability now mandatory - no more black box solutions
• Enterprise customers struggle with data organization and quantifying clear gen AI ROI
• ISV pricing models evolving with tiered structures and targeted vertical use cases
• Traditional SaaS playbooks failing in generative AI landscape due to ROI uncertainty
• POC-based go-to-market with free trials and case study selling proving most effective
• Pricing strategies include AI gates, credit systems and separate SKUs for services
• Customer trust requires proactive security messaging and auditable, transparent AI solutions
• Modular architecture enables evolution as new technologies emerge in fast-changing market
• AWS positioning as ultimate gen AI toolkit partner with ISV collaboration opportunities

Participants:

• Alayna Broaderson - Sr Manager, Infrastructure Technology Partnership, Amazon Web Services
• Andy Perkins - General Manager, US ISV, Amazon Web Services

See how Amazon Web Services gives you the freedom to migrate, innovate, and scale your software company at https://aws.amazon.com/isv/