Business app creation value chain

So we have our framework, somewhere at the bottom. We do have a set of 'ISV's (let's call them "Tier 1" ISVs), who develop business applications, and do sell them through a cahnnel. However, there are always IT development teams of big enterprises who would buy directly and build application (usually solely) for internal use. So what would a Tier 1 ISV do? Of course, one of the channels is to sell the applications to the enterprises (little more pre-boxed approach than the previous one), however this is not the only way. We can define Tier 2 ISVs (and Tier n as it goes into a loop), who integrate extend or OEM another ISV's solution. These Tier 1, 2, N ISVs do sell the results to enterprises and to middle market firms as well. These middle market customers do buy from a number of channels (and again may extend the solution). Are we ready? Clearly not, we forgotten all the VARs from the equation: they do implement solutions and do simple application development. Usually they don't sell the results to enterprises anymore, but both the middle market and the small businesses can benefit from the results. So, these small businesses buy exclusively through the VARs or they buy the retail version from some Tier few ISV as they cannot afford the overcustomized version, but are OK with the multi-tenant VAR added versions. This is how I do see the value chain for business app creation when I do own the underlying platform. Which level you think you are?

 Business Application Creation Value Chain

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