Today’s CIO faces more and more alternatives to solving particular IT problems. One of these alternatives is to choose between readily available package software or to go for custom software to fullfill a set of business needs. There are fundemental differences and a trade off between custom and packaged software but alternatives that could be referred to as the grey area between the two are also available. The final choice depends on the context of the business need and the resources available.

1. Custom vs Packaged
Software
Prepared by Selcuk Atli
Sunday, March 22, 2009

2. Custom Software
Sunday, March 22, 2009

3. Custom Software
• “Software that is developed either for a specific
organization or function that differs from or is
opposite of other already available software” Wikipedia
Sunday, March 22, 2009

4. Delivery Process
1. Initial Meeting 7. Development
2. Detailed Proposal 8. Delivery
3. Detailed Design 9. System Completed
4. Agree Contract
Sunday, March 22, 2009

5. Advantages
• Maps to business processes
• Retain competitive advantage
• Increasingly feasible
• Only necessary features
• Oversee development
• Own the software
Sunday, March 22, 2009

6. Disadvantages
• More costly
• First to try risk
• Standardization
• e.g. e-commerce plugins
• Development time
Sunday, March 22, 2009

7. Packaged Software
Sunday, March 22, 2009

8. Packaged Software
• “Software that is ready-made and available for sale,
lease, or license to the general public.” Wikipedia
• Commercially of the Shelf Software
Sunday, March 22, 2009

9. Delivery Process
1. Problem identification 7. Acquisition of service
2. Vendor search 8. Production
3. Value assessment
4. Vendor comparison
Sunday, March 22, 2009

10. Advantages
• Less costly
• No development time
• Economies of scale
• Proven technology / application
• Community support
• Integrability
Sunday, March 22, 2009

11. Disadvantages
• Not unique to business processes
• Vendor lock in
• “Realistic ability to manipulate code”
• Unexpected future updates
• Licensing problems
Sunday, March 22, 2009

12. Trends in Software Delivery
Sunday, March 22, 2009

13. Trends in Software Delivery
• The Optaros Report
• How will enterprises deliver new generation web services?
• 400 senior decision makers surveyed
• Custom / Off the Shelf NGI found to be 4:1
Sunday, March 22, 2009

14. Custom Built vs. Off the Shelf Software
Sunday, March 22, 2009

15. Custom Built vs. Off the Shelf Software
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Sunday, March 22, 2009

16. Trends in Software Delivery
• The Forrester Report
• CIO’s want suites for web 2.0
• 61% for a web 2.0 suite and large vendor
Sunday, March 22, 2009

17. Cloud Distribution of
Packaged Software
• Microsoft launches Microsoft Store
• Download and run immediately
• Re-downloadable for 5 years support
• Not entirely new
• Steam from Valve
• iPhone Appstore
• Many other small vendors
Sunday, March 22, 2009

18. The Power of Free
• The “Free is Cool” generation
• IBM Blade SDK vs Java Developer Tools
• Google: Free to Empire
• Google Office vs. Microsoft Office
Sunday, March 22, 2009

19. Custom vs. Packaged
IT Depends
Sunday, March 22, 2009

20. IT Depends
Sunday, March 22, 2009

21. IT Depends
Commodity
Sunday, March 22, 2009

22. IT Depends
Commodity
Operationally Trivial
Sunday, March 22, 2009

23. IT Depends
Commodity
Operationally Trivial
Integration
Sunday, March 22, 2009

24. IT Depends
Commodity
Operationally Trivial
Integration
Non-Strategic
Sunday, March 22, 2009

25. IT Depends
Commodity
Operationally Trivial
Integration
Non-Strategic
Time & Resource Critical
Sunday, March 22, 2009

26. IT Depends
Commodity
Operationally Trivial
Integration
Non-Strategic
Time & Resource Critical
Packaged Software
Sunday, March 22, 2009

27. IT Depends
Sunday, March 22, 2009

28. IT Depends
Niche
Sunday, March 22, 2009

29. IT Depends
Niche
Operationally Critical
Sunday, March 22, 2009

30. IT Depends
Niche
Operationally Critical
Secluded
Sunday, March 22, 2009

31. IT Depends
Niche
Operationally Critical
Secluded
Strategic
Sunday, March 22, 2009

32. IT Depends
Niche
Operationally Critical
Secluded
Strategic
Time & Resource Available
Sunday, March 22, 2009

33. IT Depends
Niche
Operationally Critical
Secluded
Strategic
Time & Resource Available
Custom Software
Sunday, March 22, 2009

34. Thanks
Questions?
Sunday, March 22, 2009

35. References
[1] - Wikipedia. Definition for: Custom Software
http://en.wikipedia.org/wiki/Custom_software
[2] - Roul Saldi. Advantages of Custom Software over Packaged Software
http://ezinearticles.com/?Advantages-of-Custom-Software-Over-Packaged-Software&id=1039975
[3] - Erick Schonfeld. The death of packaged software: Microsoft Store opens on the web for only U.S. shoppers
http://www.techcrunch.com/2008/11/13/the-death-of-packaged-software-microsoft-store-opens-on-the-web-for-us-shoppers/
[4] - Wikipedia. Definition for: Commrcially of the Shelf Software
http://en.wikipedia.org/wiki/Commercial_off-the-shelf
[5] - Richard MacManus (2007). How will enterprises deliver next generation internet applications. ReadWriteWeb
http://www.readwriteweb.com/archives/optaros_enterprise_survey.php
[6] - Richard MacManus (2007). CIOs Spurn Web 2.0 Startups - Enterprises Want Suites and Large, Incumbent Software Vendors.
ReadWriteWeb
http://www.readwriteweb.com/archives/cios_spurn_web2_startups.php
[7] - Alex Iskold (2008). The Danger of Free. ReadWriteWeb
http://www.readwriteweb.com/archives/the_danger_of_free.php
Sunday, March 22, 2009