IT Depends: Custom vs Packaged Software

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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.

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  • IT Depends: Custom vs Packaged Software

    1. 1. Custom vs Packaged Software Prepared by Selcuk Atli Sunday, March 22, 2009
    2. 2. Custom Software Sunday, March 22, 2009
    3. 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. 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. 5. Advantages • Maps to business processes • Retain competitive advantage • Increasingly feasible • Only necessary features • Oversee development • Own the software Sunday, March 22, 2009
    6. 6. Disadvantages • More costly • First to try risk • Standardization • e.g. e-commerce plugins • Development time Sunday, March 22, 2009
    7. 7. Packaged Software Sunday, March 22, 2009
    8. 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. 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. 10. Advantages • Less costly • No development time • Economies of scale • Proven technology / application • Community support • Integrability Sunday, March 22, 2009
    11. 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. 12. Trends in Software Delivery Sunday, March 22, 2009
    13. 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. 14. Custom Built vs. Off the Shelf Software Sunday, March 22, 2009
    15. 15. Custom Built vs. Off the Shelf Software !quot;#$%%!&#!' !quot;#$%&%'#&()*+$,$-$'.& !quot;#$%&' !quot;#$%&' ()'$*+'#*+,-' ()'$*+'#*+,-' ($*+.' ($*+.' !quot;#$%&'()#'*+,#'(-.!') !quot;#$%&'()*+quot;,-$(.' !quot;#$%&' !quot;#$%&' ()'$*+'#*+,-' ()'$*+'#*+,-' ($*+.' ($*+.' !quot;#$%&'()*'#'(+,'-)!quot;#,'#,) !quot;#$%&' ()'$*+'#*+,-' ($*+.' Sunday, March 22, 2009
    16. 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. 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. 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. 19. Custom vs. Packaged IT Depends Sunday, March 22, 2009
    20. 20. IT Depends Sunday, March 22, 2009
    21. 21. IT Depends Commodity Sunday, March 22, 2009
    22. 22. IT Depends Commodity Operationally Trivial Sunday, March 22, 2009
    23. 23. IT Depends Commodity Operationally Trivial Integration Sunday, March 22, 2009
    24. 24. IT Depends Commodity Operationally Trivial Integration Non-Strategic Sunday, March 22, 2009
    25. 25. IT Depends Commodity Operationally Trivial Integration Non-Strategic Time & Resource Critical Sunday, March 22, 2009
    26. 26. IT Depends Commodity Operationally Trivial Integration Non-Strategic Time & Resource Critical Packaged Software Sunday, March 22, 2009
    27. 27. IT Depends Sunday, March 22, 2009
    28. 28. IT Depends Niche Sunday, March 22, 2009
    29. 29. IT Depends Niche Operationally Critical Sunday, March 22, 2009
    30. 30. IT Depends Niche Operationally Critical Secluded Sunday, March 22, 2009
    31. 31. IT Depends Niche Operationally Critical Secluded Strategic Sunday, March 22, 2009
    32. 32. IT Depends Niche Operationally Critical Secluded Strategic Time & Resource Available Sunday, March 22, 2009
    33. 33. IT Depends Niche Operationally Critical Secluded Strategic Time & Resource Available Custom Software Sunday, March 22, 2009
    34. 34. Thanks Questions? Sunday, March 22, 2009
    35. 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

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