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Custom vs Packaged
                              Software
                                   Prepared by Selcuk Atli




S...
Custom Software
Sunday, March 22, 2009
Custom Software

                    •    “Software that is developed either for a specific
                         organi...
Delivery Process
                    1. Initial Meeting     7. Development

                    2. Detailed Proposal   8. ...
Advantages
                    • Maps to business processes
                    • Retain competitive advantage
           ...
Disadvantages

                    • More costly
                    • First to try risk
                    • Standardiza...
Packaged Software
Sunday, March 22, 2009
Packaged Software

                    •    “Software that is ready-made and available for sale,
                         ...
Delivery Process
                    1. Problem identification   7. Acquisition of service

                    2. Vendor s...
Advantages
                    • Less costly
                    • No development time
                    • Economies of ...
Disadvantages

                    • Not unique to business processes
                    • Vendor lock in
               ...
Trends in Software Delivery
Sunday, March 22, 2009
Trends in Software Delivery

                    • The Optaros Report
                    • How will enterprises deliver n...
Custom Built vs. Off the Shelf Software




Sunday, March 22, 2009
Custom Built vs. Off the Shelf Software
                              !quot;#$%%!&#!'                                !quot...
Trends in Software Delivery
                    • The Forrester Report
                    • CIO’s want suites for web 2.0...
Cloud Distribution of
                              Packaged Software
                    •    Microsoft launches Microsof...
The Power of Free

                    • The “Free is Cool” generation
                    • IBM Blade SDK vs Java Develop...
Custom vs. Packaged


                             IT Depends



Sunday, March 22, 2009
IT Depends




Sunday, March 22, 2009
IT Depends
                         Commodity




Sunday, March 22, 2009
IT Depends
                            Commodity
                         Operationally Trivial




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




Sunday, March 22, 2009
IT Depends
                         Niche




Sunday, March 22, 2009
IT Depends
                                Niche
                         Operationally Critical




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

                         Questions?




Sunday, March 22, 2009
References
                         [1] - Wikipedia. Definition for: Custom Software
                         http://en.wik...
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IT Depends: Custom vs Packaged Software

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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