The cost of Custom Software Development – 2nd Myth

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Of course there were horror stories with the cost of custom software development before the New Millennium, and there will be others. But since the New Millennium though, the crown of horror stories often goes to Commercial Softwares under license like Oracle, Microsoft, SAP, etc., to which many large corporations and Governments have given humongous mandates (often outrageous purchase orders).

Evidently, the vast majority of commercial softwares’ exaggerated costs and deadline overruns come from integration and personalization; services normally de facto included within the cost of custom software development mandates but which we don’t always measure accurately the impact when buying a commercial software… since everybody else has purchased it, right!

But this is not the only argument upon which commercial softwares are favourably considered for which is not sound. Here’s an overview of other unsound arguments commercial softwares are favourably considered for.

 

Prejudice, when you get a hold on us !

If I buy a commercial software, it will be cheaper since…

  • Custom development cost >  license fee
  • Custom development time >  Integration / personalization time

We often forgot that license fees, and updates, are recurring regularly.

We need to compare apples and apples; the cost of Custom Software Development always includes the time for integration and personalization of specific functionalities required.

 

The adaptation of the commercial software to my business reality can’t be that much expensive. This commercial software should properly meet all my business needs.

  • Integration
  • Personalization
  • Update

One must assess and include integration, personalization and updates in the cost of a commercial software, exactly like when assessing the cost of custom software development.

Worst!  Modifications made to adapt a commercial software to specific business needs when implementing will turn into a nightmare when updates will be deployed and the supplier abandon support for the version you have deployed.

 

If a large corporation in my field of activities has implemented this commercial software, then it must be good for us, right?

Shall we remind the SAP or Oracle implementation horror stories of the last decade? In their defense, we must also recall all the many governmental mandates where the cost of custom software development while far exceeding initial estimated costs never delivered on the requirements, but let’s not politicised this post!

 

There are far less risks to buy a commercial product than to develop it

Sometimes yes, sometimes no, each case is unique.  Sometimes, it will be much faster to develop the solution envisioned from a custom development platform, and sometimes faster with a commercial software.

One must assess precisely and include integration, personalization and updates in the cost of a commercial software, exactly like assessing the cost of custom software development.

 

More than 200 clients use this product, obviously the technology must be up to date

Informal estimations rate at 50% the ratio of applications fluently used among enterprises with a more than 5-year technology.

Any doubts? Let me remind you that Windows 7 came out in 2009 and that Windows Server 2008 still serves the vast majority of enterprises in western countries, and what about BlackBerry Smartphones still being used (You said BB10?) in large corporations and Governments !

 

If we don’t modify too much the commercial platform we bought, we shall be able to migrate to new versions at low cost

To migrate at low cost, one must keep its commercial platform vanilla.

 

The commercial software that best suit our needs only comes in English, it shouldn’t be a problem to turn it multilingual

If this software’s architecture doesn’t handle multiple languages, it will be impossible to make it multilingual unless you rewrite it totally!

 

It will be easy to adapt the 25% of our product of choice which is not adequate for our business needs

Let me remind you that integration to the IT environment and personalization of functionalities to business process are never included in the license fees; and these specific services are the main reasons for cost and deadline overruns of commercial softwares.

 

If we buy a commercial software platform, there won’t be any integration problems between the different modules or systems

Effectively, there shouldn’t be any integration problems between the different modules of the same software. On the other hand, integration between different systems in place can easily be a major problem.

 

Conclusion

The paradigm upon which leans  the greatest positive prejudice in favour of commercial softwares is that an annual fixed license fee is less risky than the variable cost of custom software development.

But, where the problem lies for the commercial software is in the integration to the IT environment and personalization of functionalities to business process which are never included in the license fees and which are systematically underrated in the initial quotation.

Let me remind you that integration to IT environment and personalization of functionalities to business process are always… integrated in the cost of Custom Software Development, in fact, they are its Fortes.

Morality : Buying a reputation doesn’t always worth… the cost!

So, do not systematically fall for commercial software, try a highly skilled custom tailor… once!

 

Denis Paul & Michel

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