This post originated from an RSS feed registered with Agile Buzz
by Steven E. Newton.
Original Post: Build vs. Buy -- A response
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Recently I received a copy of a memo forwarded by a CIO with
an expressed preference for moving towards buying applications over
custom building them. While I can't reprint the memo here, I do wish to
cover some of the points it made and respond to them from an alternate
perspective. The memo summarizes one case study within the company
of what is portrayed as a successful acquisition and implementation.
The application is based on a vendor product and customized in-house to a
limited extent. The case study asserts the benefits of the buy decision
over three areas -- the technology, the cost, and quality. The memo was
written by an employee was involved in the acquisition and implementation
of the software, and mostly describes the experience in positive
terms. Certain cautions are mentioned, but not explored in depth.
Technology
An application purchased from a vendor will
remain up-to-date with current technology, as long as the vendor
maintains it, but the upgrade cycle may not fit well with the business
needs, and a failed vendor can result in "abandon-ware".
Cost
A vendor can amortize the cost of software development
over all customers, but the variety of customer needs can lead to higher
overall development costs, compared to an application custom-developed
for a single business.
Quality
A product viable in the open market is percieved to
have a minimum level of quality and to conform to commercial conventions
at an affordable price. Organizations often claim to value these
things may in fact accept vendor promises. If these business have
in-house development shops that are not held to the same minimum
standards, it's a strong indicator that the value is not as great
as appearances.
Over the next few articles, I'll examine in a bit more detail the
specifics of these arguments for build vs. buy.
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