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Are packaged applications becoming less relevant?

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Came across this blog post by Dale Vile asking: Are packaged applications becoming less relevant?  Or are they the only way of keeping up with demand?

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  • The only thing that is changing with packaged apps is their method of delivery. The latest is being delivered incrementally on a pay-per-use basis from the cloud. No matter if they're implemented onsite or via the cloud, the requirements of IT have become so complex that packaged apps are the only way to effectively keep up.

  • Just as relevant as before, only in a different way :).
    SaaS solutions are the "new" packaged applications.

  • I would say they are still highly relevant. As has already been pointed out, the only thing that has changed is the way we deliver the packages.

  • From my perspective they are becoming more relevant as we are using more and more software in our daily lives compared to what we used before. As previous contributors have said, they are been used more as SaaS. I think in terms of specific business requirements, it is clear that packages still need a lot of customisation to satisfy the requirements but many packages are now offering this flexibility.

  • I think the best thing to happen for agility and relevance is the combination of packaged applications, SOA and SaaS... IT now has the ability to leverage the core business and technical capabilities that are captured in packaged applications in new ways by exposing them as shared services that can be more rapidly assembled into compositions or called by orchestrated business processes. And, for capabilities that are necessary but not core to the business, SaaS offers a proven delivery model that requires fewer internal IT cycles. Layer on governance and you can have assurances that your services are meeting on going need and your external service providers (Saas for example) also meet your technical and business objectives.

    In my opinion, it's these technological advancements that will make applications even more strategic to the business and it's goals.

  • From an enterprise perspective it’s the degree of exclusivity enforced by the nature of business and the financial capacity that dictates the selection of packaged application over custom made or shared services.

    Say for example a bank would hardly depend on shared services to run their business by using an external vendor where as an SMB would highly benefit from it.

    Packaged applications will exist but may morph into a loosely coupled collection of capabilities which can plug into other disparate systems.

  • As Guy says, SaaS is today's packaged application. The delivery mode and licensing models offer tremendous benefits enabled by high speed communications and the web.

    But SaaS adds an interesting variable to the traditional "build vs. buy" decision faced so often when companies evaluate their deployment alternatives. The "build" option continues to be complex, expensive and risky. And the business benefit of a bespoke application is becoming more difficult to justify as the basis for ROI when there are so many other options.

    The "buy" option has been impacted by what analysts call the Democratization of IT, or applications directly accessible and available to the business with no IT involvement. They are fast to implement, easy to use and financially attractive.

    So, packaged applications continue to be relevant and SaaS delivery is tilting decisions in their favor.

  • no they are not. as far as the trends of Buy vs. Build are concerned, the amount of Packaged IT systems (Buy) is growing while Legacy systems (Build) are declining slowly but gradually. However, current ERP systems where built for operational needs but not for flexibility. The next generation of Packaged systems will be Service based and therefore more flexible. Will future Packaged applications traditional or Saas? I agree with other commentators:The future belongs to SaaS applications. if you would like to know why read my post: Future Applications: SaaS or Traditional? http://avirosenthal.blogspot.com/2009/10/future-applications-saas-or-traditional.html

  • I think it is like a pendulum. Now the trend is more for a best of breed from few vendors. This is because people feel that the large monolithic systems are not satisfying. Within sometime we would witness a trend back because of the integration cost and complexity.
    I do not think it will ever stabilize.
    Have fun on the swing.

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