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Enterprise software is an industry of laggards
This might seem like a drastic statement to make but the reason in simple – Once a customer has invested in package or system it is expensive and quite a challenge to replace the system. Quite a few organizations are still running their main system on Mainframes and then have gone on to invest in specific packages that are built / deployed around these “Legacy” systems and having deep tightly coupled integrations with them.
Now this is on the software side, but now on the services side most consulting & IT Services companies have grown fat supporting & enhancing these applications, where the incremental value delivered for the customer organization has been limited if non existent. So not only in software product and maintenance the customers end up spending a lot in terms of support and maintenance.
The reasons for this situation to persist are many but will not focus on that here. (more…)