Coming software shakeout?

http://www.fortune.com/fortune/fastforward/0,15704,1058043,00.html?cnn=yes

The above link takes you to a good article in Fortune about the state of the large-scale software industry. This article shows tremendous opportunities for smaller players.

Basically, companies are fed up with expensive, time-consuming, one-size-fits-all installations that get no results.

They also aren’t sold on open source solutions.

What they want is software as a service, not a product, something they can customize and that works out of the box. Salesforce.com is given as a great example.

To me, this points to big opportunities for small to mid-sized developers who can come up with modular, configurable, flexible solutions.

The one caveat is that an increasing number of companies are so frustrated by ‘abysmal’ external help that they are writing their own code in-house.

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  • http://www.jeebers.com dereko

    It also reinforces the idea of online software model. Great news for us as we are about to launch a new piece of software very much along this line. I think for the smaller companies the philosophy taken by 37 signals with there basecamphq product is excelent and hopefully we’ll see more like this in the future.

  • DavyT

    Sounds like what we’re doing. Can’t be doing this waiting for upgrades to fix their bugs.

  • pdxi

    I passed over a (heavily discounted) $100.00 copy of ACT! at a software store the other day, because I know that my own home-brewed solution will help me more :)