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.