Advantages and Disadvantages of Commercial Application Software



Many factors have contributed to the increased availability of commercially developed software packages. Several years ago a court decision forcing IBM to "unbundle" its software had a major impact on the growth of the software industry. Today Microsoft is experiencing similar difficulties. During the last decade companies also began to realize that developing programs in-house required a staff of highly talented and skilled programmers. Many found the cost of in-house software development prohibitive, so they began using commercially developed packages.

Other factors contributing to the increased use of commercial packages include, first, the speed at which commercial packages can be implemented. Usually less time is needed to implement a commercial application package than to develop software in-house. Second, the quality and sophistication of commercial packages means that often a commercial package will contain more features than could realistically be included in a package developed in-house. Third, the reliability of the packages can be assumed. Because the package is already on the market, presumably it will work properly (or at least well enough to be usable). The reputation of the commercial developer is on the line; therefore, the developer is eager to market a package that will work properly. Because of the strong competition in the field, commercial software developers also have an incentive to provide good quality support for the user. Software support involves a variety of services including on-site training of users and "hot line" telephone support, which allows the users to talk to a staff of trained support representatives. These support representatives are typically employees of the company that has developed the application software package, who have been trained to answer user questions and solve user problems.


While there are benefits to using commercially developed software, there are also disadvantages. A commercially developed package may not meet the user's exact needs and therefore may require extensive modification. In industry, a general rule of thumb is that about 85 percent of an application package can be used exactly as it is written. The other 15 percent of the package must be modified according to user needs. The commercially developed packages can be modified, or customized, by the developer for a user, or, in some cases, commercial software developers sell the source code to users so it can be modified to meet their needs. In addition, the customer usually depends on the vendor from whom the package was purchased to provide support. In the early days of commercial application packages, there were considerable problems in this area. Software developers did not have the personnel or the facilities to provide the needed support. Vendors would make impossible promises concerning the capabilities of their software, leaving many users highly dissatisfied. However, word quickly spread concerning unreliable software developers and vendors. Today most developers and vendors are extremely concerned about their reputations and produce and market high-quality products. Therefore, for many companies, buying and using commercial application software has become a way of life. For most companies, developing and maintaining application software has become costly; this cost can be reduced by purchasing commercial application software.


Last Update Jan.7/99