In Killing the Golden Goose? I talked about how the economics of buying software were pushing more companies to building instead. Here Erik Keller provides more data points. He does not really elaborate on one area where custom development has continued unabated - in a number of vertical sectors where the packaged software industry has mostly paid lip service while talking "wall to wall" coverage, "100% solutions" etc.
The sad thing is both Erik and I are package bigots - at Gartner, and before and after we have advised buyers and sellers of packages in various roles. We are not happy about the trend towards building - we all know that has its own set of thorny issues. But it is tough to fight City Hall when the data smacks you in the face.
