But the costs continued to rise. . . and rise. . . and rise. . .
Those teams of in-house programmers were replaced by armies of contractors and off-shore developers who customized, tweaked and upgraded the newly purchased applications. To put it bluntly business applications have been an IT disaster. It is not hard to see why.
Fact: Software vendors make money on initial sales
Result: Initial sales are driven by the addition of new features.
Fact: Software vendors make lots of money on support
Result: Upgrades justify support
Fact: Supporting multiple versions costs money
Result: Only the most recent versions are supported
Overall Result: Businesses are forced into an upgrade cycle that only benefits the software vendor and costs businesses enormous amounts of money. While initial acquisition costs have dropped the total cost of ownership has spiraled out of control.
I believe there are solutions--which I will address in an upcoming post.