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Some issues to consider when deciding between building in house software or
purchase commercial off-the-shelf software (COTS) is cost, customization needs,
and time. COTS can be a quicker and more cost-effective solution than building
in-house software, but there is less ability to customize to exactly what you want
from the software. When deciding whether to purchase COTS or build in-house
software, companies also need to consider if they have the resources to properly
develop and support the software, or if they can be better served using pre-
developed and tested software. How much control is needed over the functionality
of the software, and how much the initial cost of developing vs long term cost
of maintaining are two of the biggest factors in my opinion. In-house software
will carry a greater upfront investment, as it takes time and resources to develop
and test the software. While COTS may end up costing more in the long term,
with the upfront cost of the software and possible licensing fees that follow. When
deciding to purchase commercial off-the-shelf software (COTS) or develop software
in-house, many factors need to be considered, including customization needs, cost,
expertise, and time. It has been found that developing software in-house can be
time-consuming and expensive, but it helps to control and offer customization
options over the final product. On the contrary, purchasing COTS software can be
a quicker and more cost-effective option to implement, but it may not help to
achieve the specific requirements of the organizations.
When deciding to purchase a COTS application or build in-house by evaluating
different COTS applications, it is crucial to focus on certain criteria, including;
integration, security, support, functionality, and customization. There is a need to
ask Is there a customization option for the COTS application to fit the specific
needs of the organization? Does the COTS application able to achieve the
requirements of all organizations? Does the COTS application able to achieve the
security requirements of the organizations? Does the vendor offer a high level of
technical support? Will the COTS application integrate with different existing
systems or software? The decision to purchase a COTS application or build it in-
house should be made in terms of a thorough evaluation of the available
resources, budget, and requirements of the organization. Here, conducting a cost-
benefit analysis can be effective in comparing the benefits and costs of each
option and a team with relevant experience in procurement and software
development must be considered to make an informed decision. Some issues to
consider when deciding to either build in house software or purchase commercial
off the shelf software is budget, time, expertise level and customization / control.
When considering in house software, it can end up being more expensive because
you have to pay the team designing the software versus a one-time cost of
commercial off the shelf software. It will also be more time consuming to have a
team take the time to build an in house software. So, if you are looking for
lowest cost and quickest time then you are going to want to go with COTS,
however some things to consider are: will it grow with your business needs, will
there be software update issues, how long and how interruptive will the updates
be? .Taking all things into consideration, if a business could afford to build in
house software I would definitely go with that. It allows for business
customization and it can grow with the business needs. Although the cost will be
higher initially, long term cost would be lower because you would avoid any
subscription costs that may be associated with COTS. The issues that a business
should consider the most when determining to build software or purchase
commercial-off-the-shelf-software is budget and expertise. It is important to review
all the details of a COTS provider so that once it's integrated it doesn't create
issues with the current system; if problems arise with system compatibility it could
be costly to resolve. Budget ties in with a business's ability to support a skilled
IT team. Relying on in-house IT professionals that are not specifically specialized
to build software customized to the system could result in configuration issues that
will impact the business.I would first evaluate the funds available for this project
next is to review the business goals; what the business expects and intends to
achieve with the new software. Another significant criterion to explore is the
current system, would it be more difficult to design in house or easier to
outsource software based on the details of the current system.I would choose
COTS if the business can't support a team to build software and doesn't require
much customization. Otherwise building software in house would be the best
option, because the business can make sure that the software will be fully
customized to the current system. When it comes to choosing to build your own
personal software, or to use commercial software, there can definitely be a lot of
pros and cons to each side. On one hand, one of the great advantages is
customization. Because you’re building the software you’re able to make it
however you want and you’re able to get the exact idea that you’re thinking of
when working with the developers. One of the issues, however, is based on your
own coding abilities is going to limit how practical or effective it may be for
security. On the other hand, if you purchase a commercially made application, then
you’re going to have the advantages of having a presumably better security
system. When major companies roll out large scale applications it has normally
been tested several times to make sure that their are as least amount of
vulnerabilities as possible. However you do have to work with whatever GUI they
give you and give up the customization flexibility that you would’ve had if you
had built it yourself. I personally would go with one that was made by large
company only because you can transfer liability, if something bad happens, to the
manufacturer because it’s their product and you're normally just using a license
for. When considering home building software or acquiring the rack software
business, an association must take into account system requests and association
requests. An organization must examine whether an activity requires tailored
assistance and whether the program can be developed internally. The client will
analyze whether the approved order is nonexclusive and whether the program
required for a cross-functional business requirement is appropriate. In addition, if
traditional and immediate access is needed for the supported assignment, minimum
IT personnel are required. The association also needs to determine if the entire
costs are a concern. In addition, the association will determine whether the system
needed is subject to specific requirements that are not accessible in current systems
and has the properties, and the personnel and can produce the system without
planning. The association has to determine where a system can be obtained
following an examination of the accessible alternatives.In order to achieve an
association's system, the services providers, packaged software suppliers, consultants,
distributors, open-source software, or in-house engineers must scan. The company
of rack software (COTS) is the subject of most associations. Price, availability,
seller support, merchant reasonability, adaptability, documentation, reaction time, and
ease of installation are the requirements to decide on the best COTS. The cost of
creating an optimal structure is important. A company has to think about the
whole licensing and revision costs. Feature refers to the system's highlights to
execute the required basic and mandatory undertakings. If the program is re-
appropriated, merchant assistance is crucial. This includes installation, training, staff,
and after installation continuous support. The profitability of merchants should be
taken into account on the grounds that small companies and business visionaries
produce a creative vast amount of software and applications for the tech industry.
A company should be aware of a certain seller's continued support. Adaptability is
important to a program as it defines the suitability and versatility of the
organization. Documentation consists of manuals and technical archives which are
hard to follow by the workers of the association. Reaction time refers to the time
required to react to a customer's request. Finally, the simplicity of installation
makes the software difficult to operate. This base needs to be assessed urgently in
order to give the company a serious edge over rack software. I do apologize
about the later entry here, I had a roommate issue and is now sorted out as in
they will be removed from the property. Anyways, to the discussion.Building in
house software vs, using software that was made by a software maker already, is
not always bad at weighing out what to do. Let’s start by looking at the building
your own software, it would be a good idea to build your own software within a
company if you need like a POS system, depending on your abilities, you may or
may not be able to actually have a credit card processing system, or may end up
with a preexisting piece of software. Now looking at using premade software,
there may be a software out there that may work well with your application but
may need to pay a monthly due to use the software, or you may have to
purchase a full version for each computer that will have the software on it. This
would be the downside to using prebuilt software, because there is always a cost,
there is not really an open-source market anymore, since everyone figures just
lifting there finger even once is worth a dollar.
What I would do, is I would personally develop my own in-house software, then
use a credit card processing software and integrate it in with my POS system.
The criteria to keep the long term cost low is the goal and the immediate cost
may be a little up there, but that is only temporary. That is to build and develop
the software.
Personally I would rather build than use premade, building your own makes it
easier to not pay for subscriptions or other pieces of software. I believe there are
a few issues to consider when deciding to build a in-house software. The issues
being mainly control and cost. The ultimate aim is to make the cost as small as
possible by providing high control. If it is for a internal reason then the in-house
build software is the best due to the amount to be spent on a particular project
being known in advance. Implementation time will also be lower for this kind of
software. The main concern with this is the requirement of very good developers
who don't come at a cheaper rate. A COTS product is generally a software or
hardware product specified for a particular use to people. These are developed for
immediate use. For the purpose of better functionality, all the small scale products
are grouped as a bigger one. The various strategies to consider while purchasing
a COTS application are Integration issues ,vendor support, compatibility issues,
functional requirements and quality level of the application because they provide a
overall outlook of the developed and finished application. I think of course there
are a lot of things to consider when trying to decide which way to go. The main
ones are time and money. If we are in a time crunch maybe we choose to go
with a commercial product and hope that it fits without having to tweak it
voiding any support you may need down the line. I believe money in the sense
that if you go one way over the other it costs more. Building your own seems
like it would cost more but is that just an upfront cost that pays off more with
time? Is this a small company that maybe wants its own team to build the
knowledge it takes to create and maintain it. Or is it a company that has a high
turnover and needs this system in place as soon as possible? I personally would
go with building it myself to have and retain that knowledge but again what if it
fails and you could have gotten it right out of the box and had everything work
around it instead of the other way around. When trying to determine whether to
utilize purchased COTS or build in-house, there are of course the costs to
compare and consider. The other things needing to be taken into account would
be time, resources, the organization's needs, and the ability to ride out the
inevitable waves when it all launches. By time, I mean the organization needs to
either decide to take a longer time to develop in-house, or go the faster route
with COTS. Resources refers to whether the organization happens to have some
talented IT on board to develop or if they're lacking and need to hire out for
such things. Then there are the needs to consider; if the organization has long-
term complex goals in mind, an in-house system may be a safer investment,
whereas the simpler businesses can be very successful using COTS. In either case,
there are going to be growing pains and as some of us learned in security
systems classes; the organization needs to have the ability financially and
systemically to function regardless of the new developing systems. We should look
at some pros in cons when it comes to building software in comparison to buying
commercial-off-the-shelf (COTS) software. When deciding to go in house? You're
gonna have to spend a lot of money and time and care, seeing that everything is
done correctly and efficiently.
According to Mendix, "companies have typically looked toward buying commercial-
off-the-shelf (COTS) software over the past 20-plus years."
But is it the right decision for you?
Well to many, it makes sense to go the COTS route.
Benefits of COTS:
It's readily available (product already built)
High value for solving simple solutions
Lower initial investment
Cons of buying COTS:
Frequent potential delays in software updates
Extensive customizations for IT integration
Difficulty in adapting it to your business's changing needs.
Factors of choosing COTS:
Needing predictable cost
Needing an immediate software solution
I would probably go the COTS route. The reason why is that with the increase
in difficulty in filling software developer roles (80 days to fill in comparison to
42 days for non-developer roles), I can't wait that long to have a system up and
running. During the design phase, it is important to consider the acquisition
strategies for the system. Each acquisition strategy has its advantages and
disadvantages. Building the software in house offers the benefit of designing the
software exactly how you want, it can also help to give the in house
programmers more experience. On the contrary, this approach can be time
consuming, it can also be expensive, or the project may be outside of the scope
of what the in house team is familiar with. With commercial of the shelf
products, the business will get the advantage of having an already known and
vetted product, this will also translate to more savings for the business and as
well as time. The contrast to this approach is that the company will be forced to
rely on support from the vendor, and this product might not fit as seamlessly as
needed, although there may be limited customization available for the product. If I
were asked to evaluate between choosing a COTS or developing in-house, I would
take into consideration the time alotted for the project, the cost, customization, and
how if developed in house, the skills that could be acquired and honed. When
deciding to build software in-house or to purchase COTS, there are several issues
that should be considered. Firstly, building software in-house involves a certain
level of expertise and resources. An organization should have the necessary skills,
capacity, and funds to maintain the software and its updates. On the other hand,
purchasing COTS software requires one-time payment and maybe less expensive
compared to developing in-house software. Secondly, the organization’s needs
should also be considered. If the organization’s needs are unique and requires a
high level of customization and flexibility, then developing in-house could be the
best option. However, if the organization’s needs are general, then purchasing a
COTS application may be more practical.
When evaluating several COTS applications, various criteria should be considered.
These may include the flexibility, level of customization, integration capabilities,
and user-friendliness of the software. Compatibility with the organization’s existing
systems and hardware, the vendor’s reputation, and the total cost of ownership
should also be considered. Other criteria may include security, scalability,
reliability, and technical support.
To decide between developing in-house software or purchasing a COTS application,
an organization should conduct a cost-benefit analysis. The analysis should
highlight the advantages and disadvantages of both options. Factors, such as cost,
time, resources required, level of customization, and usability, should be considered.
The organization should also assess the potential risks associated with each option
and weigh them against the potential benefits. The organization should then
evaluate the results and choose the option that provides the most value for the
money spent and aligns with the organization’s needs. When deciding to build
software in-house or purchase COTS there are a few major factors to consider. In
house development can be great when it comes to customization as your
organization may have some unique requirements that may not be available with a
COTS product. It may also take some specialized technical expertise to develop,
but if you have that expertise in house that can be a good thing (not so much
if not). Some of the downside to developing in house is it can be very costly
and time consuming. The convivence of professional services support that comes
with COTS products can be very helpful and convenient when there are technical
issues. Depending on the level of service you’ve paid for you can have SLA’s
with quick turn arounds with the vendor. When it comes to an enterprise
environment the most important thing when deciding to go with in house vs, cots
is the level of support provided. When there is an interruption to service its
imperative that you have adequate and near “real time” support with critical
applications. A Commercial off-the-shelf (COTS) software is a type of computer
application that can be purchased from any computer retailer or software vendor.
This is often a software that is standardized and mass-produced so that it can be
ready-to-use once installed on a computer. Common examples are Microsoft Office,
SAP, Quickbooks, and every other software that is ready to be installed. There are
some issues to consider when deciding to build software in-house or to purchase
COTS. First issue to consider is the cost. Building software in-house can be costly
due to the need to hire developers, purchase hardware and software licenses, and
pay for ongoing maintenance. Another issue to consider is the time to market.
Building software in-house can be time-consuming, especially if the development
team is inexperienced or the project is complex. Purchasing COTS software can
speed up deployment, but it may necessitate customization or integration with
existing systems. Another issue to consider is the Scalability. While in-house
software can be designed to scale with the needs of the organization, adding new
features or supporting new business requirements can necessitate significant
development efforts. COTS software is easier to scale, but it may also have
limitations that prevent it from meeting the needs of the organization as it grows.
There are many issues to consider when deciding to build software in-house or to
purchase commercial off-the-shelf- software (COTS). The ultimate goal is to
minimize costs by providing high control flow. For internal purposes, in-house
software builds may be best because the amount of time spent on a project can
be determined in advance and implementation time will also be lower. The biggest
issue with in-house software builds is the need for developers who are very good
at their job and therefore can charge a premium for their services. Commercial off-
the-shelf (COTS) software is typically geared towards a specific and particular use
and can be implemented immediately. For better functionality all the small-scale
products are grouped into one larger product. Things to consider when purchasing
a COTS application are possible integration and compatibility issues, vendor
support, functionality, and quality of the application.
The final decision between building in-house and purchasing COTS software should
be determined by evaluating the projected cost, time, functionality, integration, and
support of both options. These factors will make it clear which option is best
suited to the organization. Sometimes a combination of both options works best,
by starting with a COTS software solution and then tailoring it to fit the
organization’s specific requirements. When deciding to build software in-house or
purchase a commercial copy, one of the main factors to consider is cost.
Developing in-house can be expensive, especially if you need to hire additional
staff or purchase equipment. Purchasing a COTs solution may be more cost-
effective in the short term, but not be as customizable as an in-house solution.
Time is another in-house factor to consider. Developing software in-house can be
a time-consuming process, especially if you need to train staff or hire additional
help. Purchasing COTs can be implemented quickly but may require time to
implement customizations. Maintenance, Support, Scalability, and Integration are all
things to consider before developing in-house or purchasing a COTs solution. If
asked to evaluate several COTs applications and choose between developing in-
house or purchasing, the COTs solution should meet the functional requirements of
the organization. If so, then it might be a good fit. The level of customizability
of the COTs is another thing to consider. If the COTS solution requires extensive
customization, then it may be more practical to develop it in-house. The level of
security and compliance is a factor to consider. The COTs solution should meet
the security and compliance requirements of the organization. Deciding whether to
develop in-house or purchase a COTs solution involves evaluating the
organization’s requirements, the estimated cost, the associated risks, and the
available options. When it comes to choosing COTS or in-house software, it all
depends on the budget, time frame, and man power. Everything that we do in this
world depends on these three factors when deciding to start a project. The biggest
factor is cost, will the organization have the necessary budget to take on in-house
build. If the organization have that budget then next deciding factor is do they
have the time and qualified people to build in-house software. Big organization
can handle the in-house build since they have more experience in developing and
they can meet the deadline and put the software in the market quicker. By
building in-house, organizations can make all the necessary changes and can
integrate to their system with less issues along the way. The benefits of COTS
are more lean toward smaller and less budget organizations that lack the time
frame and the people to build in-house. COTS has one huge advantage over in-
house is that it can put the software out in the market quick. With that being
the advantage smaller companies and organizations can start making revenue and
keep up with market demands. Also the second advantage of COTS is also the
cost, which is significantly less than in-house. With COTS it eliminate
maintenance, patches and updates from the organization since a its taken care of
from outside party.Overall, when it comes to choosing in-house vs COTS it
depends on the organizations. They both have advantages and disadvantages but
having the necessary money, time, and man power can determine that choice more
quicker and more effective once is decided. cost is a crucial factor. Building
software in-house requires significant financial investment in terms of development
resources, infrastructure, and ongoing maintenance. On the other hand, COTS
software often involves a one-time purchase or subscription fee, which can be
more cost-effective in the short term. Additionally, COTS software usually benefits
from economies of scale, making it cheaper compared to developing custom
Secondly, time is a vital consideration. Developing software in-house can be a time-
consuming process, requiring extensive planning, development, testing, and
deployment. COTS software, on the other hand, is readily available and can be
implemented relatively quickly, saving time and effort.Another factor to evaluate is
functionality. COTS software often provides a wide range of features and
functionalities that have been refined over time and based on user feedback. This
can be advantageous as it reduces the need for extensive customization. However,
if the specific requirements of the organization are highly unique, developing in-
house software might be more appropriate to ensure a perfect fit.
Integration capabilities are also crucial to consider. If the software needs to
seamlessly integrate with existing systems, it is important to assess whether the
COTS application offers the necessary integration options. In some cases, building
in-house software may be preferred to ensure smooth integration.
Support and maintenance are vital aspects to evaluate as well. COTS software
typically comes with vendor support and regular updates, ensuring bug fixes,
security patches, and feature enhancements. In-house software requires dedicated
resources for ongoing support and maintenance, which should be taken into account.
Ultimately, the decision between building in-house or purchasing a COTS
application should be based on a comprehensive evaluation of cost, time,
functionality, integration, and support. It is important to weigh the benefits and
drawbacks of each option against the specific needs and requirements of the
organization. In many cases, a combination of both approaches, such as using
COTS software as a foundation and customizing it to fit specific needs, may
provide the best solution. Building in-house software requires significant time,
money, and resources. It is essential to consider whether the development team has
the necessary expertise and can complete the project within the desired timeframe.
Additionally, there are ongoing maintenance and support costs to consider, which
may be higher than purchasing a commercial off-the-shelf(COTS) application. COTS
applications, on the other hand, may offer more functionality than can be
developed in-house. They are also typically quicker to implement and have lower
maintenance and support costs. However, they may not be customizable to the
same extent as in-house software, which could be a significant disadvantage. When
evaluating several COTS applications and deciding whether to develop in-house or
purchase a COTS application, several criteria must be considered. Firstly, the
software's features and functionality must align with the organization's needs.
Additionally, the cost of the software, including any ongoing licensing or
subscription fees, must be compared with the cost of developing in-house. It is
also essential to consider the vendor's reputation and support capabilities, as well
as the level of customization that is available. Ultimately, the decision of whether
to develop in-house or purchase a COTS application must be based on the
organization's unique needs and circumstances. Issues to consider when deciding to
build software in-house or to purchase commercial off-the-shelf software are cost
and capabilities. For the cost, what needs to be considered is the time and money
it will take to build your ideal software. For example, if complex enterprise-level
software is required, developing in-house will get expensive. As a result, most
companies go for third-party software, even if it could be better for the fit. For
the capabilities, will your team be capable of creating what is needed, or is there
something already on the market that can be used instead? Again, some providers
offer ways to adjust to the company's needs.
The criterion I believe is essential when looking at COTS applications or in-house
software would be functionality. What can it do already? The investment defines
the functional and technical requirements of the missions-critical function requiring
vendors to evaluate their capabilities against the requirements. Another essential
criterion is security. Is the in-house software prepared to face cyberattacks? Well-
established, reputable software vendors are more prepared to tackle cyber threats.
I would choose between the two by looking at my requirements and anticipated
future. Before investing, ensure that the team analysis has the potential to grow
and can meet the needs.
Factors Related to Custom Built vs.COTS
The problem with one size fits all is not a final solution for all businesses;
organizations build custom-developed software or buy commercial off-the-shelf
software for various reasons. For example, creating a customized application for a
complex industry due to legal and regulatory compliance becomes a priority. It
gives the organization custom solution adaptability for current and future needs. A
custom application developed from scratch requires in-house IT expertise or a third-
party vendor. It is maintained in-house, tailored to business needs that can add or
delete various settings, and serves a particular type of audience. This type of
software is not generic commercial-off-the-shelf software that can be easily
purchased online or in stores. Whereas the COTS is affordable and easy to install
and offers app support such as security and licensing, organizations embrace the
packed technology giving them a competitive advantage that saves time and
resources in building and testing the software. Furthermore, businesses do not
require unique customization and simple solution to fulfill business needs.
Issues in Custom-Built vs. the COTS
Custom build