Four categories of software:
• Off-the-shelf – Software whose licensing can be purchased from a store. This software is designed for mass-market appeal, and is often limited in the amount of customization that can be applied. It’s relatively inexpensive, and can be used to the vast majority of cases.
• Vertical-Market – Software that is designed explicitly for a specific industry (or segment of an industry). This software is often expensive (thousands of dollars per user), but addresses specialized needs and concerns not covered by off-the-shelf software. Additionally, many vertical-market software vendors offer extensive customization – this is often expensive, but less costly than developing custom software from scratch.
• Open Source – Software whose code is available freely, and can be customized to the organization’s needs. Open source software is usually available for free and can cover anything from the most general needs (operating systems like Linux and BSD Unix, web browsers like Firefox, etc.) to specialized systems (Customer Relationship Management (CRM), accounting, etc.). While the usually free licensing is attractive, Open Source software can be a potential minefield – quality of code, documentation, and support range from abysmal to excellent, depending on the program, and the quality can change unpredictably over time. Despite those caveats, there are instances where Open Source software can provide functionality to organizations that they would not otherwise be able to afford, and can also be used as a starting point for developing custom software.
• Custom Software – When no other software will meet an organization’s needs, custom software is the last resort. It’s often expensive, difficult to budget and schedule for, and costly to maintain. However, when your organization has requirements that none of the vendors out there can meet, it can be the road to fulfilling your requirements.
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