Package software is software that is ready-built and designed with specific processes and functionalities.  It is different from custom software in that it is designed to be usable by a vast number of companies.  If your functionality needs are pretty basic, package software is an excellent choice.  If you need software to do very specific processes, then custom software would be the best option.

There are several scenarios in which package software is more ideal than custom.  Generally speaking, if you can find a package system that meets 90%-100% of the core functionality you require, it makes a lot of sense.  If you are adding a service or function without set processes in place, it would also make sense to adapt to a package.  The goal with package software is to get a quicker solution at a lower cost.  But package software doesn’t work for every business or every business function, and it’s not always cheaper.  So it’s necessary to understand when package software is a good choice and what the limitations are.

With package software you won’t have much control.  You can only make very limited changes and you can’t control new releases.  You have no control over release schedules or the features that will be included in the release.  You also can’t control whether you have to use the new release or not.  Most software companies won’t allow you to run a release that’s too far outdated because they don’t want to maintain older versions.  So you’re obligated to test and install each new release.  The cost and risk in implementing a new release, of which you really only need a very small portion, might be too great.  Furthermore, the package design is usually determined by demand.  And the developer will likely tailor new releases for bigger companies, or the largest part of their customer base.  This means updates are not necessarily going to be in your favor.

If you decide to customize the package on your own, there is no guarantee that the standard releases will be compatible.  Ultimately, you could end up having to re-customize and re-adjust every time there’s an update.  Depending on how much customization you need for the package to be useable, this could cost significantly more than a custom solution.  Keep in mind that your current needs aren’t all that is important.  When evaluating package software, consider the future needs of your business and the limitations you will face in customizing package software down the road.

For many businesses, custom software is what gives them an advantage over their competition.  They have created specific work flows, processes, and operate in a very particular manner.  Custom software is what allows them to work this way and ultimately it’s the tool that sets their business apart and allows them to operate successfully.  Package software just won’t work in a scenario like this because it’s too limited.  And if you try to make it work through customization, you are very likely to end up spending more time and money than you would have on a completely custom solution.

The bottom line is, package software has a place.  When functionality needs are basic, or when you need to standardize processes, package software is beneficial.  Beyond this, if you have specific needs, a unique operation, and want complete control over your systems, custom software is the best choice.  Contrary to software myths, the cost of custom software is not necessarily more expensive than package software.  Look for our next blog in which we will further discuss the Total Cost of Ownership for both package and custom software.