Saturday, January 31, 2009

Green & White

Custom Development is Dead! Long Live Custom Development!!


When you talk about how best to run a software business, we tend to hear one line again and again.

“Build a product! There’s no future in custom development anymore!”

I, myself, have been guilty of recommending this course of action to quite a few people. Lately however, it got me thinking. Why is it that custom development is considered to be a track to failure, while product development is ruling the roost? Aren’t there quite a few product companies which are closing up as well, infact, even more quickly than custom development companies? A product is a risk. If you cannot find a large enough market for it, it doesn’t even justify its costs (ROI). Sometimes, you start out building a product with all the right market knowledge and even interested buyers, but by the time the first beta of the product rolls out, the market seems to have changed and your prospective leads have dried up. So many things can go wrong in the product area as well. So why?


The answer, it seems to me, comes from who you are targeting!

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