The world of technology is full of innovative software that is meant to make your business process easier. Businesses of all sizes and scales are willing to adopt newer ways to build the latest tech-powered business avenues. ‘Buy or Build’ is a common dilemma for many enterprises.
From a business point of view, software applications are either ready-made apps or custom-made software applications. You can choose the software type as per the changing business needs. In this blog post, we will be diving deep into the core types of software, differentiating factors between ready-made apps (COTS) and custom-made applications, their advantages, and real-life applications.
1. What is COTS Software?
Definition of the popularly known as COTS: “Commercial off-the-shelf is any pre-built packaged software or an application that is made to address complex challenges of business through a single application.” Most commonly known commercial off-the-shelf applications or ready-made applications are the types where businesses can choose software apps that best fit their needs.
For example, Adobe, and Microsoft are prime examples of COTS. The COTS components are ready to install, with little training & with the ability of cloud access and services of all software products. It is something available easily to the general public. Take a look at this quora answer.
COTS products must, in reality, be tailored to suit the needs of the enterprise and incorporated into current organizational structures. Extending the functionality of COTS products through custom production is also a choice, but because of the long-term service and maintenance consequences, this decision should be carefully considered.
The COTS provider accepts very few personalized features. So it presents its own collection of problems whenever there is an update in the COTS product. Apart from COTS products- there are other functionalities as well that we can add to the COTS application. With this, our goal is to make it versatile and scalable for better performance. In addition to COTS, there are other similar terms like:
- MOTS - Modifiable off-the-shelf application is based on the same foundation of COTS but the only functionality change here is in source code that can be modified as per the business-specific needs.
- GOTS - Government off-the-shelf application where the software is modified as per the government agency needs and will only be used by the public sector or government agencies.
- NOTS - Niche Off-the-shelf application which is developed by NC3A which in general terms is made to meet niche market needs.
2. What is the Difference Between COTS and Custom Software?
When you have to choose between custom software applications and ready-made commercial off-the-shelf applications, the choice is quite simple.
By the statistics, it is quite clear that businesses around the world have a special inclination toward bespoke software. Custom software applications are preferred as they are a perfect fit and streamline normal tasks without much hassle. TatvaSoft can help businesses to create modern custom build applications. Below we have tried and enlisted all the possible parameters and the comparison table between the COTS and Custom software development that can be used as best practices for businesses to progress.
Comparison Table: COTS and Custom Software Application
| Parameters | COTS | Custom Software Application |
| Business Focus | It has a generalized aim to fulfill the generic needs of businesses. | The design of custom software apps aim to cater to specific business needs effectively and timely. |
| Cost-effectiveness | COTS is not always economical. It is based on the technology chosen and implemented. | Cost depends on what features the organizations want to imbibe in their software network. It justifies the whole cost structure. |
| Time Frame | COTS is Commercially available all the time and you can utilize it directly within a short period of time. | The time for planning, development, and deployment is comparatively higher compared to others in the marketplace. |
| Free Trails | COTS sometimes offers free trials and businesses can utilize those free trials to check whether the app works in favor of their business needs or not. | The whole process involves continuous involvement of the business and hence they are free to trail anytime once the app is ready. |
| Rights Reserved | The software development company has all rights reserved for this ready-made public app. Also, in the case of licensing, we need to create one. | You are the sole owner of the application and so you have all the rights to the data sources and the application. |
With this, we have seen the major few decision-making factors that make businesses choose between the two alternatives. These clear and crisp parameters are a kind of demonstration for organizations to know what would fit their business the best. Now, if still this doubt is not clear then let us delve deeper and see what are the benefits that COTS software is capable of offering. Also, we take a view on the drawbacks of COTS and how they will affect your organization.
3. The Pros and Cons of COTS Software
Undoubtedly, software applications have become an integral part of all businesses, specifically IT-Information technology. All they did was confuse the available options were whether to buy or build. To clear this doubt, all you can do is understand the pros and cons of the COTS and then, understanding both aspects, take a decision.
So with the same thought process, here is a list of pros and cons of COTS that can be favorable for your organization. Given below are the benefits of COTS.
You need a very clear value proposition for bespoke vs. 3rd party COTS i.e. what differentiation will bespoke give, what’s the added value vs. access to existing native capabilities. It’s an interesting balance of pros and cons (short and long term) 1/2. #ecomchat
— James Gurd 🌝 Replatforming & Other Stuff (@JamesGurd) February 25, 2019
3.1 Advantages of COTS Software
1. Reduced Purchase Cost
COTS offers your business a one-time investment that reduces the overall timely costs and the client has to pay only a good amount only during the time of purchase. It is comparatively low in cost as you don’t have to spend on hardware or infrastructure for faster results.
2. Larger Technical Assistance
Your peer companies are already using the software and hence there is a wide audience available in the market to share problems and ask for customer support and assistance. A specific community is assigned that solves challenges and gives a resolution.
3. Easily Deployable
You might need special skills to install the application or manage the operating systems but may not need to deploy it once it’s ready. COTS is a ready-made public application that can be used as soon as it is installed with specialized training and support.
4. Timely Upgrades
There are regular updates available from the company that has developed the application which can be easily managed and maintained effortlessly.
3.2 Disadvantages of COTS Software
All the advantages come with some other disadvantages. So if there are advantages of COTS software then there can be limitations too. While evaluating the third-party vendors and companies before procurement, this question always gets stuck into the mind of business people on whether they should buy or build. Custom software apps are always a better way for seamless operations in businesses but why is it so can be logically justified by the disadvantages of COTS. You can read more about the benefits of Bespoke Software Over COTS in this detailed blog.
1. No Competitive Edge
You use the same software that your compelling close business competitor does. So, there is no specific advantage that your business owns up to. No competitive edge, nothing.
2. Unknown Business Roadmap
Looking at the lucrative price structure, you might end up buying software with no certain roadmap. It can be a challenge to fit the application if not planned within your business ecosystem and get results from it.
3. Unnecessary Features
When you buy a ready-made public app, it has a lot of features. Out of which only some are useful and not all of them. So these extra features that you don’t use are a waste of money.
4. Higher Cost of Installation
You may not be self-sufficient all the time to install an application or software. You may need special skills to do that. Assistance from a supervisor will require you to pay for consultation or installation which is an added charge to the budget.
5. Additional Licensing Cost
Similarly, you will have to pay additional charges in case you want a licensed version of the software or the application.
6. Monotonous
The app purchased can only be used for designated roles and functions only. You cannot modify the ready-made app as per your business needs. It is designed to be used for specific business functions only.
4. What are Off-the-Shelf Software Examples?
Knowingly or unknowingly, we have been using many COTS apps for our daily operations. These applications have simplified our way of working and are an inevitable part of our work every day. Some of these applications are:
The Microsoft Office– This includes everything from Microsoft Word, Excel, PowerPoint, One Note, Outlook, Access, and similar others.
Adobe Photoshop– This application is specifically for designers and those creative art companies and agencies who are developing creative outputs daily.
Windows Operating System– One of the most sought-after users’ needs is a high-performing and scalable operating system without which most of the businesses wouldn’t be able to work as efficiently as they are doing now.
Apart from the obvious, there are some more COTS applications that we use on a daily basis such as Norton Antivirus, TurboTax, SAP, Oracle, Intergraph SmartPlant, OmniPlan, and OmniOutliner.
5. To Sum Up
One of the pioneering Research companies- Gartner researched custom software development and the results say that the Custom software development services have grown to a market size of $70 billion and have been continuously growing at 5% per year. This research identifies the service providers in this fragmented market and analyzes how some can grow at over 20% per year. The statistics are very clear that the adoption of custom software apps is just skyrocketing. Through this blog, we are hopeful that we have enlightened you on the importance of Custom software applications and made a clear differentiation on what benefits COTS can offer. Our focus is just to showcase all the points that will be helpful to decide to utilize the application that is high-performing, scalable, and profitable.
COTS is mass-produced hence they are relatively low cost. They are very cost-effective & beneficial for small businesses. If your needs change frequently then COTS can disappoint you.
COTS can deliver effective results when your needs are urgent and absolute straight-forward requirements. But for growing business, it is challenging to pace up with commercial apps.