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Software

The Evolution of Software Design: Horizontal, Vertical, and Custom-Built Solutions

Strategic Insights

— 1 min read

The software design landscape has undergone a significant transformation with the advent of Windows and the emergence of "suites" of applications from major players such as Microsoft, Lotus, and Novell. This new paradigm has made it easier for developers to focus on unique aspects of their system, leading to more reliable code at a lower cost. As a result, the market has seen a proliferation of horizontal software, including contact management systems, games, and multimedia applications.

Key Takeaways:

  • Horizontal software, such as word processors, spreadsheets, and databases, has become increasingly popular due to its general-purpose nature and affordability.
  • The "suite" of applications from Microsoft, Lotus, and Novell has established a common platform and reduced the learning curve for users.
  • Development costs have decreased due to the use of sophisticated tools, leading to more reliable code and faster market adoption.
  • Vertical software, targeted at specific industries or applications, is typically more expensive and complex due to its specialized nature.
  • Custom-built software, tailored to an organization's specific needs, is often mission-critical and requires specialized support and maintenance.
  • The adoption of Windows and Windows-based packages has led to the replacement of older DOS-based systems and enabled the development of more sophisticated software solutions.
  • Sophisticated report generators and interface tools, such as Tracker for Windows, have improved the flexibility and reliability of financial systems and other applications.
  • Organizations like Grant Thornton Associates and Business Associates provide critical support, training, and backup services to users of mission-critical software systems.

Statistics:

  • 80% of the market is dominated by four high-end accountancy packages: ACCPAC, Arrow, CBA, and Nexus, with a price range of $5,000 to $30,000 per solution.
  • A typical client of Grant Thornton has a turnover of $2-$3 million and 15 employees.
  • Development time and bugs are proportional to, and often exponentially related to, the volume of code written.
  • Horizontal packages typically reach version 2 or 3 with an established user base, good feature set, and reliable and stable performance.

Sources:

  • "Tracker" system, developed by Australian company
  • Microsoft, Lotus, and Novell "suites" of applications
  • IBM's OS/2 operating system
  • "Business Associates" consultancy, Richmond
  • "Grant Thornton Associates" financial systems support, Collins Street
  • Graeme Bruce, director, Grant Thornton Associates

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