Modernisation sees fall in packaged systems

Over half of UK companies have abandoned their approach to software buying, according to Software AG.

The business infrastructure software provider believes 'rip and replace' - the purchase of whole new systems when only one applications is needed - could be a thing of the past after it consulted 150 IT directors about their spending habits for the next three years.

The research concluded that 52 per cent of organisations would focus on modernising existing business processes during this period, as opposed to buying whole new systems.

This is a stark contrast on the previous three-year period, where only 18 per cent of companies focused on modernisation.

Software AG also found that the purchase of packaged applications is falling. While 39 per cent of those asked said they invested 'most of their software budget' in package applications, such as SAP, only 22 per cent intended to continue the practice over the next three years.

A fifth of companies said they would invest in business process management technology (BPM) over the next six months, while a quarter will invest in service-oriented architecture (SOA). One in ten organisations said that they would invest in business activity monitoring (BAM).

Country manager at Software AG, Jim Close, believes years of buying into package systems leads to confusion and is responsible for slowing business.

"Too many UK companies are sitting on an IT jigsaw. Business infrastructure technology, such as BPM and SOA, helps companies to put the pieces if the puzzle together for effective performance.

"As industries face more challenges in a slowing economy, the most successful companies won't just compete on the products or the ideas they have, but on how effectively they can run key operations. It has never been more critical to get the technology underlying the business process right," Close said.