UK firms move away from rip-and-replace software strategies, survey finds

More than half of UK companies have abandoned the rip-and-replace approach to software buying and are exploring alternative ways to modernise their systems in the face of the credit crunch, according to an industry survey.

More than half of UK companies have abandoned the rip-and-replace approach to software buying and are exploring alternative ways to modernise their systems in the face of the credit crunch, according to an industry survey.

The survey of 150 IT directors by infrastructure software company Software AG found that although 52% planned to modernise systems in the next three years, only 22% were planning to buy packaged applications.

This represents a drop of 17% since the last survey, which was held three years ago. Spending on developing applications in-house is also expected to drop by 17%.

Jim Close, UK country manager at Software AG, said, "Years of buying packaged systems or developing applications in-house have led to a disparate IT landscape, which is slowing businesses down."

The survey found that now one in four UK companies plans to invest in a service-oriented architecture (SOA) in the next six months, and one in five will invest in business process management (BPM) to increase performance of existing systems.

"As industries face more challenges in a slowing economy, the most successful companies will not just compete on products or ideas they have, but on how effectively they can run key operations," Close said.




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