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I've worked in smaller IT shops where the software engineer was the business analyst who was also the developer who (in my case) was also the DBA.

If your software engineer/business analyst is also the person writing the code, I think there are huge benefits. You simply don't lose as much in translation.

I believe that that combined type of developer job will, in fact, be a big deal over the next decade. That type of person makes a huge difference.

-mark