This assumes that there will be off-the-shelf (OTC) packages which can speak to at least 80% or more of applications needed to run a business. It makes little sense to reinvent payroll / personnel and budget / finance when specialists have made successful businesses supplying those services for the past 25 years. Best of all worlds is to have much of the infrstructure on The Cloud if those niggling questions about security can be resolved. Perhaps the front office business needs an IT staff of developers specializing certain software, but it might be possible for companies like SAP providing the necessary components.

There are two big heartburns. SAP is one example -- it is expensive for a company to make a transition and past experience is that to make the transition successfully, it typically takes about $100 million, as in the case of major Fortune 500 companies. It would be so much better if SAP were to supply turn key solutions hosted outside the company buying the services.

The other major stumblingblock to OTC and outsourcing is the transition. It is not only expensive, but in the short term, it can be unbelievably disruptive. Very smart professional project managers need to guide such efforts with no scope creep with a very strong hand with an extremely committed businesses. Half hearted attempts badly planed are roadmaps to disaster and anyone who pursues a sloppy transition is going to pay dearly.

Doing the right thing for the long term takes a lot of courage and costs more than just money. The rewards are many, if only the transition occurs decently and in order.