Bigger is not always better; this also applies to software providers. Within the context of selection projects and when it comes to a decision for a certain provider, investment security is a heavily weighted criterion. Particularly when looking to engage small software providers, prospective customers often worry that the provider’s size per se could lead to potential insolvency or a take-over by a competitor, which are then connected with the necessity of costly new acquisitions or migration projects.

As understandable as those worries are, the more false the conclusions which are drawn by the company’s IT-decision makers. This statement is based on the fact that even large software providers do not grant unconditional guarantees for the continuity of their software solutions either. Particularly along the periphery of their offer, large software providers often discontinue their products faster than a smaller sized specialist ever would; as those small specialists live off only one or a handful of products.

Obviously, even special providers withdraw products from their portfolio. However, it should be particularly noted;  when a provider offers competitive products, which build the core of their business activities, the security of investment is greater than the alleged safe harbor of a larger provider. Even if a specialist is taken over by a larger provider, the acquisition often takes place based on the specialist’s technologies or great developed products.

Placing the following questions could be helpful before making any software investments:

• Does the software product have comparative market-proven functional and technical strengths?
  
  
• Is the software product a core component of the provider’s product portfolio?
  
  
• Have investments been made in the product’s further development or has it only been maintained?
  
  
• In comparison to the market segment, is the provider’s development below average?

Only if these questions have been answered satisfactorily, do users have a minimum on investment security. The provider’s size alone isn’t suitable as a decision criterion. Source: www.barc.de