• New systems can be implemented more quickly because extensive programming is not required. (Although customizations can use a lot of time)
   
• Many businesses cannot afford the staffing and expertise to develop in-house solutions or buy custom solutions
   
• COTS vendors spread their development costs across all customers who purchase their software. Thus, they can invest in continuous improvements in feature capabilities and usability that individual businesses cannot always afford.
   
• The COTS vendor assumes the responsibility for significant system improvements and error corrections. For example, COTS vendors are typically responsible for solving systemic problems such as Y2K and Euro compatibility.
   
• Many business functions within any given industry are more similar than dissimilar. Example: Business functions for organizations in the health care industry are more alike than different. It does not make good business sense for each organization to “reinvent the wheel”.

Commercial off-the-shelf’s main disadvantage is the reliance on a vendor. If the vendor is unable to keep up with client problems, system bugs, or closes shop, the early savings can easily become an unexpected expense.

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