For the past seven years, corporations have deployed billions of dollars of packaged software to replace earlier custom-developed applications. Many companies are now spending 20% to 50% of their IT budgets maintaining, integrating, and upgrading existing packaged software; one midsize company spent $40M over two years. Despite the spending, most CIOs are frustrated with the current state of enterprise applications, including SCM, CRM, and e-business applications. Many have slashed spending on new applications as they direct resources to make what they already have work together. CIOs will continue this spending pattern until software providers address the issues at the core of this frustration.