Since the 1990’s when Office became the default productivity suite for nearly every business, companies have gone “all-in” on Microsoft.
By Richard Firth, CEO of MIP Holdings
Over the past 20 years, businesses got even more deeply embedded in the Microsoft ecosystem with products like Exchange and Sharepoint, leading to today’s Microsoft-everything operating environments.
With its full stack approach, there’s no doubt that Microsoft offers an “easy button” for IT, but the same predictability that makes Microsoft products the go-to option for enterprises across the world is also hindering innovation. Microsoft tools are designed for predictability and conformity. This creates consistent workflows, but also boxes users into rigid formats. There’s limited room to break the mould or try radically different approaches inside these ecosystems, but creativity needs friction and freedom, both of which are minimised in overly-templated tools.
If it ain’t broke …
Today’s over-reliance on Microsoft products is an extension of a mentality that has been hindering innovation for decades. “Nobody gets fired for buying IBM” has been a steadfast mantra in the tech industry, underscoring the inclination to choose established, reliable vendors to sidestep blame when issues arise.
This has started changing in some industries where out-of-the-box tools won’t work, but most companies rarely even think about using alternate solutions. Some may experiment with competitive products in an effort to save money, but only a tiny minority unlock innovation through custom software. The perception is that custom-developed solutions are expensive and hard to maintain, so most organisations never even look at the benefits they can get from tailor-made solutions.
In reality, custom software offers numerous advantages, including long-term cost efficiency alongside enabling innovation. Microsoft licensing can be expensive, rigid, and full of features you never use. In fact, most South African companies don’t realise the dangers of dollarizing their expense basis by paying licencing fees that are tied to currency expectations. The rand is a volatile currency, leaving organisations with much higher software bills than expected when the exchange rate changes. One dollar in September 2024 would have cost a company R17.11. In April 2025, it shot up to R19.61. While a R2.00 difference may not seem like much, it can quickly add up to thousands when a company has to pay fees for hundreds of users and multiple products.
Custom solutions put the business in control of cost, scalability, and roadmap. Custom development also provides the ability to experiment, iterate, and build novel experiences. Companies are not constrained by templates, rigid APIs, or licensing rules, allowing them to experiment and innovate.
Most importantly, custom software is designed around your users, processes, and competitive edge. Microsoft tools are built for the masses, not for a company’s specific business model or workflow.
Problems and paradoxes
Humans are great at making decisions based on their context and history, but we’re pretty bad at seeing the possibilities beyond that. This was famously illustrated by Duncker’s candle problem, which is even more relevant today than it was in 1945.
The problem is simple: Presented with a tabletop containing a box full of tacks, a candle, and a matchbook, the challenge is to find some way to use these materials to mount a candle on the wall and illuminate the room. Most people start thinking of typical ways to use the objects, such as pinning the candle to the wall, or lighting the candle and dripping wax onto the wall. The solution, ultimately, involves reconceptualising the container of the tacks as something other than a container, and treating it as a potential platform for the candle.
Replace the candle in the problem with an application in common use by businesses, and you end up with the same challenge companies face on a daily basis – how to reconceptualise their tools and technologies to become enablers of innovation and business value. You could even argue that the tendency of people to regard a certain tool as having one fixed function is the reason so many organisations suffer from an innovation paradox.
The innovation paradox is all about the mismatch between the rapid pace of technological advancements and our sluggishness in adopting them. Today’s technology ecosystems reward predictability and penalise uncertainty, stifling innovation. This paradox isn’t just limited to the contrast between cutting-edge tools and those in common use; it’s also about the ability to repurpose existing investments to better serve business needs.
To break free from the innovation paradox, we must shift our mindset and priorities. Instead of fixating solely on tried-and-true practices, we should place greater emphasis on the right tool for the job. By thinking outside of the Microsoft box, businesses can start bridging the gap between technological advancements and their practical application, creating an environment that nurtures innovation.