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Commercial off-the-shelf or commercially available off-the-shelf (COTS) products are packaged or canned (ready-made) hardware or software, which are adapted aftermarket to the needs of the purchasing organization, rather than the commissioning of custom-made, or
bespoke The word ''bespoke'' () has evolved from a verb meaning 'to speak for something', to its contemporary usage as an adjective. Originally, the adjective ''bespoke'' described tailor-made suits and shoes. Later, it described anything commissioned t ...
, solutions. A related term, Mil-COTS, refers to COTS products for use by the U.S. military. In the context of the U.S. government, the Federal Acquisition Regulation (FAR) has defined "COTS" as a formal term for commercial items, including services, available in the commercial marketplace that can be bought and used under government contract. For example,
Microsoft Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washi ...
is a COTS software provider. Goods and construction materials may qualify as COTS but bulk cargo does not. Services associated with the commercial items may also qualify as COTS, including installation services, training services, and cloud services. COTS purchases are alternatives to custom software or one-off developments – government-funded developments or otherwise. Although COTS products can be used out of the box, in practice the COTS product must be configured to achieve the needs of the business and integrated to existing organizational systems. Extending the functionality of COTS products via custom development is also an option, however this decision should be carefully considered due to the long term support and maintenance implications. Such customized functionality is not supported by the COTS vendor, so brings its own sets of issues when upgrading the COTS product. The use of COTS has been mandated across many government and business programs, as such products may offer significant savings in procurement, development, and maintenance. Motivations for using COTS components include hopes for reduction system whole of life costs. In the 1990s, many regarded COTS as extremely effective in reducing the time and cost of software development. COTS software came with many not-so-obvious tradeoffs— a reduction in initial cost and development time over an increase in software component-integration work, dependency on the vendor, security issues and incompatibilities from future changes.


Software and services

Commercial off-the-shelf (COTS) software and services are built and delivered usually from a third party vendor. COTS can be purchased, leased or even licensed to the general public. COTS can be obtained and operated at a lower cost over in-house development, and provide increased reliability and quality over custom-built software as these are developed by specialists within the industry and are validated by various independent organizations, often over an extended period of time.


Security implications

According to the
United States Department of Homeland Security The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-ter ...
, software security is a serious risk of using COTS software. If the COTS software contains severe security vulnerabilities it can introduce significant risk into an organization's software supply chain. The risks are compounded when COTS software is integrated or networked with other software products to create a new composite application or a system of systems. The composite application can inherit risks from its COTS components. The US Department of Homeland Security has sponsored efforts to manage supply chain cyber security issues related to the use of COTS. However, software industry observers such as
Gartner Gartner, Inc is a technological research and consulting firm based in Stamford, Connecticut that conducts research on technology and shares this research both through private consulting as well as executive programs and conferences. Its client ...
and the SANS Institute indicate that supply chain disruption poses a major threat. Gartner predicts that "enterprise IT supply chains will be targeted and compromised, forcing changes in the structure of the IT marketplace and how IT will be managed moving forward". Also, the SANS Institute published a survey of 700 IT and security professionals in December 2012 that found that only 14% of companies perform security reviews on every commercial application brought in house, and over half of other companies do not perform security assessments. Instead companies either rely on vendor reputation (25%) and legal liability agreements (14%) or they have no policies for dealing with COTS at all and therefore have limited visibility into the risks introduced into their software supply chain by COTS.


Issues in other industries

In the
medical device A medical device is any device intended to be used for medical purposes. Significant potential for hazards are inherent when using a device for medical purposes and thus medical devices must be proved safe and effective with reasonable assura ...
industry, COTS software can sometimes be identified as SOUP ( software of unknown pedigree or software of unknown provenance), i.e., software that has not been developed with a known software development process or methodology, which precludes its use in medical devices. In this industry, faults in software components could become system failures in the device itself if the steps are not taken to ensure fair and safe standards are complied with. The standard IEC 62304:2006 "Medical device software – Software life cycle processes" outlines specific practices to ensure that SOUP components support the safety requirements for the device being developed. In the case where the software components are COTS, DHS best practices for COTS software risk review can be applied. Simply being COTS software does not necessarily imply the lack of a fault history or transparent software development process. For well documented COTS software a distinction as ''clear'' SOUP is made, meaning that it may be used in medical devices.


Obsolescence

A striking example of product obsolescence is the Condor Cluster, a
US Air Force The United States Air Force (USAF) is the air service branch of the United States Armed Forces, and is one of the eight uniformed services of the United States. Originally created on 1 August 1907, as a part of the United States Army Sig ...
supercomputer A supercomputer is a computer with a high level of performance as compared to a general-purpose computer. The performance of a supercomputer is commonly measured in floating-point operations per second ( FLOPS) instead of million instructio ...
built out of 1,760 Sony
PlayStation 3 The PlayStation 3 (PS3) is a home video game console developed by Sony Interactive Entertainment, Sony Computer Entertainment. The successor to the PlayStation 2, it is part of the PlayStation brand of consoles. It was first released on Novemb ...
s running the Linux operating system.
Sony , commonly stylized as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. As a major technology company, it operates as one of the world's largest manufacturers of consumer and professional ...
disabled the use of Linux on the PS3 in April 2010, leaving no means to procure functioning Linux replacement units. In general, COTS product obsolescence can require customized support or development of a replacement system. Such
obsolescence Obsolescence is the state of being which occurs when an object, service, or practice is no longer maintained or required even though it may still be in good working order. It usually happens when something that is more efficient or less risky r ...
problems have led to government-industry partnerships, where various businesses agree to stabilize some product versions for government use and plan some future features, in those product lines, as a joint effort. Hence, some partnerships have led to complaints of favoritism, to avoiding competitive procurement practices, and to claims of the use of sole-source agreements where not actually needed. There is also the danger of pre-purchasing a multi-decade supply of replacement parts (and materials) which would become obsolete within 10 years. All these considerations lead to compare a simple solution (such as "paper & pencil") to avoid overly complex solutions creating a " Rube Goldberg" system of creeping featurism, where a simple solution would have sufficed instead. Such comparisons also consider whether a group is creating a make-work system to justify extra funding, rather than providing a low-cost system which meets the basic needs, regardless of the use of COTS products. Applying the lessons of processor obsolescence learned during the Lockheed Martin F-22 Raptor, the
Lockheed Martin F-35 Lightning II The Lockheed Martin F-35 Lightning II is an American family of single-seat, single-engine, all-weather stealth multirole combat aircraft that is intended to perform both air superiority and strike missions. It is also able to provide el ...
planned for processor upgrades during development, and switched to the more widely supported C++ programming language. They have also moved from ASICs to FPGAs. This moves more of the avionic design from fixed circuits to software that can be applied to future generations of hardware. COTS components are part of upgrades to the
sonar Sonar (sound navigation and ranging or sonic navigation and ranging) is a technique that uses sound propagation (usually underwater, as in submarine navigation) to navigate, measure distances (ranging), communicate with or detect objects on o ...
of United States Navy submarines."U.S. Navy Selects Lockheed Martin for Submarine Sonar Upgrades."
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See also

*
Commercial software Commercial software, or seldom payware, is a computer software that is produced for sale or that serves commercial purposes. Commercial software can be proprietary software or free and open-source software. Background and challenge While sof ...
*
Commodity off-the-shelf Commodity computing (also known as commodity cluster computing) involves the use of large numbers of already-available computing components for parallel computing, to get the greatest amount of useful computation at low cost. It is computing done in ...
* Government off-the-shelf * Non-developmental item *
Host Based Security System Host Based Security System (HBSS) is the official name given to the United States United States Department of Defense, Department of Defense (DOD) commercial off-the-shelf (COTS) suite of software applications used within the DOD to monitor, detec ...
* Independent software vendor *
Invented here Invented here or Not Invented There (NIT), an opposite of "not invented here", is a type of argument or attitude that occurs when management of an organisation is uncomfortable with innovation or development conducted in-house. Reasons this might ...
* Open Trusted Technology Provider Standard * Turnkey


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"Commercial" is not the opposite of Free-Libre / Open Source Software (FLOSS)
{{refend Procurement