Best of Suite vs. Best of Breed: Why the question is more nuanced than you might think

The choice between an integrated software suite (such as a single large ERP vendor) and a collection of specialized best-of-breed tools is not new. Yet the debate remains highly relevant. Technology is evolving faster than ever, security requirements are becoming stricter, and budgets remain under pressure. Recent research shows that organizations are increasingly moving away from choosing one extreme or the other, instead opting for a hybrid model that aims to combine the best of both worlds.

An old debate in a new context 

For decades, the market has swung between periods in which suites dominate and phases where organizations favor specialized point solutions. Recent studies among more than 1,000 procurement and IT leaders show that only 21% of organizations still rely entirely on a single vendor. More than 70% now operate a hybrid or best-of-breed stack.

At the same time, respondents indicate that they want to simplify their IT landscapes in the coming years and reduce the number of vendors. While this may seem contradictory, it highlights a core tension: organizations struggle with both the complexity of too many standalone tools and the limitations of all-in-one solutions.

What research reveals about the trade-offs

A large-scale BCG study among more than 300 C-level IT and business leaders identifies the key considerations behind these decisions:

• Cost: seventy-five percent of respondents cite cost as their primary concern, regardless of whether they choose a suite or a best-of-breed approach.

• Flexibility: seventy percent consider technical adaptability the most important architectural criterion. Organizations with complex business models are more likely to favor best-of-breed solutions.

• Integration: both models introduce integration challenges. However, 39% of best-of-breed users spend more than 20% of their IT budget on integration, compared to 29% of suite users.

• Data: organizations use, on average, more than 1,000 applications, of which only 29% are integrated. As AI and analytics become more critical, the need for a coherent and well-governed data model increases significantly.

Industry context and specialization matter 

The optimal choice strongly depends on sector dynamics and operational complexity:

• Manufacturing and retail: between 57% and 65% favor suites, as many processes can be standardized effectively.

• Banking, financial services and telecom: around 65% to 75% prefer best-of-breed solutions, driven by regulation, rapid technological change, and IT as a core capability.

• International organizations: often require regional flexibility, making best-of-breed more attractive, while suites can play a key role in data harmonization across geographies.

The rise of the hybrid model

Modern organizations increasingly seek the stability of a suite combined with the specialization of best-of-breed tools. This approach requires orchestration: a layer that connects data, systems and processes across multiple applications. Recent research shows that orchestration technologies have already become the second-highest IT investment priority for many organizations.

Practical guidelines

For CTOs:

• Start with business strategy: which processes are core, and which are commodity?Core processes may benefit from best-of-breed solutions, while commodity processes can often be supported by a suite.

• Define clear architectural principles for data integration, security and observability.

For IT managers:

• Assess internal integration capabilities realistically. If your team struggles to manage multiple APIs and data models, a suite may be the safer choice.

• Monitor integration costs closely. If more than 20% of the IT budget goes into integration, consolidation should be considered.

For contract managers:

• In suite agreements, define exit scenarios and data ownership clearly in case best-of-breed solutions are added later.

• For best-of-breed vendors, require clear API documentation and explicit service levels for integration support.

Where OneMinded adds value

The research makes one thing clear: there is no universal answer to the question “suite or best-of-breed.” The right choice depends on industry, complexity, IT maturity and strategic ambition.

OneMinded helps CTOs, IT managers and contract managers make well-grounded decisions that start with the business question rather than the tool. We ensure those decisions are translated into concrete sourcing and contract strategies that work in practice, not just on paper.