Good explanation! These companies start out thinking they will make a better product than anything out there. But due to limited resources always end up with an ugly monstrosity that is hell to work with. So they end up with something more expensive (but that cost is hidden), and something worse than what's off the shelve.

I always ask them "So are we the only company in the world that is developing software?".

Tools are pretty powerful, so you build your process around them.