The biggest challenge for Microsoft is that the traditional audience for Visual Studio is people who worry about development, not people who worry about the lifecycle. The biggest challenge is going to be educating those people to what the benefits of Visual Studio are, especially those Team System parts in Visual Studio.

As for commercial vendors, you have to remember that Eclipse provides a barebones IDE. It really doesn't compete in features and functions with an enterprise IDE, nor does it try to. So what commercial vendors need to do is to focus on adding value in the form of more sophisticated capabilities on top of the commoditized base features that Eclipse provides for free.

No single factor is responsible for more wasted effort, rework, or failed projects than inadequate requirements. For many companies, improving the communication of requirements between IT and business managers-both gathering the requirements from the business and confirming understanding to the business-is the single improvement with the biggest measurable impact.