Thanks for responding. This sounds like the type of thing companies have done in cycles over the years. Some % gets dissatisfied with their vendor, so they bring in-house. That predictably sucks (distraction, can't keep up with third-party tools, etc.) and so the companies go back into the marketplace. I've even been the one building some of those internal tools. :-)
Overall, that story sounds more like the niche is not well-served by software and perhaps there is an opening for a competitor to serve them well. Or perhaps the attrition will make the incumbents improve.