Yet big-iron systems still beat away at the heart of the vast majority of large organizations, and IBM maintains a tidy business in selling and supporting these supposed dinosaurs. Similarly, fiber optics hasn't made copper wire extinct, and object-oriented programming has hardly done away with conventional programming approaches. Somehow, however, the old stuff lumbers along and is sometimes even rehabilitated. In short, no. My favorite analogy to the world of IT has always been plumbing.
Information is water, telecom is pipes, computers and software are valves and fixtures.
But it's still processed on computers by applications, and I would argue that the best business applications around are still the enterprise packages offered by major vendors. Of course, there are exceptions for point-specific applications. This is particularly true if your culture values autonomy and decentralized purchasing over centralized control. But there are two problems with having the argument in the first place. One is that these e-procurement vendors have alliances with enterprise vendors and are reasonably happy to allow their customers to interface their systems with the broader applications suites that pull all the different kinds of information together.