The irony is that a valid reason for in-house developers to not want to use an external product is concern about the long term support availabilty for that external project. You could make a case that this product shutting down is proof the in-house developers were right not to trust it.

I don't think that's totally fair in this case, since it seems they open sourced their software. But also, in general, I think NIH syndrom gets a bad rap. Sometimes a "worse" solution you control really is more reasonable compared to a technically superior solution made by an external company.