Can you easily downsize your product to where it's substantially less than what X, Y, and Z will want, but more than what one-man Joe is offering? This would also give you the possible future opportunity of selling more features as add-ons.
We are looking into a different product line that has reduced features for a different type of application in the same vein, but when that option was posed to our decision maker he said he wanted all our functionality and wasn't too interested in a stripped down product....