NSF Wants To Know How Much Software Really Costs

eldavojohn writes "It's no secret that the actual cost of software is very complicated. Sure, the companies that write software are spending money on it, but when that software is released, it doesn't stop costing money. You can probably think of a number of relatively tiny things that add up — especially if you're a system administrator — like the man-hours spent patching software to avoid a nasty infection spreading quickly. The bigger debt is that old piece of software you paid a bunch of money for back in 1998 that you're critically dependent on, but it has no support and hasn't been updated in years due to any number of reasons. Well, the National Science Foundation paid Gartner almost half a million dollars to find out what it truly costs to bring an organization to a fully supported environment. According to Gartner, this hidden liability or 'IT debt' is at $500 billion worldwide right now, and in five years it will be at $1 trillion. Along similar lines, a company called Cast that makes software quality tools reported that your average business application comes with a million in IT debt (PDF). And if that's not misapplied enough for you, they estimate that the debt is $2.82 per line of code in the application and also that it's on average higher in the government sector."

Comments

Re:Ya this is retarded

[DragonWriter]

I fail to see how this is a "debt" of any sort.

"Technology debt" (or "technical debt") is referred to as a debt because it has effects that are very similar to financial debt. First, it has a cost to resolve, which is analogous to the principal of a financial debt. Second, it has imposes ongoing costs until it is resolved, which works like the interest on a financial debt. Thirdly, the starting value of the cost to resolve -- the principal -- is often greater than the costs which could habe been paid out of pocket initially instead of incurring the debt, making it analogous to the various initial costs associate with many financial debts.

To me this sounds like the kind of thing a dumb manager would say: "You mean that price we paid for our software 6 years ago isn't the only thing it cost! Holy shit we have software debt!"

The "technical debt" terminology was invented by people who understood the technical problems and the consequences (mostly, of trying to minimize the initial costs of developing or acquiring technology-based solutions to business problems) as a means of explaining the issue to managers and executives, who generally understand financial concepts like "debt" much better than they understand technical processes.