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From: ryptyde!mshapiro@nosc.mil  (Michael Shapiro)
Subject: Re: Ada is not a failure.
Date: 11 Aug 93 02:15:55 GMT	[thread overview]
Message-ID: <9si48B1w165w@netlink.nix.com> (raw)

mzwick@vitro.com (Morris J. Zwick) writes:
(regarding the cost of software development being a "sunk cost")
> 
/
> usual? Easy, because you could never sell enough to cover your costs of
> development and production. Why on earth would you invest money into somethin
> where the management says "We need $x million to develop this software. Our
> plans are to sell it at some price regardless of development costs."? If
> someone risks money, they expect a return on their investment. Otherwise, why
> invest? The gamble continues until you WIN or LOSE, not when you place the be
> on the table.
> 

A significant difference between hardware (like a car) and software is
the manufacturing cost.  Development cost itself may be similar.  If 
you're really interested in these differences, I suggest you find my 
article "Software is a product . . . NOT!" in the September 1992 IEEE 
Computer magazine (p. 128).  For reasons I discuss in the paper, I feel 
we can understand software economics much better if we treat it as a
SERVICE, not a PRODUCT.  If management accepts this attitude, I believe 
that all the aspects of the life-cycle of software become easier to 
understand and plan.

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             reply	other threads:[~1993-08-11  2:15 UTC|newest]

Thread overview: 24+ messages / expand[flat|nested]  mbox.gz  Atom feed  top
1993-08-11  2:15 Michael Shapiro [this message]
  -- strict thread matches above, loose matches on Subject: below --
1993-08-11 18:24 ADA IS NOT A FAILURE cis.ohio-state.edu!magnus.acs.ohio-state.edu!math.ohio-state.edu!cs.utexa
1993-08-10 12:00 Morris J. Zwick
1993-08-09 14:33 david.c.willett
1993-08-09 12:45 Ada is not a failure Morris J. Zwick
1993-08-09  5:12 Robert Dewar
1993-08-06 14:18 cis.ohio-state.edu!math.ohio-state.edu!uwm.edu!linac!uchinews!att-out!cbn
1993-08-05 23:25 cis.ohio-state.edu!math.ohio-state.edu!usc!elroy.jpl.nasa.gov!news.aero.o
1993-08-04 17:55 agate!library.ucla.edu!ddsw1!news.kei.com!sol.ctr.columbia.edu!math.ohio-
1993-08-03 13:28 munck
1993-07-31  2:54 Robert Dewar
1993-07-29 18:04 Woody Meeker
1993-07-29  4:09 news
1993-07-28 16:41 Wes Groleau X7574
1993-07-28  5:49 Dag Bruck
1993-07-27 13:48 Brad Wallet
1993-07-27 13:42 Morris J. Zwick
1993-07-26 22:50 cis.ohio-state.edu!magnus.acs.ohio-state.edu!math.ohio-state.edu!sol.ctr.
1993-07-26 21:15 agate!spool.mu.edu!sdd.hp.com!col.hp.com!csn!news.usafa.af.mil!kirk!cwara
1993-07-26 14:47 cis.ohio-state.edu!magnus.acs.ohio-state.edu!csn!news.den.mmc.com!iplmail
1993-07-26 13:51 David Emery
1993-07-26  7:23 agate!howland.reston.ans.net!usc!elroy.jpl.nasa.gov!nntp-server.caltech.e
1993-07-26  4:34 Gregory Aharonian
1993-07-25 12:51 agate!dog.ee.lbl.gov!hellgate.utah.edu!peruvian.cs.utah.edu!matwood
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