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Software Development Tools Achieve 40 percent Improvement in TCO and ROI

Published
  • August 27 2004, 1:00am EDT

CEOs who view internal IT software development as a "money pit" should think again, according to Wayne Kernochan, president, Infostructure Associates. Infostructure Associates just issued its yearly 135-page report on the development solution industry, entitled "Web Services Development Solutions Report: Speed to Value." According to Infostructure Associates research, SMBs and ISVs that choose the right development toolset and development platform report that they are able to deliver a typical mission-critical application 9 months to 1 1/2 years faster than their competitors.

Some of the report's highlights include:

  • Good development solutions today can deliver major speed to value, reducing the product lifecycle of a mission-critical application by as much as 70 percent.  This, in turn, can reduce the application's TCO by as much as 40 percent and increase the application's ROI by as much as 50 percent.
  • The sweet spot of development solution use, which recently has been located in new Web application development and then in upgrading existing applications for e-business, is now shifting toward leveraging databases for competitive-advantage e-information.
  • Administrative people costs are steadily and inexorably increasing as a proportion of application lifecycle costs.  A robust development solution and development methodology can reduce application downtime by as much as 40 percent and can be combined with a "near-lights-out" database for total improvements in three-year TCO of 20 percent.

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