LECT2 - Software Life Cycle Costs

resources

Software requires _____ not only when it is being developed but throughout the entire period in which it is used by an organization

Software Life Cycle Cost (LCC)

_____ refers to the total cost of acquiring, developing, implementing, operating, maintaining, improving, and eventually retiring a software system

• Development

• Deployment

• Maintenance

• Upgrade

• Retirement

A software system generally passes through these cost stages:

stage

Each ____ creates different expenses

Development costs

_____ are expenses associated with creating or acquiring the software and preparing it for implementation

Development

_____ is often one of the largest initial investments in a software project

• Personnel Costs

• Software and Development Tools

• Hardware and Infrastructure

• Testing and Quality Assurance

Common Development Costs:

Deployment costs

_____ are expenses incurred when the completed software is introduced into its actual operating environment and made available to users

Finishing

______ the software does not automatically mean it is ready for use

• Infrastructure Setup

• Installation and Configuration

• Data Migration

• Training

• Hidden Deployment Costs

Common Deployment Costs:

maintenance costs

Once software is operational, organizations must continuously spend money to keep it functioning correctly, securely, and reliably. These are called _____

Maintenance

_____ can become a significant long-term expense because it may continue for many years

• Technical Support

• Bug Fixing

• Security

• Licensing and Subscriptions

Common Maintenance Costs:

expenses

Development may end, but software _____ do not

upgraded

Technology and organizational requirements change over time. Software therefore often needs to be modified, expanded, modernized, or ____

Upgrade costs

_____ are expenses associated with improving the existing software to meet new requirements or technologies

software retirement, decommissioning

The process of permanently removing a system from operation is called ______ or ______

Deleting

Retirement Is Not Simply _____ the Software

• Data Migration

• Data Archiving

• System Decommissioning

• Replacement Transition

Common Retirement Costs:

One-Time Costs

Usually paid once or occasionally

Recurring Costs

Continue throughout the life of the system

Direct Costs

Expenses that can easily be associated with the software

Indirect Costs

Costs caused by the software project but that may be harder to measure

Software Life Cycle Costs

LCC

Total Cost of Ownership

TCO

TCO

____ looks beyond the software's purchase or development price and considers the broader costs of owning and operating it over time

• System size

• Complexity

• Number of users

• Security requirements

• Integration

• Customization

• Technology used

• System lifespan

• Frequency of upgrades

Factors That Influence Software Life Cycle Costs:

resources

Larger systems generally require more _____

development, testing

Complex processes require more _____ and _____

users

More ____ can increase infrastructure and support costs

protection

Sensitive information requires stronger _____

systems

Connecting multiple _____ increases complexity

maintain

Highly customized systems can be more expensive to _____

licenses, personnel

Some technologies require paid ____ or specialized _____

maintenance

Systems operating for many years accumulate _____ costs

changes

Frequent _____ increase costs