The business of software development – let’s start with the dollars

The basics of business are simple. First, make sure your revenue is more than the cost of the product and service you provide. For simple transactions, such as a person buying cheap tools from China and selling them at double their cost at a swap meet, this is cut and dry. But when you’re talking about a multi-billion-dollar company, the differences in how value and revenue are calculated take on a vastly different mathematical equation, which often ends in a benefit of savings for a company. We’ll talk about different mechanisms used, including a few that might shock you – and even talk about how capitalization of software is used to drive the cost down – well, kind of.

Defining the “value” of software to a business

So many times, people ask, “Is this worth it?” – from travel excursions to new keyboards, a fancy new kitchen knife, or...