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The Cost of Inadequate S/W Testing

The Cost of Inadequate S/W Testing . The Economic Impacts of Inadequate Infrastructure for Software Testing National Institute of standards & Technology: Planning Report 02-3 May 2002 www.nist.gov/director/prog-ofc/report02-3.pdf

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The Cost of Inadequate S/W Testing

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  1. The Cost of Inadequate S/W Testing • The Economic Impacts of Inadequate Infrastructure for Software Testing • National Institute of standards & Technology: Planning Report 02-3 • May 2002 • www.nist.gov/director/prog-ofc/report02-3.pdf • An improved infrastructure for testing has the potential to affect developers and users by: • removing more bugs before the s/w product is released. • Detecting bugs earlier in the s/w life-cycle. • Locating the source of bugs earlier and with more precision.

  2. The Costs of Inadequate S/W Testing • The study investigates the economic impacts of an inadequate infrastructure for s/w testing in the U.S. • Study conducted surveys with both developers and industry users. • Two industry groups were selected for detailed analysis. • Findings from these two groups were then used to estimate total economic impacts for U.S. • Note - Impact estimates do not reflect “costs” associated with mission critical s/w where failure can lead to extremely high costs such as loss of life or catastrophic failure.

  3. Economic Impact on Automotive and Aerospace Industries • Study focused on the use of Computer-aided design (CAD), computer-aided manufacturing (CAM), computer-aided engineering (CAE), and product data management (PDM). • Interviews were conducted with 10 s/w developers (vendors), and 179 users of these products. • Users reported an average of 40 major and 70 minor bugs per year in their CAD/CAM/CAE/PDM software systems.

  4. Cost Impacts on Developers and Users • Developers (vendors) - Costs Impacts of $.373 (bil) • Potential cost savings from feasible infrastructure improvements - $.158 bil) • Software Users • Automotive - Cost impacts of $1.230 (bil). Potential savings of $370 (bil) • Aerospace - Cost Impacts of $.237(bil). Potential savings of $.055 (bil) • Total Cost Impacts of $1.840(bil). Total Potential savings 0f $.598 (bil) • Users account for approx.. three-quarters of total impact, Developers account for the remaining one- forth of costs.

  5. Economic impact on Financial Services Sector • Study focused on developers and users of Financial Electronic Data Interchange (FEDI) and clearinghouse s/w, as well as the s/w embedded in routers and switches that support electronic data exchange. • Four s/w developers, and 98 users. • Users reported an average of 40 major and 49 minor bugs. • Approx.. 16% of bugs attributed to router/switch problems, and 48% to transaction s/w problems. The remaining 36% of errors were unknown.

  6. Cost Impacts on developers and Users • Developers • Routers and Switches - Cost impact of $1.898 (bil). Potential savings from feasible infrastructure improvements of $.975 (bil) • FEDI and Clearinghouse - Cost impact of $.438 (bil). Potential savings of $.225 (bil) • Software Users • Banks and savings institutions - Cost impacts of $.789(bil). Potential savings of $.244 (bil) • Credit Unions - Cost impacts of $.217 (bil). Potential savingsof $.068 (bil) • Total cost impacts of $3.343(bil). Total potential savings of $1.513 (bil) • Developers account for 75% of costs, with users the remaining 25%.

  7. National Impact Estimates • The per-employee impacts of these sectors were extrapolated to develop an estimate of the economic impacts of an inadequate s/w infrastructure for s/w testing for the total US economy. • Developers - Cost impacts of $21.2 (bil). Potential savings of $10.6 (bil). • Users - Cost impacts of $38.3 (bil). Potential savings of $11.7 (bil) • Total cost impacts of $59.5(bil). Potential savings of $22.2 (bil). • Developers accounted for about 40% of total impacts, with Users accounting for the remaining 60%.

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