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Software Development has DISeconomies of scale

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Software Development has DISeconomies of scale

  1. 1. Software Development has DISECONOMIES of Scale Not Economies of Scale Allan Kelly allan@allankelly.net @allankellynet
  2. 2. Milk is cheapest in BIG cartons Software is cheapest in lots of small cartons And small cartons of software reduce risk
  3. 3. Big increases risk
  4. 4. Consider a large project Against several small projects Project A: Risk = 30% Value at risk = £1m Therefore risk weighted value = £300,000 Prj B: Risk = 15% Value @ risk = £½m Therefore … = £75,000 Prj C: Risk = 15% Value @risk = £½m Therefore … = £75,000 E: Risk = 6% @risk = £200k Therefore = £12k F: Risk = 6% @risk = £200k Therefore = £12k G: Risk = 6% @risk = £200k Therefore = £12k H: Risk = 6% @risk = £200k Therefore = £12k I: Risk = 6% @risk = £200k Therefore = £12k
  5. 5. Software development… • Does NOT have economies of Scale • Development has DISECONOMIES of scale Therefore • Stop thinking BIG • Start thinking SMALL Allan Kelly – allan@allankelly.net - @allankellynet

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