Welcome!

Open Source Cloud Authors: Liz McMillan, Zakia Bouachraoui, William Schmarzo, Elizabeth White, Yeshim Deniz

Blog Feed Post

"Cost of Quality": It's More Than You Think

cost_of_qualityWe're in an era in which leading organizations must reassess the true "cost of quality" for software.  Remember: the cost of quality isn't the price of creating quality software—it’s the penalty or risk incurred by failing to deliver quality software.

Today, business expectations about the speed and reliability of software releases have changed dramatically—largely because software has morphed from a business process enabler into a competitive differentiator.  

For example, APIs represent componentized pieces of software functionality which developers can either consume or write themselves.  In a recent Parasoft survey about API adoption, over 80% of respondents said that they have stopped using an API because it was "too buggy."  Moreover, when we asked the same respondents if they would ever consider using that API again, 97% said “no.”  With switching costs associated with software like an API at an all-time low, software quality matters more than ever. 

Another example is mobile check deposit applications.  In 2011, top banks were racing to provide this must-have feature.  By 2012, mobile check deposit became the leading driver for bank selection.  Getting a secure, reliable application to market was suddenly business critical.  With low switching costs associated with online banking, financial institutions unable to innovate were threatened with customer defection.  

This sea change associated with the quality expectations of software is also reflected in the manner in which software failures are reported.  Today, software failures are highlighted in news headlines as organizational failings with deep-rooted impacts on C-level executives and stock prices.  Parasoft analyzed the most notable software failures in 2012 and 2013; each incident initiated an average -3.35% decline in stock price, which equates to an average of negative $ 2.15 billion loss of market capitalization.  This is a tremendous loss of shareholder value. 

 

Additionally, looking at organizations that endured multiple news-worthy software failures, it is clear that the market punishes repeat offenders even more aggressively. Repeat offenders suffered an average -5.68% decline in stock price, which equates to an average of negative $ 2.65 billion loss of market capitalization.

The bottom line is that we must re-evaluate the cost of quality for our organizations and individual projects.  If your cost of quality assessment exposes a gap in your quality process, it's a sign that now is the time to reassess your organization's culture as it relates to building and testing software.  In most organizations, quality software is clearly the intention, yet the culture of the organization yields trade-off decisions that significantly increase the risk of exposing faulty software to the market.

[VIDEO] Behind the Code: Cost of Quality

Want to learn more about the cost of quality for software? Check out Parasoft's new monthly web series, exploring how software quality directly affects your bottom line: Behind the Code. In this month's episode of Behind The Code, Wayne Ariola, Chief Strategy Officer at Parasoft, and Arthur Hicken, Parasoft Evangelist, discuss the true cost of software quality and why it's more than you might think.

 

 

Image credit: RambergMediaImages

Read the original blog entry...

More Stories By Wayne Ariola

Wayne Ariola is Vice President of Strategy and Corporate Development at Parasoft, a leading provider of integrated software development management, quality lifecycle management, and dev/test environment management solutions. He leverages customer input and fosters partnerships with industry leaders to ensure that Parasoft solutions continuously evolve to support the ever-changing complexities of real-world business processes and systems. Ariola has more than 15 years of strategic consulting experience within the technology and software development industries. He holds a BA from the University of California at Santa Barbara and an MBA from Indiana University.

IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...