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Software Errors cost US Economy $60 Billion a year

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These bugs bite

Source: Industry Week

Publication date: 2002-08-01

Arrival time: 2002-08-16


Software bugs cost the U.S. economy an estimated $59.5 billion annually, reports a study commissioned by the U.S. Commerce Department's National Institute of Standards and Technology (NIST), based in Gaithersburg, Md.

The same study says that more than a third of these costs, or an estimated $22.2 billion, could be eliminated by an improved testing infrastructure that catches errors closer to the software products' developmental stages where errors are introduced. More than half of software bugs are not discovered until well into the development process or until post-sale use.

"The impact of software errors is enormous because virtually every business in the United States now depends on software," notes NIST Director Arden Bement.

Among transportation-equipment makers-primarily aerospace and automotive manufacturers-the impact of these software errors is estimated at $1.8 billion, according to Research Triangle Institute (RTI), the North Carolina-based research organization that conducted the study. The potential cost reduction from infrastructure improvements was pegged at $600 million.

The research organization determined the cost impact to the transportation-equipment industry by conducting a case study that collected data from 10 vendors and 179 users of computeraided design, manufacturing and engineering software, and product data management software. Some 60% of the manufacturers questioned reported significant software errors in the previous year. Of those that experienced errors, the average was 40 major and 70 minor software bugs annually.

The case study concluded that software users absorb three- quarters of the total cost impact, with developers absorbing the rest.

Copyright Penton Media, Inc. Aug 2002

Publication date: 2002-08-01

© 2002, YellowBrix, Inc.


i wonder how much of this cost is microsoft's fault


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