Tag: Budget

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9 Hidden Costs of Software Development: Tips to Save Your Budget

9 Hidden Costs of Software Development

Despite the growth of software development, individuals and companies often get overwhelmed when it comes to establishing a budget for a particular project. It is crucial to understand that although initial costs can be easily identifiable, many more costs may undermine the financial plan. Some of these hidden costs may include underestimating the time it takes to fix bugs or the extra cost of enhancing the infrastructure to cater to the increased user activity each time this occurs.

Considering some less obvious expenses when planning a project is essential since they may quickly go unnoticed and lead to extended time and money spent. Just the cost of creating applications and software can be a challenging zone to navigate, so where does it end? If you find ways to avoid the following potential budget problems, preventing or reducing such costs becomes easier.

9 Hidden Expenses in Software Development

There are certain peculiarities that one needs to take into account, such as how to better deal with the budget. There is always a potential for things to turn out more expensive than expected, which is particularly dangerous when the budget and timeline are tight.

Bug Fixes and Maintenance

Whether you have built software already and deployed, You will need to maintain it like any other types of applications (if not more) as there are bug fixes waiting for your contributions. These costs compound and presume a dedicated group for handling these complexities, as well as one that keeps it running.

Scalability Enhancements

This suggests that the more users you have, the user load on your software already explodes another boring tech server. It is however worthwhile to work with a software development agency in order to smoothly get through this scaling process.

Integration Costs

Cost of Using third-party applications/adopting other systems: Use or adoption can expose software development costs. Compatibility issues as well as the level of customization are common cost areas that create worry.

Training and Onboarding

Introducing new software into your team or clients own processes is always key, and so you need long training regiments. These sessions and training can make more on your costs.

Security Enhancements

Understanding and protecting your software against vulnerabilities is important. Supporting encryption and security checks is expensive, but they are essential in maintaining data integrity and establishing credibility with your clients.

Regulatory Compliance

Compliance and regulation Abiding with strict rules of compliance increases the likelihood that an application will be accurate, but normally experience more resources compared to changes in software. While a number of these changes may be long and expensive, they are needed in order to prevent legal issues.

Performance Tuning

It is vital to ensure that the program you developed performs well and quickly meets users’ needs. To optimize performance means make code load faster, occupy less space; however, it often costs more.

User Support and Documentation

The dependability and usefulness of the software product depend on how good its user manuals and customer support are done. These factors might require the teams dealing with their development to be constantly supported.

Hardware and Software Upgrade

A developer has to take care of his/her development environment and tools in order for them to work fine. You may also need upgrading hardware or software systems which will lead to some new additions that would have to be added into your budget.

Understanding such hidden costs in software development helps you plan and avoid unfavorable situations that may arise from costs you had not anticipated in software development.

Actionable Tips to Save Your Budget

Below are some tips on how to develop software and manage expenses in order to be cost effective.

Use Agile Methodologies

Be agile about what you do so that there is room for change or improvement, as well as a reduction of costs and the project being on track.

Prioritize Features

Therefore, important things should be discussed first as we allocate resources and time accordingly through which this will help in managing resources and most importantly ensure that basics are provided at the right time.

Automate Testing

This way, one can identify issues and provide solutions for them faster than having to go through manual testing that takes too long and it is even more expensive.

Leverage Open-Source Solutions

Consequently, when addressing such problems, many open-source softwares or libraries should be used in order to minimize expenses incurred because of licensing or development.

Outsource Strategically

It’s advisable to have some sections of the project done by excellent developers or teams from countries with low wages while they maintain quality.

Plan for Maintenance

All these other costs like support and fixing any issues after implementing software need to be taken into account during costing so that no additional monetary commitments are made.

Invest in Training

Provide enough training for your personnel such that they will be able to know and not waste additional time in trying to learn the tools and technologies, thus reducing productivity.

With these strategies in managing a budget of your software project, you will discover how to economize on software development and minimize eventual expenses that might come uninvited.

Conclusion

The management of hidden costs is one area which must be looked upon when tackling any development project. This helps you make better decisions, looking into other things that may have been otherwise forgotten and probably would have caused surprise if implemented much further down the line.

At this stage, good planning and strategic resource allocation are what will keep you going in a fast moving software industry. This sets a firm foundation for smoother, efficient development processes by taking into consideration possible hidden costs as well as learning how to save time within your budget. Make better financial choices resulting in your software project blooming right before you without using too much money.

Author Bio

Ankit Agarwal is the CEO of Dean Infotech, a leading software development agency known for its exceptional Salesforce development, integration, CRM and enterprise software development services. With years of experience under his belt, Ankit’s leadership has been instrumental in the company’s growth and success. His blog posts offer a unique perspective on software development, the Salesforce ecosystem, and the challenges and rewards of entrepreneurship.

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Business Tips

The Costs of App Security

app security costs

The security features of an app are often ignored in the rush to get a new product to market. We naturally tend to focus more on what an app should do, rather than what it shouldn’t. Making sure that an app doesn’t have security issues is a difficult and potentially expensive process. Lately there is evidence that developers are trying at least to face app security costs issues. A recent post from our partners in DZone shows exactly this.

There are no automated tests to ensure user data hasn’t been left vulnerable. This goes for unencrypted passwords as well. Typically this requires a manual audit of the code and some form of penetration testing, with a skilled developer attempting to compromise the app. However, the costs of implementing security features and adding security testing to your development process are much smaller than the potential costs of a major security breach.

Problems with payments

For some types of app the consequences of this are more obvious. There are even standards in place to try to ensure a minimum level of security. For instance, any application which handles payment card details needs to process that data securely as specified by the Payment Cards Industry. However, PCI standards compliance is only audited for large merchants. Smaller merchants self-certify compliance.

If an app or service for a small merchant was compromised, resulting in abuse of payment card data, then any non-compliance discovered could result in significant fines or even liability for any fraudulent payments. Merchants who add interfaces to their existing payments infrastructure to support mobile apps need to be particularly careful. New attacks can be made possible when the payment authorisation occurs on a native mobile client, rather than a website.

Even for apps selling digital goods via in-app purchase there are still payment security issues to consider. Of course stakes are nowhere near as large. However, attackers can still impersonate the official store provider servers and simulate in-app purchases without any genuine payment.

Apple’s system was compromised in this way last summer. Another hack was reported for payments on Google Play just before Christmas. There is no link to this because, although it was only for rooted devices, we’re not aware of a fix in place yet. (Indeed it may even be a scam to get users to install malware).

Losing data can cost you even more

For enterprise app developers, being associated with a major security breach could mean the end of your business.

A harmful loss of data for a client could send valuable market data go to the competition, or even key employees. You would lose trust (and business)! If the breach is sufficiently public, you could lose the trust of all potential future clients as well.

The larger a company the more vital it is that they implement good security practices.

For consumer apps, leaking user data to attackers has direct costs. Firstly, in terms of service downtime whilst fixing security holes (usually in a hurry with the aid of expensive experts), notifying those affected and possible compensation. Secondly, there are serious indirect costs in terms of lost trust and users. Again here, the larger the user base, the more attractive the app is to attackers and the more serious any breach.

Invest in app security appropriately

Investments in security need to be proportional to the risks. How many users are involved and the value of data stored should determine the level of effort required to ensure that data is safe.

Not knowing about the security implications of your application is somewhat like driving without insurance.

Everything is fine until the unthinkable happens. Then it’s likely that lots of innocent people suffer and you get into a lot of trouble.

The technical details of app security are beyond the scope of this post. However, we have prepared a list of top 10 vulnerabilities and how to avoid them. Read on if your app deals with any user data or payments.

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Business

Which apps make money?

[This post by Andreas Pappas, Senior Analyst at VisionMobile, first appeared on the VisionMobile blog on 13 November 2012.]

[Andreas Pappas takes another look at the results of VisionMobile’s Developer Economics 2012 survey and comes up with interesting new insights on app monetisation: how does app revenue vary by app-category and by country? Is there a correlation between time spent developing an app and they money it makes?]

VisionMobile - which apps make money

In Developer Economics 2012 we discussed app revenues and how they vary across platforms. We found that overall, around half of all app developers that are interested in making money did not earn a sustaining income, i.e. they were below the “poverty line”, which we drew at $500 per month per app. Of course the real poverty line will vary widely across countries and regions: while $500 per month may not be enough for a San Francisco-based developer, it could be more than enough for a developer based in Bangalore where average living cost is less than a third, according to Numbeo.

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Business Tips

Crowdfunding: Leanest Way to Launch?

crowdfunding

One question that divides opinion among developers is when to start marketing your app. Some say if you start marketing too soon, the early interest you create will dissipate before you actually have something to sell. Others argue that you can’t start talking about your app soon enough, build a following of early adopters and you have great word of mouth marketing and an initial sales boost to climb the store charts. What if you can have the benefits without any of the downside? It might just be possible with crowdfunding.

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Business Platforms Tips

Backend-as-a-Service – Should You Use One?

Backend-as-a-Service

Many of the most engaging and popular apps connect to cloud services which either regularly deliver new content, enable users to interact with one another or both. Unlike a standalone application, such apps can incur ongoing hosting costs throughout their active usage life. Ideally your revenue model should mirror the cost structure. Using a Backend-as-a-Service (BaaS) reduces execution risk and time to market as well as removing server maintenance and scaling headaches, however, it typically increases the ongoing service costs making the revenue model fit even more important.  Obviously the technical requirements of the app constrain the selection of service and for basic backend features Cloudspring has a good overview article. The variation in pricing of backend services is even greater than the diversity of their technical capabilities but this post will provide some generally applicable advice.

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Platforms

Revenue and cost breakdown per platform

revenue costs per platform

In a previous article, we discussed revenue and costs for app developers overall. Here, we add some more detail for each platform individually.

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Business

Planning your development costs

app development costs

The bar for successful apps is high: if you want your app to stick out among a million others, it needs to be well designed, user friendly and working flawlessly, all of this comes with significant development costs. In this article, we give an indication of the types of costs you need to take into account when planning your app.

Costs can differ wildly depending on your platform and type of app. A mobile game with 3D graphics will have a radically different cost structure than a weather app. The range goes from $5,000 for very simple apps to hundreds of thousands for extensive apps. Often cited, Twitterific estimated their development costs as high as $250,000 back in 2010. Use common sense when thinking about your costs, be realistic and plan for cost overruns.

Here are some costs you need to take into account.

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