Gartner-CAST Whitepaper: Monetize Technical Debt


Last fall, Gartner VP and Fellow Andy Kyte brought significant illumination to a long-known fact in the technology gartner-technical debt-qualityindustry – that billions of dollars were being spent on Technical Debt - the cost of fixing the structural quality problems in an application that, if left unchanged, are highly likely to cause major disruption and put the business at serious risk.  Kyte said that Technical Debt has exploded in recent years; he set the current value of Technical Debt at approximately a $500 Billion globally and said it was quickly escalating to the $1 Trillion mark by 2015.

Around the time Kyte was announcing his results, we at CAST were announcing the results of our own Worldwide Application Software Quality Study, in which we assessed 288 IT applications from 75 companies throughout a variety of industries and comprising a total of 108 million lines of code. Using a very, almost overly conservative estimate of the maintenance cost per line of code to fix the problems uncovered, we determined that the average company was spending in excess of $1 Million on Application Technical Debt.

Technical Debt-Software-QualityIn order to evangelize the problem and assist IT departments in making a case to support improving processes, platforms and personnel en route to improving the structural quality of software, CAST has joined forces with Kyte to produce a whitepaper titled, “How to Monetize Application Technical Debt: A Data-Driven Approach to Balance Delivery Agility with Business Risk.”

The research paper illustrates how to calculate technical debt and then set and monitor the right quality threshold for balancing delivery agility with the risk of business disruption. In addition, the paper includes the research report, “Measure and Manage Your IT Debt,” by Kyte, who explains the systemic risk in the application portfolio caused by the accumulation of Technical Debt over the last decade.

The full research paper, including excerpts from “Measure and Manage Your IT Debt,” is available from CAST here.

Filed in: CAST News
  This report describes the effects of different industrial factors on  structural quality. Structural quality differed across technologies with COBOL  applications generally having the lowest densities of critical weaknesses,  while JAVA-EE had the highest densities. While structural quality differed  slightly across industry segments, there was almost no effect from whether the  application was in- or outsourced, or whether it was produced on- or off-shore.  Large variations in the densities in critical weaknesses across applications  suggested the major factors in structural quality are more related to  conditions specific to each application. CRASH Report 2020: CAST Research on  the Structural Condition of Critical Applications Report
Open source is part of almost every software capability we use today. At the  very least libraries, frameworks or databases that get used in mission critical  IT systems. In some cases entire systems being build on top of open source  foundations. Since we have been benchmarking IT software for years, we thought  we would set our sights on some of the most commonly used open source software  (OSS) projects. Software Intelligence Report <> Papers
Making sense of cloud transitions for financial and telecoms firms Cloud  migration 2.0: shifting priorities for application modernization in 2019  Research Report
Jonathan Bloom
Jonathan Bloom Technology Writer & Consultant
Jonathan Bloom has been a technology writer and consultant for over 20 years. During his career, Jon has written thousands of journal and magazine articles, blogs and other materials addressing various topics within the IT sector, including software development, enterprise software, mobile, database, security, BI, SaaS/cloud, Health Care IT and Sustainable Technology.
Load more reviews
Thank you for the review! Your review must be approved first
You've already submitted a review for this item

CAST Business Partner Day