JMU
The Economics of Software
An Introduction


Prof. David Bernstein
James Madison University

Computer Science Department
bernstdh@jmu.edu


The "Go or No-Go " Decision
The "Go or No-Go " Decision (cont.)
The "Buy or Lease" Decision
The "Buy or Lease" Decision (cont.)
The "Buy or Lease" Decision (cont.)
The "Buy or Lease" Decision (cont.)
The "Make or Buy" Decision
The "Make or Buy" Decision (cont.)
The "Make or Buy" Decision (cont.)

An Example with Probabilities/Conditional Probabilities

images/makeorbuy01.gif
The "Make or Buy" Decision (cont.)

Including the Estimated Costs (in Present Dollars)

images/makeorbuy02.gif
The "Make or Buy" Decision (cont.)

With the Calculated Expected Values (in Present Dollars)

images/makeorbuy03.gif
Outsourcing and Contracting
Outsourcing and Contracting (cont.)
The Economics of Open Source Software
The Economics of Open Source Software (cont.)
The Economics of Open Source Software (cont.)
The Economics of Open Source Software (cont.)