Economics of Software Product Development Collectives

Abstract

Where software product development occurs is shifting from single companies to groups or collectives of companies. In this article, we retrace the evolution of how software product development is organized and then offer insights into the economic motivation for collectives, which will be relevant to companies considering joining a software product development collective. Building on the literature on software product line economics, we identify three factors affecting the economics of collectives (level of contribution, number of members, and diversity of use), and develop a model that links those factors to three economic outcomes (time, quality, and cost). This model can be used by potential members when deciding whether or not to join a collective.

Keywords

• collectives
• eclipse
• ecosystem
• product line
• software development