Even at a cost of $100,000, a purchased piece of software…
““Even at a cost of $100,000, a purchased piece of software is costing only about as much as one programmer-year. And delivery is immediate! Immediate at least for products that really exist, products whose developer can refer the prospect to a happy user. Moreover, such products tend to be much better documented and somewhat better maintained than homegrown software. The development of the mass market is, I believe, the most profound long-run trend in software engineering. The cost of software has always been development cost, not replication cost. Sharing that cost among even a few users radically cuts the per-user cost. Another way of looking at it is that the use of n copies of a software system effectively multiplies the productivity of its developers by n. That is an enhancement of the productivity of the discipline and of the nation.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Software can be bought cheaply per user because its development cost is spread across many users, making it more efficient than custom code.
In simple terms: Buying software spreads development cost across many users, increasing efficiency.
Key Takeaway
Leverage off‑the‑shelf software to boost productivity.
Themes
economics
productivity
software engineering
mass market
cost sharing
Mood
pragmatic
analytical
Type
advisory
strategic
When to use this quote
- enterprise IT
- startup product development
- government procurement
- educational institutions
Key Concepts
network effects
economies of scale
software reuse
Questions to Reflect On
- How can you assess whether a commercial product fits your unique needs?
- What trade‑offs exist between customization and cost?
A Different Perspective
Off‑the‑shelf software may not meet specific niche requirements or integration needs.