Research from Software Improvement Group reveals trends in software build quality, impacts of COVID-19 on development productivity - SIG

Research from Software Improvement Group reveals trends in software build quality, impacts of COVID-19 on development productivity  


The second annual SIG Benchmark Report is based on an 11-year analysis of 36 billion lines of code across more than 280 technologies

Amsterdam, July 23, 2020Software Improvement Group (SIG), the independent authority on software assurance, published today the findings of its second annual Benchmark Report on the state of the software industry. The report is based on the company’s analysis of 36 billion lines of code across more than 280 technologies, taken from 5,000 system assessments in every major industry.

This year’s research found that software build quality has continued to steadily increase. According to the report:

A driver of this trend can be found in SIG’s measurements that new code is generally smaller and less complex than before. This trend is strengthened by the growing usage of Low Code and BPM solutions, as well as other technology stacks, such as Microsoft .NET-based technologies.”

Report findings also reveal a spike at the start of the COVID-19 lockdown in both build quality and development productivity. According to the report:

The month of March 2020 presents itself as a clear outlier, as we see a remarkable peak in systems that increase their build quality above expectation. Where we normally would have seen a maximum of 5% of systems showing exceptional changes, this month shows more than 15%. Similarly, we observe that 10% of systems showed production above expectation, while just a small percentage fell below.”

The 2020 Benchmark Report also covers the following topics:

  • Build quality ranking by industry, including the Government, Banking, Insurance, Financial Services, Telecommunications, Software & Computer Services, Energy, Oil & Gas, Media, Health Care, Retail, and Industrial Transportation sectors.

  • Build quality ranking by tech stack, including JVM, Java-related technologies, Microsoft .NET-related technologies; packaged solutions, customizations of configurable ERP, CRM systems; legacy technologies, such as COBOL, and other 3GL/4GL languages; scripting and mobile technologies; and low-code and BPM technologies.

  • Impacts of monitoring on build quality, with analysis of systems monitored consistently, inconsistently and not at all.


Luc Brandts, CEO of SIG: “The global pandemic has underscored the importance of digital capabilities, and there’s no question about the crucial role software plays. We’re pleased to see that, despite the pandemic, software build quality continues to improve. However, the report also shows us some underlying tendencies, such as architecture complexity, that have the potential to reverse this positive trend. We believe these insights can be applied directly in daily operations and encourage organizations to use them to further advance their own digital health.”

Magiel Bruntink, Head of Research at SIG adds: “The results in this year’s report are incredibly revealing. One of our most significant findings was the clear impact of software quality monitoring. Our analysis shows that organizations can realize significant reductions in application maintenance costs – that can then be reallocated towards innovation – by consistently monitoring their build quality.

Request complimentary access to the report here.

 

About Software Improvement Group

Software Improvement Group (SIG) helps business and technology leaders drive their organizational objectives by fundamentally improving the health and security of their software applications. SIG combines its proprietary software assurance platform, Sigrid®, and benchmark data with its consultants’ expertise to help organizations measure, evaluate and improve code quality - whether they’re building, buying or operating software.

As an independent organization, SIG has the industry’s largest software assurance database with 36 billion lines of code across more than 280 technologies. The expert consultants at SIG use this data to evaluate an organization’s digital assets on maintainability, scalability, reliability, complexity, security, privacy and other critical factors for future proof software. The SIG laboratory is the only one in the world accredited according to ISO/IEC 17025 for software quality analysis.

SIG is headquartered in Amsterdam with offices in New York, Copenhagen, Antwerp and Frankfurt.
10.06.2024
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SIG M&A Software Analysis Reveals Concerning Trends In Software Quality

NEW YORK, NY, USA, June 10, 2024

Software Improvement Group (SIG), the leading independent institute specializing in software health analysis, has significant concerns about the quality of software involved in mergers and acquisitions (M&A). Out of 531 M&A-related software projects analyzed, SIG found that the average software quality scores were significantly below the market average. This implies that companies face two times lower development efficiency and a considerably higher risk of defects and vulnerabilities.

Key findings

  • Quality Scores Below Market Average: The study revealed that software involved in these transactions often lags behind industry standards, presenting substantial risks for acquirers.
  • High Technical Debt: On average, technical debt constitutes 31% of the total code volume, indicating severe underlying issues in software maintainability and scalability.
  • Informed Investment Decisions: Companies that utilized SIG’s software economics methodology were able to make strategic investments to mitigate these technical debt challenges effectively.

SIG possesses unparalleled expertise and resources to assess the build quality, scalability, and security of software assets. With the world’s largest software metrics database, encompassing an impressive 200 billion lines of code and 18,000 system inspections spanning over 300 technologies, SIG provides comprehensive evaluations that stand as a testament to our unwavering dedication to creating a healthier digital world.

Luc Brands, CEO of Software Improvement Group: “At SIG, we believe private equity firms are not as in control as they could and should be. Through software economics, we ensure thorough code analysis, benchmarking, architecture investigation, and cost modeling. This approach guarantees clarity regarding the true scalability of acquired assets.”

To further facilitate this conversation, Software Improvement Group and Carnegie Mellon University (CMU) will be hosting a webinar titled “Software Economics for Private Equity: How to Evaluate the Quality and Value of Software Assets” on June 27th. The webinar will provide private equity companies with insights into the importance of software asset valuation. Private equity firms are invited to join the webinar to gain valuable knowledge and insights from industry experts.

In conclusion, software assets represent a significant opportunity for private equity firms to drive value creation. By embracing advanced software economics and leveraging SIG’s expertise, private equity firms can make informed decisions that maximize returns and mitigate risks in their software investments.

For more information about SIG and to register for the upcoming webinar, please visit Software Improvement Group’s webinar page.

For the full report, visit the benchmark report.

About SIG
Software Improvement Group (SIG) leads in traditional and AI software quality assurance, empowering businesses and governments worldwide to drive success with reliable and robust IT systems. Sigrid® – its software excellence platform – analyzes the world’s largest benchmark database of over 200 billion lines of code across more than 18,000 systems in 300+ technologies, and intelligently recommends the most crucial initiatives for organizations. SIG complies with multiple ISO/IEC standards, including ISO/IEC 27001 and 17025, and has co-developed ISO/IEC 5338, the new global standard for AI lifecycle management.
SIG was founded in 2000 and has offices in New York, Copenhagen, Brussels, and Frankfurt, and is headquartered in Amsterdam.

Sigrid®, together with expert consultants, and nearly 25 years of industry-leading research, position Software Improvement Group as the foremost authority on software excellence.

For more information, please visit Software Improvement Group’s website or social media channels.