How to Monetize Application Technical Debt

Look into internet a report from Gartner and Cast Software named “How to Monetize Application Technical Debt”.

They expose a simplified formula for the measure on the individual of a given application based in the number of violations per thousands of lines of code (violations per KLOC).

The formula proposed for Technical Debt is:

  • L = Number of Low-Severity Violations per KLOC
  • M = Number of Medium-Severity Violations per KLOC
  • H = Number of High-Severity Violations per KLOC
  • S = Average Application Size (KLOC)
  • C = Cost to Fix a Violation ($ per Hour)
  • T = Time to Fix a Violation (Number of Hours)

Technical Debt per Application = [(10% * L) + (20% * M) + (50% * H)] * C * T * S

They do not forget the business value as important element of the application value, and they add a conceptual graph where they visualize the application Technical Debt and the Business Value as a Function of Structural Quality Violations.

Application Technical Debt and Business Value as a Function of Structural Quality Violations (Conceptual)

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