The 80 20 rule

WestCAT $551,000 • Implementation of technology to provide real-time at every stop
and installation of 20 signs

The RM2 grant for this project $551k pays for the project up to sign off. (Resolution No. 3708, Revised)

The ongoing maintenance of this system is estimated to be over $120k per year.

Where is the grant money for this part of the project which will continue until the end of life of the project?

Good question?


4 Costs and challenges
However one decides to categorize the maintenance effort, it is still clear that software
maintenance accounts for a huge amount of the overall software budget for an information
system organization. Since 1972 [28], software maintenance was characterized as an
“iceberg” to highlight the enormous mass of potential problems and costs that lie under the
surface. Although figures vary, several surveys [1, 2, 7, 10, 34, 46, 54, 56, 58] indicate that
software maintenance consumes 60% to 80% of the total life cycle costs; these surveys also
report that maintenance costs are largely due to enhancements (often 75–80%), rather than


(b) Definitions. “Life cycle cost,” as used in this clause, is the sum of all costs over the
useful life of a building, system or product. It includes the cost of design, construction,
acquisition, operation, maintenance, and salvage (resale) value, if any.


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