The Scrum Pricing Model for Developing a Common Software Framework in a Multi-project Environment

Abstract

The article presents a new pricing model applied in Scrum contracting. The model will introduce an innovative approach to the promotion of software products with reference to their pricing—bounding non-profit features with the classical cost estimation. It will assume a principle of single charge for all components reused in products created for different customers. The model will be applicable mainly in multi-project Scrum environments, but will also support scaled multi-team Scrum development environments (where software development work is allocated to different Scrum teams). It will introduce a complete mechanism for cost estimation, with component pricing procedures (compatible with Scrum estimation methodologies), component reuse tracking and so on. The price offered for software to be developed will depend on its popularity among customers. So, the introduction of a new feature triggered by one customer can be beneficial for all parties taking part in the framework development, with justified share of the price. In such situations a common base for software development pricing techniques must be established. It will depend on different factors, such as: team effort, team velocities, resources and technologies used. To express these values a reference currency will be defined. The model, along with pricing mechanisms presented in the article, can be effectively used in many software products in which software evolution is a core. The pricing efficiency, commonly recognized as a feature of the model, will encourage potential customers to choose a software company that uses it.