Hardware Costs and Software Development

Hardware costs have fallen dramatically since software development first began in the early 1960's.   Since hardware costs have fallen, the fixed cost to develop software has decreased also.  Hence, the amount of software (and employment) developed has increased. As can be seen in the second table the number of software titles have risen at a rate equaling the falling rate of hardware.

Source for PC Software Titles: The Software Encyclopedia 1980 - 2003, R.R. Bowker

Source Hardware Cost Index: Jorgenson, Dale W. and Kevin Stiroh, "Raising the Speed Limit: US Economic Growth in the Information Age." Measuring and Sustaining The New Economy: National Academy Press 2001.

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