3 Cases Where Software Bugs Deteriorated Company’s Profitability

software bugs
  • Posted By: admin
  • Posted On: December 5, 2018

In 2016, the global software failure cost crossed $1.1 trillion because of software bugs. These failures were reported by 363 companies and affected almost 4.4 billion consumers. Majority of these incidents could have been avoided, but the software passed onto the customers without proper quality assurance.

In addition to this, IBM found out that the cost of fixing the errors after the release is four to five times more than if it is detected during the designing phase. It becomes a hundred times more expensive when the errors are identified during the maintenance phase.

Therefore, the cost goes up as the bug passes by the software development lifecycle. According to IBM, the cost bug fixing would be $100 in the initial phase, $1500 in the QA testing phase, and $10,000 during the production phase.

IBM pointed out that the software bug expenses not only impact the internal business operations but also cause the loss of an average $2.3 billion of shareholder value on the very first day.

So, a software bug affects everything such as customer loyalty, brand reputation, and profitability.

Also Read: How Valuable Is Software Testing?

Companies Who Suffered Losses


NASA launched the Mars Climate Orbiter in 1998 to see the atmosphere and climate of Mars. One day the Orbiter got lost into space and the communication got cut-off. There are so many things that could go wrong while dealing with spacecraft engineering.

Nevertheless, if detected and fixed on time, the error could have been easy. The $125 million spacecraft apparently revolved very close to Mars’ surface and broke due to the engineering team failure to transform their measurements from U.S. units to metric. But this was not just the one time that blunders during programing destroyed a NASA rocket.


AT&T failed to meet the rudimentary requirements of their consumers as they attempted to contact their family, friends, and airports, in January 1990. People got furious after experiencing a total of 200,000 lost airline reservations and 75 million missed phone calls.

AT&T initially thought someone hacked their system. However, the ascended because of the software bug. AT&T had only upgraded the code, but the variation of speed ended up being harmful to a system that could not sustain. So, one-liner buggy code caused a loss to AT&T of about $60 million.


Majority of the customers believed that Apple can never do anything wrong. However, in 2016 this believe proved to be wrong when they replaced Google Maps with iOS 6.  This brought a halt to customer’s limitless admiration. It was nothing more than a corporate politics to gain more market share. As a result, Apple had to make compensation to this because it was causing negative publicity.

Apple wanted to release the latest and the greatest map app, as early as possible. In this process, they made a few inexcusable lapses in navigation causing the #ios6apocalypse. As a consequence, Apple Maps had false location data, warped graphics, duplicated islands, flattened landmark, disappeared buildings, and erased cities.

Even though the financial loss was never accredited to this absence of judgment, it made customers switch to competitors.

User Experience and Customer Retention

Software bugs profoundly impact user experience, directly influencing customer retention. Bugs, if not identified and resolved early, can lead to a plethora of issues for end-users. Inconsistent performance, crashes, or incorrect outputs can drastically diminish the user experience, resulting in frustration and disappointment. Users are likely to abandon applications that consistently fail or provide a subpar experience, leading to a loss of customer loyalty and retention. Therefore, ensuring a bug-free software experience is pivotal for maintaining a satisfied user base.

Mitigating Software Failures: Best Practices

To mitigate software failures, implementing rigorous quality assurance practices is imperative. Early detection and resolution of bugs are crucial to prevent software bugs from reaching the final stages. Comprehensive testing throughout the development cycle helps in identifying and rectifying issues before they affect end-users. From unit testing to integration and system testing, each phase should be meticulously executed, adhering to quality standards and best practices.

Importance of Agile Development and Continuous Testing

Agile methodologies significantly contribute to avoiding software failures by fostering a culture of continuous testing. Agile practices emphasize iterative development and continuous feedback, enabling early bug detection and resolution. Regular testing throughout the development process ensures that bugs are identified and fixed promptly, reducing the probability of major software failures upon release.

Collaboration and Communication in Testing

Effective communication and collaboration among cross-functional teams are essential in the software testing phase. Clear communication among developers, testers, and stakeholders helps in identifying and resolving bugs efficiently. Collaborative efforts allow for a comprehensive understanding of software requirements, which, in turn, facilitates the detection and resolution of bugs at an early stage, preventing potential failures.

Proactive Bug Management Strategies

Implementing proactive bug management strategies significantly contributes to reducing software failures. Conducting code reviews, static analysis, and employing best coding practices can identify potential bugs early in the development process. Automated tests, both for unit testing and continuous integration, play a crucial role in uncovering bugs at their nascent stages, ensuring that software remains resilient against major failures. By fostering a proactive bug management approach, developers can substantially reduce the likelihood of software defects reaching the final stages, preserving the integrity and functionality of the software.

Enforcing thorough user acceptance testing (UAT) and involving end-users in beta testing further fortify the bug identification process, facilitating feedback collection and issue resolution before software deployment. Additionally, instituting effective communication channels within development teams fosters a culture of transparency, encouraging prompt bug reporting and resolution. This proactive approach empowers teams to detect and rectify potential bugs, enhancing software quality and user experience.

Kualitee’s Role in Software Bug Detection and Resolution

Kualitee plays a vital role in the efficient detection and resolution of software bugs. Its array of features and tools facilitates early identification of bugs, allowing for prompt resolution and prevention of potential software failures. Kualitee’s comprehensive testing capabilities save time and resources by enabling thorough bug identification and resolution, thereby contributing to successful software development and deployment.