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Actual debt has a few major differences with tech debt though. First it's easy to quantify the cost of. Second and more importantly where it's good and bad are
by jrott 6y ago
Actual debt has a few major differences with tech debt though. First it's easy to quantify the cost of. Second and more importantly where it's good and bad are almost the opposite of where tech debt is good and bad. You want to use debt for financing when you have a relatively stable mature business where as when things are still uncertain you want to use equity.
- XorNot 6y agoConversely both have the same basic effect: they magnify the consequences of decisions. Fiscal debt is essentially a multiplier on your sensitivity to revenue changes. Tech debt is a multiplier on delivery time for new features, or your sensitivity to changes in the platform's assumptions.