Lockheed Martin uses the hosted release of V1 but also has used the local version. The hosted product boosts collaboration, Zwicker said. "Everybody can see exactly what all the other teams are working on [and] what challenges they face, and it brings us all together as a cohesive team," he said.

Agile programming offers the flexibility to react to customers, to understand emerging requirements, and to build the right product within budget constraints, Zwicker said. Lockheed Martin employs four-week development iterations with its agile processes, he said.

VersionOne competes with Rally Software in the market for agile software development services, but VersionOne believes it has an advantage in cost of ownership. VersionOne also believes it has an edge in that it has been in the marketplace for four years and has hundreds of customers and thousands of users, Holler said.

A perpetual license for V1: Agile Enterprise is US$500 per user plus 20 percent of that figure for support and maintenance. Users also can subscribe for $30 per month, featuring support.

Rally, meanwhile, charges $65 per user per month for Rally Agile Pro, its hosted service for multiple teams using agile processes. The hosted service has been available since 2003 and Rally says it has more than 2,500 subscribers.