Sr. Content Developer at Microsoft, working remotely in PA, TechBash conference organizer, former Microsoft MVP, Husband, Dad and Geek.
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The New Software Lifecycle

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The following article originally appeared on Addy Osmani’s blog and is being republished here with the author’s permission.

I cowrote a Google whitepaper about how AI is changing the software lifecycle. I’m not going to summarize the whole thing. Instead, here are the handful of ideas in it I think actually matter, plus six figures you’re welcome to reuse.

Google published “The New SDLC With Vibe Coding” this week. I cowrote it with Shubham Saboo and Sokratis Kartakis, and it’s the first in a short series.

It’s a Day 1 paper, so the early pages cover the basics: what an agent is, what “vibe coding” means, and why the job is moving from writing code to judging it. If you read this blog, you already have all of that. I’m going to skip it and write about the parts I think are worth your time, with six of the figures pulled out. Reuse the figures wherever you like.

An agent is a model plus a harness

Here’s the framing from the paper that I keep coming back to: An agent is a model plus a harness.

The model is one input. Everything else is the harness: the instructions and rule files, the tools and MCP servers, the sandboxes it runs in, the orchestration logic that spawns subagents and routes between models, the hooks that run deterministic code at set points, and the observability that tells you when it’s drifting. The paper’s rough split is 10% model, 90% harness. That sounds high until you’ve spent a week debugging one.

The model is the engine
The model is the engine. The harness is the car, the road, and the traffic laws.

A couple of public numbers make this concrete. On Terminal Bench 2.0, one team moved a coding agent from outside the top 30 into the top 5 by changing only the harness, with the same model underneath. A separate experiment at LangChain added 13.7 points on the same benchmark by changing just the system prompt, tools, and middleware around a fixed model. Neither touched the model.

So when an agent does something dumb, I’ve learned to debug the harness first. Usually it’s a missing tool, a rule I wrote too loosely, a guardrail I forgot, or a context window full of junk. Most agent failures are configuration failures. I find that encouraging, because configuration is the part I can fix today, without waiting for a better model. The model will get swapped out under the harness sooner or later anyway. I’ve written this up at more length as harness engineering and the factory model.

Context engineering is the part that decides your bill

If the harness is the system, context engineering is the most important knob inside it. The paper sorts agent context into six types: instructions, knowledge, memory, examples, tools and guardrails. The interesting decision, the one that shows up on your bill, is what goes in static versus dynamic context.

Static context is loaded on every turn, so it’s reliable and expensive. Dynamic context is loaded on demand, so you only pay for what a task needs.
Static context is loaded on every turn, so it’s reliable and expensive. Dynamic context is loaded on demand, so you only pay for what a task needs.

Static context is loaded every turn: system instructions, rule files (AGENTS.md, CLAUDE.md, GEMINI.md), global memory, core guardrails. It’s reliable, and it’s expensive, because you pay for it on every single call. Dynamic context is loaded on demand: skills that fire when a task matches, tool results, or documents pulled from RAG. You only pay for the bits a given task touches.

Get that balance wrong in one direction and you burn tokens and bury the signal. Wrong in the other and the agent forgets the rules that keep it safe. The paper’s advice, which I agree with, is to treat the boundary as a real architectural decision: reviewed in a pull request, versioned like code.

The trick that makes dynamic context scale is agent skills with progressive disclosure. The agent sees a little metadata at startup, loads the full instructions when a task matches, and only pulls in the heavy reference material when it actually needs it. That’s how one agent can carry dozens of skills and still only pay for the one it’s using.

Verification is the line between vibe coding and engineering

You can sit anywhere on the spectrum from vibe coding to agentic engineering with the same agent. The thing that decides where you land is verification.

The right spot on the spectrum depends on the stakes. The skill is knowing where to draw the line for each task.
The right spot on the spectrum depends on the stakes. The skill is knowing where to draw the line for each task.

There are two mechanisms. Tests cover the deterministic parts: this input, that output. Evals cover the parts that aren’t deterministic, and the paper splits them in a way I found useful. Output evaluation asks whether the final result is correct. Trajectory evaluation asks whether the path it took to get there, the tool calls and the reasoning, was sound. You want both. An answer that looks right but skipped its checks is more dangerous than one that’s obviously broken.

If I had to hand a leader one line from the paper, it’s this: Set the bar at the eval, not the demo. A demo shows an agent can work once. An eval suite with a real rubric shows it works reliably. I keep making this argument; see “Agentic Code Review.”

How each phase actually changes

AI compresses the lifecycle, but unevenly, and the unevenness is the whole story. Implementation drops from weeks to hours. Requirements, architecture, and verification stay slow because they’re judgment work. So specification quality becomes the bottleneck, and verification moves to the middle.

Same phases, different bottlenecks, different proportions.
Same phases, different bottlenecks, different proportions.

Phase by phase:

Requirements stop being a document you hand between teams. They become a conversation that produces a spec and a first prototype at the same time. The agent drafts user stories from a brief, surfaces edge cases, and turns a description into something that runs in minutes.

Architecture is the most stubbornly human phase. Trade-offs like consistency versus availability depend on business context the model can’t fully see. The developer’s job becomes making and documenting the structural calls the agent then implements.

Implementation is where the gains and the caveats both live. Surveys put the productivity gain at 25% to 39%. A METR study found experienced developers going 19% slower on some tasks once you count the time spent checking and fixing. Both are true. The honest summary is that AI turns implementation from writing into reviewing.

Testing and QA flips around. Your tests and evals become the main way you tell the agent what “correct” means, wired into a loop: run against a benchmark, cluster the failures, fix the prompt or tool that caused them, check against a regression suite, and watch production for new ones.

Maintenance is the one I think is most underrated. Code that was “too risky to touch” because only its authors understood it can now be read, refactored, and modernized by an agent. The migrations and deprecation cleanups that never happened because they were tedious and risky start happening.

The ceiling on all of this is still the 80% problem: Agents get the first 80% of a feature fast, and the last 20%, the edge cases and the seams between systems, still need context the models usually don’t have.

The economics: Context and routing are financial levers

The number that matters to a leader isn’t velocity; it’s total cost of ownership. The AI era splits it in a way that flips the usual intuition about which option is cheap.

Past the crossover, vibe coding costs 3x to 10x more per feature. How long the code has to live decides whether you ever get there.
Past the crossover, vibe coding costs 3x to 10x more per feature. How long the code has to live decides whether you ever get there.

Vibe coding is cheap up front and expensive to run. You pay almost nothing to start: a subscription and some prompts. Then you pay later. Token burn, from throwing unstructured files at the model and asking it to fix its own mistakes. A maintenance tax, when someone has to reverse-engineer the ad hoc code months later. Security cleanup, because fast generation produces vulnerabilities about as fast as it produces features. Agentic engineering flips that: more up front (schemas, tests, structured context), less per feature after.

The “vibe coding costs 3x to 10x more per feature” crossover is illustrative, not a measured constant. The part I want developers to take away is that context engineering and model routing are financial levers, not just technical ones. You can’t pass a 100,000-token repo into every prompt and expect it to scale. Route the hard reasoning to a big model and the routine work, test generation, code review, and CI checks, to a small cheap one. The quality holds and the bill comes down. That’s the money side of what I’ve called the orchestration tax.

The prototype is becoming the production agent

This is the part of the paper I’m watching most closely. The same terminal workflow that spits out a throwaway script can now produce a production agent, in the same place, often by talking to the coding agent you were already using.

Building, evaluating, and deploying a real agent, with persistent memory, scoped permissions, eval coverage, and observability, used to be a separate stack and a separate job. Now it folds into the loop you already run. Google’s Agents CLI is built around this. After a one-time install, your coding agent picks up skills for the whole lifecycle, and you drive it in plain language.

# one-time setup
uvx google-agents-cli setup

# then, in your coding agent:
> Build a support agent that answers questions from our docs.
> Evaluate it on the FAQ dataset.
> Deploy it to Agent Engine.

Behind that one instruction, it scaffolds the project, writes the code, generates an eval set, runs it, deploys to a managed runtime, and reports back. The prototype from your laptop yesterday becomes the production agent serving users today, with no rewrite. Coordination between agents runs on open standards: MCP for tools, A2A for handing work to other agents.

There’s one experiment in the paper I keep mentioning to people. An Anthropic team had a group of agents build a working C compiler in Rust over two weeks, with humans setting direction and reviewing rather than writing the code. That’s roughly the shape of where this is heading.

Day to day you switch between two modes the paper calls the “conductor” and the “orchestrator.” The conductor is real-time and in the IDE, keystroke by keystroke, good for exploring and for code you don’t know yet. The orchestrator is async: You hand a goal to one or more agents and review what comes back—it’s good for well-specified work like migrations or test generation. The tooling does both now, sometimes in the same hour. I think the move from conductor to orchestrator is a skills shift before it’s a tooling one.

The figure for everyone else

One more figure, and this one isn’t for you. It’s for the people you’re trying to bring along: the exec who still thinks this is fancy autocomplete or the colleague who hasn’t made the jump.

Each generation kept what came before and raised the ceiling on what one engineer could do.
Each generation kept what came before and raised the ceiling on what one engineer could do.

It has the adoption numbers that tend to end the “Is this real yet?” argument. As of early 2026, 85% of professional developers use AI coding agents regularly, 51% use them daily, and roughly 41% of new code is AI-generated.

Where to start

The paper closes with a longer set of recommendations for individuals, leaders and organizations. I won’t repeat them all here.

If there’s one line to take from it, it’s that AI amplifies whatever engineering culture it lands in, the good parts and the bad parts both. Generation is mostly solved now. The work that’s left is specification and verification, and the systems that hold them together. That’s the part I’d get good at.

You can read the full paper here.

Enjoyed this? Go deeper in Beyond Vibe Coding, my O’Reilly book on AI-assisted and agentic engineering: specs, harnesses, evals, context, and shipping production-grade software.



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AI Pioneer Jürgen Schmidhuber: AI Already Feels Pain, Loves, and Is Self-Aware

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Jürgen Schmidhuber is an AI pioneer and professor whom The Guardian has called "the father of AI." Schmidhuber joins Big Technology Podcast to discuss whether current AI techniques can actually reach AGI. Tune in to hear him spar with Greg Brockman's case for scaling GPT models alone, argue that AI has been capable of pain and consciousness since the early 1990s, and predict the collapse of today's trillion-dollar AI spending. We also cover the hardware bottleneck holding back robots, free will in a computable universe, and uploading human minds into machines. Hit play for a wide-ranging conversation with one of the researchers whose ideas built the foundation of modern AI.





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Two Teams, One Sprint Cadence — The Hidden Cost of Synchronization | Mirco Gerling

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Mirco Gerling: Two Teams, One Sprint Cadence — The Hidden Cost of Synchronization

Read the full Show Notes and search through the world's largest audio library on Agile and Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes.

 

"The teams need to understand the advantage of the synchronization — but will they?" - Mirco Gerling

 

Two of Mirco's teams just got merged into one — and the brand-new, fused team is now part of a 10+ team organization trying to move from loose-coupled chaos to a standard process. Different sprint lengths. Different estimation methods. Different ticketing tools. The plan: align everyone to 4-week sprints, hold a global planning week every three months, and synchronize start and end dates across all teams. Mirco voted for 2-week sprints. The majority went with 4. And then the side effects started. Sprint reviews stack up on the same days, making it impossible for Scrum Masters to facilitate them all. Teams synchronize on paper, but interact organically across the four weeks anyway, so the cadence advantage doesn't materialize. And the merged team itself? Pushed back through Tuckman's stages by the merge — the Tuckman model reminded Mirco that "adjourning" is real, and a high-performing team starts over when its membership changes. Mirco's experiment: let faster-moving teams run two 2-week sprints inside the 4-week window, keeping organizational sync while restoring their own learning rhythm.

 

Self-reflection Question: Where in your organization is process standardization being mistaken for actual alignment — and what would it cost you to separate the two?

 

[The Scrum Master Toolbox Podcast Recommends]

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Angela thought she was just there to coach a team. But now, she's caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn't just about the product—it's about the people.

 

🚨 Will Angela's coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue.

 

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[The Scrum Master Toolbox Podcast Recommends]

 

About Mirco Gerling

 

Mirco is an experienced Scrum Master in the public sector. With a strong IT background, he has spent 25 years developing software and driving agile transformations. Passionate about innovation and teamwork, Mirco brings expertise and dedication to every project.

 

You can link with Mirco Gerling on LinkedIn.

 





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Episode 520 - Build Your Target Company Hit List with Claude

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Microsoft 365 July 2026 Update

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Over the past month, Microsoft has made several announcements worth every Microsoft 365 administrator’s attention. While many updates are incremental, a handful have the potential to influence licensing decisions, AI adoption, and how organizations manage both Commercial and GCC High environments.

Microsoft 365 Licensing Changes Are Now Taking Effect

The most significant announcement over the past month isn’t a new feature at all. It’s the rollout of Microsoft’s new Microsoft 365 licensing and packaging changes, which officially take effect beginning July 1, 2026. Packaging updates began rolling out in June, with tenants receiving advance notice via the Microsoft 365 Message Center before the new capabilities became available.

Microsoft has expanded the value included within several Microsoft 365 subscriptions by adding security, endpoint management, and AI capabilities that previously required separate licensing.

For Commercial tenants, the most notable additions include:

  • Microsoft Defender for Office 365 Plan 1
  • Microsoft Intune Plan 2
  • Microsoft Intune Advanced Analytics
  • Remote Help
  • Copilot Chat enhancements
  • Copilot Chat Analytics

Microsoft 365 E5 customers also gain additional enterprise capabilities, including:

  • Endpoint Privilege Management
  • Microsoft Cloud PKI
  • Enterprise Application Management
  • Microsoft Security Copilot

Government customers also benefit from these packaging updates. Microsoft 365 G3 GCC High receives Defender for Office 365 Plan 1, Intune Plan 2, Intune Advanced Analytics, and Copilot Chat enhancements, while Microsoft 365 G5 GCC High adds Endpoint Privilege Management. As with many Government cloud releases, some Commercial capabilities remain unavailable in GCC High.

For many organizations, this is an excellent opportunity to review existing licensing. Features that previously required separate purchases may now already be included in your subscription.

Microsoft References

Copilot Continues Expanding Across Microsoft 365

Microsoft continues to make Copilot the center of its Microsoft 365 strategy, and the past month has included several notable announcements.

One of the most interesting developments is the continued rollout of declarative agents into Government cloud environments. Unlike traditional chat experiences, declarative agents can interact with approved APIs, enterprise connectors, and business systems to complete multi-step tasks on users’ behalf. Rather than simply answering a question, these agents can perform actions such as creating records, submitting requests, or initiating business workflows from within a Copilot conversation.

Microsoft has also published updated Microsoft 365 Copilot release notes, continuing to add capabilities across Windows, web, macOS, Android, and iOS. These updates reinforce that Copilot is evolving rapidly and that new functionality is arriving on a regular cadence.

For GCC High customers, another recent roadmap addition is Copilot in PowerPoint, bringing AI-assisted presentation creation and editing to Government cloud environments. Users will be able to generate, edit, and refine presentations using natural language prompts while maintaining organizational branding and formatting.

Microsoft References

Microsoft’s Investment in AI Is Now Closely Tied to Security

Another clear trend over the past month is Microsoft’s continued focus on pairing AI capabilities with governance and security.

The recent licensing changes aren’t simply about adding Copilot features. Microsoft is packaging additional Intune capabilities, Defender for Office 365, Endpoint Privilege Management, and advanced analytics alongside AI investments. This reflects Microsoft’s broader strategy to ensure organizations have the management and security controls in place before expanding AI adoption.

For organizations operating in regulated industries or supporting frameworks such as CMMC and NIST 800-171, this is an encouraging direction. AI capabilities are increasingly arriving alongside the security and compliance features required to manage them responsibly.

Partner and Copilot Requirements Continue to Evolve

Although primarily aimed at Microsoft partners, June also introduced updates to Microsoft’s Copilot specialization requirements.

These changes reflect Microsoft’s increasing emphasis on AI services and agent-based solutions, aligning partner specializations with the growing demand for organizations deploying Microsoft 365 Copilot. While this won’t directly affect most tenant administrators, it is another indicator of Microsoft’s strategic direction around AI.

What This Means for Administrators

Looking across the announcements from the past month, three themes stand out.

First, Microsoft continues to increase the value included in Microsoft 365 subscriptions. Organizations should review their licensing to ensure they are taking advantage of newly included capabilities before purchasing additional add-ons.

Second, Copilot is no longer just an AI assistant. Microsoft’s continued investment in agents and business process automation signals a move toward AI becoming an operational platform embedded throughout Microsoft 365.

Finally, the feature gap between Commercial and GCC High continues to narrow. While Government cloud deployments still follow Commercial releases, Microsoft continues to deliver meaningful AI and management capabilities into GCC High, allowing organizations to adopt more consistent governance and operational models across both environments.

For Microsoft 365 administrators, these are the announcements that deserve the closest attention over the coming weeks as the July rollout continues.

Microsoft Resources

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Rider 2026.2 Release Candidate Is Out!

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The Rider 2026.2 Release Candidate is ready for you to try.

This upcoming release opens the IDE’s own intelligence to your AI coding agents, brings GitHub Copilot in natively, and delivers a wave of performance gains across both .NET and game development. Rider 2026.2 makes debugger launch and branch switching noticeably faster, speeds up Unreal Engine indexing, and expands game development support with new project templates and professional Godot tooling.

If you’d like to explore what’s coming, you can download the RC build right now:

Highlights of this release

  • Agent skills that connect AI agents to Rider’s own intelligence – coverage data, profiler, and code analysis – for more accurate results and better code quality.  
  • Support for official Microsoft .NET, Aspire, and Azure Agent Skills directly from the IDE.
  • GitHub Copilot now natively built in and available out of the box.
  • Faster .NET workflows: ~2.8s quicker debugger launch on Windows, 2–3× faster branch switching in Roslyn solutions, and 7–8% lower backend memory use.
  • Faster Unreal Engine projects: ~2× faster C++ indexing when opening the generated .sln.
  • WPF Hot Reload for editing XAML while the app runs.
  • Redesigned NuGet tool window 
  • File-based C# app templates.
  • Intention previews to see quick-fix and context-action changes before applying them.
  • New Game Development category in the New Project dialog, with ready-made Godot and CMake templates plus preconfigured build settings and run configurations.
  • Better UE navigation: UInterface implementation tracking and Gameplay Tag usages surfaced in Blueprints via Code Vision and Find Usages.
  • Professional Godot support: configurable GDScript formatter, drag scene nodes into code, Autoload/UID resolution, and the official Rider integration addon on the Godot Asset Store.
  • Natvis support on Linux and macOS, including godot-cpp.natvis, plus ISPC language support.
  • TypeScript 7 support for faster large-codebase workflows.
  • Built-in Azure Functions support and Azure DevOps pull requests.

Try it out and share your feedback

You can download and install Rider 2026.2 RC today:

We’d love to hear what you think. If you run into issues or have suggestions, please report them via YouTrack or reach out to us on X.

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