The Hitchhikers Guide to Software has an interesting post on "why the waterfall model does not work". I think he basically nailed the reasons why the waterfall approach to software development does not work. The main reason it fails is the huge amount of optimistic assumption required. There are simply too many variables associated with software development.
What makes agile software development superior to the waterfall approach? I think the name of the methodology speaks for itself. It allows developers to move ahead in the project quickly and easily. Also, as goes without saying, early feedback is invaluable to a software development team.
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