Software is released in versions, usually in Major.Minor.BugFix format. So, version 1.0.0 would be the first release of production code. Version 2.3.14 would be the second major release, 3 minor releases, and 14 bug fix releases. 0.0.3 would mean the 3rd release of Beta code (code that is not released to production yet).
What does all this mean to you?
1. Your software provider should use version control
Version control is the tool developers use to govern the development process. Changes made to the software are associated with an issue (bug fix or new development). To create a release, the changes are bundled and assigned a version number (2.3.14).
There are others, but Subversion, CVS, and Source Safe are three popular version control products.
2. Your software provider should give you a list of resolved issues for each release
These could be bug fixes or additional functionality. This provides an audit trail when your software is upgraded.
Version control is the sign of an experienced software development shop. It is crucial to the success of your provider, and therefore to the success of your business.
Stephen