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Business activities are rapidly changing nowadays and there are more and also more complex requirements put on programming solutions. These facts put traditional software development methods behind and lead to the need for different approaches what, on the other hand, does not necessarily mean introducing new practices, but means emphasizing some of the concepts of traditional methods. The new approach is called agile. Traditional methods of software development will not be replaced with the new ones, but it is necessary to think about the conditions of software development and choose an appropriate method. This paper presents the process of software development and the methods that are applied to the process. An overview and comparison of traditional and modern methods of software development, such as agile methods, are given. Finally, there are some thoughts about today research of software development methods and their appliance.