From the wikipedia entry on software release cycle:


http://en.wikipedia.org/wiki/Software_release_life_cycle

Origin of 'alpha' and 'beta'

The term beta test applied to software comes from an early IBM hardware product test convention dating back to punched card tabulating and sorting machines. Hardware first went through an alpha test for preliminary functionality and small scale manufacturing feasibility. Then came a beta test to verify that it actually correctly performed the functions it was supposed to and could be manufactured at scales necessary for the market, and then a c test to verify safety. With the advent of programmable computers and the first shareable software programs, IBM used the same terminology for testing software. Beta tests were conducted by people or groups other than the developers. As other companies began developing software for their own use, and for distribution to others, the terminology stuck and now is part of our common vocabulary.



Peace,

~C