This chapter discusses lifecycle model application for software development. It compares the benefits and shortcomings of different models. The authors argue that there is no universal lifecycle model. For agility, this chapter recommends combining prototyping with the other models. The authors suggest this to achieve a common understanding of the key product features and to reduce project risks. The lifecycle model choice determines project economics and time to market. The model also influences product quality and overall project success. However, product success essentially depends on human factors. The authors analyze the applicability of the lifecycle models to large-scale, mission-critical software systems. Finally, this chapter introduces a methodology. It includes a spiral-like lifecycle and a set of formal models and visual tools for software product development. This methodology helps to optimize the software product lifecycle. It fits large-scale, complex heterogeneous software products.