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There are many different versioning schemes and really is up to the development team how to handle it. I remember a company at one point skipping from version 7 to version 10 because of marketing reasons.
Anything less than version 1.0 is usually considered an alpha release. In the x.y.z scheme, x = major, y = minor, and z = release. There's also a fourth, x.y.z.g, that could represent the build number.
Traditionally in software development, x will be incremented to 1 for the first stable release. It might further be incremented when their are major changes to the underlying code (or even story in this case?). y is incremented when there are new features and typically is stable. z is incremented when there are bug fixes. g is incremented often internally during the development process and is usually not stable.
Anything less than version 1.0 is usually considered an alpha release. In the x.y.z scheme, x = major, y = minor, and z = release. There's also a fourth, x.y.z.g, that could represent the build number.
Traditionally in software development, x will be incremented to 1 for the first stable release. It might further be incremented when their are major changes to the underlying code (or even story in this case?). y is incremented when there are new features and typically is stable. z is incremented when there are bug fixes. g is incremented often internally during the development process and is usually not stable.