Is knowledge management one of those hyped concepts that rise quickly, ambitiously claims to cure organizational headaches and then fails and falls quietly? Or is it an instrument that will really help organizations address some of the problems they face while trying to achieve their business objectives? In particular, is knowledge management valuable to software development organizations? What kind of problems can KM help address and solve? What kind of solutions does KM propose to these problems? How can a KM system for a software organization be implemented? What are the challenges? What are the success factors? This report addresses these questions and attempts to provide answers that resulted from an extensive research of the state-of-the-art and state-of-the-practice of this subject.