using zephyr can you run a typical waterfall project, I know its predominantly for agile but is it exclusively for agile or can it also handle a waterfall release?

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It can, you just use the workflows in JIRA that match your processes.  You'll be a bit more strict and selective on the version management, and report differently on progress, but there's nothing to stop you doing Waterfall in JIRA + Zephyr.

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