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This paper introduces a reliability model, and a reliability analysis technique for component-based software. The technique is named Scenario-Based Reliability Analysis (SBRA). Using scenarios of component interactions, we construct a probabilistic model named Component-Dependency Graph (CDG). Based on CDG, a reliability analysis algorithm is developed to analyze the reliability of the system as a function of reliabilities of its architectural constituents. An extension of the proposed model and algorithm is also developed for distributed software systems. The proposed approach has the following benefits: 1) It is used to analyze the impact of variations and uncertainties in the reliability of individual components, subsystems, and links between components on the overall reliability estimate of the software system. This is particularly useful when the system is built partially or fully from existing off-the-shelf components; 2) It is suitable for analyzing the reliability of distributed software systems because it incorporates link and delivery channel reliabilities; 3) The technique is used to identify critical components, interfaces, and subsystems; and to investigate the sensitivity of the application reliability to these elements; 4) The approach is applicable early in the development lifecycle, at the architecture level. Early detection of critical architecture elements, those that affect the overall reliability of the system the most, is useful in delegating resources in later development phases.