Backward Compatibility:
What does we mean by it??
Backward compatibility testing is the kind of testing which ensures software pakages(ISVP's) built on your previous versions work on the latest versions.
Eg: you have version 1 of your software and you have developed some applications on top of it for your customer, which generally is delivered as an Idependent Service Vendor Package .
Now you have Version 2 of your software.
And if you just want to check if the ISV given to your customer works fine on the newer version. This check/verification is called Backward compatibility check.
This also ensures that the previous build functionality is working fine on the latest release.
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