An organization may suffer large losses if its computer service is interrupted. For protection, it can purchase computer backup service from the outside market which temporarily provides service replacement from a central facility. A dynamic probabilistic model is developed which describes such a computer backup service system. The parties involved have conflicting motivations. The supplier is interested in optimizing his expected profits subject to a given set of parameters while the subscriber will evaluate the service contract to his own best interest. This paper analyzes how the economic interests of the supplier and subscribers interact based on a dynamic reliability analysis of their respective computer systems. Assuming all physical parameters fixed, the supplier's optimal value in terms of economic parameters is determined. An algorithmic procedure is developed for computing such values. Some numerical examples are presented in order to gain insights into the system.
The copyright of the original papers published on this site belongs to IEICE. Unauthorized use of the original or translated papers is prohibited. See IEICE Provisions on Copyright for details.
Copy
Marshall FREIMER, Ushio SUMITA, Hsing K. CHENG, "Analysis of Economics of Computer Backup Service" in IEICE TRANSACTIONS on Communications,
vol. E75-B, no. 5, pp. 385-400, May 1992, doi: .
Abstract: An organization may suffer large losses if its computer service is interrupted. For protection, it can purchase computer backup service from the outside market which temporarily provides service replacement from a central facility. A dynamic probabilistic model is developed which describes such a computer backup service system. The parties involved have conflicting motivations. The supplier is interested in optimizing his expected profits subject to a given set of parameters while the subscriber will evaluate the service contract to his own best interest. This paper analyzes how the economic interests of the supplier and subscribers interact based on a dynamic reliability analysis of their respective computer systems. Assuming all physical parameters fixed, the supplier's optimal value in terms of economic parameters is determined. An algorithmic procedure is developed for computing such values. Some numerical examples are presented in order to gain insights into the system.
URL: https://global.ieice.org/en_transactions/communications/10.1587/e75-b_5_385/_p
Copy
@ARTICLE{e75-b_5_385,
author={Marshall FREIMER, Ushio SUMITA, Hsing K. CHENG, },
journal={IEICE TRANSACTIONS on Communications},
title={Analysis of Economics of Computer Backup Service},
year={1992},
volume={E75-B},
number={5},
pages={385-400},
abstract={An organization may suffer large losses if its computer service is interrupted. For protection, it can purchase computer backup service from the outside market which temporarily provides service replacement from a central facility. A dynamic probabilistic model is developed which describes such a computer backup service system. The parties involved have conflicting motivations. The supplier is interested in optimizing his expected profits subject to a given set of parameters while the subscriber will evaluate the service contract to his own best interest. This paper analyzes how the economic interests of the supplier and subscribers interact based on a dynamic reliability analysis of their respective computer systems. Assuming all physical parameters fixed, the supplier's optimal value in terms of economic parameters is determined. An algorithmic procedure is developed for computing such values. Some numerical examples are presented in order to gain insights into the system.},
keywords={},
doi={},
ISSN={},
month={May},}
Copy
TY - JOUR
TI - Analysis of Economics of Computer Backup Service
T2 - IEICE TRANSACTIONS on Communications
SP - 385
EP - 400
AU - Marshall FREIMER
AU - Ushio SUMITA
AU - Hsing K. CHENG
PY - 1992
DO -
JO - IEICE TRANSACTIONS on Communications
SN -
VL - E75-B
IS - 5
JA - IEICE TRANSACTIONS on Communications
Y1 - May 1992
AB - An organization may suffer large losses if its computer service is interrupted. For protection, it can purchase computer backup service from the outside market which temporarily provides service replacement from a central facility. A dynamic probabilistic model is developed which describes such a computer backup service system. The parties involved have conflicting motivations. The supplier is interested in optimizing his expected profits subject to a given set of parameters while the subscriber will evaluate the service contract to his own best interest. This paper analyzes how the economic interests of the supplier and subscribers interact based on a dynamic reliability analysis of their respective computer systems. Assuming all physical parameters fixed, the supplier's optimal value in terms of economic parameters is determined. An algorithmic procedure is developed for computing such values. Some numerical examples are presented in order to gain insights into the system.
ER -