On the Implicit Cost Structure of Service Levels from the Perspective of the Service Consumer
Maximilian Christ, Julius Neuffer, Andreas W. Kempa-Liehr
2017
Abstract
As services are ubiquitous in the modern business landscape, there is the need to define them in a binding legal framework, the Service Level Agreement (SLA). The most important aspect of a SLA is the agreed service level, which specifies the availability of the service. In this work, we discuss a simple mathematical service model, where the availability of a service is based on a singular resource. In this model one can relate the parameter of a linear cost structure to the purchased service level. Based on this relation we formulate a rule of thumb enabling a service consumer to check if an agreed service level fits their cost structure.
References
- Allen, P. and Higgins, S. (2006). Service Orientation: Winning Strategies and Best Practices. Cambridge University Press.
- Ardagna, D., Casale, G., Ciavotta, M., PĂ©rez, J. F., and Wang, W. (2014). Quality-of-service in cloud computing: modeling techniques and their applications. Journal of Internet Services and Applications, 5(1):11.
- Birge, J. R. and Louveaux, F. (2011). Introduction to stochastic programming. Springer Science & Business Media, Berlin.
- Bishop, C. M. (2006). Pattern Recognition and Machine Learning (Information Science and Statistics). SpringerVerlag New York, Inc., Secaucus, NJ, USA.
- Campo, K., Gijsbrechts, E., and Nisol, P. (2000). Towards understanding consumer response to stock-outs. Journal of Retailing, 76(2):219-242.
- Chaisiri, S., Lee, B.-S., and Niyato, D. (2012). Optimization of Resource Provisioning Cost in Cloud Computing. IEEE Transactions on Services Computing, 5(2):164- 177.
- Chase, R. B. and Apte, U. M. (2007). A history of research in service operations: What's the big idea? Journal of Operations Management, 25(2):375 - 386.
- Cherbakov, L., Galambos, G., Harishankar, R., Kalyana, S., and Rackham, G. (2005). Impact of service orientation at the business level. IBM Systems Journal, 44(4):653-668.
- Della Vedova, M. L., Tessera, D., and Calzarossa, M. C. (2016). Probabilistic provisioning and scheduling in uncertain Cloud environments. In 2016 IEEE Symposium on Computers and Communication (ISCC), pages 797- 803. IEEE.
- Emeakaroha, V. C., Brandic, I., Maurer, M., and Dustdar, S. (2010). Low level metrics to high level SLAs - LoM2HiS framework: Bridging the gap between monitored metrics and sla parameters in cloud environments. In High Performance Computing and Simulation (HPCS), 2010 International Conference on, pages 48-54. IEEE.
- Feindt, M. and Kerzel, U. (2015). Prognosen bewerten. Springer Berlin Heidelberg.
- Fu, X., Li, X., Zhu, Y., Wang, L., and Goh, R. S. M. (2014). An intelligent analysis and prediction model for on-demand cloud computing systems. In 2014 International Joint Conference on Neural Networks (IJCNN), pages 1036-1041. IEEE.
- Furht, B. and Escalante, A. (2010). Handbook of Cloud Computing. Computer science. Springer US.
- Kempa-Liehr, A. (2015). Performance analysis of concurrent workflows. Journal of Big Data, 2(10):1-14.
- Meiss, M., Menczer, F., Fortunato, S., Flammini, A., and Vespignani, A. (2008). Ranking Web Sites with Real User Traffic. In Proc. First ACM International Conference on Web Search and Data Mining (WSDM), pages 65-75.
- Misra, S. C. and Mondal, A. (2011). Identification of a companys suitability for the adoption of cloud computing and modelling its corresponding return on investment. Mathematical and Computer Modelling, 53(3):504-521.
- Office of Government Commerce (2007). ITIL Lifecycle Publication Suite Books. The Stationary Office, London.
- Oliva, R. and Kallenberg, R. (2003). Managing the transition from products to services. International Journal of Service Industry Management, 14(2):160-172.
- Osterwalder, A., Pigneur, Y., and Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the association for Information Systems, 16(1).
- Patel, P., Ranabahu, A. H., and Sheth, A. P. (2009). Service level agreement in cloud computing. In Cloud Workshops at OOPSLA09.
- Roy, N., Dubey, A., and Gokhale, A. (2011). Efficient autoscaling in the cloud using predictive models for workload forecasting. In 2011 IEEE 4th International Conference on Cloud Computing, pages 500-507.
- Royden, H. L. and Fitzpatrick, P. (1988). Real Analysis.
- Further, it has to fulfill a sufficient condition such as Schlaifer, R. and Raiffa, H. (1961). Applied Statistical Decision Theory. Division of Research, Harvard Business School.
- Talia, D. (2013). Toward cloud-based big-data analytics. IEEE Computer Science, pages 98-101.
- thyssenkrupp Elevator AG (2016). MAX - the game changing predictive maintenance service for elevators. TKElevator-Broschure EN, Elevator Technology, Essen.
- Truong, H.-L. and Dustdar, S. (2010). Composable cost estimation and monitoring for computational applications in cloud computing environments. Procedia Computer Science, 1(1):2175-2184.
- Van Houtum, G. J. and Zijm, W. H. M. (2000). On the relationship between cost and service models for general inventory systems. Statistica Neerlandica, 54(2):127- 147.
- Vargo, S. L. and Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1):1-17.
- Wieder, P., Butler, J. M., Theilmann, W., and Yahyapour, R., editors (2011). Service Level Agreements for Cloud Computing. Springer, New York.
- Wu, L., Garg, S. K., Versteeg, S., and Buyya, R. (2014). SLA-Based Resource Provisioning for Hosted Softwareas-a-Service Applications in Cloud Computing Environments. IEEE Transactions on Services Computing, 3:465-485.
- Yan, J. (2015). Machinery Prognostics and Prognosis Oriented Maintenance Management. John Wiley & Sons, Singapore.
- Yildirim, I., Tan, B., and Karaesmen, F. (2005). A multiperiod stochastic production planning and sourcing problem with service level constraints. OR Spectrum, 27(2- 3):471-489.
- Zott, C., Amit, R., and Massa, L. (2011). The business model: recent developments and future research. Journal of management, 37(4):1019-1042.
Paper Citation
in Harvard Style
Christ M., Neuffer J. and Kempa-Liehr A. (2017). On the Implicit Cost Structure of Service Levels from the Perspective of the Service Consumer . In Proceedings of the 7th International Conference on Cloud Computing and Services Science - Volume 1: CLOSER, ISBN 978-989-758-243-1, pages 531-538. DOI: 10.5220/0006310505310538
in Bibtex Style
@conference{closer17,
author={Maximilian Christ and Julius Neuffer and Andreas W. Kempa-Liehr},
title={On the Implicit Cost Structure of Service Levels from the Perspective of the Service Consumer},
booktitle={Proceedings of the 7th International Conference on Cloud Computing and Services Science - Volume 1: CLOSER,},
year={2017},
pages={531-538},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006310505310538},
isbn={978-989-758-243-1},
}
in EndNote Style
TY - CONF
JO - Proceedings of the 7th International Conference on Cloud Computing and Services Science - Volume 1: CLOSER,
TI - On the Implicit Cost Structure of Service Levels from the Perspective of the Service Consumer
SN - 978-989-758-243-1
AU - Christ M.
AU - Neuffer J.
AU - Kempa-Liehr A.
PY - 2017
SP - 531
EP - 538
DO - 10.5220/0006310505310538