Modern Database Management: Chapter 11 Problem and Exercise 14

Question

Review the tables for data availability (Tables 11-2 and 11-3). For the retail brokerage firm shown in Table 11-2, calculate the expected annual cost of downtime for the following availability levels: 99.9 percent and 99.5 percent. Do you think that either of these levels is acceptable for this organization?

Answer

Data availability for retail brokerage firms is 99.9%

Now, from table 11-2 given in the book, the hourly cost of downtime for a retail brokerage firm is $6.45 million ($64500000)

Also, from table 11-3 given in the book, 99.9% downtime means the number of hours system is down per year, which is 8.77.

So, the annual cost of downtime is, for a retail brokerage firm the expected annual cost of downtime for 99.5% data availability is approximately $285.5 million. This level of the cost will not be acceptable to the organization.