Modern Database Management: Chapter 11 Problem and Exercise 14

review-the-tables-for-data-availability-tables-112-and-113-for-the-retail-brokerage-firm-shown-in-table-112-calculate-the-expected-annual-cost-of-downtime-for-the-following-availability-levels-999-percent-and-995-percent-do-you-think-that-either-of-these-levels-is-acceptable-for-this-organization

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.

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