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A Revenue-Based Model for Making Resource Investment Decisions in IP Networks

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Authors
Jagannathan, Srinivasan; Altmann, Jorn; Rhodes, Lee
Issue Date
2003-03
Publisher
IFIP/IEEE IM2003
Citation
IFIP/IEEE IM2003, Integrated Symposium on Integrated Network Management, Colorado Springs, March 2003
Keywords
Network and Systems MonitoringInvestment Cycle,Business Process,NetworkService Management
Abstract
Capacity planning is a critical task in network management. It identifies how
much capacity is needed to match future traffic demand. It directly affects customer
satisfaction and revenues. In this work we present a network usage analysis
tool called Dynamic Netvalue Analyzer (DNA), which helps alleviate a big
problem that network engineers and marketing executives face– making optimal
resource investment decisions. DNA helps the prediction process by presenting
actual network usage data from a business perspective, in a form that is useful
to both network engineers and marketing executives. We show that information
from DNA can be used to: (1) quantify revenue earned on each link, (2) quantify
return-on-investment on performing a link upgrade, and (3) quantify the loss due
to customer dissatisfaction when a link is not upgraded. We also illustrate how
these formulations based on business information can be used to improve capacity
planning decisions.
Language
English
URI
http://hdl.handle.net/10371/6845
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College of Engineering/Engineering Practice School (공과대학/대학원)Program in Technology, Management, Economics and Policy (협동과정-기술·경영·경제·정책전공)Others_협동과정-기술·경영·경제·정책전공
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