Caesar Wu

Real Option Theory and Monte Carlo Simulation

This chapter highlights the history of real option theory and then lays out two key concepts, namely Monte Carlo simulation and Brownian motion. The purpose of Monte Carlo simulation is to estimate different scenarios at a particular time. Real option theory analysis, however, adds the variable of the time domain into the analysis based on the static NPV value. In essence, it shows the possibilities or options available when the time unfolds. As a result, the decision maker can make the right decision according to the right circumstances. Real option theory cost modeling is one of the most effective strategic methodologies for a decision maker to use when steering the business based on three basic elements: planning, opportunities, and decision making.

Cloud Storage Basics

This chapter covers four storage topics: (1) storage types and hardware; (2) storage application and performance; (3) storage cost calculations, benchmarks, and major storage vendors, and (4) traditional storage vs. cloud storage. From a hardware perspective, the chapter discusses HDDs and SSDs. From a storage topology perspective, it lays out the DAS, NAS, and SAN. In addition, it also touches on the topic of different storage protocols. The main purpose of this chapter is to build a solid foundation for the calculation of cloud storage costs.

Cloud Computing Market Segmentation.

The topics of cloud pricing models and resources management have been receiving enormous attention recently. However, very few studies have considered the importance of cloud market segmentation. Moreover, there is no a better, practical and quantifiable solution for a cloud service providers (CSP) to segment cloud market. We propose a novel solution that combines both hierarchical clustering and time series forecasting on the basis of the classical theory of market segmentation. In comparison with some traditional approaches, such as nested, analytic, Delphi, and strategy-based approaches, our method is much more effective, flexible, measurable and practical for CSPs to implement their cloud market strategies by rolling out different pricing models. Our tested results and empirical analysis show that our solution can efficiently segment cloud markets and also predict the market demands. Our primary goal is to offer a new solution so that CSPs can tail its limited cloud resources for its targeted market or cloud customers.

Cost Modeling: Terms and Definitions

This chapter unfolds the details of a cost model and cost framework. It begins with the concept, terms, and definitions related to a cost model and then it gives a functional definition of a cost model. In order to resolve the fundamental issue, namely making the right strategy decision, this chapter highlights many challenges in term of cost modeling.

Cost Model Calculation

This chapter shows how to establish a cost framework based on business revenue projections or forecasting. The case study is about a leading web portal company serving the real estate business. The estimated cost is the static and linear NPV value. This analysis method can be considered a tactical or stack layer-based analysis.

Cloud Infrastructure Servers: CISC, RISC, Rack-Mounted, and Blade Servers

This chapter focuses on servers. It first gives some information about the history of servers and the client/server architecture and then discusses two types of servers: x86 (CISC) and RISC (mainly Oracle/Sun SPARC) servers. The chapter also compares rack-mounted and blade servers. Most importantly, this chapter will unveil the different server vendors and market share and development trends. The purpose in highlighting these issues is to provide information for a decision maker or IT business analyst to make the right choice for the needs of the business.

Chapter 16 – Chargeback

This chapter discusses the topic of how to measure the usage of a cloud or shared infrastructure. This is not a new concept, but rather an old idea with a new application: the cloud. It mainly focuses on the issue of cloud operations. The idea in emphasizing chargeback is to understand how the cloud cost should be allocated for different Line of Business (LoB) units. The chargeback exercise makes the cost model assumptions much more rational and objective. The ultimate goal of a chargeback is to make the cloud cost as transparent as possible.

Chapter 9 – Cooling Strategy

This chapter discusses the topic of data center cooling. It walks through different cooling strategies: room-based, row-based, and rack-based cooling strategies. It also includes the topic of leveraging free cooling via economizers in order to save on cooling costs.

Effective Air Distribution in Data Centers

This chapter covers 10 different methods of data center air distribution based on two different floor architectures: hard floor and raised floor. It talks about the issues related to how to manage and optimize a cooling system from cooling cost and efficiency perspectives.

Fire Suppression and On-Site Security

This chapter consists of two main topics. One is the data center fire suppression system and the other is the on-site security system. Regarding the fire suppression issue, this chapter discusses how to select the best solution for a fire suppression system for a particular data center. One of the criteria for selection is cost considerations. The second topic is on-site or physical security systems. Based on the TIA-942 standard, different tiers of data center should have different physical security systems. The physical security system will be organized with three layers, the physical layer, the organizational layer, and the infrastructure layer.