Insurance Pricing and Refund Sustainability for Cloud Outages

Mastroeni, Loretta; Naldi, Maurizio

doi:10.1007/978-3-319-68066-8_1

Cited by 8 publications

(10 citation statements)

References 30 publications

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“…The second countermeasure instead relies on buying an insurance policy, whereby the insurer takes on the risk of paying all claims by customers in return for the premium to be paid by the cloud provider, which acts as the insured. The insurance approach to deal with possible excessive claims by cloud users in the framework of a Service Level Agreement has been proposed in [13]. A major problem lies in the definition of the right premium of an insurance policy.…”

Section: Introductionmentioning

confidence: 99%

“…In this paper, we again consider the problem of correctly determining the insurance premium against cloud outages. We adopt the expected utility paradigm as in [13], but we consider the outage model recently proposed in [14] in addition to the exponential-Pareto (a.k.a. Poisson-Pareto) examined in [13].…”

Section: Introductionmentioning

confidence: 99%

“…We adopt the expected utility paradigm as in [13], but we consider the outage model recently proposed in [14] in addition to the exponential-Pareto (a.k.a. Poisson-Pareto) examined in [13]. Both outage models are here examined under three QoS metrics.…”

Section: Introductionmentioning

confidence: 99%

“…• we obtain closed formulas for the insurance premiums for all the combinations of outage model and QoS metric (rather than just for the exponential-Pareto model as in [13];…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Service Level Agreement Violations in Cloud Storage: Insurance and Compensation Sustainability

2019

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Service Level Agreements are employed to set availability commitments in cloud services. When a violation occurs as in an outage, cloud providers may be called to compensate customers for the losses incurred. Such compensation may be so large as to erode cloud providers’ profit margins. Insurance may be used to protect cloud providers against such a danger. In this paper, closed formulas are provided through the expected utility paradigm to set the insurance premium under different outage models and QoS metrics (no. of outages, no. of long outages, and unavailability). When the cloud service is paid through a fixed fee, we also provide the maximum unit compensation that a cloud provider can offer so as to meet constraints on its profit loss. The unit compensation is shown to vary approximately as the inverse square of the service fee.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…• we obtain closed formulas for the insurance premiums for all the combinations of outage model and QoS metric (rather than just for the exponential-Pareto model as in [13];…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Service Level Agreement Violations in Cloud Storage: Insurance and Compensation Sustainability

2019

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“…[23], [24], [25], [26], [27]),  protecting itself through an insurance policy. The latter approach has been pursued, e.g., in [28], where a formula based on the expected utility paradigm has been proposed to set the insurance premium. That formula is based on the first two moments of the probability distribution of the loss, i.e., its mean and variance.…”

Section: Introductionmentioning

confidence: 99%

Computation of the Insurance Premium for Cloud Services Based on Fourth-Order Statistics

Naldi

Mazzoccoli

2019

International Journal of Simulation: Systems, Science &Amp; Technology

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Though cloud providers claim to provide a very high reliability, outages of few hours are not uncommon and may provide significant harm to the business operations of cloud customers. In addition to improving the reliability of the cloud infrastructure through redundancy and technical means, the cloud provider can protect itself from the damaging consequences of failures through an insurance policy. In this paper we propose a scheme to compute the fair premium for an insurance policy covering accidental outages of cloud services. The computation is based on the expected utility paradigm and employs a characterization of the outage probability distribution through its moments up to the fourth order. This allows a more accurate representation of the actual distribution than what the premium computation based on just mean and variance allows. The new computation scheme is applied to a Poisson model of outages to show the difference it implies with respect to the mean-variance approach.

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A 2020 perspective on “Client risk informedness in brokered cloud services: An experimental pricing study”

Shang

Kauffman

2020

Electronic Commerce Research and Applications

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Insurance Pricing and Refund Sustainability for Cloud Outages

Cited by 8 publications

References 30 publications

Service Level Agreement Violations in Cloud Storage: Insurance and Compensation Sustainability

Service Level Agreement Violations in Cloud Storage: Insurance and Compensation Sustainability

Computation of the Insurance Premium for Cloud Services Based on Fourth-Order Statistics

A 2020 perspective on “Client risk informedness in brokered cloud services: An experimental pricing study”

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