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

Abstract

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.

Optimal Investment in Cyber-Security under Cyber Insurance for a Multi-Branch Firm

“…The inaccurate knowledge of risks by the insurer may, in fact, lead to overpricing Vakilinia and Sengupta (2018) and Bandyopadhyay et al (2009), which is a source of concern for the adoption of cyberinsurance Levitin et al (2018); Ouyang (2017). Formulas for the insurance premium have been proposed (see, e.g., Mastroeni et al (2019); Mazzoccoli and Naldi (2020); Naldi and Mazzoccoli (2018)).…”

“…A recent paper by Kshetri (2020) clears this doubt, since it shows that the market is bound to expand and will be reinforced by institutional actions. Recent efforts have been directed at a more operational level by providing pricing formulas for the insurance premium under well-established risk models (see Mastroeni et al (2019); Mazzoccoli and Naldi (2020); Naldi and Mazzoccoli (2018)).…”

IT Reliability for Ensuring Performance of IT Used in Organizations Operating under Covid-19 Epidemic Crisis

“…SLA "defines the delivery ability of a provider, the performance target of consumers' requirement, the scope of guaranteed availability, and the measurement and reporting mechanisms" (Wu & Buyya, 2012, p. 5) and in general describes boundaries and expectations for what is called a proper operation within the organizationthose expectations should be met especially in critical conditions, in which organization is especially dependent of IT solutions. Therefore, it can be said that there are two basic roles of SLA: reducing the risk of prolonged unavailability periods and offering protection against possible losses (Mastroeni et al, 2019)both of them may be used as a starting point for creating and maintaining plans for ensuring IT operations continuity through critical conditions.…”

A Review of the Security Issues in Cloud Computing and Its Remedial Action

“…Figure 7. Cloud Service Level Agreement [33] Improvement can be done by two joint ways for the purpose of non-availability of information. For establishing, a trust factor between cloud provider and user, (SLA) plays a key role [16], [11].…”

“…Some of the issues developed artificially by humans for using these services in unfair means. Some of the issues that we discussed in the paper which include [7]: [33], [34], [35], [36] The intensity level of concerns that shown more critical issue that hesitate IT world for adopting cloud services [22]. We discussed security issues and remedial actions with respect to various cloud providers.…”