Value-at-risk in service-oriented systems: a framework for managing a vendor's portfolio uncertainties

Kauffman, Robert J.; Sougstad, Ryan

doi:10.1504/ijssci.2008.021764

Cited by 8 publications

(2 citation statements)

References 34 publications

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“…Other related issues that have been studied include financial risk management for IT services resources, and the benefits associated with matching risks between the vendor and client sides (Benaroch et al 2010) include, for example, the technology-enabled practices associated with resource management, revenue yield management, and risk management of IT services (Benaroch et al 2010, Rogers and Cliff 2010, Kauffman and Sougstad 2008a, 2008b. This is like portfolio management, the focus on asset pricing, and the emphasis on financial risk in investments and markets, only for the IT services market (Bardhan et al 2010a(Bardhan et al , 2010b.…”

Section: The Financification Of the Cloud Marketmentioning

confidence: 99%

On the Financification of Cloud Computing: An Agenda for Pricing and Service Delivery Mechanism Design Research

Kauffman¹,

Ma²,

Shang³

et al. 2014

STCC

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Pricing approaches to cloud computing services balance risks and interests between vendor and client, and optimize supply and consumption in terms of cost, uncertainty and economic efficiency. They also leverage the benefits of various services delivery mechanisms for reserved, on-demand, spot-price, and re-sold services in markets that have learned how to transact in full contracts and services instances. This is like a financial market: with services supply and demand, and opportunities to supply and purchase services with spot prices, or to sell or buy contracts for the delivery of future services. Our research suggests that the financification of the cloud computing services market represents a fundamental shift from the traditional model of software sales and large contracts outsourced to services vendors, to short-term contracts and computing capacity provision mechanism designs that are evolving similar to financial markets. We develop this perspective to explain the cloud vendor market, the provision of services, and the ways in which the financification of cloud computing will shape future offerings and the structure of the market. We see these changes in the market in the many ways that vendors offer cloud services of high value to organizations, while making more profitable business models possible.

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Section: The Financification Of the Cloud Marketmentioning

confidence: 99%

On the Financification of Cloud Computing: An Agenda for Pricing and Service Delivery Mechanism Design Research

Kauffman¹,

Ma²,

Shang³

et al. 2014

STCC

View full text Add to dashboard Cite

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“…Option pricing methods typically emphasise the variations in the underlying costs of service delivery, and the extent to which they may become unfavourable to the vendor [12]. The application of value-at-risk thinking in the service management context suggests the vendor's desire to identify the value-optimising duration of a service contract [20]. If customers are dissatisfied with one cloud computing service, or of the SI goes out of business, then customers cannot necessarily transfer their services easily and inexpensively to another SI or bring their clouds back in-house.…”

Section: Concerns Related To Cloud Computingmentioning

confidence: 99%

A Meta-Modelling Service Paradigm for Cloud Computing and Its Implementation

Fang

Yang

Akella

et al. 2011

The South African Journal of Industrial Engineering

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Service integrators seek opportunities to align the way they manage resources in the service supply chain. Many business organisations can operate new, more flexible business processes that harness the value of a service approach from the customer's perspective. As a relatively new concept, cloud computing and related technologies have rapidly gained momentum in the IT world. This article seeks to shed light on service supply chain issues associated with cloud computing by examining several interrelated questions: service supply chain architecture from a service perspective; the basic clouds of service supply chain; managerial insights into these clouds; and the commercial value of implementing cloud computing. In particular, to show how those services can be used, and involved in their utilisation processes, a hypothetical meta-modelling service of cloud computing is proposed. Moreover, the paper defines the managed cloud architecture for a service vendor or service integrator in the cloud computing infrastructure in the service supply chain: IT services, business services, business processes, which create atomic and composite software services that are used to perform business processes with business service choreographies.

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