• Title/Summary/Keyword: Service Provider Profit

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Optimal Service Contract Policies for Outsourcing Maintenance Service of Assets to the Service Providers

  • Rahman, Anisur;Chattopadhyay, Gopinath
    • International Journal of Reliability and Applications
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    • v.8 no.2
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    • pp.183-197
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    • 2007
  • There is a growing trend for asset intensive industries to outsource maintenance services of their complex assets since outsourcing through service contract reduces upfront investments in infrastructure, expertise and specialised maintenance facilities. Estimation of costs for such contracts is complex and it is important to the user and the service providers for economic variability. The service provider's profit is influenced by many factors such as the terms of the contract, reliability of asset, and the servicing strategies, costs of resources needed to carryout maintenance. There is a need to develop mathematical models for understanding future costs to build it into the contract price. Three policies for service contracts are proposed in this paper considering the concepts of outsourcing maintenance service of assets to the service providers. Conceptual models are developed for estimating servicing costs of outsourcing through service contracts by considering time dependent failure mode.

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Service Management for Cloud Marketplace : A Case of Internet2 NET+ (클라우드 마켓플레이스를 위한 서비스 관리체계 연구 : Internet2 NET+ 사례)

  • Kwon, Suhn Beom;Ahn, Sung Mahn
    • Journal of Information Technology Services
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    • v.14 no.4
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    • pp.221-236
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    • 2015
  • Application software is delivered to customers as a form of service at cloud environment. A cloud service provider is a marketplace between supply side (application providers) and demand side (customers). Cloud service providers have to validate applications to be included in their service portfolio. Not only performance, security, networking, compliances should be checked but also business contract, authentication should be provided. Organization customers are more sensitive to these validation criteria and process. We study the Internet2 NET+, which is a successful cloud marketplace of applications for research and education organizations. This case study shows us three things : (i) a cloud marketplace's application management process : selection, validation, transition to service, customization of applications (ii) what a cloud marketplace has for its infrastructure like authentication, security, access control etc. (iii) what a cloud marketplace has as its governance structure. This case study will provide informative analysis of Internet2 NET, a profit-making vertical and buyer's marketplace (education industry). And we will get some strategic implications for planning and implementing cloud marketplaces.

가치혁신 전략을 적용한 디지털콘텐츠 평가에 관한 연구;구글과 네이버의 검색 서비스를 중심으로

  • No, Mi-Jeong;Mun, Hyeong-Nam
    • Proceedings of the Korea Inteligent Information System Society Conference
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    • 2007.05a
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    • pp.229-238
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    • 2007
  • This study was intended to point out the limit of existing digital content-centered studies, or approaches from the viewpoint of the supplier and in the aspect of business profit model and find ways to assess the quality of digital content, considering the characteristics of digital content. For this, the study is to apply value innovation strategy to digital content assessment, to analyze the applicability, and to propose a new and practical framework for digital content assessment method. To this end, this study selected the global No. 1 search service provider Google and local portal site Naver search service. The study on assessment factors by value innovation strategy was based on existing literature, while user-value elements in that respect were confined to information quality, interactivity, communication, interactive storytelling, and usability. This study objectified the relation with the value innovation strategic analysis, through qualitative and quantitative analyses on value elements of search service users.

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Pricing·Quality and Service Mix Strategies for Portal Sites Providing Various Services (다양한 서비스를 제공하는 포털 사이트의 가격·품질 및 서비스 믹스 전략)

  • Lee, Kang Bae;Joo, Cheol Min;Lee, Woon-Seek
    • Journal of Korean Institute of Industrial Engineers
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    • v.28 no.3
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    • pp.291-301
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    • 2002
  • In this paper, we introduce a mathematical model to analyze pricing/quality and service mix strategies for Internet Portal site. This model includes utilities and costs of each participants, i.e., user, third party provider, and portal sites. Especially, we consider portal sites that initiate their businesses by providing free services like free e-mail service or search service and providing several charged services. As the results, we can find that Portal sites should make the target of customers and focus them to maximize their profit. Portal sites should pay their marketing effort not for all customers but pertinent portions of customers. And Portal sites should make more efforts to efficiently develop and provision their services.

An Effect of Concreteness and Fairness of Service Contract on Performance of Service Provider in Logistics Outsourcing (물류계약 조항의 구체성과 공정성이 물류기업의 성과에 미치는 영향)

  • Kim, Jin-Su;Song, Sang-Hwa
    • Journal of Korea Port Economic Association
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    • v.28 no.2
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    • pp.129-153
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    • 2012
  • Even though logistics service outsourcing becomes widespread in manufacturing and service industries, logistics service providers encounter fierce competition and lower profit. Decreased profit has negative impact on service providers' competitiveness, which in turn threats successful relationship with shippers. In this paper, we investigate the factors which influence the performance of service providers. Factors related to service contract are examined and we test an effect of concreteness and fairness of service contract. PLS (Partial Least Square) modeling method is applied and validated using data from logistics service providing companies in Korea. In the model, service contract clauses are classified into two categories including cost and risk sharing terms. PLS analysis shows that partnership and performance of service relationship is improved when contract clauses are specified in detail. This study will contribute in providing an operational direction in effectively establishing a positive relationship between the logistics service provider and the shipper.

Game-Based Content Caching and Data Sponsor Scheme for the Content Network (콘텐츠 네트워크 환경에서 게임이론을 이용한 콘텐츠 캐싱 및 데이터 스폰서 기법)

  • Won, JoongSeop;Kim, SungWook
    • KIPS Transactions on Computer and Communication Systems
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    • v.8 no.7
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    • pp.167-176
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    • 2019
  • Recently, as the types of services that can be enjoyed in mobile telecommunication networks such as social networks and video streaming are increasing, mobile users(MUs) can access mobile contents easily by consuming mobile data. However, under a mobile telecommunication environment, MUs have to pay a high data fee to a network service provider(SP) in order to enjoy contents. The 'data sponsor' technique, introduced as a way to solve this problem, has attracted attention as a breakthrough method for enhancing contents accessibility of MUs. In this paper, we propose an algorithm that determines the optimal discount rate through the Stackelberg game in the data sponsor environment. We also propose an algorithm to design edge caching, which caches highly popular content for MUs on edge server, through many-to-many matching game. Simulation results clearly indicate that the profit for CP's content consumption is improved by about 6~11%, and the profit of CP according to the ratio of edge caching is improved by about 12% than the other existing schemes under data sponsor environment.

Structural Equation Model for Korea Internet Infrastructure Customer Satisfaction Index(KIICSI) (구조방정식을 이용한 초고속 국가망 서비스의 고객만족도 평가체계 개발)

  • Shin Sun Young;Shin Sang-Chul;Moon Tae Hee;Sohn So Young
    • Journal of KIISE:Information Networking
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    • v.32 no.2
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    • pp.220-235
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    • 2005
  • Internet Service Quality has been constantly the center of attention to Internet Service Providers. The KII project plan (Korea Information Infrastructure) aims to build broadband backbone networks mainly through optical fiber cables and ATM switches and to Provide the government ministries, local authorities and non-profit organizations with high-speed, highly capable broadband access to these networks at reasonable rates. The KB service model, however, is different from other Internet Service models much in the same way SP (Service Provider) and NP (Network Provider) differ from each other. In this paper, we evaluate KII service according to various customer satisfaction indicators under the methodologies and categories as put forth in both the ACSI (American Customer Satisfaction Index) and SEM (Structural Equation Model). We use a structural equation model (SEM) to demarcate the Korea Information Infrastructure Customer Satisfaction Index (KIICSI) in relation to network service quality. The results of our study suggest some strategies for the KII Project need to be modified and effectively implemented in order to increase the satisfaction level of the KII customers.

Pricing Decisions to Control Quality-of-Service in Integrated Voice/Data Mobile Communication System (음성/데이터 통합 이동통신시스템에서의 서비스 품질을 고려한 가격결정모델)

  • Kim Whan Seon
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.29 no.10B
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    • pp.866-879
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    • 2004
  • This paper presents a pricing model for maximizing a service provider's profit, taking into account consumers' quality-of-service dependent willingness to pay, in integrated voice/data mobile services. For the voice and the data services, time-sensitive pricing and volume-sensitive pricing mechanism will be applied, respectively, as in the case of Korea's mobile service market. Assuming that consumers are very sensitive to call interruption during handoff moments, the model presented here considers reserving guard channels exclusively for handoff traffic, in the process of frequency channels allocation, as well as guaranteeing consumers quality of service regarding call interruption rate. Ultimately, this model proposes a means to guarantee the quality of service in the short term, through pricing strategies as well as channel allocation policies, and the simulation results show that without expanding system resources, there exists a trade-off between profit and quality-of-service guarantee.

An Exploratory Study of Cloud Service Level Agreements - State of the Art Review

  • Saravanan, K.;Rajaram, M.
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.9 no.3
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    • pp.843-871
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    • 2015
  • Cloud computing evolve as a cost effective business model for IT companies to focus on their core business without perturbing on infrastructure related issues. Hence, major IT firms and Small & Medium Enterprises (SME) are adopting cloud services on rental basis from cloud providers. Cloud Service level agreements (SLA) act as a key liaison between consumers and providers on renting Anything as a Service (AaaS). Design of such an agreement must aim for greater profit to providers as well as assured availability of services to consumers. However in reality, cloud SLA is not satisfying the parties involved because of its inherent complex nature and issues. Also currently most of the agreements are unilateral to favour the provider. This study focuses on comprehensive, 360-degree survey on different aspects of the cloud service agreements. We detailed the life cycle of SLA based on negotiation, different types of SLA, current standards, languages & characteristics, metrics and issues involved in it. This study will help the cloud actors to understand and evaluate the agreements and to make firm decision on negotiation. The need for standardized, bilateral, semantic SLA has also been proposed.

An Efficient Service Function Chains Orchestration Algorithm for Mobile Edge Computing

  • Wang, Xiulei;Xu, Bo;Jin, Fenglin
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.15 no.12
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    • pp.4364-4384
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    • 2021
  • The dynamic network state and the mobility of the terminals make the service function chain (SFC) orchestration mechanisms based on static and deterministic assumptions hard to be applied in SDN/NFV mobile edge computing networks. Designing dynamic and online SFC orchestration mechanism can greatly improve the execution efficiency of compute-intensive and resource-hungry applications in mobile edge computing networks. In order to increase the overall profit of service provider and reduce the resource cost, the system running time is divided into a sequence of time slots and a dynamic orchestration scheme based on an improved column generation algorithm is proposed in each slot. Firstly, the SFC dynamic orchestration problem is formulated as an integer linear programming (ILP) model based on layered graph. Then, in order to reduce the computation costs, a column generation model is used to simplify the ILP model. Finally, a two-stage heuristic algorithm based on greedy strategy is proposed. Four metrics are defined and the performance of the proposed algorithm is evaluated based on simulation. The results show that our proposal significantly provides more than 30% reduction of run time and about 12% improvement in service deployment success ratio compared to the Viterbi algorithm based mechanism.