Advertisement

A Revenue-Based Model for Making Resource Investment Decisions in IP Networks

Chapter
  • 266 Downloads
Part of the IFIP — The International Federation for Information Processing book series (IFIPAICT, volume 118)

Abstract

Capacity planning is a critical task in network management. It identifies how much capacity is needed to match future traffic demand. It directly affects customer satisfaction and revenues. In this work we present a network usage analysis tool called Dynamic Netvalue Analyzer (DNA), which helps alleviate a big problem that network engineers and marketing executives face— making optimal resource investment decisions. Marketing executives have to project customer growth while network engineers have to project traffic volume based on the entire customer population. DNA helps the prediction process by presenting actual network usage data from a business perspective, in a form that is useful to both network engineers and marketing executives. Using these projections, decisions on how to upgrade resources can be made. We show that information from DNA can be used to: (1) quantify revenue earned on each link, (2) quantify return-on-investment on performing a link upgrade, and (3) quantify the loss due to customer dissatisfaction when a link is not upgraded. We also illustrate how these formulations based on business information can be used to improve capacity planning decisions.

Keywords

Network and Systems Monitoring Investment Cycle Business Process Network and Service Management 

References

  1. [1]
    J. Altmann and L. Rhodes, “Dynamic Netvalue Analyzer - A Pricing Plan Modeling Tool for ISPs Using Actual Network Usage Data”, IEEE WECWIS2002, International Workshop on Advance Issues of E-Commerce and Web-Based Information Systems, 2002.Google Scholar
  2. [2]
    J. Case, K. McCloghrie, M. Rose and S. Waldbusser, “Protocol Operations for Version 2 of the Simple Network Management Protocol (SNMPv2)”, RFC 1905, 1996.Google Scholar
  3. [3]
    Y. Diao, J. L. Hellerstein, and S. Parekh, “A Business-Oriented Approach to the Design of Feedback Loops for Performance Management”, Distributed Operations and Management, 2001.Google Scholar
  4. [4]
    J. Hershberger and S. Suri, “Vickrey Prices and Shortest Paths: What is an Edge Worth?”, IEEE Symposium on Foundations of Computer Science, 2001.Google Scholar
  5. [5]
    J.Hershberger, S. Suri and A. Bhosle., “On the Difficulty of some Shortest Path Problems,” STACS, Berlin, 2003.Google Scholar
  6. [6]
  7. [7]
    S. Keshav, “An Engineering Approach to Computer Networking: ATM Networks, the Internet, and the Telephone Network”, Addison-Wesley, 1997.Google Scholar
  8. [8]
    D. A. Menasce and V. A. F. Almeida, “Capacity Planning for Web Services: Metrics, Models, and Methods”, Prentice Hall PTR, 2002.Google Scholar
  9. [9]
  10. [10]
  11. [11]
  12. [12]
    T. Robertazzi, “Planning Telecommunication Networks”, Wiley-IEEE Press, February 1999.Google Scholar

Copyright information

© IFIP International Federation for Information Processing 2003

Authors and Affiliations

  1. 1.University of California Santa BarbaraUSA
  2. 2.University of California BerkeleyUSA
  3. 3.Hewlett-Packard CompanyUSA

Personalised recommendations