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Total Cost of Service Life
                                The Need for Decision Support in Selecting,
                   ...
Motivation



   Services (conventional services and web services) are
    discovered and evaluated by descriptions of the...
Status-quo




    Pricing lists and
    simple calculators



    Total Cost of Service Life

2   Martin Matzner, Oliver ...
Complexity of the property “price“


   Evaluating a specific service (1)

   Comparing several services to each other (2)...
Pricing models


   Flat-Pricing (cf. Internet or mobile phone flat rates)

   Per-packet Pricing (cf. sending short messa...
Framework of decision problems




                                          based on Alexander‘s (1970) design principles...
Informing Kernel from Investment Theory


   Payments (instead of costs)

   Consider derivative monetary consequences
   ...
VoFi-based TCO calculation




    Total Cost of Service Life

7   Martin Matzner, Oliver Müller
Ongoing: Application in service marketplaces




    Total Cost of Service Life

8   Martin Matzner, Oliver Müller
Contact




                                    Martin Matzner
                                    (martin.matzner@ercis.u...
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V 5 20100218 Iess Total Cost Of Service Life Korrektur Ol Mu

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Total Cost of Service Life
The Need for Decision Support in Selecting, Comparing, and Orchestrating Services
Martin Matzner, Oliver Müller

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Transcript of "V 5 20100218 Iess Total Cost Of Service Life Korrektur Ol Mu"

  1. 1. Total Cost of Service Life The Need for Decision Support in Selecting, Comparing, and Orchestrating Services IESS 1.0, Geneva, 2009-02-18 Martin Matzner, Oliver Müller
  2. 2. Motivation   Services (conventional services and web services) are discovered and evaluated by descriptions of their properties   Categories of properties: functional and non-functional   Amongst non-functional properties: “price“ for service consumption   Research question: “How to evaluate the price of a service ?“ Total Cost of Service Life 1 Martin Matzner, Oliver Müller
  3. 3. Status-quo Pricing lists and simple calculators Total Cost of Service Life 2 Martin Matzner, Oliver Müller
  4. 4. Complexity of the property “price“   Evaluating a specific service (1)   Comparing several services to each other (2)   Evaluating and comparing orchestrations comprising several services (3)   Huge variety of pricing models and conditions   Existence of derivative payments (e.g. opportunity and capital costs) that are implied by the decision for or against a service Total Cost of Service Life 3 Martin Matzner, Oliver Müller
  5. 5. Pricing models   Flat-Pricing (cf. Internet or mobile phone flat rates)   Per-packet Pricing (cf. sending short messages)   Parametric Pricing (cf. a translation service that charges depending on the number of words)   Resource-based Pricing (cf. mobile data transfer)   Lump-sum Pricing   Commission/Brokerage   Hybrid Pricing Models (cf. monthly short message packages) Total Cost of Service Life 4 Martin Matzner, Oliver Müller
  6. 6. Framework of decision problems based on Alexander‘s (1970) design principles Total Cost of Service Life 5 Martin Matzner, Oliver Müller
  7. 7. Informing Kernel from Investment Theory   Payments (instead of costs)   Consider derivative monetary consequences   capital lockup   interests (based on the opportunity rate of interest of the internal funds and the outside capital rate of interests)   tax payments   Entire life-cycle of usage   Conventional approaches (e.g. “Gartner-TCO“) are insufficient Total Cost of Service Life 6 Martin Matzner, Oliver Müller
  8. 8. VoFi-based TCO calculation Total Cost of Service Life 7 Martin Matzner, Oliver Müller
  9. 9. Ongoing: Application in service marketplaces Total Cost of Service Life 8 Martin Matzner, Oliver Müller
  10. 10. Contact Martin Matzner (martin.matzner@ercis.uni-muenster.de) Oliver Müller (Oliver.mueller@ercis.uni-muenster.de) Leonardo-Campus 3 48149 Münster Total Cost of Service Life 9 Martin Matzner, Oliver Müller
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