This document presents a scalable approach to quantify availability in large-scale Infrastructure as a Service (IaaS) clouds. It models component failures using three pools - hot, warm, and cold. Dependencies between pools are resolved using fixed-point iteration. It compares analytic-numeric solutions from the proposed interacting Markov chain approach to monolithic models. The document also discusses optimizing data replication in clouds to minimize violations of applications' quality of service requirements. It formulates the problem as an integer program and proposes transforming it to a minimum-cost maximum-flow problem to find optimal solutions efficiently.