Next Article in Journal
Maintaining the Sense of Agency in Semi-Autonomous Robot Conferencing
Previous Article in Journal
A Dynamic Application-Partitioning Algorithm with Improved Offloading Mechanism for Fog Cloud Networks
Open AccessArticle

Service Level Agreement Violations in Cloud Storage: Insurance and Compensation Sustainability

1
Department of Economics, University of Roma Tre, 00145 Rome, Italy
2
Department of Civil Engineering and Computer Science, University of Roma Tor Vergata, 00133 Rome, Italy
3
Department of Law, Economics, Politics and Modern languages, LUMSA University, 00192 Rome, Italy
*
Author to whom correspondence should be addressed.
These authors contributed equally to this work.
Future Internet 2019, 11(7), 142; https://doi.org/10.3390/fi11070142
Received: 22 May 2019 / Revised: 21 June 2019 / Accepted: 25 June 2019 / Published: 30 June 2019
(This article belongs to the Section Network Virtualization and Edge/Fog Computing)
Service Level Agreements are employed to set availability commitments in cloud services. When a violation occurs as in an outage, cloud providers may be called to compensate customers for the losses incurred. Such compensation may be so large as to erode cloud providers’ profit margins. Insurance may be used to protect cloud providers against such a danger. In this paper, closed formulas are provided through the expected utility paradigm to set the insurance premium under different outage models and QoS metrics (no. of outages, no. of long outages, and unavailability). When the cloud service is paid through a fixed fee, we also provide the maximum unit compensation that a cloud provider can offer so as to meet constraints on its profit loss. The unit compensation is shown to vary approximately as the inverse square of the service fee. View Full-Text
Keywords: cloud storage; service level agreements; insurance; compensations; refunds cloud storage; service level agreements; insurance; compensations; refunds
Show Figures

Figure 1

MDPI and ACS Style

Mastroeni, L.; Mazzoccoli, A.; Naldi, M. Service Level Agreement Violations in Cloud Storage: Insurance and Compensation Sustainability. Future Internet 2019, 11, 142.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop