Explanation:
The value of improved availability is calculated by determining the reduction in downtime and its revenue impact. Current downtime at 99.9% availability is 525.6 minutes per year, and improved downtime at 99.99% availability is 52.56 minutes per year, resulting in a reduction of 473.04 minutes. With annual revenue of $1,000,000, the revenue per minute is approximately $1.9026. Thus, the value of improvement is 473.04 × $1.9026 ≈ $900. Alternatively, using percentages: the reduction in downtime loss is 0.09% (0.1% - 0.01%), and 0.09% of $1,000,000 = $900. The investment cost is $2,000. Since $900 < $2,000, the increase in availability is not worth the investment for a single year. Option A correctly reflects this calculation and conclusion.
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To determine if increasing your application's availability target from 99.9% to 99.99% is financially justified for a single year, given a `2`,000 investment and current annual revenue of \`1`,000,000, what steps should you take?
A
Calculate the value of improved availability to be $900, and determine that the increase in availability is not worth the investment.
B
Calculate the value of improved availability to be $1,000, and determine that the increase in availability is not worth the investment.
C
Calculate the value of improved availability to be $1,000, and determine that the increase in availability is worth the investment.
D
Calculate the value of improved availability to be $9,000, and determine that the increase in availability is worth the investment.