End of Software, The: Finding Security, Flexibility, and Profit in the On Demand Future
by Timothy Chou
High (Cost) Availability
Although the cost of availability management can be high, the cost of not managing availability can be higher. Let's look at a couple of recent high-profile examples. In June 1999, shares of eBay, Inc., plunged 30% in the wake of a site crash that cost the online auction house millions of dollars. The company revealed that the 24 hours during which its auction site was down was expected to reduce sales by 10% in the second quarter of that year.
Still not convinced? During the Thanksgiving holiday weekend of 2000, Amazon.com suffered a series of outages. Investment firm Thomas Weisel Partners estimated that one 20-minute outage deleted roughly 20,000 product orders and $500,000 in revenue. Although many companies might ...
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