A corporation operates a small server room. They work 7:00 AM to 3:00 PM, 5 days

Question

A corporation operates a small server room. They work 7:00 AM to 3:00 PM, 5 days a week, and can operate for several hours without IT services. However, part of their IT application includes a database system that is sensitive to interruption; it must be shut down properly to avoid corruption. They're based in Key West which has frequent thunderstorms causing brief power "blips." Complete power failures are rare, but do happen two or three times a year and last for several hours. Describe what should they do with respect to electric power protection. CalCo is a mid-sized corporation that sells music and movie downloads over the Internet. They're in the same building as A corporation and have the same electric power conditions. CalCo's CFO that each hour of web server downtime costs the company $2,000 in profit from sales. Describe what CalCo should do with respect to electric power protection. If your recommendation is different from A corpooration's, explain why. state any assumptions you have made. Using the cost-benefit analysis method described in the lecture, estimate how much money CalCo should spend on power protection. You will have to make several assumptions to do this. Your answer should contain an "assumptions" section in which you list them. Justify each assumption in one or two sentences.

Explanation / Answer

Database system in 'A corporation' is sensitive to interruption, it must be shut down properly to avoid corruption, i.e. minor interrupions also casue corruption, brief power "blips" in this case apart from the rare complete power failures. Database corruption is a serious problem whose cost cannot be determined so easily. This needs to be avoided at any cost, so the solution to this is installation of a generator which can backup even in case of brief power blips.

For CalCo, interruption ("blips") is not that much of a serious issue as is complete power failure which lasts for several hours. Although such power failures are rare the costs that CalCo needs to bear are significant i.e $ 2,000 in profit from sales, but a fully installed office generator would be a costly option for them, they can go with a portabl generator which will cost less, but will be equally handy during power cuts.

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