Your organization wants to increase the availability target of an application from 99.9% to 99.99% for an investment of $2,000. The application's current revenue is $1,000,000. You need to determine…

Question

Options

• ACalculate the value of improved availability to be $900, and determine that the increase in
• BCalculate the value of improved availability to be $1,000, and determine that the increase in
• CCalculate the value of improved availability to be $1,000, and determine that the increase in
• DCalculate the value of improved availability to be $9,000, and determine that the increase in

• A
  71% (36)
• B
  16% (8)
• C
  10% (5)
• D
  4% (2)

Explanation

The calculation compares the revenue at risk under each availability level. At 99.9% uptime, downtime is 0.1% of the year, so revenue at risk = $1,000,000 × 0.001 = $1,000. At 99.99% uptime, downtime is 0.01%, so revenue at risk = $1,000,000 × 0.0001 = $100. The value of the improvement is $1,000 − $100 = $900. Since the cost of the improvement ($2,000) exceeds the value gained ($900), the investment is not justified for a single year. Option A correctly states $900 and concludes it is not worth the investment.

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