Total Cost of Service Life - Decision Support for Selecting and Orchestrating Services

Becker Jörg, Beverungen Daniel, Matzner Martin, Müller Oliver


Abstract
Business services as well as information services (such as web services) can be described and discovered by means of their functional and non-functional properties. An important non-functional property is the price associated with consuming a service. On electronic marketplaces, evaluating the price of utilizing a service is often difficult due to a huge variety of existing pricing models and deliberately intransparent conditions of use. Even so, a sound evaluation of the total cost associated with a service is beneficial for a service consumer, especially in scenarios of long-term utilization of the service or if orchestrating services provided by different sellers. Theory and practice so far lacks methods that can sufficiently guide decisions related to selecting services based on cost data. This paper strives to present such a method based on the TCO concept and on insights from capital budgeting and investment theory. The method supports service customers in comparing the costs associated with several functionally similar services, in selecting services, and finally in evaluating the costs associated with entire service orchestrations.

Keywords
Information services, Electronic marketplace, Service selection, Service orchestration, Cost calculation



Publication type
Conference Paper

Peer reviewed
Yes

Publication status
Published

Year
2010

Conference
IADIS International Conference e-Society 2010

Venue
Porto, Portugal

Book title
Proceedings of the IADIS Internatioal Conference e-Society 2010

Editor
Kommers Piet, Isaías Pedro

Pages range
322-329

Language
English

ISBN
978-972-8939-07-6

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