/pdf/the-theory-of-industrial-organization-19bejph0ej.pdf

The Theory of Industrial Organization

Hawaii International Conference on System Sciences

Service-oriented architecture (SOA) has been promoted as a technology that can enhance information systems agility, interoperability between applications, deployment flexibility, and reusability. As with any new information technology (IT), the decision to adopt SOA cannot be taken lightly, given the nontrivial investment in economic and personnel resources. The complexity associated with industry-wide diffusion, coupled with organization, industry, and environment factors, contributes to a lack of a clear strategy for assessing the business value that SOA provides an organization. This research attempts to shed light on this process of value creation for an organization, using a system dynamics approach. A detailed model of the industry diffusion coupled with organization adoption is presented. After suitable calibration and validation, a series of simulations using the model evaluate the efficacy of SOA under a variety of diverse conditions. The results of the simulations indicate clear benefits of SOA over monolithic ITs when employed under appropriate conditions. Situations where SOA fails to live up to expectations are also identified. The model and accompanying simulations can serve as a practical decision support tool for an organization to help make the strategic decisions of adopting and implementing SOA.

Implementing Service-Oriented Architecture in Organizations

The switch in video delivery from traditional medium to Over-The-Top (OTT) based services has been a game changer for stakeholders of the media delivery ecosystem. It has changed the value chain enabling Content Delivery Networks and Content Providers to take the lion's share at the expense of Internet/Network Service Providers. Even if establishing collaboration between them naturally appears as the key to provide good Quality of Service to the end-users, they struggle in finding efficient and fair ways to do so. This paper directly tackles this problem and proposes a new model for content delivery actors to collaborate over a Virtualized Infrastructure, fairly balancing the revenue stream created. We list the main challenges and the new technical opportunities to solve them, among which the deployment of a distributed Network Function Virtualization (NFV) platform at the edge of the Internet Service Provider's network where a virtual Content Delivery Network (vCDN) is proposed to be deployed. Furthermore, we apply a game-theoretic analysis to study different ISP-CDN collaboration models and identify optimality conditions for our proposed CDN-as-a-Virtual-Network-Function approach.

Content Delivery Networks as a Virtual Network Function: A Win-Win ISP-CDN Collaboration

Caching is frequently used by Internet Service Providers as a viable technique to reduce the latency perceived by end users, while jointly offloading network traffic. While the cache hit-ratio is generally considered in the literature as the dominant performance metric for such type of systems, in this paper we argue that a critical missing piece has so far been neglected. Adopting a radically different perspective, in this paper we explicitly account for the cost of content retrieval, i.e. the cost associated to the external bandwidth needed by an ISP to retrieve the contents requested by its customers. Interestingly, we discover that classical cache provisioning techniques that maximize cache efficiency (i.e., the hit-ratio), lead to suboptimal solutions with higher overall cost. To show this mismatch, we propose two optimization models that either minimize the overall costs or maximize the hit-ratio, jointly providing cache sizing, object placement and path selection. We formulate a polynomial-time greedy algorithm to solve the two problems and analytically prove its optimality. We provide numerical results and show that significant cost savings are attainable via a cost-aware design.

Cost-aware caching: optimizing cache provisioning and object placement in ICN

The concept of service oriented architectures has received considerable attention lately. Despite the hype our experience from five major German chemicals companies shows that firms do not blindly adopt the concept but want to see its value for their organizations. This paper identifies criteria for projects that should serve especially well as first proof of concept SOA implementations. Therefore the paper compares project goals to SOA benefits and requirements and deduces decision supporting criteria. Complex projects with many involved stakeholders and high risk of changing requirements, to name a few of the criteria, are more likely to profit from SOA than small simple projects with few involved people. The criteria are then applied in five cases to evaluate projects the authors analyzed. The application shows that the criteria give a good indication for or against SOA adoption in a project.

Where to Start with SOA: Criteria for Selecting SOA Projects

https://zenodo.org/record/895901/files/article.pdf

Multihoming, content delivery networks, and the market for Internet connectivity

The commercial structure of the Internet is changing. Content delivery networks (CDN) are becoming potent players in the bandwidth market and are responsible for an ever growing fraction of total Internet traffic. Carriers on the other hand are looking for strategies to escape the “dumb pipe” scenario and are increasingly seeing added value services as a way out. Several Tier-1 carriers are expanding their business models into content delivery which appears as a natural extension of their core business in an upstream direction. In this paper, the trend is discussed based on case examples. Resource based view is applied to provide economic reasoning.

Carrier activities in the CDN market - An exploratory analysis and strategic implications

Customers of complex IT-services increasingly demand integrated value bundles that fit their individual needs. At the same time, IT service providers are facing commoditization of their products and need to standardize their portfolios to realize economies of scale. While approaches to coping with the gap between individual customer demand and the economic necessity of standardization have a long standing tradition in mature manufacturing industries, IT-service providers still struggle with translating their standardized portfolio into a form that is understandable and relevant for their customers. This paper proposes a way of describing IT-services that follows the paradigm of a “service dominant logic”. We therefore transfer “service dominant logic” to the realm of IT and propose guidelines to create customer oriented service descriptions. An excerpt of a prototype description serves as an example, how the technical, inside view on IT-services can be translated into a customer-oriented outside view.

/pdf/design-rules-for-user-oriented-it-service-descriptions-4wkn50i92j.pdf

Design Rules for User-Oriented IT Service Descriptions

Contend delivery networks (CDN) are important players on the Internet. They provide services to websites that improve the quality of service (QoS) and provide end users (EU) with a better experience, i.e. faster loading web pages. CDNs can be seen as platforms that cater for two distinct groups of customers. On the one side, they have content providers (CP), i.e. web sites; on the other side they need to collaborate with Internet service providers (ISP) to reach EUs. We construct a formal model that demonstrates the pricing decisions of ISPs and CDNs and contrast it to the standard types of pricing Internet access and traffic. As a modelling tool we use theory on two-sided markets and bottleneck platforms. We find that ISPs have relatively high market power and extract profits from CDNs to compete for EUs.

https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1024&context=ecis2010

Vertical Platform Interaction on the Internet: How ISPS and CDNS Interact

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