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An example of such a business metric is the total income generated by an e-commerce site. The total income can be determined by many complex business rules such as:
"Whenever a buy is executed, a 4% commission is earned,"
"For each order not closed by end of day, the company loses a certain amount,"
"If a service agreement of a client is not met three days in one month, the customer will move to the competitor at the end of the month,"
and so on.
In addition, costs incurred by the infrastructure can also be articulated using such rules.
ARAD can look at such rules, and calculate the total value of the business metric for a given period of time, and for a specific state of the business infrastructure. In addition, ARAD has many more capabilities, such as:
- Changing IT parameters of the infrastructure so as to optimize the business metric (e.g., income)
- Optimization and what-if analysis regarding the exact hardware configuration to use - e.g., number of servers, types of servers, CPU speed, etc., and the impact of that configuration on the business metric
- Analyzing the impact on the business metric of changes to the application - e.g. how much does it make sense to invest in making the application more scalable, and how soon before the investment is returned
- Analyzing and optimizing the impact of various customer contract parameters on the business metric - e.g., evaluating various SLA agreements before actually committing to them
- Optimizing and analyzing the impact on the business metric of various customer loads - e.g., finding the most financially-optimal number of customers to support with a given infrastructure
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