CD-SFA: Stochastic Frontier Analysis Approach to Revenue Modelling in Large Cloud Data Centres

Posted: 20 Aug 2018

See all articles by Jyotirmoy Sarkar

Jyotirmoy Sarkar

WIPRO GE Healthcare

Snehanshu Saha

PES University, Bengaluru

Bidisha Goswami

PES University, Bengaluru

Saibal Kar

Centre for Studies in Social Sciences, Calcutta; Institute of Labor Economics (IZA)

Date Written: August 8, 2018

Abstract

Data centre is a facility, which houses computer systems and associated components, such as telecommunications and storage systems. Due to the emergence of data centre-based computing services, it has become necessary to examine how the costs associated with data centres evolve over time, mainly in view of efficiency issues. We have presented a quasi form of Cobb-Douglas model, which addresses revenue and profit issues in running large data centres. The stochastic form has been introduced and explored along with the quasi Cobb-Douglas model to understand the behaviour of the model in depth. Harrod neutrality and Solow neutrality are incorporated in the model to identify the technological progress in cloud data centres. This allows us to shed light on the stochastic uncertainty of cloud data centre operations. The insightful results are found to be quite useful in view of production reorganisation in large data centres’ around the world.

Keywords: data centre; Cobb-Douglas; CD; Harrod neutrality; Solow neutrality; optimisation; stochastic frontier analysis; cloud computing; utility computing.

JEL Classification: O00, C61

Suggested Citation

Sarkar, Jyotirmoy and Saha, Snehanshu and Goswami, Bidisha and Kar, Saibal, CD-SFA: Stochastic Frontier Analysis Approach to Revenue Modelling in Large Cloud Data Centres (August 8, 2018). Available at SSRN: https://ssrn.com/abstract=3228384

Jyotirmoy Sarkar

WIPRO GE Healthcare ( email )

EPIP, Phase 2, Bangalore, Karnataka, India
Bengaluru
India

Snehanshu Saha

PES University, Bengaluru ( email )

Bangalore
India

Bidisha Goswami

PES University, Bengaluru ( email )

Bangalore
India

Saibal Kar (Contact Author)

Centre for Studies in Social Sciences, Calcutta ( email )

R-1, Baishnabghata Patuli Township
Calcutta, 700 094
India
91-33-2462 7252 (Phone)
91-33-2462 6183 (Fax)

HOME PAGE: http://www.cssscal.org

Institute of Labor Economics (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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