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A bank needs to assign the cost of its IT capacity to a portion of its transactions, but activity levels during its peak-time hours (9:00 AM – 5:00 PM) and off-peak hours are very different. To perform every off-peak transaction with an acceptable level of service, the bank requires a computing capacity of just 100 million instructions per second (MIPS). The same level of service for peak-time transactions requires 300 MIPS of computing capacity, or the current capacity of the bank’s servers. The daily cost of capacity for the bank is $12 per MIPS, or $3,600 overall ($12 pe
A bank needs to assign the cost of its IT capacity to a portion of its transactions, but activity levels during its peak-time hours…