Abstract
Conventional services as well as web services are explored and discovered by descriptions of their properties. Such properties are either functional or non-functional. Amongst the non-functional properties is the price for service consumption. Evaluating the price of a service is difficult due to a huge variety of existing pricing models and conditions. But still, it is important to a service consumer to evaluate arising costs, esp. in scenarios of long-term usage and if combining several services. In theory and practice so far there exists no method that sufficiently guides the decision of selecting specific services regarding the non-functional property price. This paper strives to promote research-in-progress for such a method, which is based on the TCO concept and on insights from capital budgeting in investment theory. The method is indented to support service consumers in selecting a specific service, in comparing several functionally similar services, and finally in evaluating complete service orchestrations.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Baida, Z., Gordijn, J., Omelayenko, B.: A shared service terminology for online service provisioning. In: Proceedings of the 6th international conference on Electronic commerce - ICEC 2004, Delft, The Netherlands (2004)
Perry, D.E., Wolf, A.L.: Foundations for the study of software architecture. ACM SigSOFT Software Engineering Notes 17(4), 40–52 (1992)
O’Sullivan, J., Edmond, D., ter Hofstede, A.: The Price of Services. In: Proceedings of Service-Oriented Computing – ISCO 2005, Belfast, Northern Ireland, pp. 564–569 (2005)
Alexander, C.: Notes on the synthesis of form, 5th edn. Harvard University Press, Cambridge (1970)
Brocke, J., Thomas, O., Sonnenberg, C.: Towards an Economic Justification of Service Oriented Architectures – Measuring the Financial Impact. In: Proceedings of the 14th Americas Conference on Information Systems, Toronto, ON, Canada (2008)
Cohen, J., Darlington, J., Lee, W.: Payment and Negotiation for the Next Generation Grid and Web. Concurrency and Computation 20(3), 239–251 (2008)
Kontogiannis, K., Lewis, K., Smith, D., Litoiu, M., Müller, H., Schuster, S., Stroulia, E.: The Landscape of Service-oriented Systems. In: Proceedings of International Workshop on Systems Development in SOA Environments, SDSOA 2007 (2007)
Hoyer, V., Stanoevska-Slabeva, K.: Towards a Reference Model for Grassroots Enterprise Mashup Environments. In: Proceedings of the 17th European Conference on Information Systems (ECIS 2009), Verona, Italy (2009)
Garofalakis, J., Panagis, Y., Sakkopoulos, E., Tsakalidis, A.: Contemporary Web Service Discovery Mechanisms. Journal of Web Engineering 5(3), 265–290 (2006)
Knackstedt, R., Kuropka, D., Müller, O., Polyvyanyy, A.: An Ontology-based Service Discovery Approach for the Provisioning of Product-Service Bundles. In: Proceedings of the 16th European Conference on Information Systems (ECIS 2008), Galway, Ireland (2008)
Walter, S.G., Spitta, T.: Approaches to the Ex-Ante Evaluations of Investments into Information Systems. Wirtschaftsinformatik 46(3), 171–180 (2004)
Cheng, H., Koehler, G.: Optimal pricing policies of webenabled application services. Decision Support Systems 35(3), 259–272 (2003)
Serva, M.A., Sherer, S.A., Sipior, J.C.: When Do You ASP? Information Systems Frontiers 5(2), 219–232 (2003)
Gupta, A., Stahl, D., Whinston, A.: A stochastic equilibrium model of Internet pricing. J. Econom. Dynamics Control 21(4-5), 697–722 (1997)
Clark, M.: Selling Web Services. In: Fletcher, P., Waterhouse, M. (eds.) Web Services Business Strategies and Architectures. Expert Bress, Birmingham (2002)
Harmon, R., Demirkan, H., Hefley, B., Auseklis, N.: Pricing Strategies for Information Technology Services: A Value-Based Approach. In: Proceedings of the 42nd Hawaii International Conference on Information Systems (HICSS 2009), Waikoloa, Hawaii, USA (2009)
Im, K.S., Dow, K.E., Grover, V.: Research Report: A Reexamination of IT Investment and the Market Value of the Firm. Information Systems Research 12(1), 103–117 (2001)
Hitt, L.M., Brynjolfsson, E.: Productivity, Business Profitability, and Customer Surplus. MIS Quarterly 20(2), 121–142 (1996)
Becker, J., Beverungen, D., Knackstedt, R., Müller, O.: Modeling, Customer-Specific Configuration and Calculation of Value Bundles. In: Proceedings of the 14th Americas Conference on Information Systems (AMCIS 2008), Toronto, Canada (2008)
Brocke, J., Grob, H.L., Buddendick, C., Strauch, G.: Return on Security Investments. In: Proceedings of the 13th Americas Conference on Information Systems, Keystone, CO, USA (2007)
Shapiro, A.C.: Capital budgeting and investment analysis. Prentice-Hall, Englewood Cliffs (2004)
Bensberg, F., Dewanto, B.L.: TCO VOFI for e-Learning Plattforms. In: ITI Poster Abstracts of the 25th International Conference on Information Technology Interfaces (ITI), Zagreb (2003)
Iyengar, S.S., Lepper, M.R.: When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and Social Psychology 79(6), 995–1006 (2000)
McKee, P., Taylor, S., Surridge, M., Lowe, R.C.: Strategies for the Service Market Place. In: Veit, D.J., Altmann, J. (eds.) GECON 2007. LNCS, vol. 4685, pp. 58–70. Springer, Heidelberg (2007)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Becker, J., Beverungen, D., Matzner, M., Müller, O. (2010). Total Cost of Service Life: The Need for Decision Support in Selecting, Comparing and Orchestrating Services. In: Morin, JH., Ralyté, J., Snene, M. (eds) Exploring Services Science. IESS 2010. Lecture Notes in Business Information Processing, vol 53. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-14319-9_25
Download citation
DOI: https://doi.org/10.1007/978-3-642-14319-9_25
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-14318-2
Online ISBN: 978-3-642-14319-9
eBook Packages: Computer ScienceComputer Science (R0)