CDCP-001 practice question 6 of 10
Which one of the following is used in Measuring Business Value?
Full set: 40 questionsReliability is a critical metric for measuring the business value of a data center. It directly impacts business continuity, revenue generation, and customer satisfaction by ensuring services are consistently available. A highly reliable data center minimizes downtime, which has a quantifiable negative financial impact (e.g., lost sales, productivity, and brand reputation). Therefore, the level of reliability, often expressed as availability (e.g., 99.999%), is a direct indicator of the value the infrastructure provides to the business's core operations. Higher reliability supports more critical business functions, thus delivering greater business value.
A. Regeneration Cost: This is a disaster recovery metric representing the cost to rebuild, not a measure of ongoing operational business value.
B. Scalability: This is a technical capability that enables future growth and value, but it is not a direct measure of current business value.
D. Upfront Cost: This is an initial capital expenditure (CAPEX), representing a cost to the business, not the value it delivers.
1. Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Information Technology and Organizational Performance: An Integrative Model of IT Business Value. MIS Quarterly, 28(2), 283-322. In their IT Business Value Model (Figure 1, p. 297), the authors identify "IT Infrastructure" quality, which includes reliability, as a key antecedent that impacts organizational processes and ultimately, organizational performance (business value). DOI: https://doi.org/10.2307/25148632
2. Barua, A., Kriebel, C. H., & Mukhopadhyay, T. (1995). Information Technologies and Business Value: An Analytic and Empirical Investigation. Information Systems Research, 6(1), 3–23. This foundational paper links IT attributes, such as reliability and system availability, to improvements in intermediate business process variables (e.g., capacity utilization, inventory turnover), which in turn drive higher-level business value.
3. Stanford University. (2016). CS110: Principles of Computer Systems, Lecture 18: Files and File Systems. Courseware. In the discussion of file system design, the lecture emphasizes reliability as a primary goal, noting that data loss or unavailability has a direct and severe business impact, making reliability a core component of the system's value. (Available via Stanford course archives).
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