US2013238388A1PendingUtilityA1
Option framework for managing on-demand service offerings
Est. expiryJul 11, 2027(~1 yrs left)· nominal 20-yr term from priority
G06Q 10/06375G06Q 10/0635G06Q 10/08G06Q 30/0206G06Q 30/0283G06Q 10/0631G06Q 30/0202G06Q 30/02
61
PatentIndex Score
0
Cited by
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Claims
Abstract
A method of and system for managing on-demand service offerings in a service delivery chain. The method comprises the steps of a service provider announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure; a service distributor committing to upfront capacity and to units of on-demand options; and the service provider provisioning a number of resources to the collection of service distributors. Preferably, the upfront capacity pricing includes three components. A first component is a price structure for capacity or resources to be purchased for immediate use, a second component is an on-demand premium structure, and a third component is an on-demand usage fee structure.
Claims
exact text as granted — not AI-modifiedWhat is claimed is:
1 . A system for managing on-demand service offerings, wherein a service provider provides resources to a collection of service distributors, and said service distributors distribute said resources to end users, said service offerings including an on-demand feature where the service provider provides some of said resources to the service distributors on demand of the service distributors, said system comprising:
a memory device having embodied therein information relating to said resources; a service provider processor in communication with said memory device and configured for announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure, said on-demand premium structure representing the immediate cost to the service distributer for the right to use the on-demand feature at some random point any time in the future up to a specified date, and said on demand exercise structure representing the price the service provider charges a service distributer upon the invocation of the on-demand feature; and a service distributor processor in communication with said service provider processor and configured for committing to upfront capacity (Q) and to units of on-demand options (q), including determining values for Q and q using a defined (Q,q) algorithm including a plurality of variables representing a random end user demand, a service distributor's revenue per end customer demand, an amount of the upfront capacity, and an amount of the on-demand options; wherein said service provider processor is further configured for provisioning a number of resources to the collection of service distributors.
2 . A system according to claim 1 , wherein the upfront capacity pricing includes three components:
a first component is a price structure for capacity or resources to be purchased for immediate use; a second component is an on-demand premium structure; and a third component is an on-demand usage fee structure.
3 . A system for managing on-demand service offerings, wherein a service provider provides resources to a collection of service distributors, and said service distributors distribute said resources to end users, said system comprising:
a memory device having embodied therein information relating to said resources; a service provider processor in communication with said memory device and configured for announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure; a service distributor processor in communication with said service provider processor and configured for committing to upfront capacity and to units of on-demand options; wherein said service provider processor is further configured for provisioning a number of resources to the collection of service distributors; wherein the committing to upfront capacity and to units of on-demand options is done by using the equation:
π 2 ( Q,q )= E[r ·min( D,O )− w·Q−c·q−x ·min( q ,( D−Q ) + )]
where D is the random end user demand; r is the distributor's revenue per end customer demand satisfied; the randomness D captures the demand risk; the optimal amount of upfront capacity and “On-Demand” options
O
*
=
F
-
1
(
r
-
x
-
c
r
-
x
)
and the number amount of upfront capacity is
Q
*
=
F
-
1
(
x
+
c
-
w
w
)
.
where F is the estimated cumulative distribution function for the random demand D.
4 . A system according to claim 1 , wherein the provisioning of resources is done based on a defined equation using a multitude of variables including:
D: customer's stochastic IT requirement with pdf f(D) and cdf F(D); W: traditional purchase price=unit cost of firm order C: unit cost of option, x: “On-Demand” exercise price, m: cost to the service provider for one unit of capacity, s: maintenance cost per unit time per unit capacity incurred by the provider, and Y: IT/Hosting capacity.
5 . A system according to claim 1 , wherein said on-demand premium structure represents a cost to the service distributor for the right to use the on-demand feature at some point any time in the future.
6 . A system according to claim 1 , wherein said on-demand usage fee structure represents the price the service provider charges a service distributor for invocation of the on-demand feature.
7 . A program storage device readable by machine, tangibly embodying a program of instructions executable by the machine to perform a method of managing on-demand service offerings, wherein a service provider provides resources to a group of service distributors, and said service distributors distribute said resources to end users, said service offerings including an on-demand feature where the service provider provides some of said resources to the service distributors on demand of the service distributors, the method comprising the steps of:
the service provider announcing upfront capacity pricing, an on-demand premium structure, and an on-demand exercise structure, said on-demand premium structure representing the immediate cost to the service distributer for the right to use the on-demand feature at some random point any time in the future up to a specified date, and said on demand exercise structure representing the price the service provides charges a service distributer upon the invocation of the on-demand feature; at least one of the service distributors committing to upfront capacity (Q) and to units of on-demand options (q), including determining values for Q and q using a defined (Q,q) algorithm including a plurality of variables representing a random end user demand, a service distributor's revenue per end customer demand, an amount of the upfront capacity, and an amount of the on-demand options; and the service provider provisioning a number of resources to the collection of service distributors.
8 . A program storage device according to claim 7 , wherein:
the upfront capacity pricing includes three components: a first component is a price structure for capacity or resources to be purchased for immediate use, a second component is an on-demand premium structure, and a third component is an on-demand usage fee structure; said on-demand premium structure represents an immediate cost to the service distributor for the right to use the on-demand feature at some point any time in the future; and said on-demand usage fee structure represents the price the service provider charges a service distributor for invocation of the on-demand feature.
9 . A program storage device according to claim 8 , wherein:
the committing to upfront capacity and to units of on-demand options is done by using the equation:
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(
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(
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where
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and D is the random end user demand; r is the distributor's revenue per end customer demand satisfied; the optimal amount of upfront capacity and “On-Demand” options
O
*
=
F
-
1
(
r
-
x
-
c
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and the number amount of upfront capacity is
Q
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=
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w
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[
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,
where F is the estimated cumulative distribution function for the random demand D; and the provisioning of done based on a defined equation using a multitude of variables including:
D: customer's stochastic IT requirement with pdf f(D) and cdf F(D);
W: traditional purchase price=unit cost of firm order
C: unit cost of option,
x: “On-Demand” exercise price,
m: cost to the service provider for one unit of capacity,
s: maintenance cost per unit time per unit capacity incurred by the provider, and
Y: IT/Hosting capacity.Join the waitlist — get patent alerts
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