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Revenue Forecasting in Technological Services: Evidence from Large Data Centers

Snehanshu Saha
PES Institute of Technology, India
Cohen Room, Statistics Building

Data Center is a facility, which houses computer systems and associated components, such as telecommunications and storage systems. It generally includes power supply equipment, communication connections, and cooling equipment. A large data center can use as much electricity as a small town. The emergence of data-center based computing services necessitates the examination of the costs associated with such data centers and the evolution of such costs over time, apropos of market efficiency issues. The talk focuses on a general approach to optimizing the revenue and cost of data centers using Econometric production function. The talk touches upon the optimization model for data centers by exploiting the mathematical basis of such functions. The problems of cost optimization, profit maximization and revenue forecasting in data centers have been looked at and solutions have been sought. The lecture also discusses the effects of factors, which may significantly contribute towards the response variable, revenue or profit and precise cost elasticity has been computed via the optimization exercise and the factors that maximize revenue significantly have been identified. The results are quite useful in view of production reorganization in large data centers around the world. A practical insight into the market dynamics and competitiveness will be discussed.

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