Software-hardware tradeoffs and data processing budgets
Vijay Gurbaxani · Medical Entomology and Zoology · 1987
This dissertation studies the production of information services and its impact on data processing budgets. It provides a framework for explaining the dynamics of data processing budgets, and, in particular, the allocation of these budgets between software and hardware expenditures. The importance of the problem is underscored by the increasing demand for information services, as well as by the ongoing debate among researchers and industry analysts regarding the allocation of data processing budgets. Two classes of models are developed that dynamically balance the value and cost of information services, taking into account the prevailing cost trends. The results are then applied to aggregate budget data. This serves to calibrate the model and estimate the values of its parameters. Extensions to the model are considered next. These examine the effects of aggregation, the transactions load and learning on the behavior predicted by the models. The results of this research will provide a basis for understanding the budget allocation process and for predicting future trends, and a framework for determining, allocating and evaluating data processing budgets.