Re:AWS is down, but here's why the sky is falling
by justinsb on Thursday April 21, 2011 @04:32PM
(#2472244)
It's a good analogy and I certainly accept your point. It could just be a marketing thing though:
Suppose it's the same hard disk with a black sticker instead of a blue sticker. Drive with 1 yr warranty @ $100, 5 yr warranty @ $150, 20% additional failure rate over the extra 4 years, 50% redemption rate on failed drives. Cost per replaced drives = 20% * 50% * ($100 + $30 processing costs) = $13 = $37 profit.
Totally fictitious numbers to try to prove my point, of course :-) But as the SLA becomes increasingly low in value, the signalling value decreases in my book.
Suppose it's the same hard disk with a black sticker instead of a blue sticker. Drive with 1 yr warranty @ $100, 5 yr warranty @ $150, 20% additional failure rate over the extra 4 years, 50% redemption rate on failed drives. Cost per replaced drives = 20% * 50% * ($100 + $30 processing costs) = $13 = $37 profit.
Totally fictitious numbers to try to prove my point, of course :-) But as the SLA becomes increasingly low in value, the signalling value decreases in my book.
(Edit - fixed my math!)