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Research Outline
Prepared for Ryan B. | Delivered August 22, 2019
Flexible Capacity
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Goals
To gain a more complete understanding of how different industries economically value flexibility (the ability to quickly add and remove capacity) to an overall system.
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Early Findings
Capacity flexibility
means having the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product or service to another.
Industries Actively Valuing Flexible Capacity
Information Technology (IT)
Traditional enterprise computing models, financial, healthcare, and other kinds of businesses often need to grapple with costly procurement cycles and heavy capital expenditures. The result can often be over provisioning—
paying for capacity well before it’s used
.
In a
pay-as-you-grow model
, customers work with their technology provider to determine what their computing capacity needs are today and in the future. That capacity for current demands is installed along with additional capacity for growth.
Many enterprise IT providers are shifting to a
flexible consumption
or everything-as-a-service (XaaS) model.
Airlines
The ability to
effectively match supply and demand
under uncertainty can result in significant revenue benefits in the airline industry.
A
Demand Driven Swapping (DDS)
approach that takes advantage of the flexibilities in the system and dynamically swaps aircraft as departures near and more accurate demand information is obtained.
Data Storage
DataCore has developed a
flexible storage
infrastructure, designed to accelerate the adoption of software-defined storage (SDS) in enterprise data centers, the cloud and edge computing; centralizing command and control of different classes of storage spanning primary, secondary and archive. The company also announced the availability of a number of components that help make this vision a reality, including a flexible hyperconverged infrastructure (HCI) appliance, subscription-based licensing, a new cloud-based analytics service, and a number of enhancements to its already powerful software-defined storage technology.
Calculation for Valuing Flexible Capacity
The Massachusetts Institute of Technology (MIT) published a paper titled,
'
Flexibility Strategy — Valuing Flexible Product Options
' in which options for calculating the value of flexible capacity from an engineering standpoint are discussed.
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