On August 24, 2005, three Web sites managed by the Gap-Gap.com, OldNavy.com, and BananaRepublic.com-were taken down for improvements [AP 2005]. These sites were virtually inaccessible for the next two weeks. Using the statistics in Figure 1.25, answer the following questions, which are based in part on hypothetical assumptions.
a. In the third quarter of 2005, the Gap's revenue was $3.9 billion [Gap 2005]. The Web site returned live on September 7, 2005 [Internet Retailer 2005]. Assume that online sales total $1.4 million per day, and that everything else remains constant. What would the Gap's estimated revenue be third quarter 2005?
b. If this downtime occurred in the fourth quarter, what would you estimate the cost of the downtime to be?

Figure 1.25 Statistics on sales for Gap and Amazon. Data compiled from AP [2005], Internet Retailer [2005], Gamasutra [2005], Seattle PI [2005], MSN Money [2005], Gap [2005], and Gap [2006].
c. When the site returned, the number of users allowed to visit the site at one time was limited. Imagine that it was limited to 50% of the customers who wanted to access the site. Assume that each server costs $7500 to purchase and set up. How many servers, per day, could they purchase and install with the money they are losing in sales?
d. Gap.com had 2.6 million visitors in July 2004 [AP 2005]. On average, a user views 8.4 pages per day on Gap.com. Assume that the high end servers at Gap.com are running SQL Server software, with a TPCC benchmark estimated cost of $5.38 per transaction. How much would it cost for them to support their online traffic at Gap.com?

Transcribed Image Text:

ibii Am 54 54 53 54 si si si sa 1-11-20 2-2 q| q Tim-3rd 4th 3rd 4th 3rd 3rd 3rd 4th 4th Dec dhdhdddh