Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Existing virus-protection programs rely on virus databases that constantly need to be updated as new viruses emerge. A typical virus-protection site license costs $3,000 per

image text in transcribed
Existing virus-protection programs rely on virus databases that constantly need to be updated as new viruses emerge. A typical virus-protection site license costs $3,000 per year for sites of less than 350 machines, and must be updated regularly. Regular updating of the databases costs around $60 per computer per year. Furthermore, even with regular updating of the databases, there is a possibility that unaccounted viruses will infect a company's computer systems. Virus- protection experts estimate that with current virus protection software the probability that a company will experience one complete system breakdown because of a virus within one year is 8%. Of the 8% of companies who experience a system breakdown, 25% also experience a second breakdown sometime thereafter. The probability of more than two breakdowns is virtually zero. A complete system breakdown, which typically lasts one day, would cost $35,000 to a retail company with 175 machines and $90,000 (in prots from lost sales) to a typical nancial services company with the same number of machines. McBug Software Inc. is about to introduce new virus-protection software called HackOff. HackOff is based on a \"mutating-virussimulator\" (MV S), which according to McBug is going to revolutionize the virus-protection landscape. The MV S essentially eliminates the need to update virus databases continually. Moreover, the MVS is extremely powerful and, as a result, increases the probability of detecting infected les. Researchers at McBug estimate that companies equipped with HackOff have only a 1% probability of experiencing a virus-caused complete system breakdown within a year, and a zero probability of experiencing more than one of such breakdowns. While the price of a HackOff site-license remains to be set, it is estimated that clients who adopt the software would incur start-up costs (excluding the site license) of $35 per machine in installation, conguration, training, etc. Assuming no other costs of virus infection or software, calculate the economic value of HackOff over the course of one year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Retailing Management

Authors: Michael Levy, Barton Weitz, Dea Watson

4th Canadian Edition

70893209, 978-0070893207

More Books

Students also viewed these Marketing questions