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Average Per-bit Delivery Cost
Average Per-Bit Delivery Cost, or APBDC, is the cost accounting method by which Internet Service Providers (ISPs) calculate their cost of goods sold. Concept Average Per-Bit Delivery Cost divides the cost of however many bits were actually modulated across a network or component of a network over a period of time by the total operational and amortized capital expenses associated with the network or component over the same time-period, to produce an average cost for the delivery of each transmitted bit of data. This is contrasted principally with flat-rate and 95th percentile functions, which are typically used for billing customers rather than cost accounting. In typical use, APBDCs of individual links or components of an operating network are compared with the APBDC of the whole, in order to evaluate the efficiency of the components and to track improvements in efficiency. High APBDC may reflect either a high cost or a low utilization, either of which is detrimental to the p ...
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Cost Accounting
Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, allocating, aggregating and reporting such costs and comparing them with standard costs." (IMA) Often considered a subset of managerial accounting, its end goal is to advise the management on how to optimize business practices and processes based on cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Cost accounting information is also commonly used in financial accounting, but its primary function is for use by managers to facilitate their decision-making. Origins of Cost Accounting All types of businesses, whether manufacturing, trading or producing services, require cost accounting to track their activities. Cost accounting h ...
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Internet Service Providers
An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privately owned. Internet services typically provided by ISPs can include Internet access, Transit (Internet), Internet transit, domain name registration, Web hosting service, web hosting, Usenet service, and colocation centre, colocation. An ISP typically serves as the access point or the Default gateway, gateway that provides a user access to everything available on the Internet. Such a network can also be called as an eyeball network. History The Internet (originally ARPAnet) was developed as a network between government research laboratories and participating departments of universities. Other companies and organizations joined by direct connection to the Internet backbone, backbone, or by arrangements through other connected companies, so ...
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Cost Of Goods Sold
Cost of goods sold (COGS) is the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs that are incurred in bringing the inventories to their present location and condition. Costs of goods made by the businesses include material, labor, and allocated overhead. The costs of those goods which are not yet sold are deferred as costs of inventory until the inventory is sold or written down in value. Overview Many businesses sell goods that they have bought or produced. When the goods are bought or produced, the costs associated with such goods are capitalized as part of inventory (or stock) of goods. These costs are treated as an expense in the period the business recognizes income from sale of the goods. Determining costs requires keeping records of g ...
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Average Per-Bit Delivery Cost Visual Example
In ordinary language, an average is a single number taken as representative of a list of numbers, usually the sum of the numbers divided by how many numbers are in the list (the arithmetic mean). For example, the average of the numbers 2, 3, 4, 7, and 9 (summing to 25) is 5. Depending on the context, an average might be another statistic such as the median, or mode. For example, the average personal income is often given as the median—the number below which are 50% of personal incomes and above which are 50% of personal incomes—because the mean would be higher by including personal incomes from a few billionaires. For this reason, it is recommended to avoid using the word "average" when discussing measures of central tendency. General properties If all numbers in a list are the same number, then their average is also equal to this number. This property is shared by each of the many types of average. Another universal property is monotonicity: if two lists of numbers ''A'' ...
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Internet Exchange Point
Internet exchange points (IXes or IXPs) are common grounds of IP networking, allowing participant Internet service providers (ISPs) to exchange data destined for their respective networks. IXPs are generally located at places with preexisting connections to multiple distinct networks, ''i.e.'', datacenters, and operate physical infrastructure (switches) to connect their participants. Organizationally, most IXPs are each independent not-for-profit associations of their constituent participating networks (that is, the set of ISPs which participate at that IXP). The primary alternative to IXPs is private peering, where ISPs directly connect their networks to each other. IXPs reduce the portion of an ISP's traffic that must be delivered via their upstream transit providers, thereby reducing the average per-bit delivery cost of their service. Furthermore, the increased number of paths available through the IXP improves routing efficiency (by allowing routers to select shorter ...
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Bandwidth (computing)
In computing, bandwidth is the maximum rate of data transfer across a given path. Bandwidth may be characterized as network bandwidth, data bandwidth, or digital bandwidth. This definition of ''bandwidth'' is in contrast to the field of signal processing, wireless communications, modem data transmission, digital communications, and electronics, in which ''bandwidth'' is used to refer to analog signal bandwidth measured in hertz, meaning the frequency range between lowest and highest attainable frequency while meeting a well-defined impairment level in signal power. The actual bit rate that can be achieved depends not only on the signal bandwidth but also on the noise on the channel. Network capacity The term ''bandwidth'' sometimes defines the net bit rate 'peak bit rate', 'information rate,' or physical layer 'useful bit rate', channel capacity, or the maximum throughput of a logical or physical communication path in a digital communication system. For example, bandwidth test ...
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Internet Transit
Internet transit is the service of allowing network traffic to cross or "transit" a computer network, usually used to connect a smaller Internet service provider (ISP) to the larger Internet. Technically, it consists of two bundled services: * The advertisement of customer routes to other ISPs, thereby soliciting inbound traffic toward the customer from them * The advertisement of other ISPs' routes (usually but not necessarily in the form of a default route or a full set of routes to all of the destinations on the Internet) to the ISP's customer, thereby soliciting outbound traffic from the customer towards these networks. In the 1970s and early 1980s-era Internet, the assumption was made that all networks would provide full transit for one another. In the modern private-sector Internet, two forms of interconnect agreements exist between Internet networks: transit, and peering. Transit is distinct from peering, in which only traffic between the two ISPs and their downstream cust ...
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Bill Woodcock
Bill Woodcock (born August 16, 1971 in San Francisco, California, United States) is the executive director of Packet Clearing House, the international organization responsible for providing operational support and security to critical Internet infrastructure, including Internet exchange points and the core of the domain name system; the chairman of the Foundation Council of Quad9; the president of WoodyNet; and the CEO of EcoTruc and EcoRace, companies developing electric vehicle technology for work and motorsport. Bill founded one of the earliest Internet service providers, and is best known for his 1989 development of the anycast routing technique that is now ubiquitous in Internet content distribution networks and the domain name system. Activities Early electronic prepress Woodcock entered the computer industry via the advent of desktop publishing. He was doing prepress work for the University of California Press when the Macintosh computer was released in 1984, and he ...
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Andrew Odlyzko
Andrew Michael Odlyzko (Andrzej Odłyżko) (born 23 July 1949) is a Polish-American mathematician and a former head of the University of Minnesota's Digital Technology Center and of the Minnesota Supercomputing Institute. He began his career in 1975 at Bell Telephone Laboratories, where he stayed for 26 years before joining the University of Minnesota in 2001. Work in mathematics Odlyzko received his B.S. and M.S. in mathematics from the California Institute of Technology and his Ph.D. from the Massachusetts Institute of Technology in 1975. In the field of mathematics he has published extensively on analytic number theory, computational number theory, cryptography, algorithms and computational complexity, combinatorics, probability, and error-correcting codes. In the early 1970s, he was a co-author (with D. Kahaner and Gian-Carlo Rota) of one of the founding papers of the modern umbral calculus. In 1985 he and Herman te Riele disproved the Mertens conjecture. In mathematic ...
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Zhi-Li Zhang
Zhi-Li Zhang is a computer scientist, the McKnight Distinguished University Professor and the Qwest Chair Professor of Computer Science at the University of Minnesota - Twin Cities. He leads the Networking Research Group at the university. Zhi-Li obtained his PhD in computer science from the University of Massachusetts in 1997 under Don Towsley and Jim Kurose. He has published a large number of papers in the field of routing, computer communication and multimedia communication. Zhi-Li Zhang graduated with B.S. in Computer Science with highest distinction from Nanjing University Nanjing University (NJU; ) is a national public research university in Nanjing, Jiangsu. It is a member of C9 League and a Class A Double First Class University designated by the Chinese central government. NJU has two main campuses: the Xian ..., Nanjing, China. While a junior student at Nanjing, Zhi-Li led a team of senior students for their senior design projects. He was one of five students selec ...
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Telecommunications Economics
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that feasible with the human voice, but with a similar scale of expediency; thus, slow systems (such as postal mail) are excluded from the field. The transmission media in telecommunication have evolved through numerous stages of technology, from beacons and other visual signals (such as smoke signals, semaphore telegraphs, signal flags, and optical heliographs), to electrical cable and electromagnetic radiation, including light. Such transmission paths are often divided into communication channels, which afford the advantages of multiplexing multiple concurrent communication sessions. ''Telecommunication'' is often used in its plural form. Other examples of pre-modern long-distance communication included audio messages, such as coded drumbea ...
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Management Accounting
In management accounting or managerial accounting, managers use accounting information in decision-making and to assist in the management and performance of their control functions. Definition One simple definition of management accounting is the provision of financial and non-financial decision-making information to managers. In other words, management accounting helps the directors inside an organization to make decisions. This can also be known as Cost Accounting. This is the way toward distinguishing, examining, deciphering and imparting data to supervisors to help accomplish business goals. The information gathered includes all fields of accounting that educates the administration regarding business tasks identifying with the financial expenses and decisions made by the organization. Accountants use plans to measure the overall strategy of operations within the organization. According to the Institute of Management Accountants (IMA), "Management accounting is a profession t ...
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