SLA Establishment Decisions: Minimizing the Risk of SLA Violations

This thesis presents an approach for service providers to select an SLA portfolio that minimizes the SLA violation risk. It considers constraints on expected profit and available resources. The problem is addressed by applying decision theory and risk measures, especially by adapting the concept of portfolio selection by Harry Markowitz and the semi-variance. In order to capture a decision maker's attitude towards risk, utility theory and the concept of risk aversion are used.