To justify an investment in improved availability for an application generating $1,000,000 in revenue, what should you determine?

The choice that indicates the value of improved availability should exceed the costs associated with the investment to justify it. In this context, your revenue generation of $1,000,000 establishes a high benchmark for the potential financial impact of downtimes or unavailability.

Determining an appropriate value for improved availability plays a crucial role in informing business decisions. When the calculated value of improved availability is significantly higher than the costs incurred from unavailability, it strongly supports the case for investing in improvements.

An assessment leading to the conclusion that the value of improved availability is only $900 would indicate that the cost-benefit analysis does not favor an investment in enhanced availability, given that this amount is quite low in relation to the revenue generated. Therefore, in this scenario, the expected revenue boost or mitigated financial loss does not sufficiently justify the investment in improved availability.

Thus, focusing on a thorough return on investment (ROI) analysis is essential when considering applications that significantly contribute to an organization's revenue stream. This helps ensure that any investments made will have a meaningful positive impact.