The book’s vocabulary

Terms with
working meanings.

51 terms from the glossaries of both volumes. Every term has its own page: the book’s working definition, the chapters and sections where the term is discussed, and the posts that take it up.

Accepted task

A task that met the business's acceptance criteria for its task class, not merely a completed request or a response that arrived on time.

Vol. 1 · Vol. 2 · 3 chapters

Attribution

Connecting spend or consumption to the workload, team, customer, or decision that caused it.

Vol. 1 · Vol. 2 · 3 chapters

Baseline forecast

A forecast made with an explicitly defined starting method and information set, such as a seasonal-naive forecast, which repeats the latest observation from…

Vol. 1 · Vol. 2 · glossary entry

Basis risk

The gap between what a hedge's price index measures and what we pay for the hardware, region, terms, and dates we actually need.

Vol. 1 · Vol. 2 · glossary entry

Budget

An authorized financial boundary or plan.

Vol. 1 · Vol. 2 · 15 chapters

Capability

What the business and its technology need to be able to do: features, reliability and resilience, customer experience, and operational outcomes.

Vol. 1 · Vol. 2 · 4 chapters

Capacity

The work a system can support in a stated interval under stated workload, quality, configuration, and operating conditions.

Vol. 1 · Vol. 2 · 15 chapters

Cohort

Workloads grouped for a stated planning reason, with maintained membership, an owner, and a way to detect exceptions.

Vol. 1 · Vol. 2 · 2 chapters

Commitment

A commercial or operational promise whose parties, scope, and term must be stated.

Vol. 1 · Vol. 2 · 15 chapters

Coordinated omission

A load-testing error in which a generator that waits for each response stops sending the requests that would have suffered most during a stall, so measured l…

Vol. 1 · Vol. 2 · 1 chapter

Cost

The money and obligations a system creates while it runs, whether or not anyone has attributed them yet.

Vol. 1 · Vol. 2 · 15 chapters

CPU-bound

Limited materially by available processing capacity under the observed conditions.

Vol. 1 · Vol. 2 · glossary entry

Data-bound

In this book, work whose limiting behavior depends materially on data access, movement, layout, state, or coordination.

Vol. 1 · Vol. 2 · glossary entry

Demand intelligence

Information about future business activity, kept with its source, evidence date, assumptions, timing, dependencies, and a condition for review; also the prac…

Vol. 1 · Vol. 2 · glossary entry

Double bubble

The temporary overlap of old and replacement environments during a transition.

Vol. 1 · Vol. 2 · 1 chapter

Elasticity

The ability to add and release resources as demand changes.

Vol. 1 · Vol. 2 · 1 chapter

Evidence date

The date information became available to the planners, as distinct from the date of the activity it describes.

Vol. 1 · Vol. 2 · glossary entry

Failure group

Resources assumed to become unavailable together in a specified scenario.

Vol. 1 · Vol. 2 · 3 chapters

Fixed cost

Cost that does not change with the relevant activity over a specified range and period.

Vol. 1 · Vol. 2 · glossary entry

Forecast

An estimate of future demand under stated assumptions, with an as-of date showing what was known when it was made.

Vol. 1 · Vol. 2 · 15 chapters

Headroom

The deliberately unused portion of capacity, bought on purpose to absorb demand and failure.

Vol. 1 · Vol. 2 · 4 chapters

Lead time

The interval between deciding to obtain supply and its readiness date, when it is qualified and usable for the stated work.

Vol. 1 · Vol. 2 · 3 chapters

Little's law

In a stable system, the average number of items present equals their arrival rate times the average time each spends there, $L = \lambda W$.

Vol. 1 · Vol. 2 · glossary entry

Long tail

The many smaller consumers in a ranked portfolio.

Vol. 1 · Vol. 2 · 1 chapter

Marginal cost

The change in cost associated with an additional unit or a specified change in work.

Vol. 1 · Vol. 2 · glossary entry

Metered cost

Cost calculated from counted consumption, such as requests, worker-hours, GB-months, or tokens, and a pricing rule.

Vol. 1 · Vol. 2 · glossary entry

Obligation

What the organization has promised to pay, including promises that outlast the reason for making them.

Vol. 1 · Vol. 2 · 12 chapters

Opportunity cost

The value of the best alternative displaced by a choice.

Vol. 1 · Vol. 2 · glossary entry

Prediction interval

A range derived from a forecast distribution under specified assumptions.

Vol. 1 · Vol. 2 · 1 chapter

Provisioned throughput

Model-serving capacity held for a deployment and billed by the hour, busy or idle.

Vol. 1 · Vol. 2 · 2 chapters

Qualified capacity

Resources demonstrated to perform the intended work under the relevant conditions.

Vol. 1 · Vol. 2 · glossary entry

Quota

A limit on permitted resource allocation or consumption within a defined scope.

Vol. 1 · Vol. 2 · 6 chapters

Reconciliation

Making related views add up under consistent boundaries.

Vol. 1 · Vol. 2 · 1 chapter

Request

A statement of what someone wants, which begins investigation or negotiation.

Vol. 1 · Vol. 2 · 15 chapters

Reservation

A commercial arrangement whose effect depends on its terms: a price discount, a hold on specified capacity, or both.

Vol. 1 · Vol. 2 · 11 chapters

Reserve

Capacity held for an identified purpose, with stated readiness, authority to use or release it, and review conditions.

Vol. 1 · Vol. 2 · 10 chapters

Rolling-origin evaluation

Evaluating forecasts made from successive past starting points, each a forecast origin, using only information available at that origin.

Vol. 1 · Vol. 2 · glossary entry

Saving

In this book, a reduced expenditure: an actual obligation or charge that fell within the stated boundary.

Vol. 1 · Vol. 2 · 10 chapters

Savings plan

A commitment to spend a fixed amount per hour for one or three years in exchange for discounted rates on eligible usage.

Vol. 1 · Vol. 2 · 2 chapters

Scenario

A stated combination of conditions used to examine consequences and choices.

Vol. 1 · Vol. 2 · 4 chapters

Shadow price

In a linear model, the local value of relaxing a constraint by one unit.

Vol. 1 · Vol. 2 · glossary entry

Showback and chargeback

Showback makes attributed cost visible to the groups responsible for it; chargeback assigns those costs to budgets or accounting structures.

Vol. 1 · Vol. 2 · glossary entry

SKU

Stock-keeping unit, borrowed from retail inventory: one sellable configuration of a service in a provider's catalog, with its size, features, and price.

Vol. 1 · Vol. 2 · 3 chapters

Spillover

Sending requests that exceed provisioned capacity to shared pay-as-you-go capacity, billed at that rate.

Vol. 1 · Vol. 2 · 2 chapters

Systems that drive consumption

The customers, product decisions, architecture, recovery requirements, migrations, and AI behavior that produce the consumption a bill and a capacity chart r…

Vol. 1 · Vol. 2 · glossary entry

Take-or-pay

A commitment charged for the committed quantity whether or not it is used.

Vol. 1 · Vol. 2 · glossary entry

Target

Something the organization intends to achieve.

Vol. 1 · Vol. 2 · 6 chapters

Token budget

An allowance of specified token categories over a stated period.

Vol. 1 · Vol. 2 · glossary entry

Token economics (Tokenomics)

The relationship among AI workload design, consumption, supplied capacity, cost, and accepted work.

Vol. 1 · Vol. 2 · glossary entry

Unit economics

The cost of one completed unit of useful work, rather than of a machine-hour, with a stated cost boundary and quality condition.

Vol. 1 · Vol. 2 · 1 chapter

Usable supply

Capacity qualified and available at the required place and time, after the constraints relevant to the decision are applied.

Vol. 1 · Vol. 2 · glossary entry