The economics of time shared computing: Congestion, user costs and capacity
Time shared systems permit the fixed costs of computing resources to be spread over large numbers of users. However, bottleneck results in the theory of closed queueing networks can be used to show that this economy of scale will be offset by the increased congestion that results as more users are added to the system. If one considers the total costs, including the congestion cost, there is an optimal number of users for a system which equals the saturation value usually used to define system capacity.