Hierarchical design represents a natural solution for managing the gro
wing complexity of computing systems. This leads to systems that are h
ierarchically structured from a logical or physical viewpoint. Because
of the inherent complexity of such systems, the incorporation of faul
t-tolerance features is highly recommended, to achieve the required de
pendability level. Hence, it is important to develop evaluation tools
that allow to analyse the effectiveness of different fault-tolerance m
echanisms. We present a systematic procedure for the construction and
evaluation of Markov models for transient dependability analysis, whic
h fully exploits the hierarchical structure of the system under evalua
tion. A thorough time/space complexity analysis of the proposed proced
ure shows that it allows a considerable time and space saving with res
pect to a ''naive'' approach to the same problem.