Cloud Asset Pricing Tree (CAPT) Elastic Economic Model for Cloud Service Providers

Cloud providers are incorporating novel techniques to cope with prospective aspects of trading like resource allocation over future demands and its pricing elasticity that was not foreseen before. To leverage the pricing elasticity of upcoming demand and supply, we employ financial option theory (future contracts) as a mechanism to alleviate the risk in resource allocation over future demands. This study introduces a novel Cloud Asset Pricing Tree (CAPT) model that finds the optimal premium price of the Cloud federation options efficiently. Providers will benefit by this model to make decisions when to buy options in advance and when to exercise them to achieve more economies of scale. The CAPT model adapts its structure to address the price elasticity concerns and makes the demand, price inelastic and the supply, price elastic. Our empirical evidences suggest that using the CAPT model, exploits the Cloud market potential as an opportunity for more resource utilization and future capacity planning.

Cloud computing models

Thesis (S.M. in Engineering and Management)--Massachusetts Institute of Technology, Engineering Systems Division, 2013.Cataloged from PDF version of thesis.Includes bibliographical references (p. 79-80).Information Technology has always been considered a major pain point of enterprise organizations, from the perspectives of both cost and management. However, the information technology industry has experienced a dramatic shift in the past decade - factors such as hardware commoditization, open-source software, virtualization, workforce globalization, and agile IT processes have supported the development of new technology and business models. Cloud computing now offers organizations more choices regarding how to run infrastructures, save costs, and delegate liabilities to third-party providers. It has become an integral part of technology and business models, and has forced businesses to adapt to new technology strategies. Accordingly, the demand for cloud computing has forced the development of new market offerings, representing various cloud service and delivery models. These models significantly expand the range of available options, and task organizations with dilemmas over which cloud computing model to employ. This thesis poses analysis of available cloud computing models and potential future cloud computing trends. Comparative analysis includes cloud services delivery (SaaS, PaaS, IaaS) and deployment models (private, public, and hybrid). Cloud computing paradigms are discussed in the context of technical, business, and human factors, analyzing how business and technology strategy could be impacted by the following aspects of cloud computing: --Architecture --Security --Costs --Hardware/software trends (commodity vs. brands, open vs. closed-source) --Organizational/human Factors To provide a systematic approach to the research presented in this paper, cloud taxonomy is introduced to classify and compare the available cloud service offerings. In particular, this thesis focuses on the services of a few major cloud providers. Amazon Web Services (AWS) will be used as a base in many examples because this cloud provider represents approximately 70% of the current public cloud services market. Amazon's AWS has become a cloud services trend-setter, and a reference point for other cloud service providers. The analysis of cloud computing models has shown that public cloud deployment model is likely to stay dominant and keep expanding further. Private and Hybrid deployment models are going to stay for years ahead but their market share is going to continuously drop. In the long-term private and Hybrid cloud models most probably will be used only for specific business cases. IaaS service delivery model is likely to keep losing market share to PaaS and SaaS models because companies realize more value and resource-savings from software and platform services rather than infrastructure. In the near future we can expect significant number of market consolidations with few large players retaining market control at the end.by Eugene Gorelik.S.M.in Engineering and Managemen

Pricing the Cloud: An Auction Approach

Cloud computing has changed the processing and service modes of information communication technology and has affected the transformation, upgrading and innovation of the IT-related industry systems. The rapid development of cloud computing in business practice has spawned a whole new field of interdisciplinary, providing opportunities and challenges for business management research. One of the critical factors impacting cloud computing is how to price cloud services. An appropriate pricing strategy has important practical means to stakeholders, especially to providers and customers. This study addressed and discussed research findings on cloud computing pricing strategies, such as fixed pricing, bidding pricing, and dynamic pricing. Another key factor for cloud computing is Quality of Service (QoS), such as availability, reliability, latency, security, throughput, capacity, scalability, elasticity, etc. Cloud providers seek to improve QoS to attract more potential customers; while, customers intend to find QoS matching services that do not exceed their budget constraints. Based on the existing study, a hybrid QoS-based pricing mechanism, which consists of subscription and dynamic auction design, is proposed and illustrated to cloud services. The results indicate that our hybrid pricing mechanism has potential to better allocate available cloud resources, aiming at increasing revenues for providers and reducing expenses for customers in practice

Infrastructure-as-a-Service Usage Determinants in Enterprises

The thesis focuses on the research question, what the determinants of Infrastructure-as-a-Service usage of enterprises are. A wide range of IaaS determinants is collected for an IaaS adoption model of enterprises, which is evaluated in a Web survey. As the economical determinants are especially important, they are separately investigated using a cost-optimizing decision support model. This decision support model is then applied to a potential IaaS use case of a large automobile manufacturer

Transiency-driven Resource Management for Cloud Computing Platforms

Modern distributed server applications are hosted on enterprise or cloud data centers that provide computing, storage, and networking capabilities to these applications. These applications are built using the implicit assumption that the underlying servers will be stable and normally available, barring for occasional faults. In many emerging scenarios, however, data centers and clouds only provide transient, rather than continuous, availability of their servers. Transiency in modern distributed systems arises in many contexts, such as green data centers powered using renewable intermittent sources, and cloud platforms that provide lower-cost transient servers which can be unilaterally revoked by the cloud operator. Transient computing resources are increasingly important, and existing fault-tolerance and resource management techniques are inadequate for transient servers because applications typically assume continuous resource availability. This thesis presents research in distributed systems design that treats transiency as a first-class design principle. I show that combining transiency-specific fault-tolerance mechanisms with resource management policies to suit application characteristics and requirements, can yield significant cost and performance benefits. These mechanisms and policies have been implemented and prototyped as part of software systems, which allow a wide range of applications, such as interactive services and distributed data processing, to be deployed on transient servers, and can reduce cloud computing costs by up to 90\%. This thesis makes contributions to four areas of computer systems research: transiency-specific fault-tolerance, resource allocation, abstractions, and resource reclamation. For reducing the impact of transient server revocations, I develop two fault-tolerance techniques that are tailored to transient server characteristics and application requirements. For interactive applications, I build a derivative cloud platform that masks revocations by transparently moving application-state between servers of different types. Similarly, for distributed data processing applications, I investigate the use of application level periodic checkpointing to reduce the performance impact of server revocations. For managing and reducing the risk of server revocations, I investigate the use of server portfolios that allow transient resource allocation to be tailored to application requirements. Finally, I investigate how resource providers (such as cloud platforms) can provide transient resource availability without revocation, by looking into alternative resource reclamation techniques. I develop resource deflation, wherein a server\u27s resources are fractionally reclaimed, allowing the application to continue execution albeit with fewer resources. Resource deflation generalizes revocation, and the deflation mechanisms and cluster-wide policies can yield both high cluster utilization and low application performance degradation

Generic Methods for Adaptive Management of Service Level Agreements in Cloud Computing

The adoption of cloud computing to build and deliver application services has been nothing less than phenomenal. Service oriented systems are being built using disparate sources composed of web services, replicable datastores, messaging, monitoring and analytics functions and more. Clouds augment these systems with advanced features such as high availability, customer affinity and autoscaling on a fair pay-per-use cost model. The challenge lies in using the utility paradigm of cloud beyond its current exploit. Major trends show that multi-domain synergies are creating added-value service propositions. This raises two questions on autonomic behaviors, which are specifically ad- dressed by this thesis. The first question deals with mechanism design that brings the customer and provider(s) together in the procurement process. The purpose is that considering customer requirements for quality of service and other non functional properties, service dependencies need to be efficiently resolved and legally stipulated. The second question deals with effective management of cloud infrastructures such that commitments to customers are fulfilled and the infrastructure is optimally operated in accordance with provider policies. This thesis finds motivation in Service Level Agreements (SLAs) to answer these questions. The role of SLAs is explored as instruments to build and maintain trust in an economy where services are increasingly interdependent. The thesis takes a wholesome approach and develops generic methods to automate SLA lifecycle management, by identifying and solving relevant research problems. The methods afford adaptiveness in changing business landscape and can be localized through policy based controls. A thematic vision that emerges from this work is that business models, services and the delivery technology are in- dependent concepts that can be finely knitted together by SLAs. Experimental evaluations support the message of this thesis, that exploiting SLAs as foundations for market innovation and infrastructure governance indeed holds win-win opportunities for both cloud customers and cloud providers

Cloud computing with an emphasis on PaaS and Google app engine

Thesis on cloud with an emphasis on PaaS and Google App Engin