ERA: A Framework for Economic Resource Allocation for the Cloud

Cloud computing has reached significant maturity from a systems perspective, but currently deployed solutions rely on rather basic economics mechanisms that yield suboptimal allocation of the costly hardware resources. In this paper we present Economic Resource Allocation (ERA), a complete framework for scheduling and pricing cloud resources, aimed at increasing the efficiency of cloud resources usage by allocating resources according to economic principles. The ERA architecture carefully abstracts the underlying cloud infrastructure, enabling the development of scheduling and pricing algorithms independently of the concrete lower-level cloud infrastructure and independently of its concerns. Specifically, ERA is designed as a flexible layer that can sit on top of any cloud system and interfaces with both the cloud resource manager and with the users who reserve resources to run their jobs. The jobs are scheduled based on prices that are dynamically calculated according to the predicted demand. Additionally, ERA provides a key internal API to pluggable algorithmic modules that include scheduling, pricing and demand prediction. We provide a proof-of-concept software and demonstrate the effectiveness of the architecture by testing ERA over both public and private cloud systems -- Azure Batch of Microsoft and Hadoop/YARN. A broader intent of our work is to foster collaborations between economics and system communities. To that end, we have developed a simulation platform via which economics and system experts can test their algorithmic implementations

Market-Based Scheduling in Distributed Computing Systems

In verteilten Rechensystemen (bspw. im Cluster und Grid Computing) kann eine Knappheit der zur Verfügung stehenden Ressourcen auftreten. Hier haben Marktmechanismen das Potenzial, Ressourcenbedarf und -angebot durch geeignete Anreizmechanismen zu koordinieren und somit die ökonomische Effizienz des Gesamtsystems zu steigern. Diese Arbeit beschäftigt sich anhand vier spezifischer Anwendungsszenarien mit der Frage, wie Marktmechanismen für verteilte Rechensysteme ausgestaltet sein sollten

A model of preference elicitation: The case of distributed resource allocation

Market mechanisms are deemed promising for distributed resource allocation settings by explicitly involving users into the allocation process. The market considers the users’ and providers’ valuations to generate efficient resource allocations and prices. In theory, valuations are assumed to be known to the user. In practice, however, this is not the case. It is a complex burden for both users and providers to assess their true valuation for a certain combination of resources and services and to efficiently communicate this valuation to the market. This paper contributes to the theory of designing distributed allocation models in that (i) we propose a model for preference elicitation, which allows users and providers to assess their valuations as a function of their resource requirements and strategic considerations, (ii) we show how this model can be encoded within so-called bidding agents which interact with the market on behalf of the user, and (iii) we evaluate our approach in a numerical experiment to illustrate how the bidding agent adapts to the dynamic market situation. As this evaluation shows, the model outperforms technical schedulers and can thus be used for decision support in electronic markets

Reverse Auction in Pricing Model

Dynamic price discrimination adjusts prices based on the option value of future sales, which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination, and confronts the theories with new data from airline pricing behavior, Consider a multiple booking class airline-seat inventory control problem that relates to either a single flight leg or to multiple flight legs. During the time before the flight, the airline may face the problems of (1) what are the suitable prices for the opened booking classes, and (2) when to close those opened booking classes. This work deals with these two problems by only using the pricing policy. In this paper, a dynamic pricing model is developed in which the demand for tickets is modeled as a discrete time stochastic process. An important result of this work is that the strategy for the ticket booking policy can be reduced to sets of critical decision periods, which eliminates the need for large amounts of data storage

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

Fostering efficiency of computational resource allocation - Integrating information services into markets

The application of market mechanisms for the allocation of computing services is a demanding task, which requires bridging economic and associated technical challenges. Even if the market-based approach promises an efficient allocation of computing services, the wide heterogeneity of consumer requirements and the diversity of computational services on provider side are challenging the processes of finding, allocating, and using an appropriate service in an autonomous way. The focus of the most papers is mainly devoted to the optimization embedded in the allocation process itself. However, we think that the optimization process starts much earlier and contains the information gathering until the final market-based resource allocations. In this paper we introduce an integrated framework for market-based allocation of computing services, integrating information retrieval of market information, prediction models, bidding strategies and marked mechanisms. As proof-of-concept, we implemented a first prototype of the framework. Furthermore, we propose a methodology for evaluating strategic behavior in market mechanisms with bidding strategies using market information and statistical prediction techniques. First simulation results show strategic behavior in selected market mechanisms by applying the proposed techniques

Mobile data and computation offloading in mobile cloud computing

Le trafic mobile augmente considérablement en raison de la popularité des appareils mobiles et des applications mobiles. Le déchargement de données mobiles est une solution permettant de réduire la congestion du réseau cellulaire. Le déchargement de calcul mobile peut déplacer les tâches de calcul d'appareils mobiles vers le cloud. Dans cette thèse, nous étudions d'abord le problème du déchargement de données mobiles dans l'architecture du cloud computing mobile. Afin de minimiser les coûts de transmission des données, nous formulons le processus de déchargement des données sous la forme d'un processus de décision de Markov à horizon fini. Nous proposons deux algorithmes de déchargement des données pour un coût minimal. Ensuite, nous considérons un marché sur lequel un opérateur de réseau mobile peut vendre de la bande passante à des utilisateurs mobiles. Nous formulons ce problème sous la forme d'une enchère comportant plusieurs éléments afin de maximiser les bénéfices de l'opérateur de réseau mobile. Nous proposons un algorithme d'optimisation robuste et deux algorithmes itératifs pour résoudre ce problème. Enfin, nous nous concentrons sur les problèmes d'équilibrage de charge afin de minimiser la latence du déchargement des calculs. Nous formulons ce problème comme un jeu de population. Nous proposons deux algorithmes d'équilibrage de la charge de travail basés sur la dynamique évolutive et des protocoles de révision. Les résultats de la simulation montrent l'efficacité et la robustesse des méthodes proposées.Global mobile traffic is increasing dramatically due to the popularity of smart mobile devices and data hungry mobile applications. Mobile data offloading is considered as a promising solution to alleviate congestion in cellular network. Mobile computation offloading can move computation intensive tasks and large data storage from mobile devices to cloud. In this thesis, we first study mobile data offloading problem under the architecture of mobile cloud computing. In order to minimize the overall cost for data delivery, we formulate the data offloading process, as a finite horizon Markov decision process, and we propose two data offloading algorithms to achieve minimal communication cost. Then, we consider a mobile data offloading market where mobile network operator can sell bandwidth to mobile users. We formulate this problem as a multi-item auction in order to maximize the profit of mobile network operator. We propose one robust optimization algorithm and two iterative algorithms to solve this problem. Finally, we investigate computation offloading problem in mobile edge computing. We focus on workload balancing problems to minimize the transmission latency and computation latency of computation offloading. We formulate this problem as a population game, in order to analyze the aggregate offloading decisions, and we propose two workload balancing algorithms based on evolutionary dynamics and revision protocols. Simulation results show the efficiency and robustness of our proposed methods