A two-component spot pricing framework for loss-rate guaranteed Internet service contracts

Gupta, Vishal; Zhang, Lingyi; Kalyanaraman,

doi:10.1109/wsc.2003.1261446

Cited by 4 publications

(4 citation statements)

References 45 publications

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“…Carlsson and Fullér [11] apply fuzzy methods to measure the level of decision uncertainties and did not price grid resources. Other notable literature [3,19] evaluated real options and applied it to spot pricing. Similarly, in [14], d'Halluin et al apply modern financial option pricing methods to network investment decision problem.…”

Section: Related Workmentioning

confidence: 99%

Grid resources pricing: A novel financial option based quality of service-profit quasi-static equilibrium model

Allenotor

Thulasiram

2008

2008 9th IEEE/ACM International Conference on Grid Computing

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Use of grid resources has been free so far and a trend is developing to charge the users. The challenges that characterize a grid resource pricing model include the dynamic ability of the model to provide a high satisfaction guarantee measured as Quality of Service (QoS) -from users perspectives, profitability constraints -from the grid operator perspectives, and the ability to orchestrate grid resources for their availability on-demand. In this study, we design, develop, and simulate a grid resources pricing model that balances these constraints. We employ financial option theory and treat the grid resources as real assets to capture the realistic value of the grid compute commodities. We then price the grid resources by solving the finance model. We discuss the results on pricing of compute cycles based on the actual data of grid usage pattern obtained from the WestGrid and the SHARCNET. We extend and generalize our study to any computational grid. Background/IntroductionOver the years, there has been an upsurge in the development and applications of resources-intensive computations such as the Search for Extraterrestrial Intelligence at home (SETI@Home). The consequence is the emergence of a massively parallel resource-intensive computational facility -the computational grid (Grid computing). Research efforts have focused mostly on security related issues [15] and middleware/infrastructure-based issues [16]. Since grid resources usage has been free, there are only few efforts reported in the literature that develop models to price grid resources.Grid resources pricing is a challenging task when viewed as a generic pricing problem. In a grid system for example, the resources exist as non-storable commodities and are distributed across wide geographical regions, ownership is by dissimilar organization whose rights and polices are diverse. To price the grid resources, we assume that the grid compute commodities (gcc) are real assets. The gccs include CPU cycles, memory, network bandwidths, throughput, computing power, disks, processor, and various measurements, instrumentation tools. Since gccs are transient at t 0 , t 1 , · · · , t n , their availability (α) for usage fluctuates between "now" (t n|n=0 ) and "later" (t n > 0| t n =1 ) (option to wait) which accounts for uncertainty (ũ) where gcc : α → [0, · · · , 1]. The flexibility attributes of the gccs afford the applicability of real option defined in a fuzzy domain [0, · · · , 1] (also called membership function) [6].Real option theory provides a mechanism for valuating investment opportunities in situations where the cash flows are not deterministic. Real options can be applied when quantifying the accrued gains from prototyping a product as well as in managerial flexibility. Several of these gains can be hard to quantify [12] and as a result, a comparison of alternative opportunities becomes even harder if the managerial flexibility vary across the opportunities. Given that certain factors such as environmental and economics are inevitable, traditional val...

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Section: Related Workmentioning

confidence: 99%

Grid resources pricing: A novel financial option based quality of service-profit quasi-static equilibrium model

Allenotor

Thulasiram

2008

2008 9th IEEE/ACM International Conference on Grid Computing

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“…experienced by the data. 22 Pricing framework developed for precise specifications of single-domain QoS assurances will allow the creation of end-to-end QoS guaranteed services in the future.…”

Section: Dynamic Price Determinationmentioning

confidence: 99%

A Spot Pricing Framework for Pricing Intra-Domain Assured Bandwidth Services

Gupta

Kalyanaraman

Zhang

2005

Int. J. Info. Tech. Dec. Mak.

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The Internet today offers primarily a best-effort service. Research and technology development efforts are currently underway to allow the provisioning of better than best-effort quality of service assurances. In this article, we develop a spot pricing framework for expected bandwidth guaranteed Internet service contracts on a single domain. A nonlinear pricing model that maximizes the total surplus with cost constraints forms the basis for the framework. The spot price process is obtained for different demand profiles of the customer-base and demand arrival characteristics. Simulation modeling and analysis is employed to implement the pricing framework and analyze the price process under different market conditions and changes due to network failures. The framework when implemented at access or exchange points of different service provider domains will provide assured bandwidth for inter-domain traffic.

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“…Learning from the Internet, network operators are now aware that pricing is needed not only to recover costs, but also as a method of control. Therefore, in the last five years, a whole series of research [3][4][5][6] has been done in the pricing and charging area. However, these works are more or less adapted to the third-generation solutions with various QoS guarantees.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, numerous papers have been published on Internet engineering and economics; they give a good overview and introduction to the various models and frameworks [7] . We refer the reader to references [3][4][5][6] for a more detailed and complete review of pricing schemes.…”

Section: Introductionmentioning

confidence: 99%

Jitter Characterization in Admission Control and Pricing Issues in Integrated Multiservice Networks

Houeto¹,

Pierre²

2007

J. of Computer Science

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This paper analyses the pricing framework of multiservice networks and proposes an improved pricing scheme based on the effective bandwidth concept for taking into account quality of service parameters. Based on the deficiencies noted in the classical effective bandwidth scheme (intolerance to user uncertainty and no guarantee on jitter), we propose an improved charging function which gives more flexibility to the user and we introduce an additional constraint to take into account an eventual guarantee on the jitter or delay variation. We also extended the effective bandwidth pricing scheme to the case with guaranteed jitter, in order to take into account and better deal with the various QoS parameters to be considered in 3G networks. Our proposed charging function improves the classical effective bandwidth scheme, while remaining simple in that it requires that the network only monitors the average rate and duration of each connection. It is also fairer than the classical effective bandwidth scheme as it is more flexible related to user uncertainty and the incentive to an efficient use of network resource is preserved. The constraint on the guaranteed jitter was also tested and proved to be viable.

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A two-component spot pricing framework for loss-rate guaranteed Internet service contracts

Cited by 4 publications

References 45 publications

Grid resources pricing: A novel financial option based quality of service-profit quasi-static equilibrium model

Grid resources pricing: A novel financial option based quality of service-profit quasi-static equilibrium model

A Spot Pricing Framework for Pricing Intra-Domain Assured Bandwidth Services

Jitter Characterization in Admission Control and Pricing Issues in Integrated Multiservice Networks

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