ABSTRACT
As cloud computing becomes more and more popular,
understanding the economics of cloud computing becomes critically important. To
maximize the profit, a service provider should understand both service charges
and business costs, and how they are determined by the characteristics of the
applications and the configuration of a multi-server system. The problem of
optimal multi-server configuration for profit maximization in a cloud computing
environment is studied. Our pricing model takes such factors into considerations
as the amount of a service, the workload of an application environment, the
configuration of a multi-server system, the service-level agreement, the
satisfaction of a consumer, the quality of a service, the penalty of a
low-quality service, the cost of renting, the cost of energy consumption, and a
service provider’s margin and profit. Our approach is to treat a multi-server
system as an M/M/m queuing model, such that our optimization problem can be
formulated and solved analytically. Two server speed and power consumption models
are considered, namely, the idle-speed model and the constant-speed model. The
probability density function of the waiting time of a newly arrived service
request is derived. The expected service charge to a service request is
calculated. The expected net business gain in one unit of time is obtained.
Numerical calculations of the optimal server size and the optimal server speed
are demonstrated.
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