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Cost Model Based Service Placement in Federated Hybrid Clouds

Author

Listed:
  • Jorn Altmann

    (College of Engineering, Seoul National University)

  • Mohammad Mahdi Kashef

    (College of Engineering, Seoul National University)

Abstract

As cloud federation allows companies in need of computational resources to use computational resources hosted by different cloud providers, it reduces the cost of IT infrastructure by lowering capital and operational expenses. This is the result of economies of scale and the possibility for organizations to purchase just as much computing and storage resources as needed whenever needed. However, a clear specification of cost savings requires a detailed specification of the costs incurred. Although there are some efforts to define cost models for clouds, the need for a comprehensive cost model, which covers all cost factors and types of clouds, is undeniable. In this paper, we cover this gap by suggesting a cost model for the most general form of a cloud, namely federated hybrid clouds. This type of cloud is composed of a private cloud and a number of interoperable public clouds. The proposed cost model is applied within a cost minimization algorithm for making service placement decisions in clouds. We demonstrate the workings of our cost model and service placement algorithm within a specific cloud scenario. Our results show that the service placement algorithm with the cost model minimizes the spending for computational services.

Suggested Citation

  • Jorn Altmann & Mohammad Mahdi Kashef, 2014. "Cost Model Based Service Placement in Federated Hybrid Clouds," TEMEP Discussion Papers 2014116, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2014.
    • Handle: RePEc:snv:dp2009:2014116
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    File URL: http://temep-repec.my-groups.de/DP-116.pdf
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Jorn Altmann & Costas Courcoubetis & Marcel Risch, 2010. "A Marketplace and its Market Mechanism for Trading Commoditized Computing Resources," TEMEP Discussion Papers 201059, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Mar 2010.
    2. Mohammad Mahdi Kashef & Jorn Altmann, 2011. "A Cost Model for Hybrid Clouds," TEMEP Discussion Papers 201182, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2011.
    3. Ashraf Bany Mohammed & Jorn Altmann & Junseok Hwang, 2010. "Cloud Computing Value Chains Understanding Businesses and Value Creation in the Cloud," TEMEP Discussion Papers 201061, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2010.
    4. Michael Maurer & Vincent C. Emeakaroha & Ivona Brandic & Jorn Altmann, 2010. "Cost and Benefit of the SLA Mapping Approach for Defining Standardized Goods in Cloud Computing Markets," TEMEP Discussion Papers 201069, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2010.
    5. Jorn Altmann & Juthasit Rohitratana, 2009. "Software Resource Management Considering the Interrelation between Explicit Cost, Energy Consumption, and Implicit Cost: A Decision Support Model for IT Managers," TEMEP Discussion Papers 200936, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
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    Citations

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    Cited by:

    1. José Ángel Bañares & Jörn Altmann, 2018. "Economics behind ICT infrastructure management," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(1), pages 7-9, February.
    2. Payam Hanafizadeh & Parastou Hatami & Erik Bohlin, 2019. "Business models of Internet service providers," Netnomics, Springer, vol. 20(1), pages 55-99, April.
    3. Kibae Kim & Songhee Kang & Jorn Altmann, 2014. "Cloud Goliath Versus a Federation of Cloud Davids: Survey of Economic Theories on Cloud Federation," TEMEP Discussion Papers 2014117, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jul 2014.
    4. Netsanet Haile & Jorn Altmann, 2015. "Risk-Benefit-Mediated Impact of Determinants on the Adoption of Cloud Federation," TEMEP Discussion Papers 2015122, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2015.
    5. Azamat Uzbekov & Jörn Altmann, 2016. "Enabling Business-Preference-Based Scheduling of Cloud Computing Resources," TEMEP Discussion Papers 2016134, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2017.
    6. Jörn Altmann & Emanuele Carlini & Massimo Coppola & Patrizio Dazzi & Ana Juan Ferrer & Netsanet Haile & Young-Woo Jung & Dong-Jae Kang & Iain-James Marshall & Konstantinos Tserpes & Theodora Varvarigo, 2016. "BASMATI - A Brokerage Architecture on Federated Clouds for Mobile Applications," TEMEP Discussion Papers 2016132, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Oct 2016.

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    More about this item

    Keywords

    Cloud Computing; Federated Hybrid Clouds; Infrastructure-as-a-Service; Virtual Machine Migration; Cost Model; IT Cost Factors; OPEX; CAPEX; Cloud Economics; Cost Model Comparison; Service Placement.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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