On maximizing service-level-agreement profits

  • Authors:
  • Zhen Liu;Mark S. Squillante;Joel L. Wolf

  • Affiliations:
  • IBM T.J. Watson Research Center, Yorktown Heights, NY;IBM T.J. Watson Research Center, Yorktown Heights, NY;IBM T.J. Watson Research Center, Yorktown Heights, NY

  • Venue:
  • ACM SIGMETRICS Performance Evaluation Review
  • Year:
  • 2001

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Abstract

We present an initial study of a methodology for maximizing profits in a general class of e-commerce environments under a cost model in which revenues are generated when QoS guarantees are satisfied and penalties are incurred otherwise. The QoS guarantees are based on multiclass SLAs between service providers and their clients, which include the tail distributions of the per-class response times. Our approach consists of formulating the resulting optimization problem as a network flow model with a separable set of concave objective function summands based on derived queueing-theoretic formulas. This problem is then solved in a very efficient manner via a fixed-point iteration.