workload partitioning in cloud marketplaces
DESCRIPTION
Best practices to make efficient use of your public and private clouds thereby proving cost effective to the company. Presentation given by Aaron Yan, Ilyas Iyoob & Ton Dieker at the 2013 Informs Annual Meeting.TRANSCRIPT
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Workload Partitioning in
Cloud Marketplaces
Ilyas Iyoob, PhDGravitant, Inc.
Ton Dieker, PhDGeorgia Institute of Technology
Aaron Yan, M.S.Gravitant, Inc.
Partitioning workloads between private and public clouds to minimize cost
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• Introduction
▫ IT Demand
▫ Conservative Cloud Approach
▫ Liberal Cloud Approach
▫ Advanced Analytics Approach
• Workload Partitioning
▫ Mathematical Formulation
▫ Cost-Optimal Solution
▫ Financial Benefits
• Conclusion
▫ Summary
Overview
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IT Demand
• Quantifying IT demand
▫ Number of servers to run your business
▫ Chart shows actual data until August 2013 followed by forecast thereafter
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reserved
Conservative Cloud Approach
Unutilized Resources
• Procure all servers through “Reservation”
▫ Pay for the servers at the beginning of the year (lower price per VM)
▫ 1 year lock-in period for each server
▫ Over-allocate servers to cover peak demand in the future
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54%
Liberal Cloud Approach
On
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ema
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• Procure all servers “On-Demand”
▫ Pay-as-you-go pricing (higher price per VM)
▫ No lock-in period
▫ No over-allocation
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Advanced Analytics Approach
Cloud Option Price Lock Period Price/VM/mo
On-Demand $172.8/mo 1 Month $172.8
Reserved $556/yr 12 Months $46.3
Private (128-block chassis) $660,000 120+ Months $43.0
▫ Determine how to best partition workload across three cloud options
▫ Utilize cloud option trade-offs (short lock period vs. lower price)
On
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Mathematical Formulation
• Model
• Decision variables and ParametersDecision Variable Unit Lock Period
𝐵𝑡: On-Demand VM 1 Month
𝑅𝑡: Reserved VM 12 Months
𝑃: Private (128-block chassis) Chassis 120+ Months
Parameters Description
𝑑𝑡 Demand for servers in month t
𝑐𝑃 Cost of purchasing a private cloud chassis
𝑐𝑅 Cost of reserving a VM (hold for one year)
𝑐𝐵 Cost of procuring one VM on-demand (hold for one month)
min𝑃,𝑅,𝐵
𝑐𝑃𝑃 + 𝑐𝑅 𝑡∈𝑇
𝑅𝑡 + 𝑐𝐵 𝑡∈𝑇
𝐵𝑡
s. t. 128𝑃 + 𝑡′=max(𝑡−11,0
𝑡
𝑅𝑡′ +𝐵𝑡 ≥ 𝑑𝑡 ∀ 𝑡 ∈ 𝑇
𝑃, 𝑅𝑡, 𝐵𝑡 ∈ 0,1,2… ∀ 𝑡 ∈ 𝑇
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Cost-Optimal Solution
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0 12 24 36 48 60 72 84 96 108 120
Num
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Months
Private Reserved On-Demand IT Demand
1%
On-demand
49%
reserved
50%
private
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Financial Benefits
Liberal Approach
Partially-Conservative Approach
100%0%0%
50%0%50%
1%49%50%
$5,250,000
$3,300,000
$1,415,000
Savings ~$3,800,000
Savings ~$1,885,000
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Optimal Solution
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• Dramatic financial benefits▫ Implemented work for current customers – very satisfied
▫ Our solutions are much better than traditional approaches
• Key drivers for workload partitioning▫ Demand variability
▫ Cost of on-demand cloud
Summary
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