Competitive Strategies for Online Cloud Resource Allocation with Discounts

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1 Competitive Strategies for Online Cloud Resource Allocation with Discounts The 2-Dimensional Parking Permit Problem Xinhui Hu, Arne Ludwig, Andrea Richa, Stefan Schmid

2 Motivation 30% CAGR cloud Plethora of cloud providers

3 Motivation Virtualization enables new business models Dynamic leasing (startups) Cloud bursting

4 Motivation Virtualization enables new business models Dynamic leasing (startups) Cloud bursting Resource broker!

5 Related work Ski rental (classical problem): Buy or rent skis? Parking Permit Problem (Meyerson 2005): Unpredictable car usage. Discount on longer permits. Which duration to buy?

6 What is a clever way to buy (discounted) resources?

7 Overview Model Online Algorithm Upper / Lower Bound Offline Algorithm Conclusion

8 Model

9 Model

10 Model

11 Model

12 Model - assumptions 1. Monotonic Prices, i.e. larger contracts -> more expensive

13 Model - assumptions 1. Monotonic Prices 2. Multiplicity, i.e., the next larger contract has a multiple of duration and rate

14 Model Single resource (generalizable to multiple) Complete demand needs to be covered One lookahead model Objective: minimize overall price Minimize competitive ratio

15 Competitive Strategy for Resource Allocation with Discounts?

16 Online algorithm Do's and Don'ts Try to maximize the discount Do not overestimate the demand

17 Online algorithm Do's and Don'ts Try to maximize the discount Do not overestimate the demand Let's stick to someone who should know better.

18 Online algorithm - ON2D ON2D mimics the offline algorithm OFF2D: 1. Check for uncovered demand 2. Buy the exact same contract OFF2D would buy

19 Online algorithm - example Offline Online

20 Online algorithm - example Offline Online

21 Online algorithm - example Offline Online

22 Online algorithm - example Offline Online

23 Online algorithm - example Offline Online

24 Online algorithm - example Offline Online

25 How good is ON2D? Is it competitive? Is it close to best? Generally applicable?

26 How good is ON2D? Is it competitive? Is it close to best? Generally applicable? k-competitive! (k = numbers of contracts)

27 How good is ON2D? Is it competitive? Is it close to best? Generally applicable? k-competitive! (k = numbers of contracts) Lower bound: k/3

28 How good is ON2D? Is it competitive? Is it close to best? Generally applicable? k-competitive! (k = numbers of contracts) Lower bound: k/3 Independent of the discount function!

29 Upper bound 1. Contract independence 2. Worst case classification 3. Maximum cumulative price k-competitive (k = number of contracts)

30 Upper bound contract independence

31 Upper bound contract independence covered by, at time covered by, at time

32 Upper bound contract independence covered by, at time covered by, at time No contract at time covers both and such that,

33 Upper bound interval assumption Contracts of length d start only every d time

34 Upper bound interval assumption Contracts of length d start only every d time

35 Upper bound interval assumption Contracts of length d start only every d time

36 Upper bound interval assumption Contracts of length d start only every d time

37 Upper bound interval assumption Contracts of length d start only every d time

38 Upper bound worst case Worst case: OFF2D buys only one contract

39 Upper bound worst case Worst case: OFF2D buys only one contract

40 Upper bound worst case Worst case: OFF2D buys only one contract Bad ratio Good ratio

41 Upper bound worst case Worst case: OFF2D buys only one contract Bad ratio Good ratio

42 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

43 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

44 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

45 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

46 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

47 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

48 Upper bound worst case - example Uniform demand of 1 per timeslot Offline Online

49 Upper bound maximum cumulative price or f r e p a p See ive proof t c u d in ON2D is k-competitive, where k is the total number of contracts

50 Upper bound relaxing intervals assumption ON2D is 2k-competitive for the general without intervals w/o interval with interval

51 Upper bound relaxing intervals assumption ON2D is 2k-competitive for the general without intervals w/o interval with interval

52 Upper bound relaxing intervals assumption ON2D is 2k-competitive for the general without intervals w/o interval with interval At most twice the cost per contract

53 Lower Bound Scenario: each contract is 2k times longer and has 2k times more rate; contracts double in cost Demand scheduled when ON has no contract Minimal cost per interval that starts with demand Lower bound: k/3

54 Offline Algorithm

55 Offline Algorithm Dynamic program: Split time into intervals Compute minimum per interval Polynomial runtime

56 Simulation verification x=0.5,y=128, = y=128,k=8, = k x x=0.5,y=128,k=

57 Conclusion Introduction of PPP² Deterministic online algorithm O(k) Almost optimal (lower bound k/3) Polynomial offline algorithm Algorithms and results generalize to higher dimensions