Skip to main content

Cost Optimization Model for Business Applications in Virtualized Grid Environments

  • Conference paper
Grid Economics and Business Models (GECON 2009)

Part of the book series: Lecture Notes in Computer Science ((LNCCN,volume 5745))

Included in the following conference series:

Abstract

The advent of Grid computing gives enterprises an ever increasing choice of computing options, yet research has so far hardly addressed the problem of mixing the different computing options in a cost-minimal fashion. The following paper presents a comprehensive cost model and a mixed integer optimization model which can be used to minimize the IT expenditures of an enterprise and help in decision-making when to outsource certain business software applications. A sample scenario is analyzed and promising cost savings are demonstrated. Possible applications of the model to future research questions are outlined.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Schikuta, E., Donno, F., Stockinger, H., Vinek, E., Wanek, H., Weishäupl, T., Witzany, C.: Business in the grid: Project results (2005), http://www.pri.univie.ac.at/Publications/2005/Schikuta_austriangrid_bigresults.pdf (accessed on October 05, 2008)

  2. Opitz, A., König, H., Szamlewska, S.: What does grid computing cost? Journal of Grid Computing (2008) n.a.

    Google Scholar 

  3. Risch, M., Altmann, J.: Cost analysis of current grids and its implications for future grid markets. In: Altmann, J., Neumann, D., Fahringer, T. (eds.) GECON 2008. LNCS, vol. 5206, pp. 13–27. Springer, Heidelberg (2008)

    Chapter  Google Scholar 

  4. Gray, J.: Distributed computing economics, http://research.microsoft.com/research/pubs/view.aspx?tr_id=655 (access ed on October 05, 2008) (2003)

  5. Smith, A.D., Rupp, W.T.: Application service providers: an application of the transaction cost model. Information Management and Computer Security 11, 11–18 (2003)

    Article  Google Scholar 

  6. Kenyon, C., Cheliotis, G.: Grid resource commercialization: Economic engineering and delivery scenarios (chapter 28). In: Nabrzyski, J., Schopf, J.M., Weglarz, J. (eds.) Grid Resource Management: State of the Art and Future Trends, 1st edn. International Series in Operations Research & Management Science, pp. 465–478. Kluwer Academic Publishers, Dordrecht (2004)

    Chapter  Google Scholar 

  7. Neumann, D., Stoesser, J., Anandasivam, A., Borissov, N.: SORMA – Building an Open Grid Market for Grid Resource Allocation. In: Veit, D.J., Altmann, J. (eds.) GECON 2007. LNCS, vol. 4685, pp. 194–200. Springer, Heidelberg (2007)

    Chapter  Google Scholar 

  8. Altmann, J., Courcoubetis, C., Darlington, J., Cohen, J.: GridEcon – The Economic-Enhanced Next-Generation Internet. In: Veit, D.J., Altmann, J. (eds.) GECON 2007. LNCS, vol. 4685, pp. 188–193. Springer, Heidelberg (2007)

    Chapter  Google Scholar 

  9. Rolia, J., Andrzejak, A., Arlitt, M.: Automating enterprise application placement in resource utilities. In: Brunner, M., Keller, A. (eds.) DSOM 2003. LNCS, vol. 2867, pp. 118–129. Springer, Heidelberg (2003)

    Chapter  Google Scholar 

  10. Bichler, M., Setzer, T., Speitkamp, B.: Capacity planning for virtualized servers. In: Workshop on Information Technologies and Systems (WITS), Milwaukee, Wisconsin, USA (2006)

    Google Scholar 

  11. Wimmer, M., Nicolescu, V., Gmach, D., Mohr, M., Kemper, A., Krcmar, H.: Evaluation of Adaptive Computing Concepts for Classical ERP Systems and Enterprise Services. In: The 8th IEEE International Conference on and Enterprise Computing, E-Commerce, and E-Services, The 3rd IEEE International Conference on E-Commerce Technology, 2006, San Francisco, CA, USA, pp. 48–51. IEEE Computer Society, San Francisco (2006)

    Chapter  Google Scholar 

  12. Almeida, J., Almeida, V., Ardagna, D., Francalanci, C., Trubian, M.: Resource management in the autonomic service-oriented architecture. In: IEEE International Conference on Autonomic Computing, 2006. ICAC 2006, pp. 84–92 (2006)

    Google Scholar 

  13. Bagchi, S., Hung, E., Iyengar, A., Vogl, N., Wadia, N.: Capacity planning tools for web and grid environments. In: valuetools 2006: Proceedings of the 1st international conference on Performance evaluation methodolgies and tools, p. 25. ACM Press, New York (2006)

    Google Scholar 

  14. Gonzalez, R., Gasco, J., Llopis, J.: Information systems outsourcing: A literature analysis. Information & Management 43, 821–834 (2006)

    Article  Google Scholar 

  15. Dibbern, J., Goles, T., Hirschheim, R., Bandula, J.: Information systems outsourcing: A survey and analysis of the literature. Database for Advances in Information Systems 35(4), 6–102 (2004)

    Article  Google Scholar 

  16. Knolmayer, G.: Die Auslagerung von Servicefunktionen als Strategie des IS-Managements (the outsourcing of service functions as an is management strategy). In: Heinrich, L., Pomberger, G., Schauer, R. (eds.) Die Informationswirtschaft im Unternehmen (Information management in the enterprise). Universitaetsverlag Rudolf Trauner, Linz (1991)

    Google Scholar 

  17. Strong, P.: Enterprise grid computing. ACM Queue 3(6), 50–59 (2005)

    Article  Google Scholar 

  18. Sekatzek, E.P.: Einsatzentscheidung und -steuerung von SAP Standard Business Software in der deutschen Automobilindustrie. Wiku-Wissenschaftsverlag Dr. Stein, Duisburg und Köln (2008)

    Google Scholar 

  19. McKinsey: Clearing the air on cloud computing, http://uptimeinstitute.org/content/view/353/319/ (last accessed April 27, 2009) (2009)

  20. Küchler, P.: Technische und wirtschaftliche Grundlagen. In: IT-Outsourcing, pp. 51–159. Erich Schmidt Verlag, Berlin (2004)

    Google Scholar 

  21. Hamilton, J.: Internet-scale service efficiency. In: Large-Scale Distributed Systems and Middleware, LADIS 2008 (2008)

    Google Scholar 

  22. Armbrust, M., Fox, A., Joseph, A.D., Katz, R.H., Konwinski, A., Lee, G., Patterson, D.A., Rabkin, A., Stoica, I., Zaharia, M.: Above the Clouds: A Berkeley View of Cloud Computing. Technical Report UCB/EECS-2009-28, University of California at Berkeley (2009)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Strebel, J. (2009). Cost Optimization Model for Business Applications in Virtualized Grid Environments. In: Altmann, J., Buyya, R., Rana, O.F. (eds) Grid Economics and Business Models. GECON 2009. Lecture Notes in Computer Science, vol 5745. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03864-8_6

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-03864-8_6

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-03863-1

  • Online ISBN: 978-3-642-03864-8

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics