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Cloud ERP simulation
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CLOUD ERP QUERY FLOW CONTROL SIMULATION WITH QUALITYRESTRICTIONS AND PROFIT GAINING CRITERIA
Victor Romanov, Alexandra Varfolomeeva
EOMAS 2013
17 June 2013, Valencia, Spain
In conjunction with CAiSE 2013
+Introduction
Cloud ERP solutions, providing business processes automation and improving visibility across the entire organization, are the highest growth segment of the ERP software industry.
One of the important challenges faced by cloud ERP providers is the effective management of cloud services performance.
Cloud ERP clients and cloud service providers pursue different goals: Users want to minimize their expenses while meeting
the cloud ERP performance requirements. The ultimate goal of a cloud service provider is the
maximization of its profit through reducing the number of quality of service violations and decreasing service costs.
+Worldwide SaaS Market SizeSource: IDC
Content Management and Data Capture in the Cloud Computing 3
25.3% CAGR Through 2014
2009 2014$ 0.00
$ 5.00
$ 10.00
$ 15.00
$ 20.00
$ 25.00
$ 30.00
$ 35.00
$ 40.00
$ 45.00
$ 13.10
$ 40.50
billions
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4
2. Rapid Elasticity1. On Demand
Self-service3. Resource
Pooling4. Measured
Service
Service Models
Cloud Essential Characteristics
What Does the Cloud Mean?
Deployment Methods SaaS Paas IaaS
Private cloud Community cloud Public cloud Hybrid cloud
5. Broad Network Access
+Cloud Provider’s Resource Management Problem
+Cloud Service Provision Model
+Cloud Services Provision Model
Clients
SaaS Provider
On the clients’ side, a request for cloud ERP service is sent to a SaaS provider’s application layer.
The utility function for each service user, U(B,D), is a function of budget, B, that client is going to spend on the service and deadline, maximum time user would like to wait for response, D.
Cloud service providers are trying to ensure the quality of service provided and to reduce the service response time.
where ωi – is the number of requests, τi – is the service time.
The cost of processing the query should not exceed v0:
+Cloud Services Provision Model
The profit gaining criteria are the following:
Service Initiation Time: How long it takes to deploy a VM.
Price: How much a SaaS provider has to pay per hour for using a VM from a resource provider?
Data Transfer Price: How much a SaaS provider has to pay for data transfer from local machine (their own machine) to resource provider’s VM or for transfer from resource provider’s VM to local machine?
Processing Speed: How fast the VM can process?
IaaS Provider
+Cloud ERP Queries Classification
All incoming queries should be divided into several services classes
Different kinds of requests require different types of resources
Business_ Queries Level
Business_ QueriesProcessed Outflow
Business_ QueriesRejected Outflow
Business_ QueriesIncoming Flow
Business_ Queries Processed
Business_ Queries Rejected
Standard_ Queries LevelStandard_ Queries
Incoming Flow
Standard_ QueriesProcessed Outflow
Standard_ QueriesRejected Outflow
Standard_ Queries Processed
Standard_ Queries Rejected
+Service Queries Processing Service requests processing can be determined using the Cobb-Douglas
function, often used by economists to model production.
Let N be the total number of queries that can be processed by Cloud ERP provider, A – the number business service queries, and B – the number of standard queries.
The function for business service is expressed as:
where A – the number of business queries, K, capital and L, labour are factors of business queries production, α-productivity factor, β1+β2=1.
Business class services generate more revenue. The number of business class requests is about 20%, their service is more expensive and in case of idle capacity the losses are unacceptable.
The function for standard service is expressed as:
The number of standard queries is about 80% and the service price is much lower.
+Cloud ERP Provider’s Profit Let a new user submit a business service request at
submission time to the SaaS provider.
The client offers a specific amount of money (Budget) to SaaS provider.
Let Business Service Price be the total cost incurred to the SaaS provider by processing the user request.
‘Business Service Profit’=’Business Clients Budget’–‘Business Service Price’
Data Transfer BusinessCost
VM Business Cost
Business RequestProcessing CostBusiness Penalty Cost
Business Service Price
+Cloud ERP Query Flow Control Simulation
Business Queries Level
Business QueriesProcessed Outflow
Business QueriesRejected Outflow
Total Business ServiceCost
Data Transfer BusinessCost
VM Business Cost
Business ClientsBudget
Business RequestProcessing CostBusiness Penalty Cost
Business Service Price
Business Service Profit
Business QueriesIncoming Flow
Business Queries Processed
Business Queries Rejected
Standard Queries Level
Standard QueriesProcesses Outflow
Standard QueriesRejected Outflow
Total Standard ServiceCost
Standard Data TransferCost
VM Standard Cost
Standard ClientsBudget
Standard RequestProcessing Cost
Standard Penalty Cost
Standard Service Price
Standard Service Profit
Standard QueriesIncoming Flow
Standard Queries Processed
Standard Queries Rejected
Total Profit
Service Class ControlRate
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1 фев 3 фев 5 фев 7 фев
2
3
4
Queries/ min
Busin
ess Q
ueri
es
Incom
ing F
low
For evaluation purposes only!1 фев 3 фев 5 фев 7 фев 0
5
10
15
20
25Queries/ min
Sta
ndard
Queri
es
Incom
ing F
low
For evaluation purposes only!
1 фев 3 фев 5 фев 7 фев
(USD60 000)
(USD30 000)
USD0
Business Service Profit Standard Service Profit
For evaluation purposes only!
Service Class Rate
0 20 40 60 80 100%
For evaluation purposes only!
1 фев 3 фев 5 фев 7 фев
(USD150 000)
(USD100 000)
(USD50 000)
USD0
Tota
l P
rofi
t
For evaluation purposes only!
Example 1
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1 фев 3 фев 5 фев 7 фев
2
3
4
5
6Queries/ min
Busin
ess Q
ueri
es
Incom
ing F
low
For evaluation purposes only!1 фев 3 фев 5 фев 7 фев 0
5
10
15
20
25
30Queries/ min
Sta
ndard
Queri
es
Incom
ing F
low
For evaluation purposes only!
1 фев 3 фев 5 фев 7 фев
(USD300 000)
(USD200 000)
(USD100 000)
USD0
Business Service Profit Standard Service Profit
For evaluation purposes only!
Service Class Rate
0 20 40 60 80 100%
For evaluation purposes only!
1 фев 3 фев 5 фев 7 фев
(USD300 000)
(USD200 000)
(USD100 000)
USD0
Tota
l P
rofi
t
For evaluation purposes only!
Example 2
+Conclusion
Although cloud ERPs are widely deployed, the dynamic cost-effective service requests processing with the reduced number of SLA violations is still one of the most intractable problems of cloud service providers.
Profit gaining is the key driving force for service providers, and the quality of service provided is the focus of clients’ attention.
Previous approaches do not take into consideration the personalized features of the client’s request and the elasticity of SLA properties in cloud computing scenario, which can be used for increase the profit of cloud service providers.
In order to improve this situation, we first establish a cloud ERP query flow control model, where incoming queries are divided into several classes, taking in account SLA constraints and profit gaining criteria.
In our research we have built a cloud ERP simulation model that is based on macroeconomic sub-model, expressing the production function, and stochastic sub-model, presenting stochastic the flow of queries.
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Q&A:
Thank you!
+
CLOUD ERP QUERY FLOW CONTROL SIMULATION WITH QUALITYRESTRICTIONS AND PROFIT GAINING CRITERIA
Victor Romanov, Alexandra Varfolomeeva
EOMAS 2013
17 June 2013, Valencia, Spain
In conjunction with CAiSE 2013
