Nav: Home

Study: How to calculate pricing and resources for cloud computing

April 18, 2018

BUFFALO, N.Y. - Researchers in the University at Buffalo School of Management have developed a new algorithm that cloud computing service providers can use to establish pricing and allocate resources.

Forthcoming in Information Systems Research, the study provides practical formulas that companies like Amazon, Google or VMWare can use to determine the resources necessary to provide a certain level of service to their customers -- and what to charge for it in their service-level agreements (SLA). In addition, any customer who uses cloud computing services can use the algorithm to help negotiate on pricing.

"As computing resources continue to shift to the cloud, customers are demanding near-constant access to their files and software, posing a significant challenge to service providers," says study co-author Sanjukta Das Smith, PhD, associate professor of management science and systems in the UB School of Management. "A company can feed information about their data center into our algorithm, and out will come policy definitions and specific prescriptions on how to allocate resources and set pricing, all tailor-made to their environment."

VIDEO: https://bit.ly/2EUlGWN.

The researchers conducted extensive computational studies using real-world server log data to validate and supplement their analytical work. "Better understanding of costs is crucial for effective resource provisioning," says Smith. "Through our research, providers can fine-tune resources for each client, rather than the current strategy of relying on 'guesstimates.'"
-end-
Smith collaborated on the study with Chunming Qiao, PhD, SUNY Distinguished Professor and chair of the UB Department of Computer Science and Engineering; Ram Ramesh, PhD, professor of management science and systems in the UB School of Management; and Shuai Yuan, PhD candidate in the UB School of Management. The study was funded by a grant from the National Science Foundation.

The UB School of Management is recognized for its emphasis on real-world learning, community and economic impact, and the global perspective of its faculty, students and alumni. The school also has been ranked by Bloomberg Businessweek, Forbes and U.S. News & World Report for the quality of its programs and the return on investment it provides its graduates. For more information about the UB School of Management, visit mgt.buffalo.edu.

University at Buffalo

Related Algorithm Articles:

New algorithm to help process biological images
Skoltech researchers have presented a new biological image processing method that accurately picks out specific biological objects in complex images.
Skoltech scientists break Google's quantum algorithm
In the near term, Google has devised new quantum enhanced algorithms that operate in the presence of realistic noise.
The most human algorithm
A team from the research group SEES:lab of the Department of Chemical Engineering of the Universitat Rovira I Virgili and ICREA has made a breakthrough with the development of a new algorithm that makes more accurate predictions and generates mathematical models that also make it possible to understand these predictions.
Algorithm turns cancer gene discovery on its head
Prediction method could help personalize cancer treatments and reveal new drug targets.
New algorithm predicts gestational diabetes
Timely prediction may help prevent the condition using nutritional and lifestyle changes.
New algorithm could mean more efficient, accurate equipment for Army
Researchers working on an Army-funded project have developed an algorithm to simulate how electromagnetic waves interact with materials in devices to create equipment more efficiently and accurately.
Universal algorithm set to boost microscopes
EPFL scientists have developed an algorithm that can determine whether a super-resolution microscope is operating at maximum resolution based on a single image.
Algorithm designed to map universe, solve mysteries
Cornell University researchers have developed an algorithm designed to visualize models of the universe in order to solve some of physics' greatest mysteries.
Algorithm tells robots where nearby humans are headed
A new tool for predicting a person's movement trajectory may help humans and robots work together in close proximity.
Algorithm to transform investment banking with higher returns
A University of Bath researcher has created an algorithm which aims to remove the elements of chance, bias or emotion from investment banking decisions, a development which has the potential to reduce errors in financial decision making and improve financial returns in global markets.
More Algorithm News and Algorithm Current Events

Trending Science News

Current Coronavirus (COVID-19) News

Top Science Podcasts

We have hand picked the top science podcasts of 2020.
Now Playing: TED Radio Hour

Listen Again: Reinvention
Change is hard, but it's also an opportunity to discover and reimagine what you thought you knew. From our economy, to music, to even ourselves–this hour TED speakers explore the power of reinvention. Guests include OK Go lead singer Damian Kulash Jr., former college gymnastics coach Valorie Kondos Field, Stockton Mayor Michael Tubbs, and entrepreneur Nick Hanauer.
Now Playing: Science for the People

#562 Superbug to Bedside
By now we're all good and scared about antibiotic resistance, one of the many things coming to get us all. But there's good news, sort of. News antibiotics are coming out! How do they get tested? What does that kind of a trial look like and how does it happen? Host Bethany Brookeshire talks with Matt McCarthy, author of "Superbugs: The Race to Stop an Epidemic", about the ins and outs of testing a new antibiotic in the hospital.
Now Playing: Radiolab

Speedy Beet
There are few musical moments more well-worn than the first four notes of Beethoven's Fifth Symphony. But in this short, we find out that Beethoven might have made a last-ditch effort to keep his music from ever feeling familiar, to keep pushing his listeners to a kind of psychological limit. Big thanks to our Brooklyn Philharmonic musicians: Deborah Buck and Suzy Perelman on violin, Arash Amini on cello, and Ah Ling Neu on viola. And check out The First Four Notes, Matthew Guerrieri's book on Beethoven's Fifth. Support Radiolab today at Radiolab.org/donate.