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Workload Partitioning in Cloud Marketplaces Ilyas Iyoob, PhD Gravitant, Inc. Ton Dieker, PhD Georgia Institute of Technology Aaron Yan, M.S. Gravitant, Inc. Partitioning workloads between private and public clouds to minimize cost s 1

Workload Partitioning in Cloud Marketplaces

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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.

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Page 1: Workload Partitioning in Cloud Marketplaces

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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Page 2: Workload Partitioning in Cloud Marketplaces

• 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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Page 3: Workload Partitioning in Cloud Marketplaces

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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Aug-'12 Aug-'13 Aug-'14 Aug-'15 Aug-'16 Aug-'17 Aug-'18 Aug-'19 Aug-'20 Aug-'21 Aug-'22

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Page 4: Workload Partitioning in Cloud Marketplaces

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Aug-'12 Aug-'13 Aug-'14 Aug-'15 Aug-'16 Aug-'17 Aug-'18 Aug-'19 Aug-'20 Aug-'21 Aug-'22

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of

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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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Page 5: Workload Partitioning in Cloud Marketplaces

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Aug-'12 Aug-'13 Aug-'14 Aug-'15 Aug-'16 Aug-'17 Aug-'18 Aug-'19 Aug-'20 Aug-'21 Aug-'22

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ber

of

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54%

Liberal Cloud Approach

On

-d

ema

nd

• 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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Page 6: Workload Partitioning in Cloud Marketplaces

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Aug-'12 Aug-'13 Aug-'14 Aug-'15 Aug-'16 Aug-'17 Aug-'18 Aug-'19 Aug-'20 Aug-'21 Aug-'22

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ber

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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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reserved

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Page 7: Workload Partitioning in Cloud Marketplaces

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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Page 8: Workload Partitioning in Cloud Marketplaces

Cost-Optimal Solution

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0 12 24 36 48 60 72 84 96 108 120

Num

ber

of

Serv

ers

Months

Private Reserved On-Demand IT Demand

1%

On-demand

49%

reserved

50%

private

Page 9: Workload Partitioning in Cloud Marketplaces

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

Page 10: Workload Partitioning in Cloud Marketplaces

• 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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Page 11: Workload Partitioning in Cloud Marketplaces

Thank you.

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For more information, please contact [email protected]