Cloud Computing. First International Conference, CloudComp 2009 Munich, Germany, October 19–21, 2009 Revised Selected Papers

Research Article

On Cost Modeling for Hosted Enterprise Applications

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  • @INPROCEEDINGS{10.1007/978-3-642-12636-9_18,
        author={Hui Li and Daniel Scheibli},
        title={On Cost Modeling for Hosted Enterprise Applications},
        proceedings={Cloud Computing. First International Conference, CloudComp 2009 Munich, Germany, October 19--21, 2009 Revised Selected Papers},
        proceedings_a={CLOUDCOMP},
        year={2012},
        month={5},
        keywords={},
        doi={10.1007/978-3-642-12636-9_18}
    }
    
  • Hui Li
    Daniel Scheibli
    Year: 2012
    On Cost Modeling for Hosted Enterprise Applications
    CLOUDCOMP
    Springer
    DOI: 10.1007/978-3-642-12636-9_18
Hui Li1,*, Daniel Scheibli1
  • 1: SAP Research
*Contact email: hui.li@computer.org

Abstract

In enterprises nowadays typical business-critical processes rely on OLTP (online transaction processing) type of applications. Offering such applications as hosted solutions in Clouds rises many technical and non-technical challenges, among which TCO (Total Cost of Ownership) is one of the main considerations for most on-demand service/Cloud providers. In order to reduce TCO, a first step would be to analyze and study its cost components in depth. In this paper we adopt a quantitative approach and model two tangible cost factors, namely, server hardware and server power consumption. For server hardware, on one hand, a pricing model for CPU is proposed as a function of per-core performance and the number of cores, which also manifests the current multi-/many-core trend. Server power consumption, on the other hand, is modeled as a function of CPU utilization (as a main indication of system activity). By using published results from both vendor-specific and industry-standard benchmarks such as TPC-C, we show that a family of is successfully applied in deriving a wide range of cost models. Such analytic cost models, in turn, prove to be useful for the Cloud providers to specify the Service Level Agreements (SLAs) and optimize their service/infrastructure landscapes.