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GRID ECONOMICS

Lecturer: Ph.D Pham Tran Vu

Students:

Tran Quang Khai - 00708196

Nguyen Thanh Hai - 00708191

Le Qui Dong - 00707165

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Outline

Introduction. What is Grid economics? Grid economics vision. Players in Grid marketplace. Economic/business models. Grid practices:

Nimrod-G. GridEcon.

Summarize and conclusion. Q & A.

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Introduction

Current using of Grid in enterprises: In large enterprises:

Consolidating IT resources. Improving the workflow within an enterprise.

In small and medium enterprises (SMEs): Almost not consider.

Lack of economic principles in the current Grid middlewares.

Miss out many helpful Grid’s properties.

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Introduction

Grid can supply: Availability of on-demand resources.

When consumer requests unavailable resources. Supplier can buy the resources on the Grid.

Easily access to resources. Low cost ownership.

Resources that you can’t afford for possession. Pay-for-use pricing model.

Only pay for the usage of resources.

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Introduction

Grid can help SMEs: Opportunities. Independency. Compete with large enterprises.

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What is Grid economics?

Definition: Applying economic principles to Grid computing. Grid infrastructure to support commercial,

economic Grids. Service Level Agreements (SLAs). Pricing and Capacity Planning. Business models for the Grid.

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What is Grid business?

Definition: Business activities. Through commercialized IT services. Based on Grid computing.

Grid business model: Defines a framework for creating new value

chains.

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Some Grid-economics Projects European Grid Projects

GridEcon, http://www.gridecon.eu BEinGRID, http://www.beingrid.eu/ Gridbus,http://www.gridbus.org/

American Grid Project TeraGrid , http://www.teragrid.org/  GT4, http://www.globus.org/

Asian Grid Project K*Grid,  http://www.gridcenter.or.kr/ (South Korea) NAREGI, http://www.naregi.org/index_e.html (Japan) CNGrid http://www.cngrid.org/ (China)

Australian Grid Project GridBus, http://www.gridbus.org/

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Example

Amazon EC2: Allows the user to create virtual machines. VM:

Initiate, run and monitor applications. Price (Feb 2007):

$0.10 per instance-hour. $0.20 per GB of transferred data. $0.15 per GB-Month of Amazon S3 Storage.

1.7Ghz Xeon CPU. 160GB local disk.1.75GB RAM. 250Mb/s network bandwidth.

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Grid economics vision

Assume: Grid needs a part called “Open market”: Allows participants to:

Buy services. Sell enhanced services

at the same time.

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Grid economics vision (cont.)

3 existing technologies: Service-oriented computing. Virtualization of resources. Network computing.

1 missing: Economic-enhanced services Economic risks and transaction opportunities. Enlarge the access of existing Grid business.

Grid middleware Economic-aware

or Market-aware

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Grid economics architecture

Three layers:• Consumer.• Economic-enhanced service provider.• The basic resources provider.

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Players in the Grid Marketplace 2 key players:

Grid Service Providers (GSPs): producers. Grid Resource Brokers (GRBs): consumers.

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Players in the Grid Marketplace The GSPs:

Make their resources Grid enabled by running software systems along with Grid Trading Services (GTS).

Interaction between GSPs and GRBs: Through a Grid Market Directory (GMD).

For deciding service access price. Economic models. Interaction protocols.

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Players in the Grid Marketplace GRBs:

May invite bids from a number of GSPs. Select those that offer:

Lowest service costs. Meet their deadline and budget requirements.

GSPs: May invite bids in an auction. Offer services to the highest bidder as long as its

objectives are met.

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Business Models

Commodity Market Model Posted Price Model Bargaining Model Tendering/Contract-Net Model Auction Model Bid-based Proportional Resource Sharing

Model Community/Coalition/Bartering Model

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Business Models1.Commodity Market Model

Interaction between GSPs and users in a commodity market Grid.

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Business Models

Pricing schemes in a Commodity Market Model can be based on: Flat fee. Usage Duration (Time). Subscription. Demand and Supply-based.

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Business Models

Deployment: The users compose their application using higher-level Grid

programming languages. The resource broker (working for the user) can carry out

the following steps for executing applications: The broker identifies service providers. It identifies suitable resources and establishes their

prices (by interacting with GMD and GTS). It selects resources that meet its utility function and

objectives (lower cost and meet deadline requirements). It uses resource services for job processing and issues

payments as agreed.

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Business Models

2. Posted Price Model

Posted price model and resource trading

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Business Models

The posted price model: Is similar to the commodity market model, except that it

advertises special offers. The activities that are:

Grid Service Providers (GSPs) post their special offers and associated conditions etc. in Grid Market Directory.

Broker looks at GMD to identify if any of these posted services are available and fits its requirements.

Broker enquires (GSP) for availability of posted services. Other steps are similar to those pointed out in commodity

market model.

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Business Models

3. Bargaining Model

Bargaining for lower access price in their bid for minimizing computational cost.

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Business Models

In the bargaining model: Both brokers and GSPs have their own objective

functions. They negotiate with each other as long as their

objectives are met.

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Business Models

4. Tender/Contract-Net Model

Tender/ContractNet model for resource trading.

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Business Models

In this model, a task to be solved is called the manager and resource that might be able to solve the task is called contractor.

From a manager’s perspective, the process is: Consumer (Broker) announces its requirements (using deal

template) and invites bids from GSPs. Interested GSPs evaluate the announcement and respond

by submitting their bids. Broker evaluates and awards the contract to the most

appropriate GSP(s). The broker and GSP communicate privately and use the

resource (R).

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Business Models

From a contractor’s/GSP perspective, the process is: Receive tender announcements/advertisements (say in

GMD). Evaluate service capability. Respond with bid. Deliver service if bid is accepted. Report results and bill the broker/user as per the usage and

agreed bid.

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Business Models

Advantage: If the selected GSP is unable to deliver a satisfactory

service, the brokers can seek services of other GSPs.

This protocol has certain disadvantages. A task might be awarded to a less capable GSP if a more

capable GSP is busy at award time. Another limitation is that the GRB manager has no

obligation to inform potential contractors that an award has already been made.

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Business Models

5. Auction Model

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Business Models

The steps involved in the auction process are: GSPs announce their services and invite bids. Brokers offer their bids (and they can see what other

consumers offer if they like - depending on open/closed). Step (b) goes on until no one is willing to bid higher price or

auctioneer stops if the minimum price line is not met. GSP offers service to the one who wins. Consumer uses the resource.

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Business Models

6. Bid-based Proportional Resource Sharing Model

Market-based Proportional Resource Sharing.

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Business Models

In this model, the percentage of resource share allocated to the user application is proportional to the bid value in comparison to other users’ bids.

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Business Models

7. Community/Coalition/Bartering/Share Holders Model. A community of individuals shares each other’s resources

to create a cooperative computing environment. Those who are contributing their resources to a common pool can get access to that pool.

This model works when those participating in the Grid have to be both service providers and consumers.

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Grid Practice

Nimrod-G Rajkumar Buyya, David Abramson and Jonathan

Giddy. Monash University, University of Queensland

Australia.

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Nimrod-G

A resource management and scheduling system Supports deadline and budget-constrained

algorithms Supports GUI tools and declarative programming

language Abilities:

Resource discovery Mapping jobs to appropriate resources Gathering results

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Nimrod-G - Architecture

A grid resource broker based on the GRACE framework

Follows hourglass design model

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Nimrod-G – Architecture (cont.) Nimrod-G Clients, which can be:

Tools for creating parameter sweep applications. Steering and control monitors. Customized end user applications.

Nimrod-G Resource Broker: A Task Farming Engine (TFE), A Scheduler that performs resource discovery, trading, and

scheduling. A Dispatcher and Actuator. Agents for managing the execution of jobs.

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CostCostDeadlineDeadline

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Nimrod-G - Scheduling Algorithms When the user submits a parameter sweep application containing N tasks along

with quality of service requirements, the broker performs the following activities:1. Resource Discovery: Identifying resources and their properties and then selecting

resources capable of executing user jobs.

2. Resource Trading: Negotiating and establishing service access cost using a suitable economic model.

3. Scheduling: Select resources that fit user requirements using scheduling heuristic/algorithm and map jobs to them.

4. Deploy jobs on resources [Dispatcher].

5. Monitor and Steer computations

6. Perform load profiling for future usage

7. When the job execution is finished, gather results back to the user home machine [Dispatcher].

8. Record all resource usage details for payment processing purpose.

9. Perform rescheduling: Repeat steps 3-8 until all jobs are processed and the experiment is within the deadline and budget limit.

10. Perform cleanup and post-processing, if required.

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Nimrod-G - Deadline and budget constrained scheduling 3 adaptive algorithms:

Cost Optimization, within time and budget constraints

Time Optimization, within time and budget constraints

Conservative Time Optimization, within time and budget constraints.

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Nimrod-G - Time Optimization scheduling algorithm For each resource:

Calculate the next completion time for an assigned job. Taking into account previously assigned jobs and job

consumption rate.

Sort resources by next completion time. Assign one job to the first resource:

The cost per job is less than or equal to the remaining budget per job.

Repeat until all jobs are assigned.

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Nimrod-G - Cost Optimization scheduling algorithm Sort resources by increasing cost. For each resource in order:

Assign as many jobs as possible to the resource, without exceeding the deadline.

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Nimrod-G - Conservative Time Optimization algorithm Split resources :

Cost per job is less than or equal to the budget per job.

For the cheaper resources: Assign jobs in inverse proportion to the job completion

time. E.g: a resource with completion time = 5 gets twice as

many jobs as a resource with completion time = 10.

For the dearer resources, repeat until all jobs are assigned.

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Nimrod-G - Software Availability Website:

http://www.csse.monash.edu.au/~davida/nimrod/

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GridEcon A European Union funded project on Grid

Economics and Business Models. Goals:

Identify missing technology and software. The design of the required economic enhancements to Grid

technology The implementation of a subset of these service enhancements The simulation of the workings of the enhancements.

Perform economic and business modeling Show how hardware, software, and information services can be

bought and sold on the Grid. Investigate potential ecosystems and explore current and future

business models.

Website: http://www.gridecon.eu

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Summarize and conclusion

Grid economics: Help to manage and use resources in the way that both

provider and consumer get benefit. Have potential using in enterprises, especially SMEs:

Reduce cost. Improve competition ability.

Some issues: The resources in the Grid are geographically distributed

and owned by multiple organizations with different usage and cost policies.

The management of resources in such a large and distributed environment is a complex task.

Lack of regulations/rules

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References

Papers:

GridEcon – The Economic-Enhanced Next-Generation Internet (Jörn Altmann, Costas Courcoubetis, John Darlington, Jeremy Cohen).

Economic Models for Resource Management and Scheduling in Grid Computing (Rajkumar Buyya, David Abramson, Jonathan Giddy, and Heinz Stockinger).

Taxonomy of Grid Business Models (Jörn Altmann, Mihaela Ion, Ashraf Adel Bany Mohammed).

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References (cont.)

Websites: http://www.my-groups.de/altmann/?page_id=19

http://www.gridecon.eu

http://www.gridbus.org

http://www.globus.org

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Thank you for your attention.