Data Center Network Design for Internet-Related Services and Cloud Computing

34 Pages Posted: 14 Feb 2019

See all articles by Yong Liang

Yong Liang

Tsinghua University - Department of Management Science and Engineering

Mengshi Lu

Purdue University - Krannert School of Management

Zuo-Jun Max Shen

University of California, Berkeley - Department of Industrial Engineering & Operations Research (IEOR)

Runyu Tang

Tsinghua University - School of Economics & Management

Date Written: January 28, 2019

Abstract

We study an integrated data center network design problem for Internet-related services and cloud computing, of which the objective is to minimize total operating cost and service delay penalty by optimizing data center location, footprint allocation, and resource provisioning decisions, while incorporating essential features such as latency, power, multiple resources, configuration limits, and interdependent footprints. We formulate the optimal design problem as a nonlinear mathematical program. We analyze a queueing model to approximate the service latency and provide tractable reformulations. We further develop Lagrangian relaxation methods and generate strengthening cuts by exploiting the structural properties of the problem to enhance computational efficiency for large-scale problems. Our numerical studies demonstrate that the proposed integrated model, which jointly optimizes location, allocation, and resource provisioning, can significantly reduce cost and improve quality-of-service when compared with a hierarchical approach that optimizes these decisions sequentially. Moreover, our proposed solution methods outperform state-of-the-art commercial software in computational performance. Based on real-world data sets, the proposed model selects data centers that have been chosen by major cloud computing infrastructure providers. We also draw managerial insights that can be used as design guidelines in practice.

Keywords: data centers, cloud computing, service operations, network design, resource provisioning

JEL Classification: M11

Suggested Citation

Liang, Yong and Lu, Mengshi and Shen, Zuo-Jun Max and Tang, Runyu, Data Center Network Design for Internet-Related Services and Cloud Computing (January 28, 2019). Available at SSRN: https://ssrn.com/abstract=3324444 or http://dx.doi.org/10.2139/ssrn.3324444

Yong Liang

Tsinghua University - Department of Management Science and Engineering

China

Mengshi Lu

Purdue University - Krannert School of Management ( email )

403 W State Street
West Lafayette, IN 47907
United States

Zuo-Jun Max Shen (Contact Author)

University of California, Berkeley - Department of Industrial Engineering & Operations Research (IEOR) ( email )

IEOR Department
4135 Etcheverry Hall
Berkeley, CA 94720
United States

Runyu Tang

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

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