Analysis of Topographical Leverage-Driven Capacity Trading in Internet Storage Infrastructures

6 Pages Posted: 3 Apr 2006

See all articles by Anna Ye Du

Anna Ye Du

State University of New York - Management Science and Systems

Xianjun Geng

University of Washington - Department of Management & Organization

Ram D. Gopal

University of Connecticut - Department of Operations & Information Management

Ram Ramesh

State University of New York (SUNY) - Management Science and Systems

Andrew B. Whinston

University of Texas at Austin - Department of Information, Risk and Operations Management

Abstract

With the rapid growth of rich-media content over the Internet, content and service providers (SP) are increasingly facing the problem of managing their service resources cost-effectively while ensuring a high Quality of Service (QoS) delivery at the same time. To address this problem, we consider a model where infrastructure resources are traded, cooperatively shared and accessed through coordination mechanisms. In this research, we conceptualize and model an economy of Internet based storage provisioning for rich-media content delivery. This is modeled as a Capacity Provision Network (CPN) where participants possess service infrastructures and leverage their topographies to effectively serve specific customer segments. A CPN is a network of SPs coordinated through an allocation hub. We first develop the notion of discounted QoS capabilities of storage resources. We then develop a market maker mechanism for optimal multilateral allocation in a network. The proposed CPN is closely tied to two fundamental properties of Internet service technology: positive network externality among cooperating SPs and the convexity property of capacity allocation with geographically distributed service sites. In conclusion, this study demonstrates the practical business viability of a cooperative CPN market.

Keywords: Capacity Provision Network, Quality of Service, Market Maker mechanism, Optimization

Suggested Citation

Du, Anna Ye and Geng, Xianjun and Gopal, Ram D. and Ramesh, Ram and Whinston, Andrew B., Analysis of Topographical Leverage-Driven Capacity Trading in Internet Storage Infrastructures. 15th Annual Workshop on Information Technolgies & Systems (WITS) Paper, Available at SSRN: https://ssrn.com/abstract=894362 or http://dx.doi.org/10.2139/ssrn.894362

Anna Ye Du (Contact Author)

State University of New York - Management Science and Systems ( email )

Buffalo, NY 14222
United States

Xianjun Geng

University of Washington - Department of Management & Organization ( email )

Box 353200
Seattle, WA 98195-3200
United States

Ram D. Gopal

University of Connecticut - Department of Operations & Information Management ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Ram Ramesh

State University of New York (SUNY) - Management Science and Systems ( email )

Buffalo, NY 14222
United States
716-645-3258 (Phone)

Andrew B. Whinston

University of Texas at Austin - Department of Information, Risk and Operations Management ( email )

CBA 5.202
Austin, TX 78712
United States
512-471-8879 (Phone)

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