Skip to main content
Log in

A Framework for Commercial Grids—Economic and Technical Challenges

  • Published:
Journal of Grid Computing Aims and scope Submit manuscript

Abstract

This paper argues that the technology of Grid computing has not yet been adopted in commercial settings due to the lack of viable business models. While in academia Grid technology has already been taken up, the sharing approach among non for-profit organizations is not suitable for enterprises. In this paper, the idea of a Grid market is taken up to overcome this Grid adoption gap. We propose a framework for building up a Grid market and identifies the associated economic and technical challenges. Based on this framework, we identify a catalogue of possible market mechanisms which offer a promising fit to the Grid environment’s characteristics and which may thus help to carry the idea of Grid markets from theory to practice.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Adar, E., Huberman, B.A.: Free riding on Gnutella. First Monday 5(10), 134–139 (2000)

    Google Scholar 

  2. Anonymous: Grid Computing: A Vertical Market Perspective 2005–2010. The Insight Research Corporation, Boonton (2005)

    Google Scholar 

  3. AuYoung, A., Chun, B.N., Snoeren, A.C., Vahdat, A.: Resource allocation in federated distributed computing infrastructures. In: Proceedings of the 1st Workshop on Operating System and Architectural Support for the on demand IT Infrastructure, Boston, 9–13 October 2004

  4. Bapna, R., Das, S., Garfinkel, R., Stallaert, J.: A market design for Grid computing. INFORMS J. Comput. 20, 100–111 (2008)

    Article  Google Scholar 

  5. Blau, B., Lamparter, S., Neumann, D., Weinhardt, C.: Planning and Pricing of Service Mashups. In: IEEE Joint Conference on E-Commerce Technology (CEC’08) and Enterprise Computing, E-Commerce and E-Services (EEE ’08), Washington, D.C., 21–24 July 2008

  6. Chun, B.N., Culler, D.E.: Market-based Proportional Resource Sharing for Clusters. Computer Science Division, University of California, Berkeley (2000)

    Google Scholar 

  7. Czajkowski, K., Foster, I., Kesselman, C., Sander, V., Tuecke, S.: SNAP: A protocol for negotiating service level agreements and coordinating resource management in distributed systems. In: Proceedings of the 8th Workshop on Job Scheduling Strategies for Parallel Processing, Edinburgh, 24 July 2002

  8. Eymann, T., Neumann, D., Reinicke, M., Schnizler, B., Streitberger, W., Veit, D.: On the design of a two-tiered Grid market structure. In: Proceedings of the Multikonferenz Wirtschaftsinformatik (MWKI), Passau, 20–22 February 2006

  9. Fellows, W., Wallage S., et al.: Grid Computing—The State of the Market. The451Group, New York (2007)

    Google Scholar 

  10. Foster, I., Kesselman, C., Tuecke, S.: The anatomy of the Grid: enabling scalable virtual organizations. Int. J. High Perform. Comput. Appl. 15(3), 200 (2001)

    Article  Google Scholar 

  11. Foster, I., Kesselman, C.: The Grid 2. San Francisco, Morgan Kaufmann (2003)

    Google Scholar 

  12. Heydenreich, B., Müller, R., Uetz, M.: Decentralization and mechanism design for online machine scheduling. Technical Report, METEOR, Maastricht research school of Economics of TEchnology and ORganizations (2006)

  13. Irwin, D.E., Grit, L.E., Chase, J.S.: Balancing risk and reward in a market-based task service. In: Proceedings of the 13th International Symposium on High Performance Distributed Computing (HPDC13), pp. 160–169. IEEE, Piscataway (2004)

  14. Johari, R., Tsitsiklis, J.: Efficiency loss in a network resource allocation game. Math. Oper. Res. 29(3), 407–435 (2004)

    Article  MATH  MathSciNet  Google Scholar 

  15. Kaelbling, L.P., Littman, M.L., Moore, A.W.: Reinforcement learning: a survey. J. Artif. Intell. Res. 4, 237–285 (1996)

    Google Scholar 

  16. Kay, J., Lauder, P.: A fair share scheduler. Commun. ACM 31(1), 44–55 (1988)

    Article  Google Scholar 

  17. Kelly, F.: Charging and rate control for elastic traffic. Eur. Trans. Telecommun. 8, 33–37 (1997)

    Article  Google Scholar 

  18. Kenyon, C., Cheliotis, G.: Forward price dynamics and option design for network commodities. In: Proceedings of the Bachelier Finance Society 2nd World Conference, Knossos, Crete, 12–15 June 2002

  19. Lai, K., Rasmusson, L., Adar, E., Zhang, L., Huberman, B.A.: Tycoon: an implementation of a distributed, market-based resource allocation system. Multiagent Grid Syst. 1(3), 169–182 (2005)

    MATH  Google Scholar 

  20. Lai, K.: Markets are dead, long live markets. ACM SIGecom Exchanges 5(4), 1–10 (2005)

    Article  Google Scholar 

  21. LSF: http://www.platform.com (2007). Accessed 12 November 2007

  22. Minoli, D.: A Networking Approach to Grid Computing. Wiley, Hoboken (2005)

    Google Scholar 

  23. Mossmann, M., Stößer, J., Neumann, D., Savourey, D., Krisnashwamy, R.: A Combinatorial Exchange for Complex Grid Services. Working Paper (2007)

  24. Moulin, H.: On scheduling fees to prevent merging, splitting and transferring of jobs. Math. Oper. Res. 2, 266–283 (2007)

    Article  MathSciNet  Google Scholar 

  25. Neumann, D., Lamparter, S., Schnizler, S.: Automated bidding for trading Grid services. In: Proceedings of the European Conference on Information Systems (ECIS), Gothenburg, 12–14 June 2006

  26. Neumann, D., Veit, D., Weinhardt, C.: Grid economics: market mechanisms for Grid markets. In: Barth, Th., Schüll, A. (eds.) Grid Computing: Konzepte, TechnologienAnwendungen, pp. 64–83. Vieweg Verlag, Wiesbaden (2006) (German)

  27. Neumann, D., Borissov, N., Stößer, J., See, S.: Best myopic vs. rational response: an evaluation of an Online Scheduling Mechanism 70. Wissenschaftliche Jahrestagung des Verbands der Hochschullehrer für Betriebswirtschaft e.V. 2008, Berlin (2008)

  28. Parkes, D.C., Kalagnanam, J., Eso, M.: Achieving budget-balance with Vickrey-based payment schemes in combinatorial exchanges. In: Proceedings of the Seventeenth International Joint Conference on Artificial Intelligence (IJCAI), Seattle, 4–10 August 2001

  29. Rasmusson, L.: Network capacity sharing with QoS as a financial derivative pricing problem: algorithms and network design. Doctoral Dissertation, Royal Institute of Technology, Stockholm (2002)

  30. Regev, O., Nisan, N.: POPCORN market. Online markets for computational resources. Decis. Support Syst. 28(1), 177–189 (2000)

    Article  Google Scholar 

  31. Sanghavi, S., Hajek, B.: Optimal allocation of a divisible good to strategic buyers. In: Proceedings of the 43rd IEEE Conference on Decision and Control-CDC, Atlantis, Paradise Island, Bahamas, 14–17 December 2004

  32. Sanghavi, S., Hajek, B.: A new mechanism for the free-rider problem. In: Proceedings of the ACM SIGCOMM Workshop on Economics of Peer-to-Peer Systems, Philadelphia, 22 August 2005

  33. Schnizler, B., Neumann, D., Veit, D., Weinhardt, C.: Trading grid services – a multi-attribute combinatorial approach. Eur. J. Oper. Res. 187(3), 943–961 (2008)

    Article  MATH  Google Scholar 

  34. Shneidman, J., Ng, C., Parkes, D., AuYoung, A., Snoeren, A.C., Vahdat, A., Chun, B.N.: Why markets could (but don’t currently) solve resource allocation problems in systems. In: Proceedings of the 10th USENIX Workshop on Hot Topics in Operating Systems, Santa Fe, 12–15 June 2005

  35. Siddiqui, M., Villazon, A., Fahringer, T.: Grid capacity planning with negotiation-based advance reservation for optimized QoS. In: Proceedings of International Conference for High Performance Computing, Networking and Storage (SuperComputing), SC06, Tampa, 11–17 November 2006

  36. Smith, W.E.: Various optimizers for single-stage production. Naval Resour. Logist. Quart. 3, 59–66 (1956)

    Article  Google Scholar 

  37. SORMA consortium: Preliminary specification and design documentation of the SORMA components. Deliverable D2.1 of the EU FP6 project 034286 “SORMA–Self-Organizing ICT Resource Management” (2007)

  38. Spinler, S., Huchzermeier, A., Kleindorfer, P.R.: The Valuation of Options on Capacity. Working Paper, WHU, Otto-Beisheim Graduate School of Management, and University of Pennsylvania, The Wharton School (2002)

  39. Stößer, J., Neumann, D., Anandasivam, A.: A truthful heuristic for efficient scheduling in network-centric Grid OS. In: Proceedings of the 15th European Conference on Information Systems (ECIS), St. Gallen, 7–9 June 2007

  40. Stößer, J., Roessle, C., Neumann, D.: Decentralized online resource allocation for dynamic web service applications. In: Proceedings of the IEEE Joint Conference on E-Commerce Technology (CEC’07) and Enterprise Computing, E-Commerce and E-Services (EEE’07), Tokyo, 23–26 July 2007

  41. Stoica, I., Abdel-Wahab, H., Jeffay, K.: On the duality between resource reservation and proportional share resource allocation. In: Multimedia Computing and Networking Proceedings, SPIE Proceedings Series vol. 3020, pp. 207–214. SPIE, Bellingham (1997)

  42. Waldspurger, C.A., Hogg, T., Huberman, B.A., Kephart, J.O., Stornetta, W.S.: Spawn: a distributed computational economy. IEEE Trans. Softw. Eng. 18(2), 103–117 (1992)

    Article  Google Scholar 

  43. Weishaeupl, T., Donno, F., Schikuta, E., Stockinger, H., Wanek H.: Business in the Grid: the BIG project. In: Grid Economics & Business Models (GECON 2005) of Global Grid Forum 13 (GGF13), Seoul, March 2005

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dirk Neumann.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Neumann, D., Stößer, J., Weinhardt, C. et al. A Framework for Commercial Grids—Economic and Technical Challenges. J Grid Computing 6, 325–347 (2008). https://doi.org/10.1007/s10723-008-9105-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10723-008-9105-0

Keywords

Navigation