Analysis of a Yield Management Model for On Demand Computing Centers page impaire.

Overview & Synopsis

The concept of yield management for IT infrastructures, and in particular for On Demand IT utilities was recently introduced in . IT On Demand is a business model touted recently by IBM and other large IT companies as the future of computing. In , it was demonstrated that this paradigm is appropriate for, and can benefit greatly from, use of a convenient yield management approach, and an optimization model and theoretical justification of it were presented. The present paper provides a detailed analysis of that model, both in simplified cases where an analytical analysis is possible, and numerically on larger problem instances, and confirms the significant revenue benefit that can accrue through use of yield management in the IT On Demand context.