Cost-based decision-making in middleware virtualization environments

0377-2217/$ see front matter 2010 Elsevier B.V. A doi:10.1016/j.ejor.2010.10.006 ⇑ Corresponding author. Tel.: +1 305 348 3302. E-mail addresses: [email protected] (K. Dutta (D. VanderMeer). Middleware virtualization refers to the process of running applications on a set of resources (e.g., databases, application servers, other transactional service resources) such that the resource-to-application binding can be changed dynamically on the basis of applications’ resource requirements. Although virtualization is a rapidly growing area, little formal academic or industrial research provides guidelines for cost-optimal allocation strategies. In this work, we study this problem formally. We identify the problem and describe why existing schemes cannot be applied directly. We then formulate a mathematical model describing the business costs of virtualization. We develop runtime models of virtualization decisionmaking paradigms. We describe the cost implications of various runtime models and consider the cost effects of different managerial decisions and business factors, such as budget changes and changes in demand. Our results yield useful insights for managers in making virtualization decisions. 2010 Elsevier B.V. All rights reserved.