Transient provisioning and performance evaluation for cloud computing platforms: A capacity value approach

User demand on the computational resources of cloud computing platforms varies over time. These variations in demand can be predictable or unpredictable, resulting in ‘bursty’ fluctuations in demand. Furthermore, demand can arrive in batches, and users whose demands are not met can be impatient. We demonstrate how to compute the expected revenue loss over a finite time horizon in the presence of all these model characteristics through the use of matrix analytic methods. We then illustrate how to use this knowledge to make frequent short term provisioning decisions — transient provisioning. It is seen that taking each of the characteristics of fluctuating user demand (predictable, unpredictable, batchy) into account can result in a substantial reduction of losses. Moreover, our transient provisioning framework allows for a wide variety of system behaviors to be modeled and gives simple expressions for expected revenue loss which are straightforward to evaluate numerically.