Revenue-aware Resource Allocation Scheme in Multiservice IP Networks

In the future IP networks, a wide range of different service classes must be supported and different classes of customers will pay different prices for their used network resources based on Service-Level-Agreements. In this paper, we link resource allocation scheme with pricing strategies and explore the problem of maximizing the revenue of network providers by resource allocation among multiple service classes under a certain Service-Level-Agreement and a given amount of network resources. A revenue-aware resource allocation scheme is proposed under linear pricing strategy, which has the closedform solution to the optimal resource allocation for maximizing the revenue per time unit gained in a network node. The optimal allocation scheme is derived from revenue target function by Lagrangian optimization approach.