Skip to main content

Posts

Showing posts from September, 2013

Packets, Flows and Messages

I came across this post while doing the daily reading on SDN  https://devcentral.f5.com/articles/the-bifurcation-of-the-network-flows-versus-messages#.UjDVZ7Hn_mE. This resulted in a flashback as I recall sometime in 2004/5 time frame I was trying to explain to folks that message based switches are the way to go for then emerging service oriented network.

I would articulate the messages vs. tuple (flows) vs. header (packet) a little differently. In a service oriented network (and it is not SDN), the brain or intelligence bubbles up into a overlay network of proxies. Those proxies communicate among each other using messages. The brawn sinks down into a dumb data plane. The mapping between the two is done by "binding" to a transport. In those days HTTP was the transport but it was very apparent that it could not serve the purpose due to lack of asynchronous MEP (exchange). Today we are closer to realizing that vision.

Alas.. but we got hit on the head with murphy's law. …

Using Options Exchange to Price Cloud Computing

Traditional business decision tools like ROI, NPV do not sufficiently capture the risk in an investment decision on cloud computing. The demand for cloud services is not a sales forecast (linear) but more like a stock price (stochastic). Today this demand is met with a service that prices itself using an ancient cost accounting method, resulting in pricing models like pay-as-you-go or all-you-can-eat. The price does not take any market input. Imagine buying the stock of a company for a constant price regardless of the volume.

An option is an instrument that give you the right to buy the underlying security but does not obligate a purchase. Trading this instrument with underlying compute capacity as the security will help researchers and businesses study the demand for the cloud computing. Knowing the real demand and the market price for this emerging commodity will help guide investments for service providers and businesses. In the absence of this, we are going down the monopolistic p…