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FIND PI Meeting, November 2007 1 Value Flows and Risk Management Architecture for Future Internet Murat Yuksel University of Nevada.

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Presentation on theme: "FIND PI Meeting, November 2007 1 Value Flows and Risk Management Architecture for Future Internet Murat Yuksel University of Nevada."— Presentation transcript:

1 FIND PI Meeting, November Value Flows and Risk Management Architecture for Future Internet Murat Yuksel University of Nevada – Reno Reno, NV Aparna Gupta Shivkumar Kalyanaraman Rensselaer Polytechnic Institute Troy, NY Project Website:

2 FIND PI Meeting, November Implied Challenges Motivation Current architectural problems: Users cannot express value choices at sufficient granularity – only at access level Providers do not have economic knobs to manage risks involved in investing innovative QoS technologies and business relationships with other providers flexibility in time: forward/option pricing flexibility in space: user-defined inter- domain routes capability to provide e2e higher quality services money-back guarantees, risk/cost sharing

3 FIND PI Meeting, November Contract-switching: A paradigm shift… Circuit-switching Packet-switching Contract-switching ISP A ISP C ISP B e2e circuits ISP A ISP C ISP B routable datagrams ISP A ISP C ISP B contracts overlaid on routable datagrams

4 FIND PI Meeting, November A Contract-Switched Network Core Contracts: a practical way to manage value flows Technologies to Support QoS Economic considerations for service definition and delivery Scalability, Efficiency and Fairness Contract timescales Cost recovery Pricing the risk in QoS guarantees Single-domain and end- to-end contracts

5 FIND PI Meeting, November Basic Building Block: Intra- domain dynamic contracts Contract components performance component, e.g., capacity financial component, e.g., price time component, e.g., term Network Core accessed only by contracts Customers Edge Router Edge Router Edge Router Edge Router Edge Router Edge Router Stations of the provider computing and advertising local prices for edge-to- edge contracts.

6 FIND PI Meeting, November Contract Link An ISP is abstracted as a set of contract links Contract link: an advertisable contract between peering/edge points i and j of an ISP with flexibility of advertising different prices for edge-to- edge (g2g) intra-domain paths capability of managing value flows at a finer granularity than point-to-anywhere deals

7 FIND PI Meeting, November How to achieve e2e QoS? Contract Routing: Compose e2e inter-domain contract paths over available contract links satisfying the QoS requirements Calculate the contract paths by shortest-path algos with metrics customized w.r.t. contract QoS metrics Two ways: link-state contract routing at macro time-scales path-vector contract routing at micro time-scales Monitor and verify that each ISP involved in an e2e contract path is doing the job Punish the ISPs not doing their job, e.g. as a money-back to the others involved in the e2e contract path

8 FIND PI Meeting, November Link-State Contract Routing: Macro-level, proactive User X ISP A ISP C ISP B 1 Owner ISP LinkQoSTermOffered After Price A1-210Mb/s2hrs1hr$10 A1-340Mb/s5hrs15mins$80 B2-4100Mb/s3hrs2hrs$110 C3-520Mb/s1hr30mins$8 C4-560Mb/s1day5hrs$250 4 Most cost- efficient route Max QoS route

9 FIND PI Meeting, November Path-Vector Contract Routing: Micro-level, on-demand, reactive Provider initiates… User X ISP A ISP C ISP B 14 [C, 5-4, 30Mb/s, 45mins, $9] [C-B, 5-4-2, 20Mb/s, 45mins, $6+$5] [C-B-A, , 20Mb/s, 30mins, $7.3+3] [C, 5-3, 10Mb/s, 30mins, $5] [C-A, 5-3-1, 5Mb/s, 15mins, $1.25+$1.2] path announcement path announcement path announcement

10 FIND PI Meeting, November Path-Vector Contract Routing: Micro-level, on-demand, reactive User initiates… User X ISP A ISP C ISP B 14 [5, A-B, 1-2-4, Mb/s, 20-30mins, $4] [5, A, 1-2, 15-30Mb/s, 15-30mins, $8] [5, 10-30Mb/s, 15-45mins, $10] [5, A, 1-3, 5-10Mb/s, 15-20mins, $7] Paths to 5 are found and ISP C sends replies to the user with two specific contract- path-vectors. path request [A-B-C, , 20Mb/s, 30mins] [A-C, 1-3-5, 10Mb/s, 15mins] Paths to 5 are found and ISP C sends replies to the user with two specific contract- path-vectors. reply

11 FIND PI Meeting, November Putting it together: Contract routing + Financial engineering End-to-end QoS services Contract Routing Pricing Risk management tools Spot contracts Forward contracts Options on Forward Flexibility to innovate services

12 FIND PI Meeting, November Contingent-claim Pricing of Contracts Outcomes of a fundamental risk N outcomes Markets collective view of current worth of future outcomes Contingent Claim pays off should a specific outcome be realized in future i – Price of a contingent claim, i Current value of a pay-off obtained should outcome i be realized in future Price of a complex payoff(V) =. V In continuous setting – state price density [1, 0,.., 0] [0, 1,.., 0] [0, 0,.., 1] [ 1,,.., ]

13 FIND PI Meeting, November Single-domain QoS Contract Pricing and Money-back Pricing Advertisable Contracts: with focus on Cost recovery Congestion sensitive Promoting utilization Pricing QoS Guarantees: applies financial engineering technique Uses state-price density or contingent claims for underlying risk Money-back Guarantees: for advertisable contract Utilizing risk pooling concepts of insurance benefits

14 FIND PI Meeting, November Temporal Extensions of Single- domain QoS Contracts Bail-out Forwards: on advertisable spot contracts between peering/edge points i and j of an ISP with flexibility of advertising different forward prices for edge-to-edge (g2g) intra- domain paths Forwards with provision for Bail-out conditioned on network congestion Spot and Forwards concatenated to create long- term contracts Time

15 FIND PI Meeting, November Spatial Composition for End-to- end QoS Contract Pricing Macro-level Contracts: centralized concatenation of contract links Globally optimal path between a source-destination (s-d) pair Optimize for price given required QoS characteristics and contract duration Micro-level Contracts: decentralized concatenation of contract links Locally optimal short-term concatenation of contract links Constrained to satisfy QoS requirements S D Micro-level Service Macro-level Service


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