1. Free Compensation In The Market of Green Cloud Computing
YUJIA XIAO, XIAOHUA TIAN
INSTITUTE OF WIRELESS COMMUNICATION TECHNOLOGY OF SJTU
20 MAY, 2014
Contact:

2. content Introduction Find free compensation from RS model Simulation
Analysis and future work
RS model : Rothschild-Stiglitz model

3. 1.The Fifth Assessment Report (AR5) from IPCC
The IPCC is a scientific body under the auspices of the United Nations (UN).
Mauna Loa Observatory provides data for IPCC Data Distribution Centre.
1.The Fifth Assessment Report (AR5) from IPCC
2.Mauna Loa Observatory, Hawaii
Part 1：introduction [1] [2]

4. Challenges:
Unlike the stable supply of traditional energy, solar and wind power is has uncertain, intermittent and variable natures.
Research interest:
many work has been done on Software Failure, Overflow, Network Failure and Computing resource mission when we switch to the green energy. However, only a few work focus on the Qos of User from the economic aspect.
Solution: Data Center with Green Energy
2.Worldwide electricity use for data centers
Jonathan G. Koomey, Ph.D. Stanford University 1.
Part 1：introduction [1] [2]

5. The formation of the idea
These are the results from:
Insured Resource Trading in Cloud Computing
by Yutian Wen, Xiaohua Tian, Kai Zhou.
Focuced on introduing insurance contract to cloud computing in order to increase Qos of Users.
1. I think this result of increase in Utility will not apply to real market. The reasons are show as follow:
(1) Users are lazy to change into green computing resources if they already own stable one.
(2) Users may underestimate the value of green computing resources, for they may consider the uncertainty nature of green energy. Thus the simulation based on the real value of green resources is not accurate.
The focus is that how to let users know the real value of green energy resources.
I raised the idea of free compensation at the cost of first-stage income.
The analysis methods can be used by companies and governments to make policies, as well as scientists to know which direction to pay efforts so that the Earth will be greener due to their work.
Part 2：Find free compensation from Rothschild-Stiglitz model Qos: Quality of Service

6. RS model --- Candidate separating equilibrium
(1) Three stage Bayesian Game
1st stage:
Assume that there are users and one provider in monopoly market. for the accident possibility for high-type users and for low-type.
2nd stage:
Set the insurance contract for both type:
Income when no accident, income when accident, price:
3rd stage:
Set the Utility of both type users and provider:
(2)We must satisfy following conditions:
Utility function
We do not need check the integrity of high-type users because this model is formed in monopoly market. We can avoid miss declaring of type through controlling utility function.
Check will be needed in second-best Pareto-optimal allocation in perfect competition market
Part 2：Find free compensation from Rothschild-Stiglitz model

7. Find free compensation --- Candidate separating equilibrium
uninsuranced point:
Optimum line:
fair-odds line of h-type user
fair-odds line of l-type user
Indifference curve of h-type user
Indifference curve of l-type user
Optimum line D h l
Nonlinear.m is used to solve the
Nonlinear function. So the result is only numeric.
Candidate separating equilibrium point :
“h” to calculate best contract for h-type user
“l” to calculate best contract for l-type user
Parameter : is used to set the free compensation value.
Part 3：Simulation

8. Find free compensation --- Candidate separating equilibrium
high low
Relationship between Utility and
Part 3：Simulation

9. Find free compensation --- Candidate separating equilibrium
Part 3：Simulation

10. Find free compensation --- Candidate separating equilibrium
The lower band of the free compensation should be:
The qualify area is increased slightly.
Part 3：Simulation

11. Find free compensation --- Candidate separating equilibrium
Part 3：Simulation

12. Find free compensation
My expectations to the work
The lower band of the
free compensation should be:
How to define/ Is there the
Upper band? Optimum?
Input parameter
Output results
Define: is the least time needed for free compensation.
If the free compensation period not last for , the provider of the green cloud computing will eventually loss utility.
My expectations to the
Future work of finding
This parameter.
Insurance contract:
- Only find a way to increase utility.
- Users may underestimate.
Free compensation:
- Make users see the real value of
green cloud computing.
- Provide methods of finding:
- Help policy decision of
governments and companies.
Part 4：Analysis and future work

13. Questions

14. Better Life
Presenter: Yujia Xiao Adviser: Xiaohua Tian Date: 20th May, 2014