A Methodology for Economic Evaluation of Cloud-Based Web Applications

Abstract

Cloud technology is an attractive infrastructure solution to optimize the scalability and performance of web applications. The workload of these applications typically fluctuates between peak and valley loads and sometimes in an unpredictable way. Cloud systems can easily deal with this fluctuation because they provide customers with an almost unlimited on-demand infrastructure capacity using a pay-per-use model, which enables internet-based companies to pay for the actual consumption instead of peak capacity. In this paradigm, this paper links the business model of an internet-based company to the performance evaluation of the infrastructure. To this end, the paper develops a new methodology for assessing the costs and benefits of implementing web-based applications in the cloud. Traditional performance models and indexes related to usage of the main system resources (such as processor, memory, storage, and bandwidth) have been reformulated to include new metrics (such as customer losses and service costs) that are useful for business managers. Additionally, the proposed methodology has been illustrated with a case study of a typical e-commerce scenario. Experimental results show that the proposed metrics enable internet-based companies to estimate the cost of adopting a particular cloud configuration more accurately in terms of the infrastructure cost and the cost of losing customers due to performance degradation. Consequently, the methodology can be a useful tool to assess the feasibility of business plans.