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Some economical principles Hints on capacity planning (and other approaches) Andrea Bianco Telecommunication Network Group firstname.lastname@polito.it http://www.telematica.polito.it/ Assume users have a utility function that translates a given quality to a level of satisfaction Function may be known to users only (and may be difficult to identify) Can be derived by observing user behaviour (which depends also on pricing policy) Assume users are rationale Take action to maximize their utility Computer Network Design and Management - 1 Computer Network Design and Management - 2 Example (Keshav) Let utility of a file transfer u = S at u: utility of the file transfer S: satisfaction when transfer at infinite speed t: transfer time a: rate at which satisfaction decreases (as time increases) If t> S/a utility becomes negative S and a can be experimentally determined? Example (Keshav) Let utility of a videoconference (hard delay on packet arrival) u = S if (t<d) else B t: end-to-end packet delay D: delay deadline S: satisfaction B cost of missing a deadline (pay for something useless) More complex utility functions could be defined Utility functions should completely capture user requirements If known, we can optimize network to maximize utility Computer Network Design and Management - 3 Computer Network Design and Management - 4 Example Single switch, two users with load 0.4 User A utility: 4-d User B utility: 8-2d (more sensitive to delay) d is the average packet delay Conservation law states 0.4d+0.4d=constant=C d=1.25c and the sum of the utilities is 12-3.75C Reduce delay of B to 0.5C Delay of A =2C Sum of utilities= 12-3C Increase in social welfare, but A is less satisfied A may get reduced price Some economic principles A single integrated network is better that a dedicated network Unused capacity can be used for other users E.g. ADSL and IP Telephony We show that lowering delays of delay sensitive traffic increase welfare Can increase welfare by matching service to user needs Need to know user requirements E.g. Give to 5% of the traffic lower delay Welfare increases more than linearly with increase in capacity Overprovisioning E.g. moving form 20% loaded 10Mbit/s to 20% loaded 100Mbit/s improves social welfare Is cheaper to match user requirements or to increase capacity in a blind way? Computer Network Design and Management - 5 Computer Network Design and Management - 6 Pag. 1

Another approach: peak load pricing Deal with cyclic demand Hourly or daily or weekly traffic behavior Suppose capacity varies in time Peak capacity C1 for two hours a day But capacity below C2<C1 for 90% of the time If size the network for C1 Waste capacity If size the network for C2 Overload during peak hour (two hours a day) Can shift the demand to off-peak hours? Maybe using pricing Charge more duing peak hours Pricing: an example Network capacity C Peak demand=100, off-peak demand 10 Price =1 per unit during peak and off-peak Revenues = 110 User utility Defined as (-price -overload) = -110-(100-C) Network utility Defined as (revenues-idleness) = 110-(C-off peak load) Increasing user utility decreases network utility If C=100, user utility= -110, network utility=20 If C=60, user utility = -150, network utility=60 Computer Network Design and Management - 7 Computer Network Design and Management - 8 Pricing: an example Suppose peak price=1, off-peak price=0.2 Suppose that, as a consequence, peak load decreases to 60, offpeak load increase to 50 Revenue=60*1+50*0.2=70 It was 110 But since the peak is 60, C=60 User utility = -70 Larger than before Network utility = 60 Same as before User utility increases at no cost for the network Issues What is the meaning of peak time in a global network? How to choose parameter values? Computer Network Design and Management - 9 Capacity (re)planning Design from scratch (or modify) network topology, link capacity, routing, to efficiently use resources satisfy user requirements In circuit switching networks more standard approaches In packet switched networks mostly done by trial and error approaches Steps Define node position and estimate (or measure) user traffic (during busy hour?) to derive traffic matrix Define logical topology Includes logical link capacity assignment (Map to a physical topology) Computer Network Design and Management - 10 Traffic models as a key to enable capacity assignement Traffic model: how users and aggregation of users behave Examples How long a user uses an ADSL modem Average size of a file transfer Models change with network usage (and applications) Guess about the future Models are based on Measurements Estimates ( Guesses ) Telephone traffic models Call dynamics? Call arrival model Shown that call inter-arrival time to be well approximated by an exponential distribution Call arrival process follows a Poisson distribution Memoryless: the fact that a certaina amount of time has passed since last call gives no information of time to next call Call duration? Also modelled as an exponential distribution Some measurements show it is heavy tailed A non negligible number of calls last for a very long time Normally neglecterd Poisson models are easy to manage and well accepted Computer Network Design and Management - 11 Computer Network Design and Management - 12 Pag. 2

Internet traffic models More difficult Many different applications (although all rely on file transfer over UDP and TCP) Few applications account for most of the traffic But this chage over time Web, P2P Difficult to model destination distribution Two main features LAN connections are different from WAN connections Higher bandwidth and longer holding times Many parameters are heavy tailed #bytes in a call Call duration Few calls are responsible for most of the traffic Means that even large aggregate of traffic are not smooth (law of large numbers) Computer Network Design and Management - 13 Telephone network capacity planning How to size a link to obtain a blocking probability smaller that a target value Erlang-B formula gives blocking probability as a function of Avg number of calls (in erlangs) on a link Avg call arrival rate r Avg call holding time h Call load E= r h Trunk capacity m Infinite number of sources m=5, E=3, blocking probability = 0.11 For a fixed load, as m increases the call blocking probability decreases exponentially Computer Network Design and Management - 14 Telephone network capacity planning Blocking probability along a path Assume traffic on links is independent Blocking probability is the product of the probability on each link Routing table and traffic matrix determine the load on a link Assign capacity to each link given the load and target blocking probability Or add new link And/or change routing table Packet switching (?) capacity planning Very complex often relies on trial and error procedures Planning problem often divided in two problems Logical Topology Design Routing (and Wavelength) Assignment May be formalized as an optimization problem Joint optimization Unfeasible for complexity and organizational reasons Heuristics Two step formulation Each step may independently be formalized as an optimization problem Often heuristics needed for the two separate problems See class Operations research: theory and applications to networking for LTD and RWA examples Computer Network Design and Management - 15 Computer Network Design and Management - 16 Measure or estimate traffic to create traffic matrix Build for the worst case (?) Pick the busiest hour (over which time-scale?) Add some safety margin to allow for Measurement or estimate errors Future traffic growth Provisioning against failures? Traffic matrix definition assumes that current pattern predicts future Time scale critical (traffic over shorter time scale may be heavier) When adding endpoints traffic matrix become obsolete Not always possible to measure all traffic on all links Privacy issues Routing policies interact with link load measurements Not always easy to rebuild flow infos from packet info Define topology and assign capacity Logical topology definition Define network connectivity (may include alternative paths for robustness to failures) Geographical/cost considerations Some links may be easier to be obtained Available capacity may impose some constraints (see later) Capacity assignments Enough capacity to carry traffic defined in the traffic matrix Actual paths depend on routing May define optimal paths dynamically (look at link load?) Risk of reaction (higher capacity, become more attractive for routing, requires more capacity, etc etc) Easier to assign capacity for static routing Computer Network Design and Management - 17 Computer Network Design and Management - 18 Pag. 3

Logical Topology Design Input Traffic matrix Costs (e.g. number and speed of links I can pay for, price, performance) Output Logical topology that best suits the traffic matrix with the cost constraints Extreme solutions if costs is the number of links No cost constraint Full mesh Single-hop approach Each node process only generated/received traffic Circuit switching like solution Minimize costs Tree/ring/star topologies Multi-hop approach Nodes must process also in-transit traffic Permits grooming to match traffic load to channel capacity Packet switchign like solution Computer Network Design and Management - 19 Routing (and wavelenght) assignment Need to map to a physical topology the defined logical topology Create physical links, or virtual circuits, or lightpaths Any difference? Lightpath, if transparent, imply no processing of local traffic Often done by the organization/provider that owns the physical infrastructure Often different from the one that has defined the logical topology Physical topologies may impose constraints on logical topologies feasibility due to lack of resources Once established, the logical topology, owners do not see the physical topology Performance depend on the logical topology layout only Besides selecting routes on the physical topology, in WR networks, also wavelengths should be assigned Computer Network Design and Management - 20 Trivial example Examples Logical topology Physical topology 3 links, VCs, ls are required Start with a traditional first-generation telephone network (which has only point-to-point optical links and electronic switching) Typical current solutions consider a SONET/SDH ring topology, in which OC48-STM16 (2.5 Gb/s) links are used Add-drop multiplexers (ADM) and digital cross-connects (DCX) are used Then we extend it to a ring that exploit WDM as a transmission technology Finally, we examine the possibility of moving to a WR solution Computer Network Design and Management - 21 Computer Network Design and Management - 22 First example Traditional SONET ring The following (normalized) traffic matrix must be carried: A B C D TOT A - 0.25 0.25 0.5 1 B 0.25-0.25 0.5 1 C 0.25 0.25-0.5 1 D 0.5 0.5 0.5-1.5 TOT 1 1 1 1.5 If traffic grows, a capacity increase must be introduced A B C D TOT A - 1 2 1 4 B 1-1 0.5 2.5 C 2 1-1 4 D 1 0.5 1-2.5 TOT 4 2.5 4 2.5 ADM = Add-Drop Multiplexer DCS = Digital Cross-Connect a WDM upgrade may be an alternative Computer Network Design and Management - 23 Computer Network Design and Management - 24 Pag. 4

Capacity planning and. WDM ring: WDM on links WDM ring Traffic routing becomes: flow wavelength # OC-48 AB l1 1 BD l1 1 AD l1 1 AC l2 2 BC l3 1 BD l3 1 CD l3 1 3 wavelengths are needed Computer Network Design and Management - 25 Computer Network Design and Management - 26 WR ring WR ring By using WR, we build a logical topology, in which links are optical lightpaths, on top of the physical topology, in which pointto-point connections on a ring are available No need to process in-transit traffic Optical switches may be used to add flexibility: in case of traffic changes, or to manage faults, the logical topology may change Computer Network Design and Management - 27 Computer Network Design and Management - 28 Second example A B C Physical topology Three IP s, A, B e C, with 10 Gb/s interfaces 50 Gb/s of traffic for each pair Without OADM Second example 10 wavelengths are required in both fibers Without OADMs, the physical topology and the logical topology are the same, being a bus topology in both cases; B has 20 interfaces With OADMs, the logical topology is a ring; B has only 10 interfaces The cheapest solution depends on the relative cost of components (OADMs vs. ports) OADM With OADM A B C 10 10 A 5 B 5 5 C Computer Network Design and Management - 29 Computer Network Design and Management - 30 Pag. 5

Third example Three different logical topologies overlaid on the same bidirectional ring physical topology. Compare them considering: the number of interfaces at s the number of wavelengths the distance (number of hops) in the logical topology Traffic is uniform, so that each transmits t% of the capacity of a WDM channel to all other s (t/n-1 from to ) WDM point-to-point (PWDM) hub (single hub) hub full-mesh (fully optical) Number of ports (Q) Number of wavelengths (W) Distance (number of hops) Third example PWDM Hub Full-mesh Q = 2W Q = t Q = (N-1) t/(n- 1) W = t/8 (N+1+1/(N-1)) W = t N/2 N/2 2 1 W = t / N-1 (N 2 /8+N/4) (an additional hub is added) Computer Network Design and Management - 31 Computer Network Design and Management - 32 Third example: # of ports Third example: # of l s (total traffic times average distance over number of links) t Computer Network Design and Management - 33 Computer Network Design and Management - 34 Third example Previous plots refer to the case N=8, for different values of t In the design of an optical network, it is likely better to minimize the number of ports (transceivers) rather than optimizing bandwidth usage Fully-optical solution Limited grooming (multiplexing of traffic flows in a single wavelength) For small t, lightpaths are underutilized Coarse quantization in the plots Computer Network Design and Management - 35 Pag. 6