Application placement in computer clustering in software as a service (SaaS) networks

One major service provided by cloud computing is Software as a Service (SaaS). As competition in the SaaS market intensifies, it becomes imperative for a SaaS provider to design and configure its computing system properly. This paper studies the application placement problem encountered in computer clustering in SaaS networks. This problem involves deciding which software applications to install on each computer cluster of the provider and how to assign customers to the clusters in order to minimize total cost. Given the complexity of the problem, we propose two algorithms to solve it. The first one is a probabilistic greedy algorithm which includes randomization and perturbation features to avoid getting trapped in a local optimum. The second algorithm is based on a reformulation of the problem where each cluster is to be assigned an application configuration from a properly generated subset of configurations. We conducted an extensive computational study using large data sets with up to 300 customers and 50 applications. The results show that both algorithms outperform a standard branch‐and‐bound procedure for problem instances with large sizes. The probabilistic greedy algorithm is shown to be the most efficient in solving the problem.