Question: 4. Optimal Rental Decisions in Cloud Computing (10 points) Assume that AWS has the following 3 options for renting servers. Server Description Rental Fraction of

4. Optimal Rental Decisions in Cloud Computing

4. Optimal Rental Decisions in Cloud Computing

4. Optimal Rental Decisions in Cloud Computing (10 points) Assume that AWS has the following 3 options for renting servers. Server Description Rental Fraction of Job in one Hour 1/8 1/6 M Low Power Medium Power High Power $2/hr. $4.hr $9 hr. Note that if you rent a server for less than one hour, you still must pay the rent for the entire hour. You have a job that must finish in at most 5 hours. The low-power server can finish 1/8th of the job in 1 hour, the medium-power server can finish 1/64 of the job in one hour, and the high- power server can finish 1/3rd of the job in one hour. (a) The typical practice used by most firms is to find a single server that can do the work at the least cost and within the available time. Find the best single server solution - that is, which single server should you use and for how many hours will you rent this server? (5 points) (b) Find any multi-server solution that beats the single server solution. For this to happen, the multi-server solution must have a lower cost and finish the job in the available time. (5 points)

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