Dynamic Profit Optimization of Composite Web Services with SLAs

In this paper we investigate sequential decision mechanisms for composite web services. After executing each sub-service within a sequential workflow, decisions are made whether to terminate or continue the execution of the workflow. These decisions are based on observed response times, expected rewards, and typical Service Level Agreement parameters such as costs, penalties, and agreed response-time objectives. We propose a model for the sequential decision-making process within which we explore a couple of decision algorithms. We benchmarked these algorithms against the profit made when executing the workflow without decision-making. We show that algorithm based on backward recursion principle of dynamic programming is optimal with respect to profit. Next, we analyse the structure of erroneous decisions for both algorithms and show that significant profit gains can be obtained by sequential decision making.