Utilization-Based Metering for Dynamic Processing Resource Rates
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Solution Overview
Problem
Traditional subscription pricing models for high-performance computing resources as-a-service require clients to make accurate usage projections, leading to potential overbilling or underutilization, as they rely on snapshot averaging that may not accurately reflect actual resource utilization over time.
Innovation Solution
A utilization-based metering system using artificial intelligence to set and adjust rates dynamically based on real-time monitoring of resource usage, incorporating historical data and secondary factors to ensure accurate billing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional subscription pricing models use snapshot averaging to estimate resource utilization, then billing can be simplified and processed efficiently, but billing accuracy deteriorates leading to overbilling or underutilization
Solution Approach 1:
The system implements continuous feedback loops where actual resource utilization data is constantly monitored and fed back to adjust billing rates. The metering system compares projected usage with actual usage in real-time, allowing dynamic adjustment of subscription rates to match true consumption patterns, thereby eliminating overbilling while maintaining processing efficiency through automated feedback mechanisms
Solution Approach 2:
The patent transforms static subscription pricing into a dynamic system where billing rates continuously adapt based on actual resource utilization. Instead of fixed rates based on snapshots, the system employs variable pricing that responds to real-time usage patterns, enabling accurate billing that reflects actual consumption without sacrificing processing efficiency through automated dynamic adjustment
2Reliability
If clients make usage projections for subscription pricing, then billing can be established in advance and revenue predictability improves, but billing accuracy deteriorates due to inability to precisely predict actual utilization
Solution Approach 1:
The system performs preliminary actions by establishing initial subscription rates based on projected usage before actual consumption occurs. These preliminary rates serve as starting points that are subsequently refined through continuous monitoring and adjustment, allowing revenue predictability to be maintained while progressively improving accuracy as actual usage data becomes available
Solution Approach 2:
The system uses feedback mechanisms to continuously compare projected usage with actual consumption patterns. This feedback loop enables the system to learn from discrepancies between projections and reality, progressively improving the accuracy of future usage predictions while maintaining revenue predictability through automated adjustment of billing rates based on learned patterns
3Ease of operation
If subscription rates are set based on estimated usage, then billing can be simplified and administrative overhead is reduced, but billing accuracy deteriorates leading to overbilling or underbilling
Solution Approach 1:
The system implements self-service billing where the metering system automatically monitors resource utilization, calculates appropriate rates, and adjusts billing without human intervention. This eliminates the need for complex manual billing administration while ensuring high accuracy through automated, continuous monitoring of actual consumption patterns
Solution Approach 2:
The system uses automated feedback loops to continuously monitor resource usage and adjust billing rates accordingly. This feedback mechanism replaces complex manual billing procedures with simple, automated rate adjustment based on actual consumption, maintaining administrative simplicity while dramatically improving billing accuracy through continuous real-time monitoring
Data Source
AI summary
One embodiment provides a method, the method including: receiving, at a utilization-based metering system, a request from a user to use a processing resource of an entity offered as-a-service by the entity; setting, using the utilization-based metering system, an initial rate for usage of the processing resource over a period of time; validating, using the utilization-based metering system and in view of the period of time, the initial rate, wherein the validating includes identifying an amount of usage of the processing resource for the period of time and determining whether the initial rate meets a predetermined criteria in view of the amount of usage; and setting, using the utilization-based metering system and based upon the validating, a subsequent rate for usage of the processing resource for a subsequent period of time. Other aspects are claimed and described.