Optimal resource allocation scheme for maximizing revenue in the future IP networks

In the future IP networks, a wide range of different service classes must be supported in a network node and different classes of customers pay different prices for their used node resources based on their service-level-agreements. We link the resource allocation issue with pricing strategies and explore the problem of maximizing the revenue of service providers in a network node by optimally allocating a given amount of node resources among multiple service classes. Under linear pricing strategy, the optimal resource allocation scheme is derived from the revenue target function by Lagrangian optimization approach. The simulation results demonstrated the effectiveness of the proposed optimal resource allocation scheme for maximizing the revenue of service providers.