Vortrag im Rahmen des HPI-Kolloquiums, 18. März 2010, Potsdam

1. On managing risk in service-oriented information systems Prof. Dr. Torsten Eymann University of Bayreuth Chairof Information Systems Management

2. Agenda

3. The Internet of Services – A Vision 1 Software as a Service 3 2 Complex Services Infrastructure as a Service Basic Services Storage Service Computation Service Database Service Virtualization Resources In Anlehnung an : T. Eymann (2008): Cloud Computing. In: Kurbel, K., Becker, J., Gronau, N., Sinz, E.J., Suhl, L.: Enzyklopädie der Wirtschaftsinformatik, http://www.wi-lexikon.de. Oldenbourg Verlag, München, 2008.

4. IoS – Applicationsand Potentials Decreasedproductioncoststhroughcentralization Increasedverticaldesintegrationandspecialization Increasedutilizationthrougheconomiesofscale Increasedflexibilitythrough on-demandprocurement Increasedinteroperabilitybycommoditization

5. IoS – what will be different? A Transition from Centralizedcontrolof a closed, yetdistributedcomputingsystem To Automated, self-organizingallocationofloosely-coupledservices W. Abramowicz, T. Eymann (Ed.): Special Issue on Service-Oriented Architectures and Web Services, WIRTSCHAFTSINFORMATIK, 2008, Volume 50, Number 1. http://dx.doi.org/10.1007/s11576-007-0010-0

6. IoS – The challenge „In a Grid, resource failure is the rule rather than the exception.“ Baker, M.; Buyya, R.; Laforenza, D.: “Grids and grid technologies for wide area distributed computing”. In: Softw. Pract. Exper., Vol. 32(15) W. Abramowicz, T. Eymann (Ed.): Special Issue on Service-Oriented Architectures and Web Services, WIRTSCHAFTSINFORMATIK, 2008, Volume 50, Number 1. http://dx.doi.org/10.1007/s11576-007-0010-0

7. Whichmeansthatwe still need… A Transition from Centralizedcontrolof a closed, yetdistributedcomputingsystem To Automated, self-organizingallocationofloosely-coupledservices W. Abramowicz, T. Eymann (Ed.): Special Issue on Service-Oriented Architectures and Web Services, WIRTSCHAFTSINFORMATIK, 2008, Volume 50, Number 1. http://dx.doi.org/10.1007/s11576-007-0010-0

8. Whichmeansthatwe still need… control In Automated, self-organizingallocationofloosely-coupledservices W. Abramowicz, T. Eymann (Ed.): Special Issue on Service-Oriented Architectures and Web Services, WIRTSCHAFTSINFORMATIK, 2008, Volume 50, Number 1. http://dx.doi.org/10.1007/s11576-007-0010-0

9. Whichmeansthatwe still need… control loosely-coupled W. Abramowicz, T. Eymann (Ed.): Special Issue on Service-Oriented Architectures and Web Services, WIRTSCHAFTSINFORMATIK, 2008, Volume 50, Number 1. http://dx.doi.org/10.1007/s11576-007-0010-0

10. Whichmeansthatwe still need… control loosely-coupled W. Abramowicz, T. Eymann (Ed.): Special Issue on Service-Oriented Architectures and Web Services, WIRTSCHAFTSINFORMATIK, 2008, Volume 50, Number 1. http://dx.doi.org/10.1007/s11576-007-0010-0

11. … as in … © TIME Magazine, WikimediaCommons

12. Is that a technicalquestion?

13. Physical World Control CentralizedControl (past) DecentralizedControl (today)

14. IT Services World Control CentralizedControl (past) Distributed Control

15. IT Services World: will companies enter? 15 J. Westhoff, R. Matros: IST-FP6-034286 SORMA, D1.1b Requirements Survey, February 26, 2008, http://www.sorma-project.org

16. In searchfor TRUST

17. Is centralizedcontrolpossible?

18. No. Reason #1 Participants (agents) have different interests in the Internet of Services Server: Loadbalancedprovisioning Client: Immediateresponse

19. No. Reason #2 A natural person can not be held responsible for actions of its agents (no legislation yet) Balke, Tina; Eymann, Torsten (2008): The ConclusionofContractsby Software Agents in the Eyes ofthe Law. In: Padgham, Lin; Parker, David; Müller, Jörg; Parsons, Simon (Hg.): 7th. Intl. Conf. on AutonomousAgentsand Multiagent Systems (AAMAS). Estoril, Portugal, May 12-16, 2008. UK: Lightning Source UK Ltd (2), S. 771–778.

20. Can weproposesomething?

21. Yes. Option #1 Start with a fundamental understanding of an open Cloud/Grid environment Define policies and norms for participants Focus on technology and policies Focus on technology Eymann T., König S., Matros R.: A Framework for Trust and Reputation in Grid Environments. Journal of Grid Computing, Vol. 6, Nr. 4, pp. 225-237, 2008.

22. Yes. Option #2 Construct a reciprocal principal/agent relationship to increase system reliability Use contracts  Service Level Agreements Eymann T., König S., Matros R.: A Framework for Trust and Reputation in Grid Environments. Journal of Grid Computing, Vol. 6, Nr. 4, pp. 225-237, 2008.

23. Yes. Option #3 Allowpropagationofpastexperiencestootherstoenforcegoodbehaviour in thefuture

24. Yes. Option #4 Outsource riskto an Internet insuranceinstitution

25. Option #5: Enforce Compliance …

26. In general: introduceinstitutions "Institutionsarefrictionswhich, likefrictions in mechanicalsystems, byrestrictingmovementmaymakecontrolledmovementpossible.“ Restrict (De-Incentivice) principalsandagents not tocheat = Manage Risk! [Brian J. Loasby, 2000]

27. Howtoresearch?

28. Reputation in the Internet of Services J. Westhoff, R. Matros: IST-FP6-034286 SORMA, D1.1b Requirements Survey, February 26, 2008, http://www.sorma-project.org

29. The research question in a context Unregulated coordination In the Internet of Services… …will lead to Principal/ Agent problems Solution Proposal: Reputation Mechanisms to control reliable services Evaluation by Simulation

30. SimIS Open Source Simulation Environment Based on Repast Simphony 1.2 For more information: http://simis.sourceforge.net

31. Simulation Scenario: Service Markets 1 2 Services Market Complex Services CS Resource Market Basic Services Storage Service Computation Service BS Resources RS

32. Simulation Scenario: Network Topology 32 Host # 2 Host # 1 RS2 500 Mbit/s RS1 CS2 BS3 BS1 0,35 Probabilityofsystemsfailure 0,01 1 Gbit/s 500 Mbit/s 200 Mbit/s Host # 3 Host # 4 RS3 BS1 BS3 BS2 CS1 CS2 100 Mbit/s Streitberger, W.; Hudert, S.; Eymann, T.; Schnizler, B.; Zini, F.; Catalano, M.: “On the Simulation of Grid Market Coordination Approaches”. In: Journal ofGrid Computing, Vol. 6(3), Springer Netherlands, doi:10.1007/s10723-007-9092-6, ISSN 1570-7873 (Print) 1572-9814 (Online), September 2008. 67, 285 0,1 0,3

33. Reputation reducesuncertainty S. König, T. Balke, W. Quattrociocchi, M. Paolucci, T. Eymann: On the Effects of Reputation in the Internet of Services. International Conference on Reputation, March 2009, Gargonza, Italy. 33

34. ResultsandDiscussion Managing risk (Realiability) in theIoSis a basicrequirementforacceptance Centralizedmanagementisimpossible Decentralizedmanagementmeansintroducinginstitutions Example: introducereputationtracking Question: whohasthe power tointroduce?

35. Backup

36. Side remark: Security vs. Reputation Security Ex ante knowledge Apply in build time Define “trusted” code Reputation Ex post knowledge Apply during run-time Define policies react on events Enforce behavior in future