ALGORITHM FOR MINIMIZING REBATE VALUE DUE TO SLA BREACH IN A UTILITY COMPUTING ENVIRONMENT

The invention described is a new and useful process for minimizing the overall rebate a provider disburses to customers when a service level agreement (SLA) breach occurs in a utility computing environment. Specifically, the process compares performance data and resource usage with the SLAs of the customers, and reallocates shared resources to those customers who represent a lesser penalty to the provider in the event of an SLA breach. The process determines which resources, used by customers representing the lesser penalty, are operating below peak capacity. The process then reallocates these under-utilized resources to those customers requiring additional resources to meet SLA thresholds. If all resources are operating at peak capacity, the process reallocates the resources to those customers whose SLAs represent a greater penalty in the event of an SLA breach as compared to those customers whose SLAs provide for a lesser penalty, thereby minimizing the total rebate due upon an SLA breach.