In probability theory and machine learning, the multi-armed bandit problem (sometimes called the K- or N-armed bandit problem) is named from imagining a gambler at a row of slot machines (sometimes known as "one-armed bandits"), who has to decide which machines to play, how many times to play each machine and in which order to play them, and whether to continue with the current machine or try a different machine. More generally, it is a problem in which a decision maker iteratively selects one of multiple fixed choices (i.e., arms or actions) when the properties of each choice are only partially known at the time of allocation, and may become better understood as time passes. A fundamental aspect of bandit problems is that choosing an arm does not affect the properties of the arm or other arms. Instances of the multi-armed bandit problem include the task of iteratively allocating a fixed, limited set of resources between competing (alternative) choices in a way that minimizes the regret. A notable alternative setup for the multi-armed bandit problem includes the "best arm identification (BAI)" problem where the goal is instead to identify the best choice by the end of a finite number of rounds. The multi-armed bandit problem is a classic reinforcement learning problem that exemplifies the exploration–exploitation tradeoff dilemma. In contrast to general reinforcement learning, the selected actions in bandit problems do not affect the reward distribution of the arms. The multi-armed bandit problem also falls into the broad category of stochastic scheduling. In the problem, each machine provides a random reward from a probability distribution specific to that machine, that is not known a priori. The objective of the gambler is to maximize the sum of rewards earned through a sequence of lever pulls. The crucial tradeoff the gambler faces at each trial is between "exploitation" of the machine that has the highest expected payoff and "exploration" to get more information about the expected payoffs of the other machines. The trade-off between exploration and exploitation is also faced in machine learning. In practice, multi-armed bandits have been used to model problems such as managing research projects in a large organization, like a science foundation or a pharmaceutical company. In early versions of the problem, the gambler begins with no initial knowledge about the machines. Herbert Robbins in 1952, realizing the importance of the problem, constructed convergent population selection strategies in "some aspects of the sequential design of experiments". A theorem, the Gittins index, first published by John C. Gittins, gives an optimal policy for maximizing the expected discounted reward. == Empirical motivation == The multi-armed bandit problem models an agent that simultaneously attempts to acquire new knowledge (called "exploration") and optimize their decisions based on existing knowledge (called "exploitation"). The agent attempts to balance these competing tasks in order to maximize their total value over the period of time considered. There are many practical applications of the bandit model, for example: clinical trials investigating the effects of different experimental treatments while minimizing patient losses, adaptive routing efforts for minimizing delays in a network, financial portfolio design In these practical examples, the problem requires balancing reward maximization based on the knowledge already acquired with attempting new actions to further increase knowledge. This is known as the exploitation vs. exploration tradeoff in machine learning. The model has also been used to control dynamic allocation of resources to different projects, answering the question of which project to work on, given uncertainty about the difficulty and payoff of each possibility. Originally considered by Allied scientists in World War II, it proved so intractable that, according to Peter Whittle, the problem was proposed to be dropped over Germany so that German scientists could also waste their time on it. The version of the problem now commonly analyzed was formulated by Herbert Robbins in 1952. == The multi-armed bandit model == The multi-armed bandit (short: bandit or MAB) can be seen as a set of real distributions B = { R 1 , … , R K } {\displaystyle B=\{R_{1},\dots ,R_{K}\}} , each distribution being associated with the rewards delivered by one of the K ∈ N + {\displaystyle K\in \mathbb {N} ^{+}} levers. Let μ 1 , … , μ K {\displaystyle \mu _{1},\dots ,\mu _{K}} be the mean values associated with these reward distributions. The gambler iteratively plays one lever per round and observes the associated reward. The objective is to maximize the sum of the collected rewards. The horizon H {\displaystyle H} is the number of rounds that remain to be played. The bandit problem is formally equivalent to a one-state Markov decision process. The regret ρ {\displaystyle \rho } after T {\displaystyle T} rounds is defined as the expected difference between the reward sum associated with an optimal strategy and the sum of the collected rewards: ρ = T μ ∗ − ∑ t = 1 T r ^ t {\displaystyle \rho =T\mu ^{}-\sum _{t=1}^{T}{\widehat {r}}_{t}} , where μ ∗ {\displaystyle \mu ^{}} is the maximal reward mean, μ ∗ = max k { μ k } {\displaystyle \mu ^{}=\max _{k}\{\mu _{k}\}} , and r ^ t {\displaystyle {\widehat {r}}_{t}} is the reward in round t {\displaystyle t} . A zero-regret strategy is a strategy whose average regret per round ρ / T {\displaystyle \rho /T} tends to zero with probability 1 when the number of played rounds tends to infinity. Intuitively, zero-regret strategies are guaranteed to converge to a (not necessarily unique) optimal strategy if enough rounds are played. == Variations == A common formulation is the Binary multi-armed bandit or Bernoulli multi-armed bandit, which issues a reward of one with probability p {\displaystyle p} , and otherwise a reward of zero. Another formulation of the multi-armed bandit has each arm representing an independent Markov machine. Each time a particular arm is played, the state of that machine advances to a new one, chosen according to the Markov state evolution probabilities. There is a reward depending on the current state of the machine. In a generalization called the "restless bandit problem", the states of non-played arms can also evolve over time. There has also been discussion of systems where the number of choices (about which arm to play) increases over time. Computer science researchers have studied multi-armed bandits under worst-case assumptions, obtaining algorithms to minimize regret in both finite and infinite (asymptotic) time horizons for both stochastic and non-stochastic arm payoffs. === Best arm identification === An important variation of the classical regret minimization problem in multi-armed bandits is best arm identification (BAI), also known as pure exploration. This problem is crucial in various applications, including clinical trials, adaptive routing, recommendation systems, and A/B testing. In BAI, the objective is to identify the arm having the highest expected reward. An algorithm in this setting is characterized by a sampling rule, a decision rule, and a stopping rule, described as follows: Sampling rule: ( a t ) t ≥ 1 {\displaystyle (a_{t})_{t\geq 1}} is a sequence of actions at each time step Stopping rule: τ {\displaystyle \tau } is a (random) stopping time which suggests when to stop collecting samples Decision rule: a ^ τ {\displaystyle {\hat {a}}_{\tau }} is a guess on the best arm based on the data collected up to time τ {\displaystyle \tau } There are two predominant settings in BAI: Fixed budget setting: Given a time horizon T ≥ 1 {\displaystyle T\geq 1} , the objective is to identify the arm with the highest expected reward a ⋆ ∈ arg max k μ k {\displaystyle a^{\star }\in \arg \max _{k}\mu _{k}} minimizing probability of error δ {\displaystyle \delta } . Fixed confidence setting: Given a confidence level δ ∈ ( 0 , 1 ) {\displaystyle \delta \in (0,1)} , the objective is to identify the arm with the highest expected reward a ⋆ ∈ arg max k μ k {\displaystyle a^{\star }\in \arg \max _{k}\mu _{k}} with the least possible amount of trials and with probability of error P ( a ^ τ ≠ a ⋆ ) ≤ δ {\displaystyle \mathbb {P} ({\hat {a}}_{\tau }\neq a^{\star })\leq \delta } . For example using a decision rule, we could use m 1 {\displaystyle m_{1}} where m {\displaystyle m} is the machine no.1 (you can use a different variable respectively) and 1 {\displaystyle 1} is the amount for each time an attempt is made at pulling the lever, where ∫ ∑ m 1 , m 2 , ( . . . ) = M {\displaystyle \int \sum m_{1},m_{2},(...)=M} , identify M {\displaystyle M} as the sum of each attempts m 1 + m 2 {\displaystyle m_{1}+m_{2}} , (...) as needed, and from there you can get a ratio, sum or mean as quantitative probability and sample your formulation for each slots. You can also do ∫ ∑ k ∝ i N − (
Deep learning in photoacoustic imaging
Photoacoustic imaging (PA) is based on the photoacoustic effect, in which optical absorption causes a rise in temperature, which causes a subsequent rise in pressure via thermo-elastic expansion. This pressure rise propagates through the tissue and is sensed via ultrasonic transducers. Due to the proportionality between the optical absorption, the rise in temperature, and the rise in pressure, the ultrasound pressure wave signal can be used to quantify the original optical energy deposition within the tissue. Photoacoustic imaging has applications of deep learning in both photoacoustic computed tomography (PACT) and photoacoustic microscopy (PAM). PACT utilizes wide-field optical excitation and an array of unfocused ultrasound transducers. Similar to other computed tomography methods, the sample is imaged at multiple view angles, which are then used to perform an inverse reconstruction algorithm based on the detection geometry (typically through universal backprojection, modified delay-and-sum, or time reversal ) to elicit the initial pressure distribution within the tissue. PAM on the other hand uses focused ultrasound detection combined with weakly focused optical excitation (acoustic resolution PAM or AR-PAM) or tightly focused optical excitation (optical resolution PAM or OR-PAM). PAM typically captures images point-by-point via a mechanical raster scanning pattern. At each scanned point, the acoustic time-of-flight provides axial resolution while the acoustic focusing yields lateral resolution. == Applications of deep learning in PACT == The first application of deep learning in PACT was by Reiter et al. in which a deep neural network was trained to learn spatial impulse responses and locate photoacoustic point sources. The resulting mean axial and lateral point location errors on 2,412 of their randomly selected test images were 0.28 mm and 0.37 mm respectively. After this initial implementation, the applications of deep learning in PACT have branched out primarily into removing artifacts from acoustic reflections, sparse sampling, limited-view, and limited-bandwidth. There has also been some recent work in PACT toward using deep learning for wavefront localization. There have been networks based on fusion of information from two different reconstructions to improve the reconstruction using deep learning fusion based networks. === Using deep learning to locate photoacoustic point sources === Traditional photoacoustic beamforming techniques modeled photoacoustic wave propagation by using detector array geometry and the time-of-flight to account for differences in the PA signal arrival time. However, this technique failed to account for reverberant acoustic signals caused by acoustic reflection, resulting in acoustic reflection artifacts that corrupt the true photoacoustic point source location information. In Reiter et al., a convolutional neural network (similar to a simple VGG-16 style architecture) was used that took pre-beamformed photoacoustic data as input and outputted a classification result specifying the 2-D point source location. ==== Deep learning for PA wavefront localization ==== Johnstonbaugh et al. was able to localize the source of photoacoustic wavefronts with a deep neural network. The network used was an encoder-decoder style convolutional neural network. The encoder-decoder network was made of residual convolution, upsampling, and high field-of-view convolution modules. A Nyquist convolution layer and differentiable spatial-to-numerical transform layer were also used within the architecture. Simulated PA wavefronts served as the input for training the model. To create the wavefronts, the forward simulation of light propagation was done with the NIRFast toolbox and the light-diffusion approximation, while the forward simulation of sound propagation was done with the K-Wave toolbox. The simulated wavefronts were subjected to different scattering mediums and Gaussian noise. The output for the network was an artifact free heat map of the targets axial and lateral position. The network had a mean error rate of less than 30 microns when localizing target below 40 mm and had a mean error rate of 1.06 mm for localizing targets between 40 mm and 60 mm. With a slight modification to the network, the model was able to accommodate multi target localization. A validation experiment was performed in which pencil lead was submerged into an intralipid solution at a depth of 32 mm. The network was able to localize the lead's position when the solution had a reduced scattering coefficient of 0, 5, 10, and 15 cm−1. The results of the network show improvements over standard delay-and-sum or frequency-domain beamforming algorithms and Johnstonbaugh proposes that this technology could be used for optical wavefront shaping, circulating melanoma cell detection, and real-time vascular surgeries. === Removing acoustic reflection artifacts (in the presence of multiple sources and channel noise) === Building on the work of Reiter et al., Allman et al. utilized a full VGG-16 architecture to locate point sources and remove reflection artifacts within raw photoacoustic channel data (in the presence of multiple sources and channel noise). This utilization of deep learning trained on simulated data produced in the MATLAB k-wave library, and then later reaffirmed their results on experimental data. === Ill-posed PACT reconstruction === In PACT, tomographic reconstruction is performed, in which the projections from multiple solid angles are combined to form an image. When reconstruction methods like filtered backprojection or time reversal, are ill-posed inverse problems due to sampling under the Nyquist-Shannon's sampling requirement or with limited-bandwidth/view, the resulting reconstruction contains image artifacts. Traditionally these artifacts were removed with slow iterative methods like total variation minimization, but the advent of deep learning approaches has opened a new avenue that utilizes a priori knowledge from network training to remove artifacts. In the deep learning methods that seek to remove these sparse sampling, limited-bandwidth, and limited-view artifacts, the typical workflow involves first performing the ill-posed reconstruction technique to transform the pre-beamformed data into a 2-D representation of the initial pressure distribution that contains artifacts. Then, a convolutional neural network (CNN) is trained to remove the artifacts, in order to produce an artifact-free representation of the ground truth initial pressure distribution. ==== Using deep learning to remove sparse sampling artifacts ==== When the density of uniform tomographic view angles is under what is prescribed by the Nyquist-Shannon's sampling theorem, it is said that the imaging system is performing sparse sampling. Sparse sampling typically occurs as a way of keeping production costs low and improving image acquisition speed. The typical network architectures used to remove these sparse sampling artifacts are U-net and Fully Dense (FD) U-net. Both of these architectures contain a compression and decompression phase. The compression phase learns to compress the image to a latent representation that lacks the imaging artifacts and other details. The decompression phase then combines with information passed by the residual connections in order to add back image details without adding in the details associated with the artifacts. FD U-net modifies the original U-net architecture by including dense blocks that allow layers to utilize information learned by previous layers within the dense block. Another technique was proposed using a simple CNN based architecture for removal of artifacts and improving the k-wave image reconstruction. ==== Removing limited-view artifacts with deep learning ==== When a region of partial solid angles are not captured, generally due to geometric limitations, the image acquisition is said to have limited-view. As illustrated by the experiments of Davoudi et al., limited-view corruptions can be directly observed as missing information in the frequency domain of the reconstructed image. Limited-view, similar to sparse sampling, makes the initial reconstruction algorithm ill-posed. Prior to deep learning, the limited-view problem was addressed with complex hardware such as acoustic deflectors and full ring-shaped transducer arrays, as well as solutions like compressed sensing, weighted factor, and iterative filtered backprojection. The result of this ill-posed reconstruction is imaging artifacts that can be removed by CNNs. The deep learning algorithms used to remove limited-view artifacts include U-net and FD U-net, as well as generative adversarial networks (GANs) and volumetric versions of U-net. One GAN implementation of note improved upon U-net by using U-net as a generator and VGG as a discriminator, with the Wasserstein metric and gradient penalty to stabilize training (WGAN-GP). ==== Pixel-wise interpolation
Electronic business
Electronic business (also known as online business or e-business) is any kind of business or commercial activity that includes sharing information across the internet. Commerce constitutes the exchange of products and services between businesses, groups, and individuals; and can be seen as one of the essential activities of any business. E-commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups, and other organizations, while e-business does not only deal with online commercial operations of enterprises, but also deals with their other organizational matters such as human resource management and production. The term "e-business" was coined by IBM's marketing and Internet team in 1996. == Market participants == Electronic business can take place between a very large number of market participants; it can be between business and consumer, private individuals, public administrations, or any other organizations such as non-governmental organizations (NGOs). These various market participants can be divided into three main groups: Business (B) Consumer (C) Administration (A) All of them can be either buyers or service providers within the market. There are nine possible combinations for electronic business relationships. B2C and B2B belong to E-commerce, while A2B and A2A belong to the E-government sector which is also a part of the electronic business. == History == One of the founding pillars of electronic business was the development of the Electronic Data Interchange (EDI) electronic data interchange. This system replaced traditional mailing and faxing of documents with a digital transfer of data from one computer to another, without any human intervention. Michael Aldrich is considered the developer of the predecessor to online shopping. In 1979, the entrepreneur connected a television set to a transaction processing computer with a telephone line and called it "teleshopping", meaning shopping at distance. From the mid-nineties, major advancements were made in the commercial use of the Internet. Amazon, which launched in 1995, started as an online bookstore and grew to become nowadays the largest online retailer worldwide, selling food, toys, electronics, apparel and more. Other successful stories of online marketplaces include eBay or Etsy. In 1994, IBM, with its agency Ogilvy & Mather, began to use its foundation in IT solutions and expertise to market itself as a leader of conducting business on the Internet through the term "e-business." Then CEO Louis V. Gerstner, Jr. was prepared to invest $1 billion to market this new brand. After conducting worldwide market research in October 1997, IBM began with an eight-page piece in The Wall Street Journal that would introduce the concept of "e-business" and advertise IBM's expertise in the new field. IBM decided not to trademark the term "e-business" in the hopes that other companies would use the term and create an entirely new industry. However, this proved to be too successful and by 2000, to differentiate itself, IBM launched a $300 million campaign about its "e-business infrastructure" capabilities. Since that time, the terms, "e-business" and "e-commerce" have been loosely interchangeable and have become a part of the common vernacular. According to the U.S. Department Of Commerce, the estimated retail e-commerce sales in Q1 2020 were representing almost 12% of total U.S. retail sales, against 4% for Q1 2010. == Business model == The transformation toward e-business is complex and in order for it to succeed, there is a need to balance between strategy, an adapted business model (e-intermediary, marketplaces), right processes (sales, marketing) and technology (Supply Chain Management, Customer Relationship Management). When organizations go online, they have to decide which e-business models best suit their goals. A business model is defined as the organization of product, service and information flows, and the source of revenues and benefits for suppliers and customers. The concept of the e-business model is the same but used in online presence. === Revenue model === A key component of the business model is the revenue model or profit model, which is a framework for generating revenues. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. It is a key component of a company's business model. It primarily identifies what product or service will be created in order to generate revenues and the ways in which the product or service will be sold. Without a well-defined revenue model, that is, a clear plan of how to generate revenues, new businesses will more likely struggle due to costs that they will not be able to sustain. By having a revenue model, a business can focus on a target audience, fund development plans for a product or service, establish marketing plans, begin a line of credit and raise capital. ==== E-commerce ==== E-commerce (short for "electronic commerce") is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail. == Concerns == While much has been written of the economic advantages of Internet-enabled commerce, there is also evidence that some aspects of the internet such as maps and location-aware services may serve to reinforce economic inequality and the digital divide. Electronic commerce may be responsible for consolidation and the decline of mom-and-pop, brick and mortar businesses resulting in increases in income inequality. === Security === E-business systems naturally have greater security risks than traditional business systems, therefore it is important for e-business systems to be fully protected against these risks. A far greater number of people have access to e-businesses through the internet than would have access to a traditional business. Customers, suppliers, employees, and numerous other people use any particular e-business system daily and expect their confidential information to stay secure. Hackers are one of the great threats to the security of e-businesses. Some common security concerns for e-Businesses include keeping business and customer information private and confidential, the authenticity of data, and data integrity. Some of the methods of protecting e-business security and keeping information secure include physical security measures as well as data storage, data transmission, anti-virus software, firewalls, and encryption to list a few. ==== Privacy and confidentiality ==== Confidentiality is the extent to which businesses makes personal information available to other businesses and individuals. With any business, confidential information must remain secure and only be accessible to the intended recipient. However, this becomes even more difficult when dealing with e-businesses specifically. To keep such information secure means protecting any electronic records and files from unauthorized access, as well as ensuring safe transmission and data storage of such information. Tools such as encryption and firewalls manage this specific concern within e-business. ==== Authenticity ==== E-business transactions pose greater challenges for establishing authenticity due to the ease with which electronic information may be altered and copied. Both parties in an e-business transaction want to have the assurance that the other party is who they claim to be, especially when a customer places an order and then submits a payment electronically. One common way to ensure this is to limit access to a network or trusted parties by using a virtual private network (VPN) technology. The establishment of authenticity is even greater when a combination of techniques are used, and such techniques involve checking "something you know" (i.e. password or PIN), "something you need" (i.e. credit card), or "something you are" (i.e. digital signatures or voice recognition methods). Many times in e-business, however, "something you are" is pretty strongly verified by checking the purchaser's "something you have" (i.e. credit card) and "something you know" (i.e. card number). ==== Data integrity ==== Data integrity answers the question "Can the information be changed or corrupted in any way?" This leads to the assurance that the message received is identical to the message sent. A business needs to be confident that data is not changed in transit, whether deliberately or by accident. To help with data integrity, firewalls protect stored data against unauthorized access, while
Color image pipeline
An image pipeline or video pipeline is the set of components commonly used between an image source (such as a camera, a scanner, or the rendering engine in a computer game), and an image renderer (such as a television set, a computer screen, a computer printer or cinema screen), or for performing any intermediate digital image processing consisting of two or more separate processing blocks. An image/video pipeline may be implemented as computer software, in a digital signal processor, on an FPGA, or as fixed-function ASIC. In addition, analog circuits can be used to do many of the same functions. Typical components include image sensor corrections (including debayering or applying a Bayer filter), noise reduction, image scaling, gamma correction, image enhancement, colorspace conversion (between formats such as RGB, YUV or YCbCr), chroma subsampling, framerate conversion, image compression/video compression (such as JPEG), and computer data storage/data transmission. Typical goals of an imaging pipeline may be perceptually pleasing end-results, colorimetric precision, a high degree of flexibility, low cost/low CPU utilization/long battery life, or reduction in bandwidth/file size. Some functions may be algorithmically linear. Mathematically, those elements can be connected in any order without changing the end-result. As digital computers use a finite approximation to numerical computing, this is in practice not true. Other elements may be non-linear or time-variant. For both cases, there is often one or a few sequences of components that makes sense for optimum precision and minimum hardware-cost/CPU-load.
Poop Map
Poop Map is a social app where users can track on a map where and when they defecate. In addition to logging location and time of each bowel movement, users can also add a photo, "like" other users' logs, and rate each account. The social elements of the app allow for groups of users to create a competitive league. Certain behaviors unlock achievements in-app. == Development == The app was created by app developer Nino Uzelac. It was launched in July 2013. == Popularity == The app charted at number one on the Apple App Store charts in 2021 after going viral on TikTok. As of September 2024, the app has a 4.8 rating on the App Store and more than 58,000 ratings. It also has more than one million downloads on the Google Play Store. Poop Map is notably popular among hikers, and has been written about in the outdoors magazine Outside.
Telebirr
Telebirr (Amharic: ቴሌብር) is a mobile payment service developed and was launched by Ethio telecom, the state owned telecommunication and Internet service provider in Ethiopia. It took five months to develop the end-to-end service. It facilitates the delivery of cashless transactions. The platform deployed currently has the capacity of processing up to 100 transactions per second (TPS) and can be scaled up to 1000 TPS. The service is accessible via SMS, USSD, and smartphone applications. Telebirr works in five languages. == Services == Though the service is fully accessible for any customer of Ethio telecom, the users need to register through the mobile application called Telebirr or using an authorized agent or Ethio telecom shop or Unstructured Supplementary Service Data (USSD), 127# nationally. However, Telebirr also provides a “quick registration” by using any information that already exists in Ethio telecom's system.
Carrier cloud
In cloud computing, a carrier cloud is a class of cloud that integrates wide area networks (WAN) and other attributes of communications service providers’ carrier-grade networks to enable the deployment of highly-complex applications in the cloud. In contrast, classic cloud computing focuses on the data center and does not address the network connecting data centers and cloud users. This may result in unpredictable response times and security issues when business-critical data are transferred over the Internet. == History == The advent of virtualization technology, cost-effective computing hardware, and ubiquitous Internet connectivity have enabled the first wave of cloud services starting in the early years of the 21st century. But many businesses and other organizations hesitated to move to more demanding applications, from on-premises dedicated hardware to private or public clouds. As a response, communications service providers started in the 2010/2011 time frame to develop carrier clouds that address perceived weaknesses in existing cloud services. Cited weaknesses vary but often include possible downtime, security issues, high cost of custom software and data transfer, inflexibility of some cloud apps, poor customer and nonfulfillment of service level agreements (SLAs). == Characteristics == To enable the deployment of time-sensitive and business critical applications in the cloud, the carrier cloud is designed to match or even exceed the characteristics of on-premises deployments. Therefore, the carrier cloud is characterized by some or all of the following items: Configurable, elastic network performance: Typical cloud computing solutions use the best effort of the public Internet to connect cloud users and data centers. This approach provides instant connectivity but does not offer control over network capacities, latencies, and jitter. Carrier clouds address these gaps with content delivery networks and/or dedicated virtual private networks (VPN) at OSI layers 1 (optical wavelengths), 2 (data link layer), and 3 (network layer). These VPNs can be configured to offer the desired performance parameters and exhibit the same type of elasticity for the network that regular clouds provide for servers and storage. To achieve the requested performance parameters, such as low latency, cloud applications can be (automatically) allocated to distributed data centers that are close enough to the cloud users. Automatic resource placement: For a cloud with multiple data centers, information about both the data center and the connecting network is relevant for a decision of where to place cloud images and storage volumes. For this decision, carrier clouds can obtain relevant information about the network, e.g., using the Application-Layer Traffic Optimization (ALTO) protocol. High level of security and governance: Cloud application providers are subject to general and domain specific security, privacy, and governance requirements and regulations, such as the European Data Protection Directive and the U.S. Health Insurance Portability and Accountability Act. For added security, the wide area network of the carrier cloud can provide segregated encrypted or unencrypted network links that are not accessible from the general Internet. At the data center, the carrier cloud provides e.g. virtual private servers, management processes, logs, and documentation to fulfill security and governance rules. Location control: Fundamentally, cloud users should not be concerned with the geographic location of their cloud resources. However, privacy and other regulations may mandate that certain types of data must not be sent outside a national jurisdiction or other geographical region. Open APIs: Carrier clouds provide graphical user interfaces and Web application programming interfaces that allow cloud application providers to set up, manage, and monitor both, the data center and the WAN, of their cloud services. == Architecture == Carrier clouds encompass data centers at different network tiers and wide area networks that connect multiple data centers to each other as well as to the cloud users. Links between data centers are used for failover, overflow, backup, and geographic diversity. Carrier clouds can be set up as public, private, or hybrid clouds. The carrier cloud federates these cloud entities by using a single management system to orchestrate, manage, and monitor data center and network resources as a single system.