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We consider a large-scale service system where incoming tasks have to be instantaneously dispatched to one out of many parallel server pools. The user-perceived performance degrades with the number of concurrent tasks and the dispatcher aims at maximizing the overall quality of service by balancing the load through a simple threshold policy. We demonstrate that such a policy is optimal on the fluid and diffusion scales, while only involving a small communication overhead, which is crucial for large-scale deployments. In order to set the threshold optimally, it is important, however, to learn the load of the system, which may be unknown. For that purpose, we design a control rule for tuning the threshold in an online manner. We derive conditions that guarantee that this adaptive threshold settles at the optimal value, along with estimates for the time until this happens. In addition, we provide numerical experiments that support the theoretical results and further indicate that our policy copes effectively with time-varying demand patterns. Summary of Contribution: Data centers and cloud computing platforms are the digital factories of the world, and managing resources and workloads in these systems involves operations research challenges of an unprecedented scale. Due to the massive size, complex dynamics, and wide range of time scales, the design and implementation of optimal resource-allocation strategies is prohibitively demanding from a computation and communication perspective. These resource-allocation strategies are essential for certain interactive applications, for which the available computing resources need to be distributed optimally among users in order to provide the best overall experienced performance. This is the subject of the present article, which considers the problem of distributing tasks among the various server pools of a large-scale service system, with the objective of optimizing the overall quality of service provided to users. A solution to this load-balancing problem cannot rely on maintaining complete state information at the gateway of the system, since this is computationally unfeasible, due to the magnitude and complexity of modern data centers and cloud computing platforms. Therefore, we examine a computationally light load-balancing algorithm that is yet asymptotically optimal in a regime where the size of the system approaches infinity. The analysis is based on a Markovian stochastic model, which is studied through fluid and diffusion limits in the aforementioned large-scale regime. The article analyzes the load-balancing algorithm theoretically and provides numerical experiments that support and extend the theoretical results. 

A Quantum Key Distribution (QKD) protocol describes how two remote parties can establish a secret key by communicating over a quantum and a public classical channel that both can be accessed by an eavesdropper. QKD protocols using energy-time entangled photon pairs are of growing practical interest because of their potential to provide a higher secure key rate over long distances by carrying multiple bits per entangled photon pair. We consider a system where information can be extracted by measuring random times of a sequence of entangled photon arrivals. Our goal is to maximize the utility of each such pair. We propose a discrete-time model for the photon arrival process, and establish a theoretical bound on the number of raw bits that can be generated under this model. We first analyze a well-known simple binning encoding scheme, and show that it generates a significantly lower information rate than what is theoretically possible. We then propose three adaptive schemes that increase the number of raw bits generated per photon, and compute and compare the information rates they offer. Moreover, the effect of public channel communication on the secret key rates of the proposed schemes is investigated.