Degraded provisioning provides an effective solution to flexibly allocate resources in various dimensions to reduce blocking for differentiated demands when network congestion occurs. In this work, we investigate the novel problem of online degraded provisioning in service-differentiated multi-layer networks with optical elasticity. Quality of Service (QoS) is assured by service-holding-time prolongation and immediate access as soon as the service arrives without set-up delay. We decompose the problem into degraded routing and degraded resource allocation stages, and design polynomial-time algorithms with the enhanced multi-layer architecture to exploit network flexibility in temporal and spectral dimensions. Numerical results verify that we can achieve significant blocking reduction, especially for requests with higher priorities. They also indicate that degradation in optical layer can increase the network capacity, while degradation in electric layer provides flexible time-bandwidth exchange.
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