A central premise of active networking is that small amounts of user-specif
ic computation inserted at key locations within the network can significant
ly improve network-based application performance, Hence, a critical issue f
or active networking is the amount of resources required to achieve perform
ance gains since excessive demands on scarce node resources can have detrim
ental effects on the entire network. In this paper, we explore the trade-sp
ace between active resource utilization and performance, and attempt to pro
vide insights into where limited active resources should be located within
a given network topology in order to optimize performance. Simulation exper
iments based on performance assessments of the active error recovery/nomine
e-based congestion algorithm (AER/NCA) protocol - an active networks-based
reliable multicast protocol - reveal that a high percentage of the achievab
le performance gains can be attained with only a small number of optimally
selected network nodes providing active services. Further experiments show
that an early algorithm for dynamically activating-deactivating active serv
ices within the network can achieve a significant portion of the gains affo
rded by an optimal, static configuration. The implication here is that this
or similar algorithms hold significant promise as a means for active netwo
rks to dynamically self-optimize active resource allocation.