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Online Auctions in IaaS Clouds: Welfare and Profit Maximization with Server Costs

Published: 15 June 2015 Publication History

Abstract

Auction design has recently been studied for dynamic resource bundling and VM provisioning in IaaS clouds, but is mostly restricted to the one-shot or offline setting. This work targets a more realistic case of online VM auction design, where: (i) cloud users bid for resources into the future to assemble customized VMs with desired occupation durations; (ii) the cloud provider dynamically packs multiple types of resources on heterogeneous physical machines (servers) into the requested VMs; (iii) the operational costs of servers are considered in resource allocation; (iv) both social welfare and the cloud provider's net profit are to be maximized over the system running span. We design truthful, polynomial time auctions to achieve social welfare maximization and/or the provider's profit maximization with good competitive ratios. Our mechanisms consist of two main modules: (1) an online primal-dual optimization framework for VM allocation to maximize the social welfare with server costs, and for revealing the payments through the dual variables to guarantee truthfulness; and (2) a randomized reduction algorithm to convert the social welfare maximizing auctions to ones that provide a maximal expected profit for the provider, with competitive ratios comparable to those for social welfare. We adopt a new application of Fenchel duality in our primal-dual framework, which provides richer structures for convex programs than the commonly used Lagrangian duality, and our optimization framework is general and expressive enough to handle various convex server cost functions. The efficacy of the online auctions is validated through careful theoretical analysis and trace-driven simulation studies.

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Published In

cover image ACM SIGMETRICS Performance Evaluation Review
ACM SIGMETRICS Performance Evaluation Review  Volume 43, Issue 1
Performance evaluation review
June 2015
468 pages
ISSN:0163-5999
DOI:10.1145/2796314
Issue’s Table of Contents
  • cover image ACM Conferences
    SIGMETRICS '15: Proceedings of the 2015 ACM SIGMETRICS International Conference on Measurement and Modeling of Computer Systems
    June 2015
    488 pages
    ISBN:9781450334860
    DOI:10.1145/2745844
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Publication History

Published: 15 June 2015
Published in SIGMETRICS Volume 43, Issue 1

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Author Tags

  1. auction
  2. cloud computing
  3. online algorithms
  4. pricing
  5. resource allocation
  6. truthful mechanisms

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