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Fairness in Revenue Sharing for Stable Cloud Federations

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Economics of Grids, Clouds, Systems, and Services (GECON 2017)

Part of the book series: Lecture Notes in Computer Science ((LNCCN,volume 10537))

Abstract

A cloud federation is a platform, on which a number of cloud service providers (CSPs) builds an alliance and cooperates to share cloud resources. It is an appropriate way to address cloud elasticity needs. It expands resources beyond the limited capacity of a single CSP. It also helps maximizing profit for any CSP by improving the utilization of their resources. An alliance can be formed, only if potential members (CSPs) see marginal benefits in joining a federation. Once the alliance is formed, a fair distribution of revenue among the members of the alliance becomes important for the alliance to sustain. The distribution can be proportional to the contribution to the alliance. This paper analyzes the Shapley value method as a revenue sharing model for cloud federations. Our simulation results of the model show that the model increases the revenue for the federation due to the aggregation of spare capacity. The model provides a fair distribution of the revenue to the members of the federation, improving the stability of cloud federations.

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Acknowledgements

The research was conducted within the project BASMATI (Cloud Brokerage Across Borders for Mobile Users and Applications), which was supported from the ICT R&D program of the Korean MSIT/IITP [R0115-16-0001].

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Authors and Affiliations

  1. Technology Management, Economics and Policy Program, College of Engineering, Seoul National University, Gwanak-Ro 1, Gwanak-Gu, Seoul, 08826, South Korea

    Ram Govinda Aryal & Jörn Altmann

Authors
  1. Ram Govinda Aryal
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  2. Jörn Altmann
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Corresponding author

Correspondence to Ram Govinda Aryal .

Editor information

Editors and Affiliations

  1. UPPA, LIUPPA laboratory, UFR Sciences et Techniques, Pau, France

    Congduc Pham

  2. Seoul National University, Seoul, Korea (Republic of)

    Jörn Altmann

  3. Department of Computer Science, Universidad de Zaragoza, Zaragoza, Spain

    José Ángel Bañares

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Aryal, R.G., Altmann, J. (2017). Fairness in Revenue Sharing for Stable Cloud Federations. In: Pham, C., Altmann, J., Bañares, J. (eds) Economics of Grids, Clouds, Systems, and Services. GECON 2017. Lecture Notes in Computer Science(), vol 10537. Springer, Cham. https://doi.org/10.1007/978-3-319-68066-8_17

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  • DOI: https://doi.org/10.1007/978-3-319-68066-8_17

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-68065-1

  • Online ISBN: 978-3-319-68066-8

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