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Recouping Energy Costs From Cloud Tenants: Tenant Demand Response Aware Pricing Design

Published: 14 July 2015 Publication History

Abstract

As energy costs become increasingly greater contributors to a cloud provider's overall costs, it is important for the cloud to recoup these energy costs from its tenants for profitability via appropriate pricing design. The poor predictability of real-world tenants' demand and demand responses (DRs) make such pricing design a challenging problem. We formulate a leader-follower game-based cloud pricing framework with the goal of maximizing cloud's profit. The key distinguishing aspect of our approach is our emphasis on modeling both the cloud and its tenants as working with low predictability in their inputs. Consequently, we model them as employing myopic control with short-term predictive models. Our empirical evaluation using tenant trace from IBM production data centers shows that (i) cloud's profit and VM prices are sensitive to the tradeoffs between its energy costs, tenant's demand and DR, and (ii) the cloud's estimation of tenants' demands/DR may significantly affect its profitability.

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cover image ACM Conferences
e-Energy '15: Proceedings of the 2015 ACM Sixth International Conference on Future Energy Systems
July 2015
334 pages
ISBN:9781450336093
DOI:10.1145/2768510
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: 14 July 2015

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  1. cloud tenant
  2. demand response
  3. game
  4. pricing design

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e-Energy '15 Paper Acceptance Rate 20 of 85 submissions, 24%;
Overall Acceptance Rate 160 of 446 submissions, 36%

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Cited By

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  • (2021)Resource Pricing and Demand Allocation for Revenue Maximization in IaaS Clouds: A Market-Oriented ApproachIEEE Transactions on Network and Service Management10.1109/TNSM.2021.308551918:3(3460-3475)Online publication date: Sep-2021
  • (2021)A Price-Incentive Resource Auction Mechanism Balancing the Interests Between Users and Cloud Service ProviderIEEE Transactions on Network and Service Management10.1109/TNSM.2020.303698918:2(2030-2045)Online publication date: Jun-2021
  • (2020)A Carbon-Aware Incentive Mechanism for Greening Colocation Data CentersIEEE Transactions on Cloud Computing10.1109/TCC.2017.27670438:1(4-16)Online publication date: 1-Jan-2020
  • (2020)Fair Online Power Capping for Emergency Handling in Multi-Tenant Cloud Data CentersIEEE Transactions on Cloud Computing10.1109/TCC.2017.27623118:1(152-166)Online publication date: 1-Jan-2020
  • (2019)DMC: A Differential Marketplace for Cloud Resources2019 19th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing (CCGRID)10.1109/CCGRID.2019.00034(198-209)Online publication date: May-2019
  • (2019)Energy-aware cost prediction and pricing of virtual machines in cloud computing environmentsFuture Generation Computer Systems10.1016/j.future.2018.10.02793:C(442-459)Online publication date: 1-Apr-2019
  • (2018)Improving Efficiency of Edge Computing Infrastructures through Orchestration Models †Computers10.3390/computers70200367:2(36)Online publication date: 20-Jun-2018
  • (2018)Ohm's Law in Data CentersProceedings of the 2018 ACM SIGSAC Conference on Computer and Communications Security10.1145/3243734.3243744(146-162)Online publication date: 15-Oct-2018
  • (2018)Public Cloud Differential Pricing Design Under Provider and Tenants Joint Demand ResponseProceedings of the Ninth International Conference on Future Energy Systems10.1145/3208903.3208938(21-32)Online publication date: 12-Jun-2018
  • (2018)Why Some Like It LoudProceedings of the ACM on Measurement and Analysis of Computing Systems10.1145/31794092:1(1-33)Online publication date: 3-Apr-2018
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