Dynamic Resource Allocation for Spot Markets in Cloud Computing Environments

The advent of cloud computing promises to provide computational resources to customers like public utilities such as water and electricity. To deal with dynamically fluctuating resource demands, market-driven resource allocation has been proposed and recently implemented by public Infrastructure-as-a-Service (IaaS) providers like Amazon EC2. In this environment, cloud resources are offered in distinct types of virtual machines (VMs) and the cloud provider runs an auction-based market for each VM type with the goal of achieving maximum revenue over time. However, as demand for each type of VMs can fluctuate over time, it is necessary to adjust the capacity allocated to each VM type to match the demand in order to maximize total revenue while minimizing the energy cost. In this paper, we consider the case of a single cloud provider and address the question how to best match customer demand in terms of both supply and price in order to maximize the providers revenue and customer satisfactions while minimizing energy cost. In particular, we model this problem as a constrained discrete-time optimal control problem and use Model Predictive Control (MPC) to find its solution. Simulation studies using real cloud workloads indicate that under dynamic workload conditions, our proposed solution achieves higher net income than static allocation strategies and minimizes the average request waiting time.