Characterizing Cloud Federation for Enhancing Providers' Profit

Cloud federation has been proposed as a new paradigm that allows providers to avoid the limitation of owning only a restricted amount of resources, which forces them to reject new customers when they have not enough local resources to fulfill their customers' requirements. Federation allows a provider to dynamically outsource resources to other providers in response to demand variations. It also allows a provider that has underused resources to rent part of them to other providers. Both things could make the provider to get more profit when used adequately. This requires that the provider has a clear understanding of the potential of each federation decision, in order to choose the most convenient depending on the environment conditions. In this paper, we present a complete characterization of providers' federation in the Cloud, including decision equations to outsource resources to other providers, rent free resources to other providers (i.e. insourcing), or shutdown unused nodes to save power, and we characterize these decisions as a function of several parameters. Then, we demonstrate in the evaluation section how a provider can enhance its profit by using these equations to exploit federation, and how the different parameters influence which is the best decision on each situation.