A Shapley-Value Mechanism for Bandwidth On Demand between Datacenters

Recent studies in cloud resource allocation and pricing have focused on computing and storage resources but not network bandwidth. Cloud users nowadays customarily deploy services across multiple geo-distributed datacenters, with significant inter-datacenter traffic generated, paid by cloud providers to ISPs. An effective bandwidth allocation and charging mechanism is needed between the cloud provider and the cloud users. Existing volume based static charging schemes lack market efficiency. This work presents the first dynamic pricing mechanism for inter-data-center on-demand bandwidth, via a Shapley value based auction. Our auction is expressive enough to accept bids as a flat bandwidth rate plus a time duration, or a data volume with a transfer deadline. We start with an offline auction, design an optimal end-to-end traffic scheduling approach, and exploit the Shapley value in computing payments. Our auction is truthful, individual rational, budget balanced and approximately efficient in social welfare. An online version of the auction follows, where decisions are made instantly upon the arrival of each user's realtime transmission demand. We propose an efficient online traffic scheduling algorithm, and approximate the offline Shapley value based payments on the fly. We validate our mechanism design with solid theoretical analysis, as well as trace-driven simulation studies.